Consumers and brands have embraced AR in social and gaming (Snapchat's Lenses, Pokémon GO). Major companies such as Alibaba, Amazon, Baidu, Facebook, Google, Microsoft and Tencent have also incorporated AR into their platforms. Despite this, AR has not yet reached its potential for monetization. In this report, Strategy Analytics examines three segments where the technology is most likely to succeed in moving from fun to functionality: advertising, commerce and search.
Table of Contents
1. Executive Summary 4
2. Augmented Reality Status Check 6
2.1 Defining Augmented Reality 6
2.2 AR form-factors: a mobile-first future while wearables mature 6
2.3 AR adoption status check & drivers 8
3. AR Impact on Advertising, Search and Retail 11
3.1 Advertising 13
3.1.1 AR’s role in enriching and monetizing physical media 14
3.1.2 How AR can enhance product engagement through advertising? 17
3.1.3 The new frontier of native digital/mobile AR advertising 18
3.1.4 Monetizing AR through location-based advertising 19
3.1.5 How to measure AR advertising campaign success? 20
3.2 Search 21
3.2.1 Enhancing the existing text and image based search experiences 21
3.2.2 3D objects as the third and next enabler for search 22
3.2.3 How machine learning can save the cost of building an AR object library 25
3.3 Physical Retail 27
3.3.1 Loyalty building 27
3.3.2 Furthering the interaction with the products 28
3.3.3 In-Store Navigation 29
3.3.4 Visualization 30
3.3.5 Virtualization of shopping 34
4. Challenges Ahead for AR Adoption 35
5. Recommendations 36
6. How Can We Help You? 38