The Facebook Spat with Apple: Advertiser Q&A

The Facebook Spat with Apple: Advertiser Q&A

Facebook

If you operate a business on Facebook, you’ve probably received pop-up notices from Facebook warning you about ominous changes coming because of Apple’s latest operating system update. What’s exactly happening, and why? Our new advertiser Q&A takes a closer look.

Why Is Facebook Upset with Apple?

The conflict comes down to access to customer data.

Apple’s new operating system update, iOS14.3, contains new privacy tools that prevent apps from being able to track user activity across the internet. All applications need to ask iPhone users for permission to track their activity for the purposes of advertising. There an estimated one billion people around the world who own an iPhone.

Put another way: under iOS14.3, if a person has a business’s app on their iPhone, that person needs to agree to allow the business to collect information about them. iPhone users now have more control whether they actually want personalized ads generated as the result of an app following them around the internet.

Facebook believes that this opt-in approach could create a major problem for Facebook’s app. Most Americans have expressed discomfort with the way Facebook tracks their personal data. Since almost all of Facebook’s revenue comes from advertising, Facebook sees the new opt-in policy as a threat.

How Has Facebook Responded to iOS14.3?

Facebook has attacked the update publicly. For example, in December, Facebook argued on its own site that tougher privacy controls will hurt small businesses that rely on Facebook advertising to reach people. Dan Levy, Facebook’s vice president of Ads and Business Products, wrote that Apple is “hurting small businesses and publishers who are already struggling in a pandemic.” He elaborated:

These changes will directly affect [small businesses’] ability to use their advertising budgets efficiently and effectively. Our studies show, without personalized ads powered by their own data, small businesses could see a cut of over 60% of website sales from ads. We don’t anticipate the proposed iOS 14 changes to cause a full loss of personalization but rather a move in that direction over the longer term.

Facebook has also reached out to businesses, news media, and agencies (including us) to voice its position through content such as webinars.

What Is Apple’s Response to Facebook?

Apple continues to go about its business without a corporate response with one exception: the following tweet from CEO Tim Cook, which speaks for itself:

Tim Cook tweet

Otherwise, Apple has spoken with its actions by going forward with the iOS 14.3 update.

When Does the iOS14.3 Update Happen?

Although Apple made iOS 14.3 effective in December 2020, the company has not yet enforced the opt-in prompt. None of the changes discussed here is happening as of this writing. Apple has not announced when it will make these changes and enforce the prompt.

What Should Advertisers Do?

First off, we recommend monitoring the development closely. But don’t panic. No one knows how many iOS 14.3 users will opt out with their apps – Facebook or otherwise. To be sure, people opting out will compromise everything from conversion data to attribution to custom audience sizes. Facebook says it plans to roll out new features in events manager to help mitigate the impact of those changes. We are monitoring this situation for our clients. Stay tuned.

Contact True Interactive

To succeed with online advertising, contact True Interactive. Read about some of our client work here.

2021 Advertising and Marketing Predictions from True Interactive

2021 Advertising and Marketing Predictions from True Interactive

Advertising

If 2020 had a few surprises up its sleeve, the year certainly set the stage for 2021. In the months ahead, businesses are poised to transition more boldly to a digital-first economy, which includes a more seamless approach to e-commerce and increased opportunities for engaging with people through immersive experiences such as e-sports. At the same time, businesses will continue to navigate an increasingly complicated consumer privacy landscape. All those trends, and others, will influence the uptake of digital advertising and marketing in 2021. Read on for our fearless predictions for the year:

E-commerce Grows Up

We’ve all heard the same statistic bandied about: in 2020, the pandemic accelerated the shift to e-commerce by five years, according to IBM. But that doesn’t mean the acceleration went smoothly. As we saw during the holiday season, the surge in online commerce has exposed cracks in the seams for many retailers. Sellers struggled with a variety of issues ranging from stocking items properly to following through with orders. Going into 2021, these challenges are forcing companies to integrate all their processes (online, in store, shipping logistics, etc.) more seamlessly. Larger retailers such as Target and Walmart have already successfully expanded services such as curbside pick-up, which make it possible for shoppers to buy online and pick up merchandise at the store without needing to go inside. Going forward, they’ll follow Amazon’s lead and invest more in their own shipping and delivery services to own the order fulfillment process (Target and Walmart already have them – they’re still refining them, though). As we have seen during the holidays, the strain on shipping services such as FedEx and UPS is becoming unacceptable to retailers, and if they lack the resources to build out their own delivery services, they will partner with businesses such as InstaCart.

In addition, learning from the events of 2020, retailers will likely become more nimble in their approach to advertising and supply chain management in order to adapt to quickly changing shifts in consumer demand. They’re going to do a better job using tools such as Google Insights to adapt their campaigns to consumer behavior. The key will be to ensure their supply chain processes are as nimble.

— Kurt Anagnostopoulos, co-founder

Rough Sledding for Facebook

It may be rough sledding ahead for Facebook in 2021. Do a quick Google News search for Facebook and you will see a slew of articles depicting the challenges the social media giant currently faces. At the top of the list? News that more than 40 attorneys general and the U.S. government are expected to sue Facebook for alleged antitrust violations. And while Mark Zuckerberg has routinely appeared at congressional hearings addressing concerns of privacy, misinformation, and censorship, this latest lawsuit might be a final awakening for businesses who use Facebook as an ad platform.

Adding to Facebook’s already uphill battle is the release of the Netflix documentary, The Social Dilemma, which explores the dangerous human impact of social network platforms as told by tech experts who expose secrets behind their own creations. Many media outlets reported a wave of people canceling their social media accounts after viewing the documentary. Of course, Facebook has slammed the documentary, claiming it’s full of misinformation, but is the damage already done? Even if the documentary did not get all the details right, it has undeniably affected public perception of social media platforms. And if even a fraction of current users de-activate their accounts, this will absolutely have a negative impact on audience size available to advertisers. More importantly, with the continued negative publicity surrounding the biggest social media platforms, are businesses really going to want to ramp spend on Facebook and Instagram? My prediction is no. After a crazy year filled with pandemic fears and general social unrest, I do not believe businesses are looking to invest in platforms embroiled in controversy. And if media spend is pulled from some of the social media giants, it may leave the door open for other search engines or community-based ad platforms to emerge. Stay tuned!

— Beth Bauch, director, digital marketing

Walmart Gains Ground as an Ad Platform

The Walmart marketplace is still very much in its infancy. I believe that 2021 will lead to exponential growth of Walmart’s advertising services, and the company will become more competitive with Amazon in this regard. The current platform is still very small scale and, technically, still in beta or just out of it. Many larger advertisers have not been invited to join the Walmart marketplace because it is still so brand new. I believe that Walmart will enjoy a large jump in advertising on their app and site Q1-Q2 2021.

— Tim Colucci, vice president, digital marketing

Augmented Reality Takes Hold

I think in 2021 we will see more brands invest money into creating virtual experiences for their customers. Augmented reality (AR) was already becoming popular before the onset of COVID-19, but now, given the urgency to shop online during the pandemic, consumers are missing the in-store experience of physically trying on items. And retailers are responding with AR: Warby Parker, for example, has created a virtual try-on for their glasses via their app. My glasses broke this weekend, and instead of going to a Warby Parker store to try on different frames, I could use their app to see what the glasses would look like on me, and felt more confident ordering online. Another brand capitalizing on the opportunities inherent in AR? A make-up line called NARS. They allow you to experiment with their products, such as blush and eye shadow, through a virtual try-on feature. Overall, I think more retail brands will create virtual shopping experiences for their customers in 2021.

— Taylor Hart, senior digital marketing manager

E-sports Dominates

The world of e-sports is never one to stop changing. With e-sports accumulating a total revenue that reached more than $1 billion in 2020 (a $150 million increase from 2019), we can only expect that to continue to rise in 2021. Given the ongoing global pandemic and application of stricter stay-at-home rules, more and more people will turn to e-sports as another form of entertainment. It all starts with streaming services that allow e-sports players to become household names in the gaming industry. Giving these players an opportunity to reach tens, potentially hundreds of thousands of viewers without leaving their home is something advertisers can only dream of. Players will do sponsored streams, with designated ad reads to be presented at certain points during the broadcast. The NFL is also getting involved with Twitch (the biggest live streaming platform), getting some of the big name streamers (e.g., NICKMERCS and TimTheTatman) to watch Thursday Night Football on stream with various advertisers as sponsors. Watch for more professional sports and entertainment services to follow in the footsteps of the NFL and try to reach this large, somewhat untapped market.

— Max Petrungaro, digital marketing associate

Privacy Dominates the Executive Agenda

For years, CEOs and CMOs have treated consumer privacy as a problem for their information technology teams to worry about. No longer. Privacy is rapidly becoming a C-level problem that can damage a company’s reputation if managed poorly. A variety of forces have elevated the importance of privacy in the United States. First off, the state of California rolled out a tough privacy act, the California Consumer Privacy Act, in January 2020, and then made the law more strict in November. Because California is one of the world’s largest economies and is a bellwether state, what happens there will influence how other states treat consumer privacy. In addition, the big technology firms are already under close scrutiny, and the new presidential administration is likely to take an even closer look at their privacy practices.

Speaking of the tech giants – their actions are casting a spotlight on privacy. As widely reported, Facebook has launched a public campaign attacking Apple’s privacy iOS 14 updates, which are going to make it harder for Facebook and other platforms to target users with ads. Meanwhile, Google continues to move forward with its plans to stop supporting third-party cookies on the Chrome browser by 2022 – an action that continues to reverberate across the ad industry. In 2021, businesses will face a year of transition as they navigate an increasingly complicated consumer privacy landscape. The challenge involves more than reacting to changes in legislation and cookie tracking technology; advertisers also need to stay on top of emerging tools such as Verizon Media’s ConnectID, designed to manage ads without the use of third-party cookies. School will be in session constantly.

— Mark Smith, co-founder

More Social Shopping

With the world of online shopping expanding in 2020 due to the pandemic, I predict that 2021 will bring new ways to shop across social. Instagram has already released its e-commerce store to elevate shopping online. I predict that the platform will continue to refine its online shopping tools, even as more social networks follow Instagram’s lead and create additional opportunities for shopping right from consumer smart devices.

— Bella Schneider, digital marketing manager

Online Video Explodes

Online video is going to explode as the number of streaming services expands. I believe we are also going to see a cheaper, monthly subscription option (akin to the base Hulu subscription) that includes video ads as a way to subsidize lower-cost services. It is rumored that HBO Max will offer this option, but I believe we will see similar offerings from Peacock, Disney+/Hulu (which I believe will be combined at some point . . . in 2021?), and Amazon Prime. I think the opportunity for more ad space is going to be too good to pass up as more and more consumers cut the cord OR sign up for multiple streaming services. In addition, I believe we will see other live TV options becoming available from streaming services: cord cutters will still have the opportunity for live TV . . .  plus the ad space that goes along with it.

— Tim Colucci, vice president, digital marketing

Contact True Interactive

To succeed with online advertising, contact True Interactive. Read about some of our client work here.

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Four Great Holiday Ads You Need to See Right Now

Four Great Holiday Ads You Need to See Right Now

Advertising

Brands face special challenges this year with holiday ads. How do you strike the right tone during a global pandemic? Is it OK to show people being together? As it turns out, people just want to see good holiday ads. A recent Ace Metrix report finds that ad campaigns referencing the reality of Covid-19 fare slightly better with viewers, but not in any meaningful way. So what does a successful ad look like this year? As the following examples attest, there are still many ways to tell a story.

Resilience and Love

Some brands, like Coca-Cola, aren’t so much depicting life during the pandemic as underlining the qualities that serve us well, good times or bad. In Coca-Cola’s global spot, a dad takes an epic journey to deliver his daughter’s letter to Santa. The ad covers a lot of ground, following Dad as he scales cliffs, swims seas, and braves snow and ice to make his delivery. The story comes full circle when Santa makes wishes come true and delivers the intrepid traveler safely home. Resilience and love screen well any time, but during a pandemic year, those themes seem to resonate more than ever.

Even Santa Gets Stressed

Xfinity, by contrast, addressed the year just past more directly. In “The Greatest Gift,” Steve Carell appears as a maxed-out Santa who takes it upon himself to wow kids the world over after an unprecedented 2020. The ad nods to 2020 realities: Santa has to videoconference with his elves, for example, at one point forgetting to take himself off Mute. When an enterprising elf suggests packaging traditional holiday cheer in a new way, the ad brings its message home: that is, technology can bring people together, even when they can’t gather in person. And Carell is an inspired Santa, grounding the spot in humor as he frets and stress-eats his way to what ends up being the perfect solution. Ultimately, “The Greatest Gift” does a masterful job of acknowledging the year just past without getting stuck in a bleak place. As Carell noted in a statement, “The holidays are really about moments of togetherness with the people you love, and serve as a reminder for what’s most important, especially given the hardships of this past year. I hope that this sweet little story will bring a bit of cheer.”

Magical Surrealism Meets Burgeoning Talent

Apple takes a slightly different tack, elevating music as the harbinger of good cheer this season. The tech company, which seems to have an eye for new talent (past Apple ads have featured artists like Billie Eilish), this year gives American rapper and songwriter Tierra Whack a platform. And Whack is a revelation, bringing charisma, whimsy, and music to the new spot for Apple’s HomePod Mini voice assistant. Two Whack songs —“Feel Good” and “Pepper and Onions”— are featured in the spot, which opens with a downtrodden Whack returning home on a cold night, and ends on a note of magically surreal color and song. The ad’s theme? Music can boost our mood. It’s a joyful, welcome reminder during a long, strange year—and a nifty introduction to an emerging talent.

If You Don’t Laugh, You’ll Cry

Finally, check out the Match.com ad that in essence throws up its hands and says, with the kind of off-the-chain year 2020 has been, we may as well laugh rather than cry. The spot, created by Ryan Reynolds’ creative company Maximum Effort, asks what might happen if Satan met 2020 personified? Answer? The chemistry, including TP hoarding and selfies in front of a blazing dumpster, is amazing! As Reynolds said in a statement to TODAY, “Match is responsible for bringing millions of people together and even in this dumpster fire of a year, people somehow found love on Match. We just imagined what a ‘2020 match’ would look like and this video was the natural, slightly warped result.”

Realistic Optimism

It’s worth noting that these ads, while varying widely in theme and approach, do all aim for a certain north star—what Liz Matthews, senior VP of brand, creative and experiential marketing at Dell Technologies calls “realistic optimism.” The magic of these ads is that they don’t give into fear, even as they demonstrate empathy through storytelling or humor. It’s a delicate balancing act, but as Matthews notes, “It all comes down to remembering the human side of your brand. Tap into that to make sure you are delivering a message that aims to connect, not instill uncertainty.”

Contact True Interactive

Looking to establish that elusive blend of humanity and realism in your digital advertising? While striking that balance can seem like capturing lightning in a bottle, as these ads demonstrate, it’s not out of reach. Contact us. We can help.

Why Changes to Apple Maps Matter to Online Advertising

Why Changes to Apple Maps Matter to Online Advertising

Advertising

Businesses, keep your eyes on Apple Maps. The increasingly popular wayfinding app is making some big changes with the roll-out of iOS 14 this fall. As widely reported, Apple will:

Empower Visual Storytellers

People who visit businesses may upload photos of those businesses on their Apple Maps listings, just like they can do on Google Maps. The next time someone wants to post a photo of their stay at your hotel, they can do just that on your Apple Maps listing. Or if they want to depict the quality and safety of their dining experience at your restaurant, you can expect them to do so on your listing.

Rate Your Business

For the first time, people can rate their experience at your location by giving you a simple thumbs-up or thumbs-down. Now, this is a pretty basic change. On Google Maps, people can actually write reviews, not just ratings. But even still, allowing for ratings is probably going to move Apple Maps closer to being a full-fledged site for reviews and ratings. This development means businesses will need to pay more serious attention to Apple Maps as a source of reputation building. Customer ratings and reviews are increasingly important. Nine out of 10 people read them.

Why the News about Apple Maps Matters to Online Advertising

So why should businesses that advertise online care about these changes? Well, for one thing, anytime Apple changes its products, businesses need to pay attention. Apple is a bellwether brand with a wide-ranging influence across the business landscape. When Apple acts, the world is affected. We believe that the Apple Maps changes mean a few things:

Mind Your Own Visual Storytelling

Businesses need to strengthen their ability to create compelling visual content, including images and video, in their online advertising. Apple is responding to the reality that in the age of Instagram, visual content creates lasting impact. Apple is appealing to the same consumer who follows sites like Instagram closely. The question for any business: how powerful is your visual content? How well do you capitalize on visually appealing ad formats on sites such as Instagram, Pinterest, and Snapchat to connect with customers?

Think of Maps Apps as Brand-Building Tools

True, Apple Maps is not an advertising destination. But apps such as Google Maps and Waze evolved beyond consumer wayfinding a long time ago, as we have discussed on our own blog. And Google Maps is easily the most dominant map app. As Apple continues to position Apple Maps as the ad-free, pro-privacy alternative to Google Maps, businesses should expect Google to go in the opposite direction. Rather than allow Apple to define its brand, Google will roll out more advertising options for businesses on Google Maps. Watch for them and capitalize on them.

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Why the Popularity of Amazon Alexa at CES 2020 Matters to Advertisers

Why the Popularity of Amazon Alexa at CES 2020 Matters to Advertisers

Amazon

The Amazon Alexa voice assistant cast a big shadow over CES 2020, the premier annual event for showcasing new consumer technology. Amazon demonstrated a number of product integrations with Alexa. They matter because they point to a possible way that Amazon could lead online advertising.

The Battle for a Voice-First Future

Amazon is fighting a fierce battle with Apple and Google to lead the uptake of voice-based products among consumers and businesses (with Microsoft and Samsung also stepping up their own efforts). More than one quarter of Americans own voice-activated smart speakers, according to Voicebot.ai and Voicify. Amazon’s Echo leads the pack, but Google is catching up, as reported in The Motley Fool.

To win the war for voice, Amazon, Apple, and Google need to collaborate with product manufacturers to incorporate their voice assistants into product design (or through aftermarket upgrades).  And CES is where those integrations are demonstrated. For example, Bosch, the maker of smart home appliances such as dishwashers, announced an integration with the Apple Siri voice assistant. And a number of manufacturers ranging from Belk to GE announced integrations with Google Assistant, Google’s voice assistant.

But Amazon outflanked everyone. A wide variety of manufacturers ranging from bed maker Dux to helmet maker Jarvis demonstrated how they’re relying on Alexa to make it possible to use their products with our voices.  But it wasn’t just the sheer number of integrations with manufacturers that mattered – what really caught my eye was how Amazon is making it easier for people to actually purchase things.

Making Purchases Is the Holy Grail of Voice

As I wrote in a recent blog post, people still use voice to do more mundane tasks such as checking the weather. Making purchases, though, is the Holy Grail of voice. Voice commerce is a far more complicated undertaking. And at CES 2020, Amazon showed that it is up for the challenge. Amazon announced that in 2020, automobile drivers will be able to use Alexa to purchase gasoline. As Amazon said, “Later this year, customers will be able to say, “Alexa, pay for gas” to easily purchase fuel at all 11,500 Exxon and Mobil stations. The transactions for this new Alexa feature are made through Amazon Pay and powered by Fiserv, a global financial services technology provider.

The ability to pull off voice-activated purchases requires Amazon to work closely with ExxonMobil – an example of the collaboration required to make voice a reality. If Amazon and ExxonMobil can make the purchase of gasoline as easy as making a voice command, then manufacturers and retailers will be encouraged to adopt voice for purchases, too. (Think of appliance makers turning the Amazon Dash device for order replenishment into a consistently reliable voice-first experience.)

Why CES 2020 Matters to Advertisers

Why do these announcements matter to businesses that advertise online? Well, here is a telling statistic: even though Amazon leads voice, Google pretty much owns online advertising. Google commands 37 percent of digital ad spend. The next largest competitor, Facebook, has 22 percent of the market. Amazon lags behind with 8.8 percent. But – Amazon is still very new to online advertising. It did not start dipping its toes into online advertising until 2008. Within 10 years, Amazon had become one of the big three of online advertising.

Amazon is rapidly threatening Google’s and Facebook’s leadership by offering new tools that help businesses advertise on Amazon – and off Amazon. We’ve written about some of those tools, such as my colleague Samantha Coconato’s posts on Amazon Video Ads, Amazon Display Ads, and Amazon Sponsored Ads. Those ad services capitalize on the reality that Amazon has become an increasingly popular way for people to search for products – even more popular than Google.

But Amazon knows the world is changing from text-based to voice-based search. Voice search is not “taking over.” But voice is becoming more common. Per a Microsoft study in 2019, 72 percent of people surveyed had used voice search the previous month. Amazon is preparing for the time when voice will reach a tipping point, and businesses will have no choice but to employ voice-based advertising and search engine optimization tactics into their game plans.

And that’s why the product integrations matter. By making Alexa the de facto voice assistant in everyday products, Amazon wants people to be more comfortable using their voices to use and buy things. Encouraging the uptake of voice among consumers helps Amazon position itself as the premier advertising partner for businesses.

Whether Amazon succeeds remains to be seen. But as Google and Apple compete with Amazon to integrate voice, it’s clear that advertisers need to be ready to adapt.

Contact True Interactive

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What Advertisers Should Do about the Rise of Voice Search

What Advertisers Should Do about the Rise of Voice Search

Search

We’re living in an era in which people are using their voices to do everything from shop to check the weather. Signs continue to indicate that the rise in voice is more than a passing trend. In fact, recent data shows that businesses need to pay closer attention to voice search and the impact it can have on advertising and organic content.

What Are the Latest Statistics about Voice?

  • According to a 2019 report from Microsoft, 72 percent of people use voice search through a personal digital assistant, and 75 percent of households will be outfitted with at least one smart speaker by 2020.
  • A 2018 BrightLocal study reveals that over a 12-month period, 58 percent of surveyed consumers used voice search to find local business information. In addition, Forbes notes that consumers want voice search to help them with myriad tasks, including:
    • Making reservations.
    • Gathering price data on services and products.
    • Confirming whether an item is available.
  • According to estimates from eMarketer, more than 74 million Americans — almost 27 percent of the U.S. population — will be using smart speakers in 2019, a 15 percent uptick from 2018.

What Should Businesses Do about Voice?

In short, it’s becoming a world in which businesses must be prepared to use voice for advertising. As Jelli CEO Mike Dougherty shared with Forbes, voice will “open up opportunities for marketers and brands to get creative and interact with customers in new ways . . . The goal of any marketer is to establish a genuine connection with customers. Voice is their chance to get one step closer.”

Jennifer Hungerbuhler, the EVP and managing director, local video and audio investment, at Dentsu Aegis Network, concurs. She also notes that voice search will not only be important in the marketing, advertising, and media worlds, it will continue to evolve.

How Should Businesses Prepare for Voice?

Part of staying relevant in a world of voice search means understanding voice, and creating content that optimizes how voice works. For instance, as we have discussed on our own blog, advertisers should evaluate voice search queries and pay attention to the conversational text that occurs.

Conversational text, which tends to be more complicated than simple Google searches, is a clear indicator of how people express themselves during voice search. It can be an excellent resource when companies want to write copy consistent with how people are using their voices to search. “Who,” “What,” “Where,” “When,” “Why,” and “How” are great words to focus on. Long-tail queries that include natural phrases such as “near me” or “can I get the number for” can also be useful/telling. These queries can help identify what consumers most want to know about a company’s products or services—and how they parse their request via voice.

As Hungerbuhler notes, “Advertisers will need to get better at understanding how consumers want to find them in voice, the language they will use to do so, and how they can get onto a shopping list.”

The bottom line? Search behaviors are different when consumers use voice. Because brands, increasingly, want voice assistants to find their site, savvy businesses will tweak their advertising and organic content accordingly.

What You Should Do Next

What are next steps in this brave new world?

  • Prepare now by rethinking your approach to content.
  • Don’t panic. Realize that even though people are using voice assistants, it doesn’t mean they are doing so in droves. According to research firm Stone Temple, voice assistants still rank behind other choices such as mobile browsers or search engine apps.
  • But do act. Voice search isn’t going away. Andy Franco, the founder of Facebook advertising agency Live Surge, explains, “Just like search has become second nature to people who used to use card catalogs, voice is likely to be well used by those who are multitasking and need hands-free tools.”

Contact True Interactive

Contact True Interactive. We can help you better understand voice search as you craft your strategy.

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Apple Showcases Its Augmented Reality Tools at WWDC

Apple Showcases Its Augmented Reality Tools at WWDC

Marketing Mobile

When is the next Pokémon GO going to come along to make everyone love augmented reality (AR)?

This is the question on the minds of many technology watchers who are waiting for another AR breakthrough. But applications like Pokémon GO don’t happen very often. The real value of AR comes from people and businesses using it to share immersive experiences that complement our lives rather than making us drop everything and focus on AR.

Perhaps that’s why Apple has been careful to sell AR as an evolutionary tool that will enrich how we live, whether through practical application or content that engages. At Apple’s annual Worldwide Developers Conference (WWDC) Apple accentuated tools that should make AR easier to use – perhaps not glamorous developments, but important ones.

ARKit Update

For example, Apple announced an update to ARKit, its software development toolkit for AR (and competitor to Google’s ARCore). Among other improvements, ARKit will capture the motion of a person in real time with a single camera. As Apple noted, by understanding body position and movement as a series of joints and bones, you can use motion and poses as an input to the AR experience — placing people at the center of AR. Apple also announced human inclusion, meaning that AR content realistically passes behind and in front of people in the real world, making AR experiences more immersive.

Those improvements matter because for AR to attract advertisers and consumers, it has to offer something different beyond what anyone can experience in a 2D world. As it stands, AR is catching on with advertisers. According to eMarketer, global augmented reality ad revenues are expected to rise from $779 million in 2019 to $1.2 billion in 2020 and $2.6 billion in 2022 – not a huge number, but higher than $166.7 million generated in 2017. Most of that money is coming from display advertising. Making AR more powerful and immersive will build more momentum.

Making AR Easier

Apple did something else: made AR easier to develop. With new Reality Composer and RealityKit tools, developers will be able to create AR apps easier on Apple’s operating system. As Apple noted, Reality Composer helps anyone create AR apps even if you lack 3D experience.

But responses to the news have been underwhelming, partly because Apple is restricting these tools to its own operating system. But another reason is that journalists seem to be waiting for that next AR killer app to capture their imagination, and software development tools are not going to do that. Perhaps the AR version of Minecraft will be the next killer app. Meanwhile, advertisers will continue to create AR that engages, such as Toyota’s new AR experience and Snapchat’s ongoing AR features. People may not use AR every day, but when they do, they remain highly engaged. Apple isn’t creating engagement – but it’s giving businesses tools to do so.

For more information on how to build advertising that engages consumers through digital, contact True Interactive.

Image source: https://www.apple.com/newsroom/2019/06/highlights-from-wwdc-2019/