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Should you use AR in your social commerce strategy? eBay and Chanel think so

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By Hannah Bowler, Senior Reporter

July 25, 2023 | 7 min read

Gen Z consumers want to use augmented reality when buying online. Here’s how retailers can get the most out of the bourgeoning social shopping space.

Consumers are using AR to get their virtual hands on products

Consumers are using AR to get their virtual hands on products

A Snapchat-commissioned survey of 16,000 users in 16 markets found that 92% of Gen Zs on its platform were interested in AR becoming part of the purchase journey, with 60% saying AR experiences feel more personal.

A Publicis and Alter Agents study meanwhile found that 80% of shoppers felt more confident in their purchases after using AR, with three-quarters saying AR is the future of shopping.

Online shopping hasn’t evolved much over the past few decades, with the majority of sites still displaying static feeds and products, as Snap’s creative strategist Kate Mellett explains: “Occasionally we get a video, which is really exciting, but we are looking at pictures of models not at pictures of ourselves. We need to make the shopping more about the shopper rather than just a static feed of products.”

Nearly three-quarters of consumers agree that AR helps them shop in new and exciting ways. Brands including Dior, Gucci, Specsavers, Level Shoes and Lacoste have all been using Snapchat’s AR filters to transplant sunglasses and shoes on to users’ bodies.

AR and virtual try-on are also having a major impact on return rates, with 66% of shoppers who have used AR reporting that they are less likely to return items and 83% saying AR could be a solution to helping reduce returns.

The luxury sector is seeing a particular uptake in AR, with 60% of luxury shoppers in the UK reporting that the virtual try-on feature was key to their purchase and 41% believing AR to have an important role in the luxury market.

eBay x Snapchat case study

eBay was after a way to broaden its demographic and increase consideration during the peak shopping season. The idea was to combine traditional Snapchat commercials with AR filters to show Snapchat users eBay’s creative and playful side.

While the ads showcased eBay’s product range, the selfie lens gift guide allowed users to interact and try on items such as winter hats and headphones. Targeting Snap audiences aged 18 and over, eBay initially launched a broad campaign before retargeting based on impressions served in the first stage.

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eBay’s ads racked up 438,000 more swipe-ups, while the AR Lens boasted a reach of over 1 million and had 3.86% share rate. Richard Ward, the social and content lead at eBay, says: “The AR Lens was the highlight that allowed us the chance to bring ‘the eBay way’ to life in a creative, playful and engaging way for Snapchatters while driving tangible results.”

Gamified AR

As well as trying on products, AR can be used in social commerce purely as a way of engaging and entertaining shoppers helping to build audiences. One example from 2022’s peak season was Nike’s body tracking filter, which it ran as part of its back-to-school push in the lead-up to its commercial campaign. It worked by appealing to parents who were looking for activities for their kids during the holidays.

“What was important about this is that it put Nike at the forefront of parents’ minds in the lead up to the commercial moment of back to school, which then meant it was able to create an audience of parents who are engaged with this lens, then target them later on with lower funnel performance-based formats like DPA to encourage at the moment shopping,” explains Mellett.

To mark the festive period, Chanel brought a snow globe to life in AR with a simple tap to shake. Mellett says the AR activation “added a little bit of like fun and play to Snapchatters’ lives and reminded them that Chanel was a great destination for gifts for loved ones in the future.”

Tips for creating an AR activation

  1. Give shoppers inspiration

  2. Bring fun to consumers’ lives

  3. Create an audience and then follow with the commercial campaign

  4. Be part of the shared experience

  5. Add value at the point of decision making

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