Building Lasting Connections with Gen Z through AR Brand Experiences

Born between 1995 and 2012, Gen Z stands out as a unique generation, characterized by their status as digital natives who have grown up in a world saturated with cutting-edge technology. This upbringing has not only influenced their perspective on life but has also redefined their expectations and behaviors, creating both challenges and opportunities for brands seeking to connect with them.

The importance of Gen Z in the business world cannot be overstated. According to the Bank of America’s predictions, Gen Z will account for a quarter of global income, seeing a five-fold earnings increase to a staggering $33tn by 2030, underscoring their substantial influence as a market force. Moreover, they hold the distinction of being the most active users of online platforms and dating apps, wielding the potential to either shape or break a brand's reputation.

To engage effectively and cultivate lasting connections with this generation, brands must align their marketing strategies with technology that resonates authentically with this influential demographic. One such effective technology is Augmented Reality (AR) brand experiences. An innovative approach that checks all the boxes for reaching and connecting with Gen Z. Join us as we explore the Gen Z mindset, the rise of AR brand experiences, and how personalized AR brand experiences are reshaping the marketing landscape.

Key Takeaways

• Gen Z are digital natives, making them receptive to new technologies like AR.

• Personalized AR experiences can evoke strong emotional bonds, driving user engagement.

• AR content is highly shareable, increasing brand visibility among the Gen Z community.

The Gen Z Mindset and Habits

One of the defining aspects of Gen Z's digital identity is their affinity for more intimate and interactive online spaces, often referred to as "digital campfires”, a term coined by Sara Wilson.  These are platforms where Gen Z individuals come together in micro-communities or engage in shared experiences. Unlike the previous generation, traditional social media platforms take a backseat as Gen Z gravitates towards these virtual campfires to build authentic connections with like-minded individuals and brands. This preference poses a significant challenge for brands attempting to engage with them through conventional means. Let’s take a look at the Gen Z mindset:

• Gen Z's craving for authenticity and transparency is a pivotal factor that brands must consider. Their discerning eyes can quickly spot anything that appears fake or disingenuous. Brands that fail to communicate honestly or present a facade of visual perfection risk alienating this smart audience.

• In addition to their authenticity radar, Gen Z places a premium on diversity and inclusivity. They seek to see themselves and their peers genuinely represented in the brands they choose to associate with. Brands that overlook the diverse sub-cultural nuances within this group run the risk of losing touch with a crucial segment of their audience.

• What sets Gen Z apart even further is their unwavering commitment to self-improvement and a desire to make a positive impact on the world. Their refusal to settle for anything less than authenticity, their openness to imperfection, and their ability to see through tokenism can propel both brands and society forward, illuminating a path toward more purposeful and responsible branding.

• The Gen Z generation values experiences over possessions, is digitally fluent, and has a short attention span, making it imperative for brands to find innovative ways to engage them. Take a look at the innovative AR in the City experiment conducted by AR Geeks to explore the city of Dubai through Augmented Reality!

• According to a report by uSwitch, Gen Z spends a shocking 9 hours a day on screens to be on social media and also uses their smartphones to shop.

The Rise of AR Brand Experiences

Augmented Reality (AR) is becoming a powerful tool for brands to engage with Generation Z (Gen Z) for several reasons:

• AR brand experiences blend the digital and physical worlds seamlessly, creating immersive and interactive encounters that resonate with this generation. From virtual product engagement to gamified campaigns, AR is rewriting the rule book of brand engagement.

• The gamification of shopping experiences with AR is another factor that attracts Gen Z. Well-known brands such as Nike, L’Oreal Cosmetics, and many more across most industries have effectively used AR-driven game mechanics to drive user engagement, retention, and loyalty.

• AR-powered filters are one of the most effective tools to raise the level of customer interaction with a brand.  Industry Research has shown that people using AR filters spend on average 75 seconds interacting with them, which is four times longer than with mobile video. Brands such as Adidas, Gucci, and others have joined the AR filter genre to win over the Gen Z audiences.

• Another influential tool in AR brand experiences is AR try-ons, enabling customers to virtually test products using dedicated AR-powered apps. This trend has notably gained traction within the beauty industry, with pioneers like Sephora, Estée Lauder, YSL Beauty, Lancôme, and Urban Decay leading the way in offering customers the opportunity to experiment with products online before making a purchase. Initially harnessing Pinterest's AR feature to enhance the interactive browsing experience, many of these brands have since developed their standalone AR apps, further elevating the virtual try-on experience for consumers.

5 Ways Brands Can Gain Differentiation in Crowded Markets

AR offers brands a powerful tool for differentiating themselves and attracting Gen Z by providing immersive, personalized, and interactive experiences:

1. Immersive Experiences: AR allows brands to create immersive experiences that go beyond traditional advertising methods. For example, a clothing brand could use AR to allow customers to try on clothes virtually, providing a unique shopping experience that can’t be replicated by competitors.

2. Personalization: AR can be used to offer personalized experiences based on the user’s preferences and behavior. This level of personalization can make users feel valued and understood, helping to build a strong emotional connection with the brand.

3. Interactive Content: AR enables brands to create interactive content that engages users in a fun and engaging way. This can help to increase user engagement and brand loyalty. Explore more on Interactive Content.

4. Innovation: By adopting AR, brands can position themselves as innovative and forward-thinking, which is particularly appealing to Gen Z who are known for being tech-savvy and open to new technologies.

5. Social Sharing: AR experiences are often designed to be shared on social media, helping to increase brand visibility and reach. This is particularly important for reaching Gen Z, who are highly active on social media platforms.

The ROI of Gen Z Engagement

Investing in AR brand experiences tailored to Gen Z suggests substantial returns for brands across most industries. Engaged Gen Z consumers are more likely to become brand advocates, spreading the word through social media and influencing their peers. Additionally, the data collected from AR interactions can inform future marketing strategies and product development. Walmart, for example, has reported that their use of AR for inventory control in physical retail stores has changed the customer experience by putting more products on shelves faster than before. Similarly, Snapchat claims that users spend an average of 30 minutes a day on their AR-driven City Painter app and share more than 2.4 million Snaps every single minute. These statistics suggest higher user engagement is likely to translate into increased advertising revenue.  In addition, ASOS’s virtual catwalk feature has been well received for enhancing the mobile shopping experience and helping shoppers visualize products, while the sunglasses producer Goodr reported a 32% increase in conversion rates among mobile shoppers who used their AR try-on features.   

Is worth noting that the ROI of AR initiatives can be challenging to quantify as it often involves indirect benefits such as enhanced brand image, improved customer engagement, and increased customer loyalty. These factors can, and often do, lead to increased sales and customer retention over time.  

Conclusion

While forging connections with Gen Z may present unique challenges due to their distinctive behaviors and expectations, it is an endeavor well worth pursuing for brands.

Develop your AR Brand Experience with AR Geeks

If you are interested in effectively engaging Gen Z and in differentiating your brand in this highly competitive market, you might want to check out AR Geeks, a leading AR company in Dubai and part of the Eventagrate Group.  AR Geeks is a team of experts with a mission to help you develop an immersive, interactive, and personalized AR brand experience that will resonate with Gen Z’s unique mindset and preferences. We understand the technology, the audience, and the art of crafting meaningful and lasting connections. Contact AR Geeks today.