Snapchat has revealed the key Australian findings from its comprehensive report into augmented reality (AR) experiences and their impact on brands.
The report found that interacting with products that have AR experiences leads to a 94% higher conversion rate, as individuals can better assess and feel connected with brands.
Meanwhile, brands are 40% more likely to be considered if they have a branded AR experience, while consumers who view AR as a social activity are 20% more likely to purchase products from the brand.
"We’ve seen first-hand the tremendous impact AR can have on a brand’s engagement and conversion rates – both globally and here in Australia," Snap Australia head of client partnerships Clare Nash said.
"Working with brands locally, we’ve created AR experiences that aren’t just a fun one-off to drive awareness, but a meaningful marketing tool that actively engages a mass audience at scale while pushing them through the full marketing funnel.
"This research further cements AR’s role in engaging both Gen Z and Millennial audiences for brand engagement and shopping experiences," she said.
The report found that AR experiences also have a positive impact on returns, with AR-guided purchases leading to a 25% decrease in returns.
The research also found that AR delivers almost two-times the levels of visual attention compared to their non-AR equivalent, leading to improved memories and more powerful responses from consumers.
According to Snap's data, there are 100 million consumers shopping with AR online and in stores.
The platform predicts that by 2025 nearly 65% of the Australian population and almost all people who use social/communication apps will be frequent AR users.
Deloitte Digital and Snap Inc. partnered to create the Snap Consumer AR Australia Report 2021.