The XR revolution in marketing

Extended reality (XR) is transforming the future of marketing through immersive experiences. By incorporating augmented reality (AR), virtual reality (VR), and mixed reality (MR), XR is revolutionizing brand-consumer interactions, providing innovative and unique ways to engage with audiences. From virtual try-ons to interactive product demos, the potential for XR in marketing is vast. A furniture store can use AR to allow customers to visualize how pieces would look in their homes. Similarly, real estate agents can use VR for virtual property tours, enabling potential buyers to explore homes in a simulated environment.

Why XR should matter to business leaders

• The global XR market is expected to be worth almost $1,914 billion by 2032.*
• 56% of shoppers say that AR gives them more confidence about the quality of a product. Those who use AR view 1.28 times more products on average.
• 61% would prefer to shop at stores offering VR over those that do not.

*All dollar amounts are in U.S. currency.

The impact of XR on marketing and across industries

Before the web, marketing relied heavily on traditional media such as print, TV, and radio to reach and engage consumers. Today, the majority of retail product and service companies are using static web pages, product videos, PDF brochures, and in-person events to reach potential buyers.

These two approaches, while effective to an extent, lack the interactive and immersive experiences that modern technologies like XR can provide. Creating immersive experiences with the help of XR not only captivates consumers but also provides valuable data to refine marketing strategies – both delivering a substantial edge over more conventional competitors.

The COVID-19 pandemic drastically accelerated the adoption of XR technologies as businesses sought innovative ways to engage with consumers in a socially distanced world. XR adoption rates soared during the pandemic. For example, the AR and VR market for the retail industry alone is projected to reach $2 billion by 2027, marking a 68.5% increase from its prepandemic value in 2020. This rapid uptake was driven by consumers’ need for remote collaboration, virtual events, and enhanced e-commerce experiences.

For instance, virtual trade shows and exhibitions became a popular alternative to in-person events, and the rise of virtual reality fitness apps provided users with an immersive workout experience from the safety of their homes. As consumers have grown accustomed to these immersive experiences, they now demand them across the board. This has made XR a critical tool for businesses navigating the new digital landscape, offering new ways to engage with customers, enhance remote work experiences, and deliver compelling content.

Big Tech’s investment in XR

Major tech companies like Apple, Google, Meta, and Microsoft are leading the charge in the XR landscape. These companies are investing billions in XR research and development to push the boundaries of what is possible, like with the Apple Vision Pro, Microsoft HoloLens, and Google Lens, which allow users to interact with digital content in the real world. Meta brought the metaverse into focus, blurring the lines between digital and physical realities.

This influx of investment is shaping the AR/VR ecosystem through research, development, and launch of cutting-edge products. It is also accelerating the accessibility of XR technologies for businesses and consumers alike, making it easier for companies to adopt and implement these technologies in their marketing strategies, product development processes, and customer engagement initiatives. Today, a wide range of XR technologies is available, including AR glasses, VR headsets, and MR devices. These devices have opened up new avenues for gaming, education, and professional training.

The global XR market is expected to be worth almost $1,914 billion by 2032, driven by the increasing demand for immersive experiences and the continuous evolution of hardware and software capabilities in this domain. Additionally, it’s estimated that in 2024, over 1.73 billion users will engage with AR technologies alone.

Digital consumers and their expectations

Today’s online consumers have high expectations for their interactions with brands. They desire experiences that are immersive, interactive, and personalized to their individual preferences. Traditional methods of engagement are no longer sufficient; consumers now seek a deeper, more tailored connection with brands. In fact, 68% percent of shoppers who have utilized AR for their shopping experience express a high likelihood of purchasing from retailers that provide web-based AR shopping options. To stay competitive and satisfy their audience, brands must invest in understanding their customers on a personal level and delivering customized experiences.

Consumers are increasingly embracing XR for a wide range of applications, including:

• Gaming: AR and VR offer immersive gaming experiences that transport players into virtual worlds, enhancing the overall gaming experience.
• Virtual meetings: These technologies allow for more engaging and interactive virtual meetings, where participants can feel as though they are in the same room, despite being geographically apart.
• Virtual tours: These applications enable individuals to explore real estate properties, museums, or travel destinations from the comfort of their homes, providing detailed and immersive experiences.
• Online shopping: One of the most practical applications of AR/VR is online shopping, where consumers can try on clothes virtually. This helps them make more informed purchasing decisions without the need to physically visit a store.

This high comfort level is attributable to the intuitive interfaces these technologies offer, making them easy to use even for those who may not be tech-savvy. Additionally, the immersive experiences provided by AR/VR make these technologies appealing to a broad audience.

The next wave of marketing is here

The major benefits of XR in e-commerce are undeniable: increased engagement, personalized content, and advanced data analytics. Innovative marketers are using XR to create interactive ad campaigns and immersive brand experiences, and then using the consumer data they generate to further refine their market strategies. For example, an architectural firm uses VR to create immersive building walkthroughs, enabling clients to experience designs before construction begins. Museums use AR to enrich exhibits, allowing visitors to view detailed information and interactive elements about historical artifacts, which can all be used to fuel marketing campaigns.

Additionally, XR technologies provide marketers with valuable data on how consumers interact with their content, allowing for better targeting and personalization. The future of marketing lies in the ability to blend physical and digital worlds seamlessly, providing consumers with experiences that not only capture their attention but also drive engagement and conversions. As XR technologies continue to evolve, they play an increasingly important role in offering new ways for brands to connect with their audiences and deliver exceptional value.

Impact on audience response

The psychological impact of XR on audience engagement is profound. That’s because the immersive nature of XR experiences leads to higher levels of emotional engagement and memory retention among consumers. For instance, an XR experience that allows users to interact with a brand story in a virtual environment can create a lasting impression that traditional ads cannot match. Not only do customers want to use AR to see product differences, but 76% of users have indicated that XR experiences increase their purchase confidence.

The positive impact on digital marketing and sales

Before the advent of XR technologies, digital marketing primarily relied on static images and videos to convey messages and attract consumers. This traditional approach often lacked interactivity and the depth needed to fully engage the audience.

With the introduction of XR-enhanced marketing, brands can now offer interactive and immersive experiences that capture consumers’ attention far more effectively. Here’s some convincing data:

• Innovations in XR, such as 3D content, can boost conversions on retailer websites by almost 28%.
• 56% of shoppers say that AR gives them more confidence about the quality of a product. Those who use AR view 1.28 times more products on average.
• 56% of interactive 3D adopters report experiencing both cost savings and increased sales.
• Gartner predicts that by 2026, 30% of organizations worldwide will have products and services ready for the metaverse.

These data points underscore the growing importance of XR in the marketing landscape. Companies can create more personalized, engaging, and memorable experiences for their customers, which translates into sustained growth and market leadership.

Marketing challenges that XR addresses

XR offers promising solutions to some of marketing’s key hurdles of capturing audience attention, creating memorable experiences, and demonstrating ROI.

1. Audience engagement: Traditional marketing methods often struggle to capture and maintain audience attention in an era of information overload. XR can create highly immersive and interactive experiences that captivate users. For example, a VR showroom can allow consumers to walk through a virtual store and interact with products as if they were physically present, making marketing messages more memorable and impactful.
2. Personalization: Modern consumers expect personalized experiences tailored to their preferences. XR allows marketers to create customizable environments and interactions. For instance, an AR app can enable users to visualize how a piece of furniture will look in their home, offering a unique and individualized experience for each user. Product configurators can further enhance this by enabling customers to tailor products to their specific needs and tastes, thereby increasing satisfaction and engagement.
3. Demonstrating product value: Conveying the tangible benefits of a product can be challenging through static images or text. XR enables potential customers to explore products in a virtual space, allowing for a hands-on, 360-degree view. For example, an automotive company can use VR to let customers virtually test drive a car, providing an immersive experience that highlights the vehicle’s features and functionality. This approach can effectively communicate the value and functionality of a product, leading to higher conversion rates.
4. Creating memorable brand experiences: Brands strive to leave a lasting impression on their audience. XR experiences, such as virtual showrooms or augmented reality ads, provide novel and memorable encounters that stand out from traditional marketing campaigns. For instance, a fashion brand might use AR to create interactive ads where users can try on clothes virtually, enhancing brand recall and engagement.
5. Market differentiation: In highly competitive markets, standing out is crucial. XR technology offers innovative and cutting-edge ways to differentiate a brand from its competitors. By incorporating XR into marketing strategies, brands can position themselves as forward-thinking and technologically advanced. For example, a real estate company might use VR to offer interactive virtual tours of properties highlighting the unique selling points that set them apart.
6. Customer feedback and insights: Gathering and analyzing customer feedback is vital for refining marketing strategies. XR experiences can include integrated analytics tools that track user interactions and behaviors in real-time. For instance, an AR app for a retail store can monitor which products users interact with the most, providing valuable insights into customer preferences and engagement levels. These insights can inform future marketing efforts and product development.
7. Reducing costs and risks: Traditional marketing campaigns, such as in-store promotions or physical events, can be costly and logistically challenging. Marketing campaigns also often require resource-intensive and expensive photoshoots. Immersive experiences reduce the need for these marketing methods by creating engaging and interactive content digitally. XR technology allows marketers to create virtual experiences that can be accessed globally. For example, a company can host a virtual trade show, reducing the need for physical setups and minimizing associated risks and expenses.
8. Enhanced collaboration: Marketing teams often work across different locations, which can be problematic for timely team feedback sessions.. XR platforms support virtual meetings and collaborative environments where team members can interact with marketing materials and strategies in a shared space. For example, a marketing team could use a VR environment to brainstorm campaign ideas, streamlining the planning and execution process.

By integrating XR technology into their strategies, marketers can address these challenges more effectively, creating engaging, personalized, and innovative experiences that resonate with audiences and drive meaningful business outcomes. The potential for XR to revolutionize marketing is immense, offering new ways to connect with consumers and stand out in a crowded marketplace.

Real-world examples from brands

Several leading brands have successfully integrated XR into their marketing strategies, showing how this advanced technology can enhance customer experience and drive sales. For instance:

Customer spotlight | Camille Fournet

This prestigious Paris-based luxury leather-goods brand has significantly enhanced its e-commerce platform by implementing a real-time 3D (RT3D) product configurator for their leather watch straps (created through a partnership with SmartPixels and powered by Unity). The immersive solution has dramatically improved the online shopping experience by offering photorealistic 3D visuals and allowing customers to interact with a myriad of customizable options, leading to a 5x increase in conversion rates and a 66% boost in user engagement.

The configurator supports trillions of potential consumer-requested combinations, adhering to intricate manufacturing constraints, thanks to advanced data modeling and the powerful rendering capabilities of Unity. The online experience not only mirrors the personalized in-store experience but also streamlines the production process, solidifying Camille Fournet’s position at the forefront of luxury retail innovation.

Customer spotlight | Audi

Audi, a renowned German automotive manufacturer of luxury vehicles, known for its innovative design and technology, aimed to create world-class multimedia content to highlight the Audi Q6 e-tron's technological innovation to media professionals. The goal was to provide high-resolution, natural views of the product while enhancing 3D content display and allowing seamless transitions between AR and VR for a versatile experience.

With the help of real-time 3D capabilities from Unity, Audi integrated a virtual exhibit into new hardware and software needed for Apple Vision Pro. The exhibit offers technical visualizations that accurately represent the product while giving the brand a market edge, delivering high-value content that resonates with audiences.

The Virtual Exhibit XR exemplifies Audi's commitment to innovation in a competitive industry, and reflects a trend among top automakers to develop advanced media showcasing their products and enhancing customer experiences.

These examples demonstrate the tangible benefits of XR in driving engagement and increasing sales. By incorporating XR technologies, brands can offer interactive and personalized experiences that enhance customer satisfaction and loyalty.

Strategic considerations when incorporating XR into your marketing strategy

• Understand the Technology: Before deploying any XR solutions, it's essential to understand its functionalities, mechanisms, and capabilities. This knowledge will help you select the appropriate technology for your project and ensure it aligns with your client’s objectives and audience.
• Define Objectives: Establish clear objectives for incorporating XR technology into your strategy. Whether it's enhancing brand visibility, driving engagement, or improving customer experience, having defined goals will help measure your campaign’s success and guide necessary adjustments.
• Select the Ideal Platform: With various XR platforms available, it's crucial to choose one that aligns with your client's needs, campaign goals, and technical requirements.
• Develop Engaging Content: Utilize XR technology to create immersive, high-quality experiences. This could include interactive product demos, virtual tours, or engaging brand experiences.
• Test and Refine: Continuously test and refine your XR strategy. Implement A/B testing, gather user feedback, and make iterative improvements to ensure optimal results.
• Ensure Accessibility: Design your XR experiences with accessibility in mind, ensuring they are user-friendly for people with disabilities and compatible with various devices and internet speeds.
• Stay Informed: Keep abreast of the latest XR trends and advancements by attending industry events, reading relevant publications, and networking with other professionals.

How to craft XR experiences

XR technologies enable the creation of dynamic and interactive environments that can be experienced in both VR and AR settings. One of XR’s key advantages is its ability to render high-quality graphics instantaneously, ensuring that users enjoy smooth and lifelike interactions with digital content.

In marketing, it can allow customers to explore products in a realistic and detailed environment like virtual showrooms, or offer immersive virtual home tours, or even facilitate the development of interactive product demonstrations and customizations. This level of personalization can provide emotional reactions that significantly enhance user engagement and satisfaction, as customers can see the immediate impact of their choices.

XR technology also supports the seamless integration of analytics tools, which can track user interactions within these virtual environments. These insights are invaluable for marketers as they provide a deeper understanding of consumer preferences, behaviors, and engagement levels.

A path to building such experiences is through Unity’s real-time 3D technology, a comprehensive platform to innovate and deliver XR experiences across three key phases:

• Import: Unity’s extensive file compatibility and Pixyz integration offer powerful import tools that optimize and transform existing 3D data, making it ready for any type of visualization.
• Create: Developers can harness Unity’s years of advancements in the interactive 3D field. They can easily simulate real-world physics, adjust lighting, friction, and visibility to reflect actual conditions, allowing for highly realistic assets.
• Deploy: Unity allows you to develop once and deploy across multiple platforms. The Unity Runtime enables complex content to be interactively rendered in real-time on end-user devices, from mobile to AR/VR.

Unity helps you stay ahead of the technological curve by meeting your development team’s needs and deployment realities, providing support throughout every phase of project development. Learn more about Unity’s offerings for different industries.

Transform your business with XR

The transformative potential of XR in marketing is undeniable. From enhancing customer engagement through immersive experiences to driving sales with interactive product demonstrations, XR technologies are reshaping the way brands connect with their audiences. By offering personalized and engaging content, XR can significantly improve customer satisfaction and loyalty.

Business decision makers must consider adopting XR not only to stay competitive in the evolving digital landscape but also to meet the growing expectations of tech-savvy consumers. Investing in XR can lead to innovative marketing strategies and open new avenues for growth and customer interaction.