Augmented Reality raises price points
Customers are more likely to buy a product after engaging with an augmented reality experience and will do so at a higher price point, according to research from UK-based marketing communications firm Hidden Creative.
The research set out to prove the effectiveness of augmented reality versus traditional sales and marketing collateral, and the findings are laid out in the report, ‘Sales Technology: Selling with Augmented Reality’.
In trying to compare traditional marketing materials and display advertising with augmented reality (AR), 100 parents were shown a marketing communications and a display advert for a child’s toy, while another 100 parents were shown the child’s toy as an interactive augmented reality experience. Each person was then asked if they would consider buying this toy for a child and how much they would consider paying for the toy.
Among the study’s most significant findings:
- Likelihood to buy After viewing the 2D printed display advert, out of 100 parents, 45% would consider buying the toy for a child. Out of those who viewed the augmented reality experience, 74% of the parents would consider buying the toy for a child. What we found even more intriguing was the price point at which the parents were prepared to make the purchase.
- Attitude to price Out of those parents that viewed the printed advert, the average price of £5.99 was attributed as the estimated retail value of the product. Of those parents that engaged with the augmented reality experience, they estimated a higher average price of £7.99.
- Advertising engagement For advertisers there were other relevant findings with regard to the depth of engagement with the audience. The company calculated that the parents spent an average of 12 seconds actively engaged with the print advert. Those parents using the augmented reality experience did so for an average of 1 minute 23 seconds. The research shows that the more immersive the engagement, the more likely the customer is to buy, and in fact they are prepared to do so at a 30% higher price point. Engagement aids sales process: by enhancing the engagement and increasing the audience’s level of immersion, the entire experience becomes overwhelmingly favourable to both parties.
“It’s interesting – but not unexpected – that the study clearly indicates people were more engaged with the augmented reality experience than the display advert,” explained Matt Trubow, CEO for Hidden. “But more importantly, the audience was so engaged that they were willing to spend more to obtain the item after viewing the AR experience.”
The study report concluded that the most useful information is obtained through the tactile nature of the augmentation, and this information (which Hidden calls ‘mass intelligence’) is a by-product of the user’s interaction with the AR experience, and reveals customer trends that would otherwise be impossible to gather. According to Trubow, the ‘mass intelligence’ revealed by this kind of study may relate to a particular aspect or feature of a product – something that is not always forthcoming during a standard product demonstration, but that is of vital importance to the sales and marketing process. “There are distinct advantages to placing your product in the hands of the end user, and that’s not always possible outside of the retail environment,” concluded Trubow.
The report has been made available for free download from Hidden’s web site – click here (PDF document; no registration needed).