70% of consumers, aged between 16 to 44 years old are aware of AR. Gen Z consists of roughly 2.47 billion people around the world. With an estimated $143 billion in direct spending power, they are poised to become the largest generation of consumers.
As the first true digital natives, Gen Z is the first generation of consumers to grow up with complete access to the internet. This has completely transformed the way they interact with brands and make purchasing decisions, making it critical for businesses to understand their unique needs and preferences. Covid19 just accelerated their online purchasing practice.
To do this, marketers need to find new ways to engage Gen Z users, find new strategies that offer a personalized experience that drives results and meet the demand for immersive experiences from a new generation of digital natives. Future marketing campaign strategies should be fun, unique, comprising of wow factor and effective to draw their attention.
One way to accomplish this is through augmented reality (AR). Because it is intrinsically personal, AR puts the user at the center of a story and makes them an active participant with branded content. By doing this, AR allows brands to create meaningful connections with consumers. And with web-based augmented reality (WebAR), brands can power AR everywhere through the browser, with no app download required.
Increase engagement and capture attention
Traditional marketing methods are becoming less effective at engaging Gen Z consumers.
Neuroscientific researcher Neuro-Insight found that AR experiences deliver almost double the levels of engagement of non-AR interactions. According to a report from Accenture, 50% of consumers better recall brands that engage them with immersive technologies and 47% say immersive technologies make them feel more connected with products.
Source: Neuro-Insight study, article by Heather Andrew, CEO of Neuro-Insight. Mar 2018; on 151 UK smartphone users. Brain activity measured using SST headsets; unit of measurement is radians, which equates to strength of brain response.
As the purchasing power of Gen Z grows, so does their demand for innovative online experiences. A recent survey showed that 71% of US based consumers say they would shop more often if they used AR. 66% of consumers in Japan want offline stores to offer AR experiences.
In a recent report from Snapchat, the app found that 93% of Snapchat users—a customer base dominated by the Gen Z demographic—are interested in using AR for shopping. As well, Snapchatters are 1.6 times more likely than non-Snapchatters to have used AR to try on makeup or clothes.
A blogpost from Shopify 2022 described how using 3D and WebAR enabled higher conversion rate:
Shoppers were 44% more likely to add an item to their cart after interacting with 3D
Customers were 27% more likely to place an order after interacting with 3D product
Visitors were 65% more likely to place an order after interacting with a product in AR
Create memorable brand experiences
Gen Z consumers continuously crave personalized and engaging experiences that enable them to interact with the world. With AR, brands can create richer, more meaningful experiences that engage users.
Tuborg Squash launched an Easter hunt WebAR campaign with Marvin XR in 2022 across Denmark. They distributed 10,000+ bottles with QR code hidden inside the cap. After the Easter week, the engagement results were outstanding. 63.06% people who bought Tuborg Squash, opened it while 44.3% of people engaged with the experience multiple times. It showed how a hyper-personalized AR experience can bring major difference in a marketing campaign.