VR/AR

From Fun to Full-Funnel: The Marketing Power of Gen AI and AR

Giulia Manca, Ph.D. – Senior Research Consultant, eye square

Aarti Bhaskaran – Global Head of Research & Insights, Snap Inc.

Stefan Schonherr – EVP, Brand & Media Experience, eye square

Giulia Manca and Stefan Schonherr (both from eye square) and Aarti Bhaskaran (Snap) described how generative AI (GenAI) has been widely accepted by consumers. Marketers view the benefits to be centered on efficiency, speed and creativity. Stefan outlined a mixed-method methodology combining a global experimental consumer study with qualitative and quantitative research among U.S. marketing professionals. In-context eye tracking used Snap environments and eye square’s SEAL smart eye tracking technology. The experiment compared three ad conditions: static ads, GenAI-enhanced video ads and ads created with GenAI augmented reality (AR) lenses. Among the findings, GenAI-powered AR Lenses and video ads attracted and retained more attention than the static ad. Additionally, the lens users were much more engaged. The study also revealed that consumers were more accepting of AI when it was used for animation-style ads versus ads depicting the real world. They were comfortable with AI-generated products, objects and animals but not humans.

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From Fun to Full-Funnel: The Marketing Power of Gen AI and AR

From Fun to Full-Funnel: The Marketing Power of Gen AI and AR

Giulia Manca, Ph.D. – Senior Research Consultant, eye square

Aarti Bhaskaran – Global Head of Research & Insights, Snap Inc.

Stefan Schonherr – EVP, Brand & Media Experience, eye square

Giulia Manca and Stefan Schonherr (both from eye square) and Aarti Bhaskaran (Snap) described how generative AI (GenAI) has been widely accepted by consumers. Marketers view the benefits to be centered on efficiency, speed and creativity. Stefan outlined a mixed-method methodology combining a global experimental consumer study with qualitative and quantitative research among U.S. marketing professionals. In-context eye tracking used Snap environments and eye square’s SEAL smart eye tracking technology. The experiment compared three ad conditions: static ads, GenAI-enhanced video ads and ads created with GenAI augmented reality (AR) lenses. Among the findings, GenAI-powered AR Lenses and video ads attracted and retained more attention than the static ad. Additionally, the lens users were much more engaged. The study also revealed that consumers were more accepting of AI when it was used for animation-style ads versus ads depicting the real world. They were comfortable with AI-generated products, objects and animals but not humans. Key takeaways:
  • Campaigns that paired videos and AR powered by GenAI drove stronger full-funnel performance compared to static ads.
  • Consumers are more likely to accept the use of AI when disclosed. Transparency impacts consumer trust and perception.
  • The acceptability of GenAI varies by the creative component. GenAI should not be used in ads to depict humans or the real world.
  • GenAI is a tool, not a replacement for humans. Eighty-seven percent of marketers want to keep control when using GenAI for asset creation.

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  • Article

ARF KC Deep Dive: Shoppable Media

A review of the literature indicated that shoppable media is a growing trend in the U.S., with much room for expansion. Shoppable media blurs the boundaries between television and internet outlets (e.g., social platforms, retail websites). with social commerce being the most popular. Consumers engage with shoppable media through various access points such as QR codes and live videos on retail websites and social platforms. Ninety percent of consumers use internet-connected TVs, with 78% watching ad-supported streaming and 30% making purchases via QR codes or smart assistants.

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  • Article

ARF KC Deep Dive: Interactive Advertising

Research indicates that interactive advertising encourages two-way communication with consumers, engagement and participation with ads in real time. The articles and reports suggest that this ad format represents a strong and growing opportunity, especially shoppable ads. Also included in this project are reports and articles revealing media and consumer trends related to interactive advertising.

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Augmented Reality – Unlock New Technology to Drive Brand Growth

Augmented Reality – Unlock New Technology to Drive Brand Growth

Aarti Bhaskaran – Global Head of Research & Insights, Snap

Kara Louis – Group Research Manager, Snap

Aarti Bhaskaran and Kara Louis of Snap presented their amalgamation of work on augmented reality (AR) with key data and client case studies from the last two years. Showcasing the growth of the AR landscape, Aarti and Kara featured how consumers are gravitating towards AR and the expanding number of opportunities available for advertisers in reaching new audiences and utilizing within the media mix. Case studies include brands using AR try-on technology from Champs Sports and Clearly eyeglasses. Key takeaways:
  • AR usage is widespread and growing, from Boomers to GenZ. By the year 2025 there will be approximately 4.3 billion AR users across all generations.
  • Almost all marketers (91%) think consumers use AR for fun, but 67% of consumers prefer using AR for shopping over fun (53%).
  • Interacting with products that have AR experiences leads to a 94% higher purchase conversion rate, as individuals can better assess them and feel connected with brands. Certain AR applications can substitute physical shopping with different features varying across the customer journey.
  • Interactive and personalized shopping experiences reach Gen Z—92% are interested in using AR for shopping, with over half of Gen Z saying they’d be more likely to pay attention to ads using AR. Gen Zs are also twice as likely to buy items that they have experienced first using AR than those who don’t.
  • AR lenses on Snapchat outperformed all other media formats. Other platforms would need 14-20 ads to generate the same level of attention as Snapchat lenses.
  • AR not only drives short-term impact with higher purchase intent and brand preference, but it also improves brand opinion, influences implicit associations and increases likelihood to purchase and recommend.
  • The creative attributes that include logo and product branding, complexity, messaging and user experience show a significant relationship with AR performance in brand lift.

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Retail Media Networks, Generative AI Top JAR’s Industry-Informed Research Priorities

Retail Media Networks, Generative AI Top JAR’s Industry-Informed Research Priorities

  • JOURNAL OF ADVERTISING RESEARCH

Retail media networks, generative AI across creative, market research and trust, ad effectiveness and attention: These are among the topics highlighted on the Journal of Advertising Research’s list of 2024 research priorities. The list is a result of one-on-one interviews with advertising professionals by Editor-in-Chief Colin Campbell, who asked: "What are your biggest needs and challenges?"

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