Author: Linda Leseman

Study finds AR ads provide utility and helps build deeper connections with consumers and reveals AR best practices to optimize purchase journey

New York, NY – June 6, 2022 – Brands everywhere are continuing to recognize and harness the power and capabilities of Augmented Reality (AR) Lenses, which allow consumers to enhance the world around them. In collaboration with Snap Inc., MAGNA Media Trials, MAGNA’s industry-leading proprietary research offering, today announced a new study, The Augmented Reality Playbook: Understanding the Role of AR in the Purchase Journey. The study aimed to uncover the true capabilities of AR ads (Lenses), as well as understand the role of AR ads in the consumer purchase journey.

Research was gleaned from multiple brands representing different verticals, including Levi’s and The LEGO Group, and was conducted in five different markets including US, Canada, Australia, Saudi Arabia, and France. Different types of AR Lenses were tested to explore the potential of AR, including: Shoppable AR Lenses, Gamified Entertainment Lenses, Interactive Entertainment Lenses and tactics like World Facing Lenses, and Front Facing Lenses.

“AR has been around and has been tested on in the marketplace, but there were still many questions regarding how and where AR could fit in the marketer’s toolbox,” said Kara Manatt, EVP, Intelligence Solutions, MAGNA. “The research reveals that AR provides utility and informs consumers about the brand, above and beyond pre-roll video ads, while also enabling brands to build deeper, more personalized connections with consumers.”

The study shined a light on how the sequence of video and AR can play a crucial role in engagement.  Tested within a multi-product campaign that started the sequence with a video ad and followed with interactive AR, showed amplified impact on traditional metrics.

“We have seen firsthand the value AR brings to the marketing mix, and specifically how Snapchat can contribute to full funnel success, as we’ve been creating AR experiences for nearly a decade” said Dave Roter, VP of Global Agency Partnerships, Snap Inc. “AR provides an immersive experience for our advertisers and these findings further demonstrate that AR offers a differentiated opportunity for brands to reach the right audiences, when it matters most, all while driving meaningful business for our customers.”

The Augmented Reality Playbook Key Findings and Data Points:

According to the study,

• AR ads provide utility and help brands build deeper connections with consumers. Marketers should leverage this to differentiate their brand when it matters most.
  • Consumers found AR ads to be significantly more informative (+5% more than Pre-roll ads) and more useful (+6%) than traditional pre-roll ads.
  • The study also uncovered that various types of AR ads tested helped consumers feel closer to the brand (1.3x more than pre-roll) and got them excited about the brand (1.15x more than pre-roll).

• AR ads play a unique role in each phase of the purchase journey – marketers shouldn’t view AR as an add-on but an always-on tool to build and amplify brand messages
  • For those early in the purchase journey, AR ads capture consumers’ attention.
  • For those in the consideration process, AR ads shape brand opinions in a positive light, leading consumers to think of the brand as more up-to-date and differentiated when it matters most.
  • For those ready to make a purchase decision, AR ads are impactful throughout the branding funnel, but most importantly drive intent to take the next steps – bringing the brand top-of-mind, increasing brand favorability, and actively searching for the brand.

• While AR can shape how consumers feel about brands, marketers should use different AR formats to achieve their desired outcomes.
  • Shoppable AR lenses trigger consumers at the end of their journey to take the next step, driving search intent (+8%).
  • Gamified entertainment AR lenses bring in a broader audience and differentiate consumers in the beginning of the purchase journey (+12%).
  • Interactive entertainment AR lenses are found to boost memorability (+9%) and brand perception – people in the middle of the journey see the brand as more innovative (+9%) and those in the end see it as unique (+8%).

The ability to interact with the product through world-facing AR lenses, such as viewing furniture from the consumers living room, impacts those in the middle of the journey and results in higher purchase intent (+8%) and build relevance for the brand relevance (+7%). While front-facing lenses help lift brand image among those closer to purchase, with +5% lift in brand uniqueness and 4% lift is relevancy.

• AR should be strategically positioned in campaign sequencing as part of consumer’s exposure to the brand on the platform.
  • Brands benefit directly with higher purchase intent (+6%) and brand preference (+6%) when an AR ad is in the mix
  • Place AR in the middle of video, as the element of delight helps build brand perception

The full study can be found here.

About MAGNA:

MAGNA is the leading global media investment and intelligence company. Our trusted insights, proprietary trials offerings, industry-leading negotiation and unparalleled consultative solutions deliver an actionable marketplace advantage for our clients and subscribers.

We are a team of experts driven by results, integrity, and inquisitiveness. We operate across five key competencies, supporting clients and cross-functional teams through partnership, education, accountability, connectivity, and enablement. For more information, please visit our website: https://www-wp-stage.magnaglobal.com/ and follow us on LinkedIn and Twitter.

About Snap Inc

Snap Inc. is a camera company. We believe that reinventing the camera represents our greatest opportunity to improve the way people live and communicate. We contribute to human progress by empowering people to express themselves, live in the moment, learn about the world, and have fun together.

Media Contact:
Zinnia Gill
Mediabrands
VP, Global Corporate Communications
(646) 965-4271
[email protected]

Study finds overlay ads are four times more memorable than video ads and drive 72% more savings for advertisers

New York, NY – May 3, 2022 – MAGNA Media Trials, MAGNA’s industry-leading proprietary research offering, announced today a new study in partnership with GumGum, the leader in contextual intelligence technology, that dives deep into how brands can stand out on connected TV (CTV).
 
“Breaking Through: Moving Beyond the Commercial Break on CTV” finds that brands should consider leveraging overlay ads as an additional touchpoint when advertising on CTV. Overlay ads appear within the video content itself opposed to the typical ad experience where the ad is placed during a break in content. Overlay ads capture audience attention, making for memorable ad experiences with a lower fiscal and time investment.
 
The study finds that overlay ads are four times more memorable than video ads and drive 72% more savings for advertisers. A key recommendation of the study is that brands should continue innovating to new formats on CTV as concerns about video wear out and increasing ad frequency mount.
 
“Overlay ads offer an innovative solution for brands concerned about video ad wear-out and attention fatigue,” said Kara Manatt, EVP, Intelligence Solutions, MAGNA. “Overlay ads are more memorable than video ads, they cost less, and take less production time to make.”
 
The study set out to test overlay ads on CTV to see how they stack up to traditional video ads since overlay ads offer more inventory, don’t disrupt playback and can be delivered in a contextually relevant environment. A key finding of the study is that the nature of overlay ads results in a more fruitful ad experience for those most attentive, and in-market for the product. Among those who recalled the brand and were in-market for the advertised product, over 41% found the ad interesting as well as over 41% felt the ad was context-appropriate.
 
Additional key findings of the study included:

• Ad frequency fatigue is creeping up on CTV: 65% of people perceived an increase in the number of ads shown per show.
• Higher frequency of CTV ads is especially apparent to younger generations: 71% of those in the 18-24 age range feel ad frequency on CTV isn’t going away any time soon.
• CTV isn’t immune to ad attention challenges: 70% of those in the 18-54 age range report almost always avoiding video ads on CTV.
• Overlay ads help people feel less bombarded by ads and have a lower production cost and time: Overlay ads allow for a perceived lower ad frequency, which people take notice of, and they are also more cost-effective and take less time to produce.
• Overlay ads drive better brand perception: Overlay ads lead to +5% increase in brand favorability, +4% increase in purchase intent and +8% feel the brand is thoughtful.
• Snipe overlay ads formats leads to more persuasion: Snipe overlay ads lead to +35% brand favorability, +22% search intent and +22% purchase intent.

 
“How we’ve been advertising to people simply just doesn’t work anymore. People have second screens, skip buttons, and are just conditioned to avoiding ads when possible,” said Phil Schraeder, CEO, GumGum. “Creating new ad formats, like an overlay ad, gives advertisers the opportunity to connect with people where they are at and in a way that doesn’t disrupt what they are there to do – enhancing the overall experience for them and boosting brand recall and favorability for advertisers.”
 
The study methodology included recruiting CTV viewers to watch a streaming TV show of their choice, followed by a final survey to measure the impact on traditional branding metrics and obtain feedback on ad frequency. Formats tested were video ads and overlay ads, specifically overlay ad – corner, overlay ad – snipe static, and overlay ad – snipe video.
 

The full study can be found here.

 
About GumGum
GumGum is a contextual-first global digital advertising platform that captures people’s attention, without the use of personal data. We believe that an advertising ecosystem based on understanding a consumer’s active frame of mind rather than behavior builds a more equitable and safer future for consumers, publishers and advertisers alike. Founded in 2008, GumGum is headquartered in Santa Monica, California and operates in 19 markets worldwide. For more information, please reach out to [email protected].
 
About MAGNA
MAGNA is the leading global media investment and intelligence company. Our trusted insights, proprietary trials offerings, industry-leading negotiation and unparalleled consultative solutions deliver an actionable marketplace advantage for our clients and subscribers.
 
We are a team of experts driven by results, integrity and inquisitiveness. We operate across five key competencies, supporting clients and cross-functional teams through partnership, education, accountability, connectivity and enablement. For more information, please visit our website: https://www-wp-stage.magnaglobal.com/ and follow us on LinkedIn and Twitter
 
MAGNA Media Contact:
Zinnia Gill
Mediabrands
Director, Global Corporate Communications
(646) 965-4271
[email protected]
 
GumGum Media Contact:
[email protected]