The immersive commerce revolution is here — are you ready?
We’re just a few weeks into 2020, and it’s clear this is the year of AR. Immersive technology was all the rage at both CES in Las Vegas and NRF in New York, and analysts are predicting explosive market growth.
Recent numbers from Statista project exponential ‘hockey stick’ growth, with estimates that the global AR market will increase by over $195 billion dollars, from $3.5 billion in 2017 to over $198 billion in 2025.
For retailers, the rise of immersive commerce is nothing less than revolutionary — giving retail brands entirely new ways to grow engagement, conversion, and revenue. Across multiple industry verticals, 3D and AR commerce is now a reality — and with further Web-based syndication capabilities on the horizon, the benefits for brands will only grow in the coming year.
As more brands and retailers prioritize 3D and AR in 2020, we wanted to share some real-world examples of how Vertebrae’s pioneering clients leveraged 3D and AR to deliver better shopping experience across all sales channels, significantly driving conversion and overall sales.
Coach launches immersive social commerce with Vertebrae + Facebook
As mobile technology and mobile network speeds combine to liberate 3D and AR experiences from specialized apps, access to immersive assets is broadening, with major social and search platforms moving to incorporate 3D and AR. In partnership with Vertebrae, Facebook launched AR commerce initiatives in the fall of 2019 featuring innovative product storytelling for luxury accessories brand Coach.
Coach created an ad experience that allowed users to virtually try on Coach sunglasses via augmented reality, with the option to purchase directly from the Facebook ad. At the close of the campaign, Coach reported a significant lift in ad recall, and purchase intent, and is now planning to explore additional AR commerce initiatives.
Accurately depicting product features that embody the brand’s reputation for luxury details and quality materials was crucial. “It was really important … that the tea rose shimmered and the frame had the curve and it did,” said Christine Petretta, Senior Manager of Paid Media at Coach. “It looked just like it would in person in the 3D rendering.”
CB2 gives shoppers real-life context for purchasing decisions
3D and AR commerce helps brands overcome purchase hurdles by placing product images in their home, work, or leisure environments — providing information about size and dimensions that’s more relatable than online specs or size charts. Confirming items will fit is especially important when it comes to large items like furniture, which are expensive to deliver and difficult to return; providing an extra confidence boost that sofas or tables will match the intended space not only in terms of size but also style.
Furniture and housewares retailer CB2 launched a pilot 3D and AR initiative with 160 products, and saw marked improvement in revenue and engagement. Products featuring 3D and AR experiences realized a 21% increase in revenue per visit and a 13% lift in order value — even including those who didn’t interact with the immersive experiences.
“As I’m shopping and interacting with some of these types of tools, it gives me the confidence to buy if I can see what those products look like in my home, gives me a sense of scale and how they go with the things I already have,” Dave Widmer, senior director of eCommerce for CB2, told Stores magazine. “It creates more of an emotional connection.”
Toyota brings car shopping home with AR experience
Using AR, brands can deliver a three-dimensional advertisement that seamlessly leverages the world around the user as part of the experience itself. Toyota is using that advantage to help picture new car ownership, bringing 10 of its vehicles to consumers so they can explore the vehicle’s exterior in detail placed in their environment right on their smartphone.
Consumers can place the AR vehicle in any environment — in their driveway or garage, or in front of their place of work — and explore it at any angle. They can expand and rotate the vehicle to explore each feature in detail, including several call-outs on the most important features and options, such as a pre-collision system or all-wheel-drive.
The experience is closer to walking around a real car than any two-dimensional video or imagery could ever provide. The immersive AR experience doesn’t require an app, and is being delivered at scale through media such as Facebook and KBB.com.