Word-of-Mouth is Back, Now Digitally

AR-driven word-of-mouth is significantly driving brand outcomes—and consumers are loving it too.

Word-of-mouth marketing used to be one of the most effective ways of advertising back in the day of traditional advertising. It would be inaccurate to say that it has lost relevance. If anything, it has reemerged in a digital format.

Think of it this way—consumers are still listening to each other, curious to find what one customer thinks about a product, and letting that impact their buying decisions—only now with immersive experiences.

With product discovery at the centre, augmented reality (AR) has become a key enabler of the modern and evolved word-of-mouth, as iterated by research from Snap, Tinuiti & Alter Agents. Online immersive content is now being shared via social media, influencing consumers and their purchases.

“Our collaboration with Snap continues to uncover how AR is reshaping consumer behaviour in real time,” said Heather O’Shea, Chief Research Officer, Alter Agents. “This study offers a fascinating look at the evolving role of AR in word-of-mouth marketing, giving brands new ways to connect with consumers through immersive, shareable experiences.”

Coined from a performance analysis of 741 branded AR lenses, and a survey of 5,000+ social media users from the US, UK, France, Canada, and Saudi Arabia, the study provides an in-depth understanding of how and why consumers share AR content and its impact on brand outcomes.

Key findings include:

• Word-of-mouth becomes social: With 18.8M text messages sent every minute and over a billion Snaps shared publicly monthly, many are driven by desire for social and emotional connections. AR content plays a vital role in fostering these social and emotional connections, particularly among close friends and family.
• AR drives product awareness and purchase: 81% of Snapchatters agree that AR is a fun way to discover new products. Snapchatters are 2.4x more likely to buy CPG food and beverages after engaging with branded AR, followed by entertainment (2.1x), apparel (1.7x) and beauty (1.6x).
• AR enhances emotional engagement: AR creates deep emotional bonds through immersive experiences, enabling users to spread joy, share feelings, discuss interests, and create shared memories within their inner circles.
• AR-driven word-of-mouth drives brand outcomes: Sharing branded AR Lenses delivers stronger brand outcomes than metrics like time spent or impressions. Subtle branding within AR content encourages higher shares and drives purchase intent at rates comparable to video ads, despite video ads outspending AR by 33x.

The findings emphasise the significance of including augmented reality (AR) as a crucial part of the marketing mix. Entertainment now makes for a primary criteria of customer satisfaction and AR is the perfect enabler. Additionally, the technology also helps integrate efficient product discovery in marketing campaigns.

Jeremy Cornfeldt, President of Tinuiti, said, “Our long-standing partnership with Snap, an undisputed market leader in augmented reality, has been instrumental in driving full-funnel performance campaigns that are also on the cutting-edge of innovation. Leveraging AR experiences, like Snap’s branded Lenses, represents another valuable tool in our toolkit, empowering our clients to push boundaries and our teams to think bigger, ensuring brands continue to connect with users in meaningful, authentic, and inspiring new ways.”