AR Marketing ROI: Measuring Campaign Success

AR marketing delivers 1.67x return on ad spend (ROAS) compared to traditional media like TV and social platforms. It also drives 70% higher audience memory encoding, making it a powerful tool for engagement and sales. Companies like Shopify have seen 2x conversion rates and 40% fewer returns using AR. However, measuring its ROI requires a mix of traditional metrics (e.g., impressions, sales) and AR-specific ones (e.g., dwell time, interaction depth).

Key Takeaways:

• Why AR ROI Matters: Tracks both financial returns and engagement quality.
• Core Metrics: Sales growth, session durations, feature usage, and brand perception.
• Challenges: Traditional metrics often fail to capture AR’s depth; new benchmarks are needed.
• Tools: Use platform analytics (e.g., Augmia) and external tools like Facebook Pixel or Google Ads for tracking.
• ROI Formula: (Sales Growth - Marketing Cost) / Marketing Cost. Example: Wendy’s AR campaign achieved 480% ROI with $400,000 total value generated.

Start by setting clear objectives, integrating AR data with your marketing stack, and reviewing performance regularly to refine and maximize campaign success.

Core Performance Metrics

User Engagement Data

AR marketing requires tracking engagement metrics that go beyond the usual digital analytics. Metrics such as average session duration provide a glimpse into how well users are engaging. To dig deeper, data on interaction depth, repeat session frequency, daily/monthly active users, and AR feature usage can offer a clearer picture of performance [3]. Adding rating systems and monitoring specific interaction points can help pinpoint which elements resonate most with users [4]. These insights are crucial for evaluating both immediate responses and longer-term sales outcomes.

Sales and Action Metrics

Measuring direct responses is key to understanding AR campaigns' business impact. For example, AR experiences boast a 1.67x return on ad spend (ROAS), which outperforms television (1.04x) and social media (0.93x) advertising [1][5]. One case study highlighted this exact 1.67x ROAS, showcasing AR's ability to drive immediate results. But AR's influence doesn't stop at sales - it also plays a role in shaping how people perceive brands over time.

Brand and Customer Metrics

Once user engagement and sales data are in place, the focus shifts to long-term metrics like brand perception and customer loyalty. With 84% of consumers showing interest in using AR to explore products before buying [1], it’s important to measure factors such as brand association strength, customer satisfaction, loyalty, and sentiment around user-generated content.

"Customer loyalty is the intention of continuing the relationship. Now when you measure loyalty, the key is to work out whether that actually means anything. If you're thinking about the financials, it's about share of wallet – how much do people spend with you on a regular basis?" - Leonie Brown, Qualtrics XM Scientist [7]

Interestingly, 86% of customers are willing to pay more for better experiences [7]. To gauge AR's impact on customer perception, tools like brand health surveys and analysis of purchase patterns are essential [6].

Performance Tracking Tools

Platform Analytics

Augmia's analytics dashboard provides real-time data on user engagement, interaction trends, and conversion rates. For example, CreatorCollective's AR-enabled image tracking engaged 78% of customers and increased social shares by an impressive 340% [8]. Similarly, OpticalTrends saw a 47% drop in product return rates by utilizing virtual try-on tracking [8].

External Tracking Tools

To get a more detailed view of AR campaign performance, external analytics tools can be used alongside Augmia's platform. Tracking pixels from major advertising platforms offer a deeper understanding of user behavior. As of April 2024, marketers can use tracking codes from these platforms:

These tools work hand-in-hand with Augmia's data, enabling a more comprehensive analysis of your campaigns [9].

Marketing Stack Integration

By combining AR performance data with your existing marketing systems, you can gain a unified view of your campaigns. For instance, Wendy's "Biggie Bag" AR campaign combined traditional metrics with AR engagement data, resulting in 1.5 million earned impressions [1]. Custom tags can also be used to track 3D interactions, helping you pinpoint the most engaging elements of your campaign [10][11].

"Understand what performs well and what doesn't by comparing different call to actions, assets and campaigns, driving improvements and innovation." – Zapworks Analytics [10]

With 60% of shoppers now using AR to make purchasing decisions [1], integrated analytics are key to maximizing campaign success.

How To Use Analytics To Boost Your Marketing ROI

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ROI Calculation Guide

Using performance data, calculating ROI helps quantify the financial impact of AR marketing efforts.

Basic ROI Formula

To calculate AR marketing ROI, use this formula:

ROI = (Sales Growth - Marketing Cost) / Marketing Cost [12]

For campaigns with ongoing organic performance, adjust the formula:

ROI = (Sales Growth - Average Organic Sales Growth - Marketing Cost) / Marketing Cost [12]

A typical strong ROI ratio is around 5:1, while outstanding campaigns may achieve up to 10:1 [12].

AR Campaign Costs

When planning your AR campaign budget, consider these essential cost components:

Costs can vary widely depending on the project's scope. A basic AR campaign might cost around $30,000, while advanced campaigns can exceed $120,000 [14]. Maintenance typically requires about 20% of the initial development budget to cover updates, hosting, and customer support [14].

ROI Example Breakdown

Take Wendy's "Biggie Bag" campaign from Spring 2024 as an example. This AR activation, featuring DJ Khaled, generated 1.5 million earned impressions [1].

Here’s a breakdown of the costs and results for this mid-sized campaign:

• AR Development: $45,000
• Content Creation: $15,000
• Annual Maintenance: $9,000
• Total Investment: $69,000

Campaign outcomes:

• Direct Sales Attributed to AR: $250,000
• Cost Savings from Reduced Returns: $30,000
• Brand Exposure Value: $120,000
• Total Value Generated: $400,000

ROI Calculation:
ROI = ($400,000 - $69,000) / $69,000 × 100 ≈ 480% ROI

To maximize ROI, consider starting with marker-based AR, which typically has lower development costs but still delivers high engagement [14]. Additionally, using cross-platform development can help reduce expenses by reaching multiple audiences with a single implementation [13].

Campaign Improvement Methods

Data-Driven Updates

Performance data can reveal actionable insights to refine AR campaigns. For example, KHAITE's AR fashion campaign boosted sales by 400% for their new line by analyzing user interaction patterns [2]. They tracked metrics like average viewing time per item, the angles users explored most, and drop-off points in the AR experience to make adjustments.

Some valuable metrics to monitor include:

• Session length trends
• Feature usage frequency
• Conversion path analysis
• Social sharing rates
• Customer satisfaction scores

Once you've identified key metrics, use split testing to fine-tune AR elements and see what resonates most with your audience.

Split Testing AR Elements

Split testing is a great way to figure out which parts of your AR campaign are working best. The key? Change only one element at a time and keep measurement conditions consistent [15].

Take Patrón's AR bottle builder campaign as an example. By testing customization options and gift-sharing flows, they achieved a 53% conversion rate among engaged users [2]. Align these test results with your overall business goals to maximize impact.

Business Goal Alignment

To show the value of AR campaigns, tie your metrics to financial outcomes. Companies that connect marketing efforts with financial goals can exceed performance expectations by over 40% [16].

Here are some strategies to consider:

• Compare customer acquisition costs to customer lifetime value.
• Track revenue directly influenced by marketing.
• Measure how long it takes to convert or achieve payback.
• Evaluate platform-specific performance.

Focus your efforts on platforms where your audience is most active. For instance, Wendy's "Biggie Bag" campaign with DJ Khaled generated 1.5 million earned impressions by aligning its AR activation with audience preferences [1].

Summary

Main Points

Measuring ROI for AR marketing requires a data-focused and strategic approach. For instance, AR lenses deliver a 1.67x return on ad spend compared to traditional media formats [1].

Here are the key factors for success:

• Track the Right Metrics: Combine quantitative data like conversion rates and engagement with qualitative insights such as user experience and customer satisfaction.
• Integrate Platforms: Sync your AR analytics with existing marketing tools to get a complete picture of performance.
• Account for All Costs: Include every expense, from development to agency fees, to ensure accurate ROI measurement [18].

These principles can help shape a winning campaign strategy.

The AR marketing sector is growing fast, with projections estimating it will reach $50 billion by 2024 [1]. A great example is KHAITE's AR campaign, which boosted sales by 400% [2].

Use these insights to refine your approach and take action.

Next Steps

Here’s how to effectively measure AR marketing ROI:

1. Set Clear Objectives
   Define SMART goals that align closely with your business outcomes.

2. Use Advanced Tracking Methods
   Strengthen your analytics with tools like:

   • Digital tracking pixels
   • UTM parameters for precise campaign tracking
   • CRM tools to monitor leads and customer interactions [17]

3. Review Performance Regularly
   Evaluate key metrics on a weekly, monthly, and quarterly basis:

   Timeframe	Focus Areas	Action Items
   Weekly	User Engagement	Check session lengths and interaction rates
   Monthly	Conversion Data	Measure sales impact and calculate ROI
   Quarterly	Strategic Review	Ensure campaigns align with overall goals

"Acknowledge that the ROI of marketing activities will be negative in the beginning. However, as the business starts growing, they need to make sure that digital marketing ROI is positive and helps scale the business."

• Inna Shevchenko, Marketing Director, DataFlik [17]