Ashley Furniture surpasses CTR benchmarks by 2x with AR ads

Brief:

Ashley Furniture worked with Verizon Media on an augmented reality (AR) ad that exceeded click-through rate (CTR) benchmarks by two times, according to an announcement shared with Mobile Marketer. The AR ad tool lets shoppers place 3D digital versions of Ashley products in their homes while using Yahoo Mail.
Ashley's e-retail company, Ashley Global Retail, and media agency Merkle developed the campaign to bring the in-store shopping experience to mobile devices. Nick Lezin, Ashley's VP of marketing, said the AR ads help shoppers to overcome the challenges of mentally visualizing how furniture will look in their homes.
Verizon Media, the telecom giant's media group that this month was renamed from Oath, introduced the 3D ad formats and extended reality (XR) ad experiences last year at Cannes. LG, Chevrolet and Peugeot were among the brands to use the ad format.

Insight:

Ashley Furniture's positive results show how the 3D AR ad format can help to engage mobile viewers with an interactive experience while also helping them make more informed purchase decisions. Verizon Media last year found that AR ads delivered an average of 2.4 minutes of user engagement by targeting home décor enthusiasts on Verizon's Yahoo Mail, according to a case study about home furnishings company Pottery Barn.

Home furnishing companies in the past few years have continuously incorporated AR technology into the shopping experiences for mobile users. AR lets shoppers place realistic 3D images of furniture in their homes to view from different angles while using a smartphone or tablet. Artemest, Ikea, Houzz, Wayfair, Anthropologie and Macy's are among the retailers that use AR technologies in their mobile apps. The success of Ashley Furniture's ad shows how AR experiences have moved outside of branded apps into mobile web and email.

AR advertising is projected to grow from $167 million in 2017 to $2.6 billion in 2022, according to a report by ARtillery. The gains mirror the growth of mobile advertising overall, which is forecast to grow to nearly 31% of global ad expenditure, or $187 billion, by next year. At the same time, consumers and business also continue to ramp up their AR usage, with more than 80 million Americans engaging with the tech each month, according to a Boston Consulting Group (BCG) study commissioned by Snap.