Niantic uses AR to reward mobile users with new ad format

Augmented reality (AR) company, Niantic is launching its rewarded AR ad format, which aims to allow its mobile users to earn in-application rewards by interacting with AR advertisements.

With AR penetrating the digital sphere, brands and consumers are also demonstrating a growing appetite for immersive experiences, leading to the emerging category of AR advertising.

With Niantic’s new AR ad format, players can interact with short, augmented reality experiences in order to receive in-game rewards. This helps to better reach players near key physical locations, delivering branded AR experiences that lead to improved results across the funnel. For instance, in real-world games such as Pokemon Go.

Additionally, to help streamline the AR ad development process, Niantic has also created partnerships with key development agencies to offer brands a fully-managed creative production process.

Don't miss: NBA and Pokémon Go developer Niantic team up for AR basketball game

Convenience retailer Circle K piloted Niantic’s rewarded AR ads with the goal of increasing brand awareness and product consideration for its new coffee offering. Players of Pokémon GO were presented with the rewarded AR ad as a floating balloon in-game.

After tapping on the ad and opening their mobile camera, players interacted with a 3D Circle K coffee cup they placed in the space in front of them. Upon interacting with the larger-than-life product visualisation, players were prompted to get a physical cup of coffee at a nearby Circle K store. The campaign, according to Niantic, resulted in an average engagement rate of 76% and an average completion rate of 95% for the experience.

Niantic also stated that rewarded AR ads were designed to increase brand impact through immersive product storytelling, assist with the purchasing decision through AR visualisations, and encourage conversion and sales by driving foot traffic in-store.

“AR offers an exciting new way to engage people powered by fresh innovation in spatial computing. Niantic’s platform features mobile augmented reality advertising formats that blend seamlessly with the real world,” said Erin Schaefer, VP of sales and global operations at Niantic. She went on to add that audiences can engage with rewarded AR ads to have immersive and enjoyable brand experiences, discover new products, or engage with interactive features.

“This helps to better reach people near key physical locations, delivering immersive brand experiences that lead to improved results,” she explained.

Margaret Barron, vice president of global marketing for Circle K added that rewarded AR integrates Circle K into this wildly popular gaming environment with timely and relevant offers that enhance brand awareness and loyalty. “We are always looking for meaningful ways to engage with our customers and give them compelling new reasons to make Circle K a part of their day, and our collaboration with Niantic on Pokemon GO has opened up some exciting possibilities,” she added.

AR is increasingly becoming a brand favourite when it comes to campaigns. Earlier this year for instance, HSBC and Wunderman Thompson Hong Kong came together to launch a virtual wishing tree campaign, to spread hope to HongKongers AR games and incentives. 

Coinciding with Chinese New Year in 2023, the campaign centred around the festive ritual of wish-making. AR technology is used in creating a virtual wishing tree that carries the wishes of seven million citizens. The wish-making tradition is gamified together with a lucky draw to incentivise city-wide participation. All supported by a full suite of product offers such as payment, account opening and investments. 

Related articles: 
Pokémon Go developer Niantic snaps up WebAR firm 8th Wall
Pokémon GO developer Niantic opens AR tools to public, invests US$20m on new AR tech
HSBC infuses AR into wishing tree campaign to spread hope to HongKongers