What is Augmented Reality, and Should You Use It?

What if one day the world we perceive is not enough for us? As humans, our desire to see beyond what we already have has brought so many innovations and technological advancements. And one day, we found a way to create everything we wanted to see in real life with computers and incorporate them into our environment. This happened thanks to augmented reality and virtual try-on technology, but you may be wondering, what augmented reality is exactly.

AR, which is becoming a shining star with the increasing interest in the metaverse trend every day, is certain to be a significant factor in many industries, from entertainment to online shopping. Of course, in order to keep up with all these developments, it is necessary to understand what augmented reality really is, its true nature, and what it promises.

So how about turning this into a funny game with "WH" questions? You can find the simple questions below in the following paragraphs, which are short and concise so that they will not bore you. And of course, they contain enough information to ensure that you are familiar with the terms and latest use cases.

If you think you already have enough expertise in this area, it wouldn't hurt to take a few moments, test your knowledge, and enjoy a little memory refresh.

Key Insights

Augmented Reality Expands Our Perception of Reality: AR integrates digital content, like 3D models and graphics, into our real-world environment, enhancing what we see and interact with. This immersive experience is changing how we interact with the world, offering new opportunities in industries like entertainment, eCommerce, and education.

AR is Gaining Popularity Across Multiple Industries: While AR began in the entertainment sector, it has expanded into fields like fashion, cosmetics, furniture, and education. Businesses in these industries are leveraging AR to enhance customer engagement, offer virtual try-ons, and reduce product returns.

AR Enhances eCommerce Experiences: With AR, customers can try products virtually before buying, whether it's makeup, furniture, or clothing. This technology boosts customer confidence in their purchase decisions, leading to higher satisfaction and fewer returns.

Augmented Reality is Reducing Product Returns: Returns are a major challenge for retailers, costing billions annually. AR solutions can reduce return rates by up to 25% by helping customers visualize products more accurately before purchase, making them more confident in their decisions.

AR Provides a Competitive Edge: Businesses using AR are standing out from the competition by offering innovative, interactive shopping experiences. Brands that implement AR not only attract more attention but also build stronger relationships with customers, leading to increased brand loyalty and higher sales.

What is Augmented Reality?

Augmented reality (AR) integrates virtual data, such as images, animations, 3D models, videos, and graphics, into the real world in a way that we can perceive with our senses. This virtual data is overlaid onto the real environment in real-time, allowing us to interact with and experience it in a more dynamic way.

By enhancing the real world with elements like depth and the ability to view objects from multiple angles, AR makes it easier to understand how virtual objects would look and behave in our 3D space. The first AR experience is believed to have been developed in 1968 at Harvard by computer scientist Ivan Sutherland, who created a head-mounted AR display system that paved the way for modern AR wearables and digital display technologies.

Today, AR works seamlessly with smart devices like smartphones, taking user experiences to a new level by adding an interactive, immersive dimension to everyday activities. While it was initially associated with entertainment, AR has now expanded into various industries, including eCommerce, where global brands are tapping into its potential to enhance customer experiences.

How Does Augmented Reality Work?

AR works by utilizing a combination of hardware, software, and sensors. The process begins with a device, such as a smartphone or AR headset, equipped with a camera and sensors. The camera captures the user's view of the physical world, while the sensors collect data about the user's position and orientation.

The software analyzes the camera input and sensor data to determine the user's location and the placement of virtual objects in the real world. It then renders and overlays the digital content onto the live camera feed, aligning it with the physical environment. This blending of real and virtual elements creates the illusion that the virtual objects exist in the user's actual surroundings. The user can interact with the augmented reality by moving the device or interacting with the virtual objects through touch or gestures, allowing for a dynamic and immersive experience. Overall, augmented reality enhances our perception of reality by adding a digital layer of information and interactive elements to the world around us.

What is the Difference Between Augmented Reality (AR) and Virtual Reality (VR)?

This question is important in order to understand what augmented reality is not before trying to understand what it is.

Augmented reality (AR) and virtual reality (VR) are different concepts that are often confused with each other. In VR, the user is involved in a completely new virtual world through supporting hardware like headsets.

AR, on the other hand, integrates virtual elements into the real world, allowing users to continue interacting with their current environment.

Will there be a winner in the presumed contention of these two popular technologies? Augmented reality and virtual reality are different technologies that cater to different needs. Rather than being two rivals, they complement each other and help the overall development of display technologies.

The fact that they have strengths and weaknesses relative to each other does not necessarily put these two shining technologies in unnecessary competition. On the contrary, an alternative where AR and VR work in harmony may be the winner of this extended reality race.

How Does Augmented Reality Impact eCommerce?

In just a few seconds before you read the title above, countless customers have already purchased a product they need online. It is obvious that the rise of different digital solutions has increased with the consolidation of eCommerce. And brands, big or small, do not ignore the functionality and creativity offered by AR.

Augmented reality, which enriches our real-world experiences, aims to have the same effect on the customer experience that was once trapped in the same-old traditional methods.

The exponential increase in access to smart devices also opens the door to a much more practical and secure shopping experience for customers.

Maybe the numbers can help us better understand what augmented reality means for eCommerce. There are 100 million users using AR in their shopping experience, according to Snap. And 94% of this audience says they will benefit from technologies like AR next year as well. Plus, using augmented reality as an eCommerce enhancer is proven to boost the most important online shopping metrics like conversion rates and average order value.

The Best Industries for Augmented Reality Technology

We know brands don't use AR just so we can take funny photos with a couple of filters now and then. They want to increase their brand awareness and eventually sales. AR repeatedly underlines the fact that it is not just a means of entertainment and can become a cornerstone of any industry.

In the eCommerce area, every brand that chooses AR as a companion stands one step closer to its customers.

Fashion

Both customers and brands dream of a shopping experience beyond borders and limitations. The fitting rooms that AR brought to our homes, remove the question marks of customers who are much more demanding than before with virtual try-on opportunities.

Cosmetics

The cosmetic industry, which does not allow product returns due to hygiene reasons, eliminates this disadvantage with AR. Thanks to the virtual try-on feature, brands can now allow customers to try countless colors and shades now from their front cameras.

Is that concealer going to match your skin tone? Now, instead of trying it on your wrist or neck at stores, you can view the product directly on your face. (And to be honest, technology owes us every second that it does not give the opportunity to experience perfumes in online shopping!)

Furniture

Tell us which one would you prefer: entering IKEA and not being able to leave the store without going all the way and finding your way to exit, or bringing the product you want to see in the middle of your room within seconds?

Measuring size and depth play a decisive role, especially when purchasing furniture. An armchair that looks great in the store or on a website with its 2D product image may not match the colors of your living room, it may even not fit in properly.

Using AR to shop online helps you eliminate all these chances of dissatisfaction in the first place. Turn on your smart device, place the armchair wherever you want. All that's left is to sit down and watch the magic happen right in front of your eyes.

Education

Dynamic and AR-based solutions preferred in the field of education support the development of children with high-level visual experiences. At the same time, the spread of the AR trend for products that appeal to children makes the work of parents much easier, especially when it comes to buying toys.

Banking, real estate, health, tourism… It is possible to extend this list as long as we want. Every industry where user experience is at the center is positioned as a new category for AR. So, is augmented reality customer-friendly or brand-friendly? It’s just a win-win situation that customers who think twice now before making any purchase make the right choice and brands avoid massive losses caused by product returns.

Why You Should Be Using AR

In the age of technology, your customers demand better and newer experiences every minute. Give them what they want with the power of augmented reality and increase your brand loyalty and awareness at the same time. With a better user experience, you get more satisfied customers. Therefore, the brands that implement AR into their business model make great use of word-of-mouth marketing as well.

More confident customers = Fewer returns.

Returns constitute a 550 billion problem worldwide, according to Snap Inc's report, AR can cause up to a 25% reduction in returns. Unnecessary cheap is expensive, and customers are certainly aware of that.

Draw attention to your brand with your innovative identity. Other brands can work on their social media campaigns, but using self-promotional AR can be much more effective to differentiate your business from thousands of others. Don't underestimate the power of visualization and enable your customers to take full advantage.

The Bottom Line

Today, many brands are looking for new ways to leverage AR display and virtual try-on solutions. It doesn't hurt to join an excited crowd when it comes to innovation. To jump on this trend, you can contact our professional team today and open the door to new experiences for both your brand and your customers.

FAQs

What is augmented reality (AR)?

Augmented reality (AR) integrates digital content, like images and 3D models, into the real world. Using devices like smartphones or AR headsets, AR overlays this virtual content onto our physical surroundings, enhancing our perception of reality.

How does augmented reality work?

AR works by using a combination of hardware (cameras, sensors) and software to capture the user’s environment. It analyzes the real world and overlays virtual content, aligning it with the physical space, creating an interactive and immersive experience.

What’s the difference between augmented reality (AR) and virtual reality (VR)?

AR adds digital elements to the real world, allowing users to see and interact with both simultaneously. VR, on the other hand, immerses users in a completely virtual environment, blocking out the real world. AR enhances reality, while VR replaces it.

How does AR affect eCommerce?

AR allows customers to virtually try products before purchasing, whether it's furniture, clothing, or makeup. This technology boosts confidence in purchase decisions and reduces returns, providing a more satisfying shopping experience.

Why should I choose AR solutions for my business?

AR can improve customer engagement, increase confidence in purchases, and reduce returns. It differentiates your brand by offering an innovative shopping experience, leading to higher customer satisfaction and loyalty.