Augmented Reality Revolutionizing Brand Engagement Beyond Packaging

Augmented reality has become a popular marketing tool for brands looking to make their products more interactive for customers. Research shows that using phone-based visual experiences can boost sales, especially for smaller brands targeting a specific audience.

Even a small design change on the packaging, like adding a QR code and a prompt, can encourage customers to engage with the product in a new way.

“There’s a lot of exciting new developments going on in this field,” mentioned Evan Rose, who is the founder and president of Rose Digital, a company that focuses on creating AR experiences through software development.

Even with all these advancements, the materials used for packaging and the original intentions behind them still have a significant impact on the kinds of interactions that AR can promote, as well as the overall importance of packaging in the experience itself.

Making seamless more seamless

Augmented reality, which first migrated into the advertising space in the early 2000s, sits somewhere between real-life and virtual reality. 

Rose explained that she likes to describe AR using an immersion spectrum. Virtual reality completely replaces the real world, while AR integrates with the surroundings or shows digital and authentic elements together. This combination of "real" and "artificial" is central to the AR campaign launched by Jones Soda Co, a craft soda maker from Seattle.

The beverage company is known for its distinctive packaging. According to Curt Thompson, the company's director of brand marketing, since the early 2000s, customers have been submitting photos for the front of each glass bottle. In the company's Reel Labels program, shoppers are encouraged to scan a QR code and use their phone camera to view a short video, which is also submitted by a customer, on top of the traditional static photo.

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An earlier version of the Jones Soda AR experience required customers to scan a QR code and download an independent app that could host the video. Since then, technology has improved and become more user-friendly. QR sensors are now built into smartphone cameras, and the pandemic has made people more accustomed to using QR codes.

Thompson mentioned that, in his view, one positive outcome of the pandemic was the increased acceptance of QR codes. Customers now anticipate that scanning a code will provide them with additional product information.

Brand motivations

Software that showcases AR experiences has evolved from needing standalone apps to being able to integrate into web browsers on phones. Pete Oberdorfer, the founder and president of Tactic, a software studio specializing in immersive digital experiences, believes that any interaction that eliminates the need to download another app just for visuals is more likely to appeal to a larger audience.

Improved AR launch systems make it easier for customers to access experiences while shopping in-store. The content they see is determined by the brand's strategy to boost sales. If the goal is to give more information about the product, a brand can showcase where ingredients are sourced from or share the brand's story.

Almond Breeze used augmented reality to make its carton packaging more interactive.

Courtesy of Tactic

Tactic’s AR campaign for Jack Daniels was a hit. Users could watch as the black-and-white label seemed to open up like a 3D pop-up book. By exploring different key moments in the distillery’s history, such as Lynchburg, Tennessee and the 1904 World’s Fair, users could learn more about the brand than just from the label itself.

AR campaigns can assist shoppers in choosing between different flavors or varieties. For example, Rose Digital created a "virtual concierge" for Moët Hennessy, a division of luxury goods conglomerate LVMH. This virtual concierge guides users through questions about their dining or ambiance preferences. Based on the answers selected by the shopper, a virtual brand representative provides a personalized wine or liquor recommendation. According to Rose, these interactive experiences with an ambassador are effective in making shoppers feel engaged and valued.

In addition to assisting shoppers, a brand can utilize AR to enhance customer loyalty. According to Oberdorfer, if loyalty is the objective, the focus should be on creating an engaging experience, such as an interactive game, before requesting customer emails or offering coupons. Otherwise, the experiential campaign may end up resembling traditional marketing tactics.

Chobani chose to launch its first AR campaign in the fall of 2023 using a unique approach. QR codes found on multipacks of Halloween-themed yogurt cups allowed shoppers to access an AR “trick or treat” experience. By scanning the code, users could interact with cartoon doors that appeared to be floating in their surroundings. Upon “knocking,” the doors would reveal themed cartoons or treats such as digital coloring books, keychains, and other merchandise.

According to David Isaac, the vice president of production at Chobani, the decision to utilize a browser-based solution was crucial. This approach ensured that anyone with a smartphone could easily access the AR experience directly from the packaging without the need to download an app.

Exploring Physical Considerations and Future Potential

Two main approaches have been developed for brands looking to incorporate augmented reality (AR) into packaging. The first type of AR requires users to keep their camera focused on the packaging in order to see the visuals. The second type operates in a separate digital space that the camera captures.

To create an AR experience centered around the packaging, it is essential to begin with real-world prototypes or packaging. According to Oberdorfer, it is important for clients to provide actual prototypes or packaging of the real product.

The success of an AR experience within packaging is influenced by labels, materials, and other design elements. Oberdorfer explains that the camera only perceives in black and white, so it is crucial for the package to have enough contrast and distinct shapes for the software engineers to associate specific visuals with the package.

Reflective surfaces or crinkly, pliable materials like a metallic bag of potato chips may not provide the camera with clear details. The visuals may not remain consistently aligned and could cut in and out, similar to a bad internet connection. The reliability of capturing these visuals can change over time, for example, a refrigerated beer can may have a frosty sheen that can interfere with the image compared to a room temperature aluminum package.

If meeting these packaging requirements is challenging for a brand, using off-product visuals might be a better option. Additionally, if a product does not have a large enough flat surface, an AR visual could appear too small and unnatural.

If the packaging isn’t designed to create an exciting "unboxing experience," there may not be a need to extend someone's interaction with the wrapping. For instance, products like electronics or sneakers are often packaged to build anticipation for the buyer. In such cases, it may be more appropriate to ask for a bit more of the shopper's time than just a simple packaging prompt.

Looking into the future, Chobani and Jones Soda are considering launching additional AR campaigns. The offerings from these brands could evolve as technology advances. Rose mentioned that augmented reality technology could potentially expand to include glasses or headgear in addition to just phones, especially if these products become more widely used. Even for companies that are interested in AR but hesitant to adapt quickly, there are opportunities to get involved.

Some customers have had the same labels for 75 years, Oberdorfer said, so “we have to make these experiences work with those brands and with those products.”

Editor's P/S:

Augmented reality (AR) is revolutionizing the marketing landscape, offering brands a powerful tool to enhance customer engagement and drive sales. By seamlessly integrating digital content with real-world packaging, AR experiences can bring products to life, provide valuable information, and foster brand loyalty.

The article highlights the importance of packaging design in optimizing AR experiences. The use of QR codes, contrasting colors, and clear shapes facilitates seamless interaction between the packaging and the customer's smartphone camera. Brands should carefully consider the materials and design elements of their packaging to ensure optimal visual recognition and a consistent user experience. By embracing these considerations, brands can unlock the full potential of AR and create immersive experiences that resonate with customers, ultimately driving brand success.