Even with economic uncertainty bringing ad budgets under more scrutiny than usual, marketers are increasingly experimenting with tech, like augmented and virtual reality, and most recently, artificial intelligence.\u00a0It\u2019s a shift to stand out in an increasingly crowded digital marketplace and reach younger generations.<\/p>\n
Rob\u2019s Backstage Popcorn brand in January launched an in-house-created AR Instagram Reels game where users could catch simulated popcorn. (The popcorn brand declined to offer details on the brand\u2019s AR spend for the activation.) Pedigree recently launched its first adoption event in the metaverse to test and learn with a both paid and organic approach, and ultimately build a presence in Web3. In addition to the digital world, the dog food company created a crypto wallet feature to collect online donations. (Pedigree did not disclose spend details.) <\/p>\n
Rob\u2019s popcorn and Pedigree aren\u2019t alone in their tech-driven marketing efforts. Last year, as travel picked up post-pandemic, the city of New Orleans started experimentation with virtual reality marketing<\/a> via an immersive experience on Youtube. UrbanStems flower delivery company is leveraging ChatGPT AI-generated content to help customers with delivery notes on Valentine\u2019s Day, and the list of tech-forward marketing campaigns goes on.\u00a0<\/p>\n \u201cAs adoption rates go up and as consumers are using AR and VR, it\u2019s going to be a natural place for marketers to shift their thinking and their dollars,\u201d said Matt Mills, evp of creative at Fuel content studio. \u201cThe technology is becoming more democratized. And therefore the veil has been lifted from what it takes to do that.\u201d <\/p>\n At Fuel, clients are weaving tech-driven experimentation into social or production budgets associated with campaigns or big media spend moments, per Mills. He added that as elements of Web3 become more normalized, integrated to social media platforms and native to the social media users experiment, layering tech into marketing strategy is \u201clow-hanging fruit,\u201d especially on social media. \u201cIf you already have a social media presence, layering augmented reality into that is not a tall order,\u201d he said. <\/p>\n Over at Z3, Zeno Group\u2019s Web3 and technology consultancy, anywhere from 5-30% of client ad budget is dedicated to experimenting and innovating in spaces like AR\/VR, according to Robert Stone, head of Z3. Some are making budget available separate from their core marketing budgets for said experimentation while others are still trying to determine if the tech is worth investing, he said. <\/p>\n Per Stone, consumer lifestyle brands seem most interested, experimenting with emerging and trending tech. But more niche brands, like those in healthcare, are more hesitant to figure out what exactly their role in these spaces.<\/p>\n \u201cWe\u2019re advising clients in lots of different ways. Some are quite keen to get involved in a scrappy test and learn way,\u201d he said. \u201cThey\u2019re learning as they go but they\u2019re doing it in a sandbox that allows them to experiment a little bit while being true to their original brand.\u201d (He did not offer specific figures regarding client ad spend). <\/p>\n Technologies like AR\/VR and AI aren\u2019t new, but they are becoming increasingly more important as Web3 comes into focus, and accessible via in-app created social media filters. More than 97 million people are expected to be augmented reality users by the end of this year, up from 89 million in 2022, according to eMarketer.<\/a> And as adoption rates go up, marketers are following suit to get in early on the growth and stand out in a saturated digital marketplace.<\/p>\n Mobile augmented reality advertising is set to take off in line with mobile ad spending hitting $195 million and mobile AR users hovering around 97 million in 2023, according to eMarketer predictions.<\/a><\/p>\n \u201cWe need to make sure that we\u2019re being thoughtful about how we allocate our time, energy, resources and budget,\u201d said Harrison Fugman, co-founder and CEO of Rob\u2019s Backstage Popcorn and The Naked Market. \u201cBut being at the forefront of technologies that can have an amazing impact on our consumer is very important to scaling our rapidly growing brand.\u201d\u00a0<\/p>\n To experts, marketing\u2019s continued push into new tech stems from more accessibility, but also from a saturated digital marketplace in which advertisers are looking to differentiate themselves from one another. Shoppers too, at least 43% of them, are looking for innovative brand experiences, including virtual and metaverse engagements, instead of traditional advertising, according to research from Reach3 Insights research consultancy and\u00a0The Keller Advisory Group.<\/a> <\/p>\n