Augmented and virtual reality the new silver bullet of marketing? : an overview of applications with the AIDA model

Purpose: Great advancements in the technical implementation of augmented reality (AR) systems have been made in recent years. Mobile devices are AR ready and software is available. There is also potential for marketing, as it has been shown that AR has positive effects on product knowledge, customers' attitudes towards brands, purchasing intentions, trust and cognitive processes in general, such as learning guided by additional, context-relevant information and interactivity, thus potentially supporting all phases in the ADIA (Attention Interest Desire Action)model. Nevertheless, no extremely successful applications exist for AR or commonly accepted usage scenarios supporting marketing. Research questions: Which usage scenarios exist for AR and how are they connected to the different phases of the AIDA-model? Is there a focus on a specific phase and why? Method: We analysed cases from AR field applications and categorised the cases by using an extended version (AIDAA (Attention Interest Desire Action Aftersales)) of existing theoretical models, such as the AIDA model. Results: Most applications focus on the awareness and interest stage of the AIDA-model. Only a few applications are able to cover the full buying process, as well as after-sales stages. On the second dimension (games, explanation and experience) of our classification model explanation followed by experience are categories holding most of the applications analysed. Our analysis yielded seven hypotheses. One hypothesis states that the lack of action and transaction in AR applications leads to low prioritisation in business; another states that implementation is complex and cost intensive and, therefore, solutions focus on awareness and interest; and a final hypothesis identifies that an unclear value proposition and unclear customer perceived value lead to technical driven solutions, leaving out large areas of an application's potential. Conclusions: Existing literature and research have shown that AR has broad positive effects on marketing-relevant aspects, such as product knowledge, customers' attitudes towards brands and cognitive processes, resulting in better learning. Currently AR applications of companies in the field focus on the low-hanging fruit of easy-to-implement applications with a focus on awareness and interest stage of the AIDA-model and AR applications. AR solutions supporting the whole purchasing process, as well as solutions that are not driven by technology, are scarce and yet to be implemented in larger numbers