WHAT IS EXTENDED REALITY?

Extended Reality (XR) is an emerging term used to describe environments with real and virtual components and human-machine interactions generated by computer technology and wearables. As it stands today, the term XR encompasses three primary technologies:

  • Virtual Reality (VR), which is immersive (headset and goggles required)
  • Augmented Reality (AR), which is additive (think Snapchat Lenses)
  • Mixed Reality (MR), which integrates the digital and physical worlds seamlessly by utilizing elements of AR and VR technology

WHY SHOULD MARKETERS CARE?

XR provides marketers with an opportunity to create unique, innovative, and memorable interactive experiences, enabling consumers to engage with their brand and content. This is critical because engagement is one of the best indicators of conversion. An exciting XR experience will get customers talking about and sharing brand stories.

 

Marketers already understand the power of storytelling to strengthen a brand’s identity and evoke emotion. XR is a powerful medium for letting brands tell stories in rich, immersive ways. As consumers grow more comfortable using XR and the technology becomes more accessible, the channel will become easier for brands to leverage.

HOW CAN IT HELP YOUR BUSINESS?

Innovative brands are discovering that XR can make content more tangible, increasing engagement. For businesses that require consumers to see a demonstration, test, tour, or otherwise experience products for themselves before purchase, XR readily facilitates that trial in an ideal-use scenario without the limitations physical space or geography may have previously imposed.


For example, AR can help brands bridge the gap between in-store and on-line shopping experiences. With the help of technology, consumers can get a better sense of the product they’re purchasing, despite not being able to see it first-hand. Additionally, VR’s total immersion capabilities can be leveraged by brands to entertain or inform target audiences in a brand new way.

The Truth About Innovation, with IPG Media Lab

IPG Media Lab works with some of the world’s largest brands to drive innovation in media, marketing, and business models. As the dedicated innovation initiative of the UM family of agencies, they’ve worked with companies of all sizes, across numerous verticals. Chad Stoller and Adam Simon of IPG Media Lab discussed the types of conversations they have with marketers around innovation, gave us a behind-the-scenes look at how IPG Media stays innovative, and asked whether one can truly measure innovation success.

> See all episodes
iOS 14: Friend or Foe? Breaking Down the Effects of Apple’s New Privacy Policies

There’s more uproar in the data privacy world: Apple has announced that with their newest update to iOS 14, the previously optional Limit Ad Tracking function (LAT) will now be on as a default. This will force all apps and app developers to ask permission to use a user’s data or track their movement, and they’ll need to opt-in to sharing a unique device code, or the ID for Advertisers (IDFA). As Apple has said on their official iOS 14 info page: “Privacy is a fundamental human right and at the core of everything we do. That’s why with iOS 14, we’re giving you more control over the data you share and more transparency into how it’s used.”

Advertisers use the IDFA to target audiences and measure effectiveness. Just like with the cookie’s demise (as we’ve discussed here), the potential for the IDFA to be limited or disappear completely will hinder the reach and understanding advertisers have over their campaigns. Marketers will not only need to survive without cookies in their diet, but they’ll also need to find new—or in many cases, old—ways to gather audience data to aid in their targeting efforts. It may be best summed up in Apple CEO Tim Cook’s remarks on International Privacy day: "Technology does not need vast troves of personal data stitched together across dozens of websites and apps in order to succeed. Advertising existed and thrived for decades without it, and we're here today because the path of least resistance is rarely the path of wisdom. If a business is built on misleading users on data exploitation, on choices that are no choices at all, then it does not deserve our praise. It deserves reform.” The resources collected discuss a post-IDFA world and what marketers can do to adapt without it.

> See all issues

WHAT IS EXTENDED REALITY?

Extended Reality (XR) is an emerging term used to describe environments with real and virtual components and human-machine interactions generated by computer technology and wearables. As it stands today, the term XR encompasses three primary technologies:

  • Virtual Reality (VR), which is immersive (headset and goggles required)
  • Augmented Reality (AR), which is additive (think Snapchat Lenses)
  • Mixed Reality (MR), which integrates the digital and physical worlds seamlessly by utilizing elements of AR and VR technology

WHY SHOULD MARKETERS CARE?

XR provides marketers with an opportunity to create unique, innovative, and memorable interactive experiences, enabling consumers to engage with their brand and content. This is critical because engagement is one of the best indicators of conversion. An exciting XR experience will get customers talking about and sharing brand stories.

 

Marketers already understand the power of storytelling to strengthen a brand’s identity and evoke emotion. XR is a powerful medium for letting brands tell stories in rich, immersive ways. As consumers grow more comfortable using XR and the technology becomes more accessible, the channel will become easier for brands to leverage.

HOW CAN IT HELP YOUR BUSINESS?

Innovative brands are discovering that XR can make content more tangible, increasing engagement. For businesses that require consumers to see a demonstration, test, tour, or otherwise experience products for themselves before purchase, XR readily facilitates that trial in an ideal-use scenario without the limitations physical space or geography may have previously imposed.


For example, AR can help brands bridge the gap between in-store and on-line shopping experiences. With the help of technology, consumers can get a better sense of the product they’re purchasing, despite not being able to see it first-hand. Additionally, VR’s total immersion capabilities can be leveraged by brands to entertain or inform target audiences in a brand new way.

“The use of both technologies is growing, but different forces drive their uptake. VR growth is being propelled by advances in hardware, including higher-quality, lower-cost headsets. AR growth is being fueled by software development and the creation of standardized platforms on which to create new applications.”

Victoria Petrock

Principal Analyst, Emerging Technology

eMarketer

Key Stats

ANA Marketing Futures and eMarketer have come together to deliver key stats and forecasts on the trends that will shape the industry for years to come.

Related Content

Want to take a deeper dive into XR? ANA Members have access to brand stories, case studies, and expert webinars you won't find anywhere else. 

Augmented Reality and Virtual Reality in Action at Herman Miller

ANA. July 2019

Herman Miller has been the standard in modern furniture for homes and workplaces for the past 100 years. The brand shared how and why it has incorporated virtual reality and augmented reality technology into its marketing and sales strategies.

ADT Fire Safety VR Experience

ANA. March 2020

ADT created a VR experience to highlight the dangers that its service could protect homeowners from.

La-Z-Boy: Using Technology to Drive In-Store Sales

ANA. March 2020

In this webinar, learn more about the vision and creation of the La-Z-Boy 3-D Suite which contains both augmented reality (AR) and virtual reality (VR) experiences that allow customers a myriad ways to see La-Z-Boy products in their spaces.

Download Now!

Extended Reality (XR) continues to build momentum as brands experiment with technologies that fuse the digital and physical worlds to create immersive and interactive experiences, a market worth up to $182 billion by 2025, according to Goldman Sachs Group. We gathered perspectives from marketers and experts across industries to explore the value and viability of this evolving trend.

 

This report summarizes key findings, statistics, trends, and case studies to explain how XR is transforming business and what opportunities it presents for marketers.

Victoria Petrock

Principal Analyst, Emerging Technology

eMarketer

“The use of both technologies is growing, but different forces drive their uptake. VR growth is being propelled by advances in hardware, including higher-quality, lower-cost headsets. AR growth is being fueled by software development and the creation of standardized platforms on which to create new applications.”

Key Stats

ANA Marketing Futures and eMarketer have come together to deliver key stats and forecasts on the trends that will shape the industry for years to come.

Related Content

Want to take a deeper dive into AR? ANA Members have access to brand stories, case studies, and expert webinars you won't find anywhere else. 

Augmented Reality and Virtual Reality in Action at Herman Miller

ANA. July 2019

Herman Miller has been the standard in modern furniture for homes and workplaces for the past 100 years. The brand shared how and why it has incorporated virtual reality and augmented reality technology into its marketing and sales strategies.

ADT Fire Safety VR Experience

ANA. March 2020

ADT created a VR experience to highlight the dangers that its service could protect homeowners from.

La-Z-Boy: Using Technology to Drive In-Store Sales

ANA. March 2020

In this webinar, learn more about the vision and creation of the La-Z-Boy 3-D Suite which contains both augmented reality (AR) and virtual reality (VR) experiences that allow customers a myriad ways to see La-Z-Boy products in their spaces.

Download Now!

Extended Reality (XR) continues to build momentum as brands experiment with technologies that fuse the digital and physical worlds to create immersive and interactive experiences, a market worth up to $182 billion by 2025, according to Goldman Sachs Group. We gathered perspectives from marketers and experts across industries to explore the value and viability of this evolving trend.

 

This report summarizes key findings, statistics, trends, and case studies to explain how XR is transforming business and what opportunities it presents for marketers.

About ANA Marketing Futures

Knowing that marketers are increasingly challenged in their efforts to keep up with the latest trends and technologies, the Association of National Advertisers (ANA) tasked itself with creating a program designed to help marketers anticipate—and prepare for—the future of marketing.

 

ANA Marketing Futures is what emerged. With a focus on innovative topics and emerging trends, ANA Marketing Futures provides resources that will influence and inform via member cases, research studies, and insight from industry innovators. Check back often to learn about emerging trends and become inspired to take steps toward the growth of your business.

 

Copyright © 2020 Association of National Advertisers-established in 1910

Contact

10 Grand Central

155 E 44th Street

New York, NY 10017

Phone: 212.697.5950

 

Email: marketingfutures@ana.net

 

marketingfutures.ana.net