augmented reality: designing immersive experiences...

BUSHOR-1262; No. of Pages 13

Augmented reality: Designing immersiveexperiences that maximize consumerengagement

Joachim Scholz a,*, Andrew N. Smith b

aOrfalea College of Business, California Polytechnic State University, 1 Grand Avenue, San Luis Obispo,CA 93407, U.S.A.

bGirard School of Business, Merrimack College, 315 Turnpike Street, North Andover, MA 01845, U.S.A.

Business Horizons (2015) xxx, xxx—xxx

Available online at www.sciencedirect.com

ScienceDirectwww.elsevier.com/locate/bushor

KEYWORDSAugmented reality;Advertising;Branding;Consumer engagement;Interactive marketing;Mobile marketing;Social media;User-generatedcontent;Virtual reality

Abstract Innovative marketers can now leverage augmented reality to craft immer-sive brand experiences, create more interactive advertising, and enable consumers toexperience products and spaces in novel ways. Augmented reality (AR) is the practiceof displaying digital information over people’s real-time view of objects, people, orspaces in the physical world. While AR can play a valuable role in integrated marketingprograms, little is known about the practice and how to execute effective ARprograms in the marketplace. We address this gap by presenting a framework thatdescribes the active and passive ingredients of augmented reality. We then describethe basic design decisions that marketers need to make when planning an augmentedreality campaign. In addition, we explain how understanding and addressing thedynamics between various active and passive AR ingredients can help marketers tooptimize their AR campaigns and enhance various types of consumer engagement: user-brand engagement, user-user engagement, and user-bystander engagement. Throughour framework and analysis, we develop eight actionable recommendations–—describedwith the acronym ENTANGLE–—marketing managers can use to design immersive ARexperiences that maximize consumer engagement.# 2015 Kelley School of Business, Indiana University. Published by Elsevier Inc. All rightsreserved.

1. Augmented reality: An emergingtool for marketers

How can marketers use emerging technologiesto break through the clutter and create value for

* Corresponding authorE-mail addresses: [email protected] (J. Scholz),

[email protected] (A.N. Smith)

0007-6813/$ — see front matter # 2015 Kelley School of Business, Ihttp://dx.doi.org/10.1016/j.bushor.2015.10.003

consumers? Imagine IKEA could help consumers visu-alize how a new sofa might look next to their existingfurniture, or a TV station could spice up consumers’mundane commutes by transporting them into aworld of The Walking Dead zombies (Figure 1). Mar-keters can create these unique and valuable experi-ences by effectively leveraging augmented reality.

Augmented reality (AR) is the practice of aug-menting a real-time direct or indirect view of the

ndiana University. Published by Elsevier Inc. All rights reserved.

http://dx.doi.org/10.1016/j.bushor.2015.10.003

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http://dx.doi.org/10.1016/j.bushor.2015.10.003


Figure 1. Augmented reality campaign for The Walk-ing Dead TV show in Vienna, Austria*

Two tram commuters flee a digital zombie that they,initially, believe to be real (AR campaign in the boguswindow paradigm).*Source: Image provided courtesy of move121 WerbeagenturGmbH

1 For a summary of terms used, see the Appendix.

2 J. Scholz, A.N. Smith

physical world with virtual information (Carmigniani& Furht, 2011). The layer/world metaphor aptlycaptures the basic idea of augmented reality: mar-keters layer digital information (e.g., text, pictures,videos) over objects and spaces in the physical world(e.g., product packaging, advertisements, streetscenes), and consumers experience these hybrid-ized realities via digital screens (e.g., smart phones,video installations) or projections (e.g., holograms).

Many of the world’s largest businesses–—includingCoca-Cola, McDonald’s, and General Electric–—haveembraced augmented reality in their marketingprograms. They have used AR to create interactiveadvertising and packaging, enhance retail experi-ences, and develop engrossing games. These typesof AR initiatives already allow marketers to craftimmersive brand narratives and enable consumersto experience products and spaces in novel ways.Moreover, future advancements in smart glasses andtransparent screen technologies (Dibble, 2014) willintegrate the human gaze with digital informationever more seamlessly, propelling AR into an estimat-ed $120 billion business by 2020 (Gaudiosi, 2015). Inthe words of an analyst at the 2015 Consumer Elec-tronics Show, AR has the potential to ‘‘disrupt any-thing with a screen’’ (Bradshaw, 2015).

Growing media coverage about augmented reali-ty reflects its emerging ubiquity. AR has been dis-cussed in trade publications (e.g., Handley, 2013),business magazines (e.g., ‘‘Reality, Improved,’’2009), and national newspapers (e.g., Berlin,2009) but has received little attention from businessacademics. If AR is mentioned in managerial-orient-ed journals, it is typically referenced only periph-erally as part of a changing business environment oras something to be studied in the future (e.g.,Dholakia & Reyes, 2013; Rohm, Gao, Sultan, &

Pagani, 2012; Zhao & Balague, 2015). However,managers who wish to integrate augmented realityinto their marketing programs need frameworks toinform their decision making. They need to under-stand the building blocks, design principles, anddynamics of augmented reality beyond its technicalqualities and non-commercial applications (e.g.,Broll et al., 2008; Hugues, Fuchs, & Nannipieri,2011). What should marketers consider when de-signing AR experiences? How and when should theyco-produce these experiences with consumers? Howcan they craft compelling AR experiences thattell brand narratives, create value, and engageconsumers?

Informed by an analysis of over 50 augmentedreality marketing initiatives from a broad array ofAR paradigms (Table 1), we have developed a frame-work that describes: (1) the ingredients of augment-ed reality; (2) basic design decisions for developingcompelling AR experiences; and (3) how marketerscan optimize the dynamics of AR initiatives to in-crease consumer engagement. First, we introducethe building blocks of AR experiences, which can beidentified as active ingredients and passive ingre-dients of the physical world. Second, we discussthe basic design decisions marketers have to makewhen developing AR initiatives. Marketers can designmore successful ARexperiences by defining the targetaudience and communications objectives, determin-ing how the AR layer will be activated for users,regulating what content will be added to the AR layerand by whom, and planning for how the AR layer willintegrate with specific social and physical contexts.Third, we describe how marketers can optimize theirAR initiatives by making adjustments–—often smalland inexpensive–—to their AR content and overallexperience. As a part of this discussion, we elaborateon how marketers can facilitate three different typesof consumer engagement by enabling users to inter-act with the digital content, other users, and peoplewho are not currently participating in the AR experi-ence. This framework allows us to develop eightactionable recommendations marketers can use todesign immersive AR experiences that maximize con-sumer engagement.1

2. The ingredients of augmentedreality

Every augmented reality experience is establishedand influenced by digital AR content (represented


Table 1. Four typical augmented reality marketing paradigms

AR Paradigm Description Examples

Active Print /Packaging

Augmenting targets–—presented in magazineand out-of-home advertisements, productpackaging, catalogues, or other printedmaterials–—with digital objects, typically usingprivately owned devices triggered by the user.

� Volkswagen Juiced Up billboard in which adigital VW Beetle acrobatically jumpsthrough the air.� IKEA catalogue in which promotionalmagazine is augmented with furniture,projecting it into a user’s room.� Cadbury Quack Smack in which package of achocolate bar is augmented with interactivegame.� McDonald’s Australia TrackMyMaccaspackaging in which boxes are augmentedwith ingredient-sourcing information.

Bogus Window Augmenting the space in view of the user–—typically via devices such as TV screensdisguised as normal glass windows–—with digitalobjects. The AR experience is usually initiatedfor the user, who views the AR experiencethrough the bogus window. Since theaugmentation occurs behind the bogus window,the user cannot see himself as part of theaugmentation.

� Pepsi Max bus shelter in which a live streetscene is augmented–—through a clandestinescreen in the shelter–—with fantastic images(e.g., UFOs, tigers).� The Walking Dead tram stop in which a livestreet scene is augmented–—through aconcealed screen in the stop fixture–—withapproaching zombies.� Into the Storm transport stop in which a livestreet scene is augmented–—through aninvisible screen in the stop shelter–—withviolent tornadoes.

Geo-Layer Augmenting the space around the user withdigital objects that may or may not be linked tospecific geolocations, typically using privatelyowned devices triggered by the user.

� Tokyo Aquarium guide in which digitalpenguins lead consumers toward theattraction.� BOS Iced Tea forest in which users plantvirtual trees across a city.� Kringle Santa Claus application in whichparents can create artifacts providingevidence of Santa Claus visiting the home.

Magic Mirror Augmenting the space or objects around theuser–—or even the user himself–—with digitalobjects, typically via public devices such as TVscreens that may or may not be disguised asnormal mirrors. The user can see himself aspart of the augmentation, either in direct viewin a digital mirror or by watching his actions ona screen from the perspective of a third person(in contrast to the bogus window paradigm).

� Pepsi Max Monster Mirror campaign in whichusers’ faces are transformed into werewolvesand evil clowns.� National Geographic Channel in-mallcampaign in which users are able to interactwith virtual cheetahs, dolphins, andastronauts.� Lynx Angels Will Fall campaign in whichangels fall automatically from the sky overusers.� The Bachelor Canada campaign in which usersare able to interact with digital bachelor starby receiving a ring or planting a kiss on hisvirtual cheek.� Timberland in-mall campaign in which userscan virtually try on clothing and shoes usingdigital screens in shop windows.

Augmented reality: Designing immersive experiences that maximize consumer engagement 3

by dotted grey triangles in Figure 2) and four addi-tional ‘ingredients’ in the physical world. Activeingredients (black arrows in Figure 2) include theaforementioned AR content, as well as consumerswho participate in AR experiences (users) and

objects that are augmented with digital information(targets). Passive ingredients include non-partici-pant witnesses (bystanders) and nearby, non-aug-mented objects and ambient conditions(background). These are not a direct part of an


Figure 2. Augmented reality ingredients and design decisions

Figure 3. Optimizing augmented reality for consumerengagement


augmentation, but can nevertheless profoundly in-fluence how consumers experience and respond tomarket-oriented AR campaigns.

AR content is virtual information that is oftenperceived by consumers through digital devices(e.g., smart phones, large-screen AR installations)running generic AR browsers (e.g., Blippar, Junaio,Layar) or custom-made AR applications (e.g., Volks-wagen Juiced Up). Virtual AR content can exist in avariety of formats, including text, pictures, videos,and animations. Collectively, all the content avail-able for viewing within a particular AR application,or in one particular setting of a generic AR browser,makes up an AR layer. For example, Yelp’s Monocleapplication augments a real-time view of the sur-rounding area with restaurant ratings in one AR layerand the location of close-by friends in a second,different AR layer.

Users are the people who directly experience anAR layer. They may do this through either a private(e.g., a smart phone) or publicly shared device(e.g., a projection screen). Users can share thesame physical space–—for example, if a screen dis-plays an augmented view of the street behind a busstop (e.g., bogus window paradigm)–—or they mayview the same AR layer while dispersed across dif-ferent locations–—for example, when readers of amagazine access the AR content of an active printcampaign from their respective homes via smartphones.

In contrast, bystanders are people who do notexperience an augmentation themselves but instead

observe a user’s actions either directly–—by sharingthe same physical space–—or indirectly–—by viewingcontent (e.g., images) that a user has generatedduring his or her augmented experience (see user-bystander engagement in Figure 3). Bystanders canaffect users’ willingness to engage in AR experiencesbecause bystanders form the social context of theexperience; they act as generalized others whomusers consider when determining whether their ac-tions are socially appropriate (Mead, 1934). Forexample, some shoppers might refrain from partici-pating in Timberland’s street-facing virtual fittingroom because their ‘strange movements’ could beseen by passersby.

Targets are entities in the physical world that areaugmented with digital information. In many cases,targets are objects; for example, a marketer might



digitally overlay a brand narrative or ingredientinformation on product packing (e.g., Heinz Ketch-up bottles). However, people may also be thetarget of augmentation. For example, clothingstores Topshop and Timberland have experi-mented with magic mirrors in fitting rooms andstorefront windows, respectively, that superim-pose digital images of their merchandise over liveimages of customers.

Every AR experience is interpreted within thecontext of the physical environment in which it issituated (Biocca, 2002). For example, a virtual IKEAcouch augmented into a fully furnished living roomhas different meanings and value than the samevirtual couch augmented into a grassy field full ofgrazing livestock. To capture the importance of thephysical environment, we employ the term back-ground: those objects and ambient conditions thatshare the same physical space as the target, but thatare not augmented in this particular AR layer. Theextent to which the background shapes the mean-ings of AR content varies from application to appli-cation; yet campaigns that adopt the active print/packaging paradigm are often less influenced bybackground as compared to the other paradigmsdescribed in Table 1.

These five ingredients–—AR content, users, tar-gets, bystanders, and background–—are the buildingblocks required to design and optimize AR cam-paigns. They need to be considered first when mak-ing basic design decisions about how an AR campaignis accessed, populated with content, and experi-enced by users in their current context. Marketerscan then leverage the dynamics between these fiveingredients in order to increase the efficacy of theirAR initiatives (see Section 4).

3. Designing AR experiences

Augmented reality is a new resource in marketers’toolkits. As such, some marketers might follow atechnology-driven approach and prematurely com-mit to a particular AR device. We advise a differentroute and recommend that marketers let their ob-jectives and the desired consumer experience guidethe design of AR campaigns. In particular, we pro-pose the following four steps for designing AR ex-periences (see grey arrows Figure 2):

1. Define your target audience and communicationsobjectives (campaign goals);

2. Determine how the AR layer will be activated forusers (trigger);

3. Regulate how, and by whom, the AR layer will befurnished with targets and AR content (contentcontribution); and

4. Establish how the AR layer will integrate withspecific social and physical contexts (contextintegration).

As a first step, marketers should define their targetaudience and communications objectives in order toestablish the campaign goals that will inform theirAR design planning and the experience they hope toprovide for users. Early adopters of new technolo-gies might be a particularly suitable target audiencefor some AR campaigns (Yim & Chu, 2013), as theseconsumers are more likely to download and use theapplications required for participating in activeprint and packaging or geo-layer AR campaigns.Companies that target less technologically savvyaudiences can still employ AR; however, they maybe more successful working within the magic mirrorand bogus window paradigms, as these typically relyon public video installations rather than consumers’personal devices. In addition, marketers need todefine the communications objectives they seekto achieve with an AR campaign: Do they want tocreate awareness for a new product, convey productknowledge, create emotional experiences, or culti-vate communities and relationships? AR campaignscan achieve any of these objectives.

In the next two steps, managers need to definethe roles that marketers and users will play increating the AR layer with respect to how the ARlayer is activated (trigger) and how it is furnishedwith targets and digital content (content contribu-tion). In doing so, managers make decisions thatprofoundly shape the user experience and theamount of control marketers have over the ARcampaign. It is therefore critical to align one’scommunications objectives with the ways in whicha layer is produced.

The means by which an AR layer is activated anddisplayed to users is known as the trigger. In manycases, each individual user will engage in somedeliberate action to activate the AR layer, such asscanning an active print advertisement in a maga-zine with a mobile device or accessing differentclothing options on a magic mirror in a fitting room.Here, the user is in control over when–—and oftenwhere–—an AR layer is activated; this is likely tomake users feel more positive about the AR contentand explore it in further detail (e.g., Collier &Sherrell, 2010). Thus, letting users trigger the ARlayer themselves aligns well with the objective ofconveying product knowledge.



Conversely, marketers can trigger an AR layer forconsumers, putting the marketer in control of whoparticipates in an AR experience in a particular timeand space. For example, the National GeographicChannel installed large screens across malls inHungary and Belgium to create an AR experiencein which shoppers were able to stand with andpretend to touch virtual cheetahs, dolphins, andastronauts. When marketers trigger the AR layer,consumers need not take deliberate action, whichdecreases the friction of initiating AR experiences.Thus, this type of trigger is particularly useful whenthe communications objective is to create aware-ness.

While the concept of trigger describes who isgiven control over the display of an AR layer, theconcept of content contribution describes who isauthorized to furnish an AR layer by adding addi-tional targets and AR content. In many cases, tar-gets and AR content are contributed by a small groupof people who tightly control the AR experience. Forexample, a marketer might design an active printcampaign that displays a fixed amount of content inthe AR layer, or plan an in-store experience in whichconsumers can virtually try on a limited range ofmerchandise (e.g., shoes at Lacoste). It is moreimportant to tightly control the content availablein an AR layer, for example, when the objective is toconvey accurate information or a marketer is con-cerned about culture jammers generating contentthat can undermine the authenticity and identityvalue of a branding story (Thompson, Rindfleisch, &Arsel, 2006).

Alternatively, content may also be co-created bya wider range of users who are encouraged to maketheir own contributions or to modify existing digitalcontent. For example, AR graffiti apps (e.g., StreetTag, Tagd) turn the physical world into a digitalcanvas in which consumers can leave messages orimages on walls and public landmarks. Marketersmay allow for the co-creation of content in order toempower consumers, cultivate brand communities,and stimulate advocacy. However, they should re-tain some control by developing community andcontent management policies to govern which userscan contribute content, what types of content canbe contributed (e.g., text, pictures, videos), andwhat type of content will be most valued and priori-tized for display (e.g., consumer-rated, new, brand-consistent). Marketers should also devise plans forhow the community or marketer will deal withinappropriate or brand-critical content in waysthat do not damage the reputation of the brand(e.g., Noble, Noble, & Adjei, 2012). This type ofcommunity and content management is especiallycritical for AR initiatives that become successful at

fostering large numbers of contributors and a widevariety of content.

The fourth step in designing AR experiences,context integration, entails planning how–—andhow much–—AR content is integrated with passiveAR ingredients (i.e., bystanders and background).For example, is an augmented billboard advertise-ment designed for a specific intersection, with all ofits surrounding buildings, traffic, and pedestrianflows; or, could it be placed almost anywhere withthe same meaning and effect?

When deciding on how much an AR campaign isintegrated with its surrounding social and physicalcontexts, marketers should keep in mind their com-munications objectives and the user experiencethey wish to offer. They should also consider con-straints, as high levels of context integration typi-cally require more planning, technical capability,and money. In some instances, marketers may wishto not integrate their experience into the surround-ing context. For example, they may be able to saveresources and still achieve their objectives of pro-viding information and generating an emotionalresponse by digitally layering a video over a productpackage. Such a video could be viewed almostanywhere with little change in the meanings itconveys, making it potentially easier to plan andexecute.

On the other hand, marketers may wish to takegreater advantage of AR’s unique potential andintegrate digital information more completely intothe physical world. For example, IKEA recognizedthat consumers who buy new furniture for theirhomes often face insecurity over how the new itemwill fit into their existing arrangements and de-signed spaces. AR has the unique ability to visuallydemonstrate how a new item would complementsuch existing consumption constellations (Englis &Solomon, 1996). Consumers can use IKEA cataloguesas targets to display, via a custom app, digitalversions of an IKEA couch right inside their ownliving rooms. They can see how the couch will fitwith non-augmented objects, such as side tablesand other chairs, and they can change the color ofthe digital couch to see what would best match theiruniquely designed spaces. By integrating the digitalcontent with the surrounding physical context, IKEAprovides an immersive customer experience thatcreates superior value.

Marketers who wish to increase the intrinsic ap-peal of their campaign through context-integratedcontent must be especially attuned to the social andphysical environments in which the experience willunfold. For example, the Kringle app, which helpsparents demonstrate to their children the existenceof Santa Claus by digitally ‘catching him on tape’ in



their living room, improves the fit between ARcontent and background by letting users adjustthe brightness level and size of the digital Santa.Considering the influence of all passive AR ingre-dients that can impact a user’s experience is par-ticularly important when designing campaigns forpublic places, such as streets, squares, malls, orstores. Marketers for The Bachelor Canada, forinstance, fenced off an area in a mall so thatindividuals could, one at a time, have a specialinteractive moment with a digital version of thattelevision show’s romantically eligible star. If the ARdesigners had not restricted access in this way,passersby or multiple consumers could have acci-dentally or purposely ambled into the augmentedscene, negatively impacting ambiance and user im-mersion and possibly creating frustration and disap-pointment. In public places, the risk of other peopledisrupting an experience is that much greater; theymight, for example, walk between a user’s screenand the real world target that is being augmented,or they might move into a user’s space while he orshe is trying to engage in some behavior as a part ofan augmented experience (e.g., dancing, interact-ing with a digital object, manipulating a productpackage). Marketers should plan to mitigate the riskof these types of occurrences in order to ensuremore positive and consistent consumer experiences.

To summarize: Marketers should follow four stepsto design successful AR experiences. They shouldfirst formulate campaign goals by defining theirtarget audience and communications objectives.Using this information, they should then guide de-cisions about how an AR layer is triggered and how itis populated with content. Finally, marketers shoulddecide the extent to and ways in which an AR layer isintegrated with the social/physical world. However,to truly optimize an augmented reality campaign,marketers must think beyond these considerations.They need to understand and address the dynamicsbetween different active and passive AR ingredientsin order to maximize consumer engagement andcreate immersive augmented reality experiences.

4. Optimizing AR for consumerengagement

Consumer engagement–—defined as the process ofinvolving consumers in specific interactions and/orinteractive experiences in order to build and en-hance consumer relationships (Brodie, Ilic, Julic, &Hollebeek, 2013)–—has become a strategic impera-tive for sustaining a competitive advantage. Previ-ous research has offered several suggestions on howmarketers can stimulate consumer engagement by

leveraging interactions in online communities (e.g.,Muniz & Schau, 2011) and social media (e.g., Kietz-mann, Hermkens, McCarthy, & Sylvester, 2011).Mobile marketing has a particularly high potentialto engage customers, as mobile devices allow mar-keters to interact with consumers in all contexts oftheir daily routines (e.g., Rohm et al., 2012). Aug-mented reality, by entangling branded content with-in consumers’ social and physical environments,offers marketers a dynamic way to interact withconsumers and to insert branded content into con-sumers’ conversations. The important question thusbecomes: How can marketers optimize their ARinitiatives to maximize consumer engagement?

Optimizing the dynamics between active andpassive AR ingredients can facilitate three typesof consumer engagement: user-brand engagement,user-user engagement, and user-bystander engage-ment (see Figure 3). Oftentimes, marketers mayincrease engagement by making minor designchanges to AR content or the ways in which con-sumers interact with AR content, other users, orbystanders. As such, optimizing an AR campaign’spotential for engagement and increasing its returnon investment may, in fact, be easier than firstimagined.

4.1. User-brand engagement

One type of engagement occurs when consumers acttoward inanimate objects (Brodie et al., 2013). Inaugmented reality experiences, these actions caninclude, for example, watching how a product isembedded into an entertaining 3D landscape (e.g.,McDonald’s TrackMyMaccas), changing the color of adigital couch (e.g., IKEA catalogue), or pretendingto pet a cheetah (e.g., National Geographic). All ARcampaigns have the potential to generate user-brand engagement (see Figure 3); however, market-ers can increase this type of engagement by en-abling users to perform more immersive types ofactions.

Virtual reality researchers differentiate betweenthree types of actions–—perception, manipulation,and interaction (Biocca, 2002; Lee, 2004)–—thatincrementally increase how immersive an experi-ence is perceived to be by users. We apply thisthinking to augmented reality and introduce theterm affordance to describe the types of actionsthat are available to users of an AR initiative. ManyAR campaigns, especially those that fall within theactive print paradigm, only afford consumers theopportunity to passively perceive content (e.g.,Volkswagen Juiced Up). While these campaignsmight successfully generate brand exposure andinterest, especially if they are novel (e.g., a large



installation, sophisticated content), they squanderan opportunity to further engage customers viahigher-level actions.

Offering users more engaging types of actionsneed not be technologically challenging or stupen-dously expensive. In fact, marketers can increaseaffordance levels rather easily by allowing users tomanipulate what and how AR content is displayed.For example, AkzoNobel’s Dulux Visualizer enablesconsumers to digitally paint their walls, and HeinzKetchup allows users to flip through different recipeoptions that are digitally layered over the productpackage.

The highest level of user-brand engagement isachieved when an AR initiative affords users theability to interact with AR content. For example, inPepsi Max’s Monster Mirror campaign, unsuspectingvisitors are transformed–—via magic mirrors in publicwashrooms–—into werewolves and other monsters.Consumers are simultaneously both users and tar-gets of the augmentation, resulting in an interactiveexperience: they are affected by the content theysee and affect how the content is displayed byaltering their facial expressions. True interaction,which requires users and AR content to mutuallyaffect each other (Lee, 2004), may be technologi-cally challenging to implement. However, marketerscan increase user-brand engagement by allowingconsumers the mere perception that they are inter-acting with AR content. This type of ‘pretend inter-action’ is well facilitated by the magic mirrorparadigm because consumers are able to observethemselves in relation to AR content. For example,shoppers pretend to pet digital cheetahs displayedin a National Geographic campaign or pretend to kissTim Warmels, star of The Bachelor Canada, on hisdigital cheeks. Even though these actions do notaffect the content that is displayed, consumers canindulge in the fantasy of interacting with the digitalcontent–—as long as the AR campaign is designed in away that allows space and time for these pretendinteractions.

4.2. User-user engagement

Consumer engagement is also strengthened whenbranded content is inserted into and/or facilitatesinteractions between members of an online commu-nity (Brodie et al., 2013). Through their AR initia-tive, marketers can thus aim to generate user-userengagement by enabling users to interact with otherusers of the same AR layer (see Figure 3). For this tohappen, a user’s actions toward AR content (i.e.,manipulations or interactions) must be consequen-tial for other users in that these other users are ableto perceive the new or altered AR content and even

act upon it in return. In other words, user-userengagement is enabled by some form of sociabilitythat allows for social interactions between either aspecific group of users or among all users.

Greek chocolate brand Lacta provides sociabilityfor specific groups of users by enabling customers toaugment the chocolate bar’s wrapper with privatemessages that are shared with friends and lovedones. BOS, a South-African producer of iced tea,provides sociability between all users by promptingcustomers to ‘plant’ virtual trees at their currentlocation via scanning a BOS iced tea can with acustom-made AR application. Since all users areable to see each digital tree at the particular coor-dinates where it is planted, one user’s actions areconsequential for all other users, creating sustainedlevels of user-user engagement.

Increasing the level of sociability is a powerfulway to add value to an AR initiative because itembeds the branded content into consumers’ con-versations. Augmented reality can facilitate inter-personal and even affectionate relationshipsbetween two people, as shown in the Lacta exam-ple, and it can strengthen brand communities, asexemplified in the BOS campaign. In either case, anAR campaign that integrates elements of sociabilitydeepens the linking power (Cova, 1997) of a brand,creating strong relationships that draw customers inand encourage them to return time and again.Therefore, marketers are well advised to considerhow their AR campaigns can facilitate user-userengagement.

4.3. User-bystander engagement

A third type of consumer engagement emergesthrough the relationships that exist between usersand bystanders (see Figure 3). While user-user en-gagement requires planning to increase the socia-bility of an AR experience, creating opportunitiesfor user-bystander engagement can be more easilyachieved by providing users with the opportunity tocreate artifacts that they can share in their socialnetworks. Artifacts represent records of users’ ac-tions within an AR layer (e.g., images, status up-dates, tweets) that are observable to bystanders notcurrently participating in that AR experience. Thesevisible records inform bystanders about an AR expe-rience and can even stimulate bystanders to engagein the experience themselves.

Artifact creation is routinely built into many ARinitiatives. For example, users can share a snapshotof their digitally decorated pint of Guinness onFacebook or tweet about their high score achievedin Cadbury’s Quack Smack game. However, thesetypes of artifacts are unlikely to result in sustained


Figure 4. Entangling augmented reality


user-bystander engagement because they do notoffer much practical or social value to either theuser or the bystander. Research on viral marketing(e.g., Berger, 2013; Kaplan & Haenlein, 2011) sug-gests that messages which provide the sender withsocial currency or identity value are more likely tobe shared; in addition, receivers are more likely toinvestigate messages that provide practical value,are surprising, or trigger an emotional response.

Thus, marketers should keep in mind users’ andbystanders’ perspectives and their shared relation-ships when designing artifacts. For example, TotalFilm magazine created an AR campaign involving acompelling identity-bolstering artifact: users whoviewed the cover of its 2012 interactive issuethrough an AR application were able to share animage of themselves on the cover of the publication.Creating this personalized artifact playfully sup-ported the fantasy of being a celebrity; consequent-ly, users were more likely to share this artifactbecause it supported self-presentation and identitygoals. Bystanders, in turn, were surprised by seeinga familiar face in an unexpected and unanticipatedcontext, fueling their curiosity about the origins ofthe image. These types of user-bystander interac-tions successfully employ word-of-mouth to reachnew target audiences. At best, artifacts that pro-vide value to users and bystanders can even help anAR campaign to go viral (Kaplan & Haenlein, 2011),especially when bystanders are so intrigued by theartifacts that they decide to participate inthe experience themselves and create their ownartifacts.

In the following section, we leverage theseunique insights from our framework and analysisto develop eight actionable recommendations thatmarketers can use to design AR experiences thatmaximize consumer engagement.

5. Entangling augmented reality:Recommendations for marketers

Augmented reality is an emerging marketing prac-tice, and managers can benefit from knowing howbest to leverage its unique potential. A comprehen-sive approach to market-oriented AR extends plan-ning beyond technology to designing immersive ARexperiences that leverage both active and passiveAR ingredients and engage consumers in a variety ofways. To craft experiences that generate value forboth consumers and marketers, managers are ad-vised to entangle digital AR content with the physi-cal and social contexts of consumers’ lives. In thisvein, we recommend that marketers ENTANGLEtheir augmented reality initiatives. That is, in order

to create dazzling AR programs, marketers shouldthink about (see Figure 4):

� Experiences;

� Nourishing engagement;

� Target audiences;

� Aligning AR with the marketing program;

� Neutralizing threats;

� Goals;

� Leveraging brand meanings; and

� Enticing consumers.

5.1. Experiences

Augmented reality initiatives should be consumer-experience driven rather than technology driven.Marketers’ efforts should be guided by consumerinsights about unique, stimulating, and valuableexperiences that are made possible by AR technol-ogies. These insights should then shape where suchan experience should occur, how it could ideally betriggered, and what content it should feature.While it might be exciting to leverage the newesttechnology or platform, initiatives that premature-ly commit to a particular approach risk failing toconnect with consumers, appearing gimmicky in theprocess. AR experiences that fail to meet or exceedconsumer expectations may also impair brandimage, waste resources, and imperil future pro-grams involving AR or other emerging marketingtechnologies.



5.2. Nourishing engagement

Marketers should focus their attention on nourishingconsumer engagement as opposed to being overlyconsumed with producing the flashiest, biggest, orcostliest AR campaign. Managers can often encour-age engagement through relatively minor and inex-pensive design decisions. Affording consumers theopportunity to choose or manipulate the contentthey view–—or at least to more readily interact withit–—can nourish user-brand engagement. Take, forinstance, marketing campaigns that operate withinthe bogus window paradigm. Architects of thesecampaigns can design AR content in ways that pro-vide sufficient time and space for consumers toinsert themselves into the narrative of the AR expe-rience. This can be achieved, for example, by havingAR content approach the user’s vantage point: PepsiMax depicts a tiger running toward a bus shelterfrom a far enough distance that it gives commuterstime to perceive the animal and insert themselvesinto the narrative by running away from it. Thesetypes of smart yet simple design fixes can enhanceaffordances and consumer engagement with ARcampaigns. Marketers can also fine-tune the dynam-ics of AR campaigns to bolster user-user and user-bystander engagement. They can, for example,enable consumers to share content within or outsideof an augmented experience, especially contentthat supports social and identity goals. Allowingfor greater sociability and/or the creation of intrigu-ing artifacts through these means represent simpleand cost-effective ways marketers can optimize ARexperiences for consumers.

5.3. Target audiences

Previous research suggests that early adopters ofnew technologies (e.g., Yim & Chu, 2013) and opin-ion leaders (e.g., Lyons & Henderson, 2005) areparticularly important target audiences for AR ini-tiatives, as these consumers can help to diffuse ARtechnologies and create content. Our discussion onthe role of artifacts in catalyzing word-of-mouthimplies that marketers should also keep in mind anadditional target audience: potential participantswho receive these artifacts. This line of thinking hasimplications for primary audience selection sincemarketers should aim to identify users who are morelikely to create additional awareness and expandthe reach of an AR campaign through sharing arti-facts in their social networks. It also has implicationsfor AR planning, as programs should provideartifacts that are of interest to bystanders. Forexample, Pepsi Max’s Monster Mirror campaignand similar AR ‘prankvertisements’ aim to create

viral campaigns through provocative events. Thesecampaigns successfully encourage social mediasharing, provide entertainment value to non-users,and illustrate the value of planning AR campaigns forbroader audiences.

5.4. Aligning AR with the marketingprogram

Marketers can maximize AR’s potential by thought-fully integrating it into an overall marketing pro-gram. Augmented reality can provide uniquebenefits to an integrated marketing communica-tions campaign, for example, by showcasing howproducts fit into consumers’ homes (e.g., IKEA cat-alogue). AR can also stimulate communicationsamong customers and generate impressions inowned and earned media. Artifacts that fulfill users’self-presentation goals are more likely to be sharedon social media, thereby generating word-of-mouthfor the brand. Clever campaigns are also frequentlydiscussed in trade magazines and online blogs. Mar-keters can boost the reach and return of their ARinvestment by creating supportive campaign ele-ments. For example, The Walking Dead campaignran for only a few days at a single bus shelter inAustria, but the behind-the-scenes video generatedmore than 12 million views and over 400,000 Face-book shares.

AR initiatives that are not automatically trig-gered may need support from other marketing cam-paign elements. Marketers can use productpackaging, advertising, and in-store displays to en-courage consumers to download and use AR appli-cations. When an AR experience is rooted in oneparticular place (e.g., Volkswagen’s Juiced Up cam-paign in Toronto), it may even be helpful to employbrand ambassadors to encourage passersby to trythe AR experience.

Finally, it is important to recall that AR’s useful-ness is not limited to marketing communications.Augmented reality can enhance retail experiencesor be an integral part of product offerings (e.g.,enhanced ski goggles). AR can also be used to culti-vate brand communities because it offers new waysto foster relationships between consumers, brands,and spaces. Significantly, AR can help mobile mar-keters overcome the challenges associated withlimited digital ‘real estate’ (Shankar, Venkatesh,Hofacker, & Naik, 2010) by extending the screeninto the real world.

5.5. Neutralizing threats

The power of AR lies in its unique ability to inter-twine digital information with the physical world;



however, this also makes it vulnerable to threatsthat marketers must proactively manage. We havealready emphasized the importance of ensuringeffective alignment between digital content andthe physical environment (i.e., context integra-tion). In addition to tending the risk of the back-ground conflicting with poorly integrated ARcontent, marketers should also be mindful of howthe brand meanings they plan to craft via AR can besubverted by activists and competitors. When de-ciding where to physically place their initiatives,marketers who seek to protect their desired brandimage should therefore ask themselves how hostileentities could respond to further their own aims:What other paid media spaces exist around an activeprint billboard, or what is in the sightline behind abogus window installation? For example, in PepsiMax’s bogus window campaign, the live street scenebehind the bus shelter is augmented with fantasticimages of UFOs and tigers. If it were possible topurchase media placements (e.g., billboards) in thestreet behind the bus shelter, Coca-Cola–—maker ofthe competing Coke Zero brand–—could try to gainawareness, take credit for the AR initiative, or evenmount a witty advertising retort by constantly beingpresent in the augmented scene via the backgroundmedia. If potential threats exist, marketers shouldtake action to mitigate these risks or relocate theirAR initiative to a new location.

Once settled on a location, marketers must at-tempt to manage the spaces in which their ARprograms will be experienced. Lego stores, for ex-ample, are outfitted with AR installations that proj-ect 3D models onto product boxes; however, if astore is crowded with bystanders, a shopper is likelyless able to engage with the installation or take thetime to fully inspect the resulting model, thus im-pairing the consumer experience. Marketers mighttherefore design the space to ensure visibility andmaintain open space around the in-store installa-tion.

Finally, in addition to safeguarding brand imagethrough space planning, marketers should also neu-tralize threats to their brand through appropriatecontent management strategies that enable them tomoderate and shape digital contributions in waysthat user content supports a positive brand image.

5.6. Goals

AR campaigns should be guided by marketer goals.For example, if brand awareness is an objective,marketers should plan for qualities that can enhanceawareness, such as location in a public setting, anautomatic trigger, a shared-screen experience, anda plethora of artifact options for users. In contrast,

if the goal is to support a brand community, market-ers should consider AR initiatives that afford oppor-tunities for manipulating or interacting with contentand allowing users to contribute additional content.Incorporating sociability would also be importantsince the linking value it generates would motivateusers to return to an AR layer. Furthermore, market-ers would benefit from designing experiences forindividuals’ devices, such as smart phones, becausethey are better suited for response input (e.g.,commenting).

5.7. Leveraging brand meanings

To design an optimal AR experience, marketers mustensure that their initiative is consistent with thebrand’s intended image. For example, The WalkingDead AR campaign successfully engaged both usersand bystanders by closely mimicking the shock ap-peal of the television show; in particular, it receivedapproval from fans, who were exposed to the cam-paign via word-of-mouth discussions. Other market-ers–—such as National Geographic, Pepsi Max, andBOS Iced Tea–—also ran campaigns consistent withtheir brands’ overall positioning approaches. This isyet another straightforward approach that AR mar-keters can embrace without having to spend consid-erable sums of money. They can design creativelyaligned AR experiences that, as discussed previous-ly, also uniquely contribute to broader integratedmarketing campaigns.

5.8. Enticing consumers

Marketers should design valuable AR programs thatentice consumers to try, and re-visit, AR experien-ces. Marketers need to present individuals withattractive reasons to self-activate the AR layer,especially when the consumers are in control ofthe trigger decision (Dobelea, Toleman, & Bever-land, 2005; Zhao & Balague, 2015). Yet controllingthe trigger decision does not absolve marketersfrom providing value, as they risk irritating consum-ers if the initiative does not deliver informational,entertainment, social, or identity value.

Our framework suggests many ways how market-ers can create value for consumers via augmentedreality. For example, integrating augmented con-tent with physical background factors can provideinformational value about marketplace offeringsand how they might fit into a consumer’s life(e.g., Ikea catalogue); interactive experiences thatallow users to choose, manipulate, or respondto marketer or user-generated content can offerentertainment value (e.g., Cadbury’s QuackSmack); sociable AR experiences enable consumers



to develop social relationships with other users(e.g., BOS Iced Tea); and artifacts that facilitateself-presentation goals can help consumers to con-struct their identities (e.g., Total Film magazine).Marketers who are able to deliver value to consum-ers can attract them to AR programs and face lessrisk of offending them through campaigns that areperceived to be intrusive or jarring.

6. Conclusion

Augmented reality has the strong potential to makeunique contributions to integrated marketing pro-grams. To realize its potential, however, marketersmust think beyond novel technologies to how they

Appendix. Glossary of augmented reality co

Concept Definition

Active AR Ingredients Those elements that are a direct

and targets).

Affordance The types of actions (i.e., percepan AR layer. At the lowest level oat the highest they can actuallyincrease user-brand engagemen

AR Content The virtual information (e.g., tethrough digital screens–—that au

AR Layer All the virtual information availinstallation. For example, Yelp mwith digital business review infodifferent AR layer that augment

Artifacts Records of users’ actions within aobservable to bystanders who aProviding opportunities to createngagement.

Augmented Reality (AR) The practice of displaying digitapeople, or spaces in the physicathat conveys information about

information may be viewed by uinstallations, or holographic pro

Background The objects and ambient conditithat are not augmented within

Bystanders The people who do not directly

actions, either directly in the samcontent.

Consumer Engagement The process of involving consumein order to build and enhance cbrands, other users, or people o

Content Contribution The process of adding digital colimited to a marketer or select

Context Integration The extent to which the AR layepassive ingredients). A more coninto account surrounding object

can develop immersive consumer experiences thatentangle digital information with the social andphysical world. They have to think about the activeand passive ingredients of augmented reality. Theyalso have to design user experiences that take intoconsideration their communications objectives, tar-get audience characteristics, content managementstrategies, triggers, and the social-physical contextof consumers’ lives. Most importantly, they need tofocus on consumer engagement and the dimensionsthat drive it, such as affordance, sociability, andartifacts. Marketers who develop thoughtful plansthat leverage each of these factors are well posi-tioned to delight consumers and provide ground-breaking AR programs.

ncepts

part of an augmented experience (i.e., AR content, users,

tion, manipulation, and interaction) available to users off affordance, users can perceive digital AR content, while

interact with this content. Higher levels of affordancet.

xt, pictures, videos, 3D animations)–—perceived by usersgments objects, people, or spaces in the physical world.

able for viewing within a particular AR application oright create an AR layer that augments a particular streetrmation, while Urbanspoon could create an entirelys the same physical space with different virtual content.

n AR layer (e.g., images, status updates, tweets) that arere not currently participating in that AR experience.e intriguing artifacts increases user-bystander

l information over people’s real-time view of objects,l world (e.g., a product package augmented with a mapthe product’s source ingredients). Augmented digitalsers, for example, via smart phone screens, large videojections.

ons that share the same physical space as the targets, buta particular AR layer.

experience augmented reality, but who observe a user’se physical space or indirectly by viewing user-generated

rs in specific interactions and/or interactive experiencesonsumer relationships. Consumers may be engaged withutside of an augmented experience (i.e., bystanders).

ntent to a new or existing target. Contributions may begroup of users.

r is integrated with the background and bystanders (i.e.,text-integrated AR experience might, for example, takes (e.g., IKEA catalogue).


Passive AR Ingredients Those elements that are not a direct part of an augmentation (i.e., bystanders andbackground), but which can impact the experiences of those who are immersed in anaugmented reality.

Sociability The extent to which one user’s actions (i.e., manipulations or interactions) areconsequential for other users of the same AR layer (e.g., a user can read and respond to amessage in an AR layer). Higher levels of sociability increase user-user engagement.

Targets The entities in the real world (e.g., objects, people, spaces) that are augmented withdigital information as a part of an AR initiative.

Trigger The way in which an AR layer and experience may be activated for use by or for a user. AnAR experience may be triggered by the marketer or through the actions of a user.

Users The people who participate in an augmented reality experience by accessing virtualcontent that is layered–—in real-time–—over some object or space in the physical world.

Appendix (Continued)


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