Augmented Reality: The Modern Word of Mouth

The Importance of Word of Mouth Marketing

Word-of-mouth marketing has long been one of the most trusted drivers of consumer decisions, and its digital evolution has placed social media content, like video and AR, at the forefront of this influence. In fact, word-of-mouth is 33% more likely to be a trusted source amongst consumers compared to traditional online videos ads¹. Additionally, Snapchat, as well as peer-reviewed and independent research², has previously linked the relationship between social interactions, engagements, and positive brand outcomes for AR, like attention, brand-building, and MMM. 

In partnership with Tinuiti, we conducted a comprehensive and multi-phase research study to examine how social media content and more specifically, AR, naturally fits into online conversations and facilitates a more modern word-of-mouth. Ultimately, this study aims to more deeply understand how and why people are using AR as a catalyst of conversations and how brands can meet the desires of Snapchatters in starting a conversation with their community.

Our multi-phase study, conducted by market research consultancy Alter Agents, was structured to uncover the multifaceted role of AR in social sharing:

• Mobile qualitative ethnographies were employed to gain a deep understanding of why consumers share AR and video content.

• Coding and performance analysis of 741 AR ads provided insights into how motivations for sharing correlate with advertising performance metrics like brand lift.

• Quantitative online surveys involving over 5,000 social media users helped quantify sharing behaviors and expectations.

Word-of-Mouth Becomes Social

Social media users are, by nature, prolific content sharers. Nearly 19 billion texts are being sent every single minute and specifically for Snap, over a billion Snaps are being posted publicly every month, with a far greater amount privately. The reason why there’s so much communication happening is because there’s a desire to create social and emotional connections, with 91% saying that it’s their primary motivation for sharing content³. They are sharing most with their inner circle, made up of their close friends and family, who share content back with them in return. AR in particular is shared more with and by their inner circle compared to any other type of content.

Word-of-Mouth is Driven by Emotional Bonds, Especially Through AR

The reasons why social media users share content ultimately drill down to the hope of creating emotional bonds with others, with a few particular motivations standing out:

• To spread joy

• To express how I’m feeling in the moment

• To update others about my day/life

• To discuss shared interests/hobbies

• To create shared memories

We then found that AR content is on top when it comes to building those attachments and special moments, like wanting to make others laugh or smile, to start a conversation, or to strengthen the friendship³. For Snapchatters in particular, as native users of AR, perceive the impact of AR sharing to be stronger than app users.

The strong emotional impact that AR can have amongst users may be a core reason as to why AR can keep pace in purchase influence relative to video, even though advertisers invest far more in video than AR⁴.

Brands Can Drive Word-of-Mouth Through AR

The analysis of historical AR campaigns revealed that sharing AR content is a strong leading indicator of brand performance, more so than time spent. We also found that when brands harness core AR sharing motivations – emotional connection and entertainment – they gain a significant advantage in driving share rates and brand lift. However, overt branding seemed to diminish share rates, so finding the right balance is key. 

And for Snapchatters, 81% agree that AR can be a fun way to learn about new products and are 1.6x more likely than other app users to use it to invite others to shop with them, creating a key opportunity for brands who haven’t engaged in AR³.

Recommendations for Brands

To harness the full potential of AR in word-of-mouth marketing, brands should:

• Foster Emotional Connections: Leverage AR to enhance the quality of social interactions, making sharing a more meaningful and emotionally engaging experience.

• Integrate AR Seamlessly: Make AR a natural extension of everyday conversations and plan it alongside their video campaigns.

• Capitalize on Discovery Through AR: Use AR not just for engagement but as a tool for product discovery and exploration, aligning new products with consumer interests and current trends.

Augmented Reality is reshaping the landscape of digital word-of-mouth by enhancing how we connect, share, and experience products online. As Snapchatters turn to AR for more than just entertainment, the potential for brands to tap into this modern word-of-mouth channel is vast and largely untapped. Embracing AR can enhance traditional marketing approaches, providing a more engaging, emotional, and effective way to reach consumers.