The Fickle Battlefield for Consumers
A brief write-up on AI, AR, & VR marketing.

18 December 2019
By : Hernán Feuermann

Out with the old and in with the new…

Artificial Intelligence (AI), Augmented Reality (AR), and Virtual Reality (VR) are reshaping the world around us. That’s quite extraordinary, seeing that these technologies are still in their infantile years. Think about it. Now, we have virtual shopping, home automation, digital currencies, online relationships, and so on. Reality is quickly fading as more people are learning to live in this virtual world created by technology.

The battlefield where brands fight to gain the favor of the consumers has changed dramatically from the once invincible shopping mall. There’s no need for thousands of square feet when people can easily accomplish their shopping on apps just a few inches from their faces. Our progression from reality to virtuality is well underway.

AI is the newest wave of marketing lead by data and is taking the digital world by storm. AI learns consumer habits and uses that information for future optimization. It allows marketers to know how their customers feel, think, and what they are saying about their brands in real-time.
The result? Smarter advertising that hits the core of consumer desires at the right time.

man using a credit card to do online shopping with ai help
amazon marketing strategies pm3 agency blog

Fortune favors the brands that embrace the virtual landscape.

With so many points for potential interactions, a consumer’s journey has become more intricate than ever before. Fortunately, AI helps analyze that data to better understand conversion attribution models and simplify the complexities. In the end, it is all about finding the right moment, and message, to influence buying decisions.

Amazon was one of the pioneers using AI for its marketing strategies by recommending products based off your past-purchase behavior. Since then, they’ve come a long way as Amazon is now using AI for dynamic pricing; changing the price according to stocks and demand. Furthermore, the new Echo Look uses AI to suggest outfit recommendations – that means no more opening your closet and exclaiming, “I don’t have anything to wear!”

Another brand that has been successfully using AI in their marketing strategies to personalize messaging and products is Nike. You can now design your own shoes in-store, which happens to be a feature American Eagle Outfitters successfully launched last Black Friday. Shoppers were able to completely customize their jeans in store. And in the automobile sector, BMW is making a difference by using an intelligent personal assistant that learns about its driver to deliver a better driving experience. It’s like an in-vehicle concierge that is always on top of all your needs.

There’s nothing fake about using Augmented Reality to create real transactions.

AR is here to enhance the shopping experience consumers have offline and online. Some studies suggest that AR can improve online sales conversions between 30 and 40%.

Take the Warby Parker app for example. They let you virtually try on any pair of glasses to instantly see which one fits your face and style best. Another company making good use of AR in their app is Ikea. With their app, users can swipe through different categories and virtually place any piece of furniture in their house, or outside, to see how it looks before deciding which one to purchase. Companies are legitimately bringing their stores, and everything within, to you. As the old saying goes, “If the mountain will not come to Muhammad, then Muhammad must go to the mountain.” And that’s exactly what’s happening.

Some studies suggest that AR can improve online sales conversions between 30 and 40%.

ar glasses smart glasses AI AR VR marketing pm3 agency blog
vr glasses smart glasses AI AR VR marketing pm3 agency blog

VR is a brand’s best friend when it comes to captivating consumers.

While AR interacts with the real world, VR shuts out the physical world for a completely immersive experience. By 2020, the predicted number of VR headsets sold will reach 82 million. Consumers are looking for more interactive and personal experiences and that is exactly what VR provides – especially when associated with AI.

The auto industry has yet again taken advantage of this technology by innovating how your user experience can be enhanced. Brands like Mercedez Benz and Audi, among others, have created VR test drives that keep getting better and better. Do you want to be the 13th human in history to walk on the moon? Well, you’re in luck. Samsung collaborated with NASA and created an immersive experience that lets users do the moonwalk on the actual moon recreated in VR.

No matter how much the advertising battlefield changes, one old rule still rings true.

Given all the aforementioned advancements, the battleground for brands has changed dramatically in the last decade. However, we mustn’t forget that the real battle never took place in the physical world to begin with. The battle is and has always been in the consumer’s mind. In reality (no pun intended), AI, AR, and VR are just tools, whereas the real battlefield to “convert” a consumer to becoming a brand advocate has always been the same.

Shaping human hearts and brains is how modern advertising started in 1920 with techniques introduced by the tobacco industry and it will continue to be that way as long as human beings are governed by what Freud refers to as the “unconscious.” It’s within that mysterious trove where all your memories, habits, and behaviors are hidden. This is the place where brands need to leave an indelible mark if they want to establish meaningful relationships with their customers.

In this ever-changing landscape, where technology rules, the new year promises a wealth of possibilities. So, join us as we embrace and seize these new opportunities in 2020 and make it our best year yet.

Best wishes and Happy Holidays from the PM3 family!

¡Gracias!

Soon you’ll hear about our future blog entries.

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