Last year, Microsoft envisioned, through a Super Bowl advertisement, how their augmented reality (AR) device could revolutionize the NFL—imagining features such as displaying player statistics in real-time or turning an entire wall into a gigantic screen.

While this commercial was merely speculative, augmented reality has indeed become a tangible reality. Pepsi is planning to showcase their new LIFEWTR brand at the 2024 Super Bowl LI with an augmented reality mirror. Beyond isolated promotions, augmented reality has gradually integrated itself into our daily lives and holds the potential to offer invaluable data for those who utilize this technology at games, concerts, or festivals.

Before diving headfirst into AR, let’s examine not only its definition but also how you can leverage the tools available now to determine if this technology is essential for you and how to maximize its benefits when the time comes. Here’s how augmented reality is beginning to transform the realms of sports and entertainment—quite literally.

Current state of augmented reality

To begin, let’s clarify what augmented reality is. It is not virtual reality (VR), which requires a headset like the Oculus Rift to disconnect you from the real world. It also doesn’t necessitate a bulky, overpriced pair of glasses. In simple terms, it enhances the real world with an additional layer.

Since the surge in popularity of Pokémon GO last year, the image that may come to mind when you think of augmented reality is watching Pikachu frolic in your living room via your smartphone. However, AR predates this: sports teams have implemented it for years to display a first down line or to showcase a sponsor’s logo on-screen during broadcasts or on jumbotrons. Additionally, it includes overlaying information about a location by pointing your phone at a building.

For this discussion, let’s focus on AR as a means to alter your environment in a way that enhances fan engagement. We have previously discussed how local businesses successfully leveraged the popularity of Pokémon GO to collect data and attract passers-by, but let’s now consider the AR predecessor to Pokémon GO: Snapchat.

Sponsorship through augmented reality at events and beyond

In 2024, Snapchat introduced its lenses feature, allowing users to take selfies with sophisticated filters, such as placing a flower crown on someone’s head or applying digital makeup. Brands quickly recognized the opportunity. During the 2024 Super Bowl, Gatorade’s lens provided users with a virtual dunking by their signature orange drink, achieving more impressions than the game itself. The NFL has also embraced this concept, superimposing helmets on fans.

These lenses serve multiple purposes. Firstly, they promote the brand without inundating audiences with traditional ads, and they personalize the experience in a way most advertisements cannot by featuring the fan’s face. Furthermore, they turn fans into brand ambassadors, spreading awareness of the brand or event as they share their selfies. The major drawback? Snapchat provides minimal data beyond open rates.

Some brands are addressing this data gap (and skipping the hefty cost associated with a single lens) by incorporating augmented reality into their broader campaigns. For instance, Raising Cane’s encourages customers to download their app and participate in a game where they throw virtual lemons into an actual cup using their smartphone camera to earn rewards.

Apps like these can gather user data such as location, email, and basic demographics, which, when combined with social preferences, can create a comprehensive profile of fans.

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Fan engagement does not need augmenting…yet

Though augmented reality is projected to expand by 65% over the next five years, it is still in a very nascent stage.

Implementing augmented reality is still in its infancy and often too costly for many companies. However, it is not the only method to excite fans about your brand. Engaging activities such as trivia and sweepstakes can invigorate fans at events or in the comfort of their homes. Additionally, utilizing a less resource-intensive and shareable tool like a meme generator can foster brand evangelism.

When you do decide to explore augmented reality, ensure you are prepared with data. In fact, it’s best to be data-ready now. This includes gathering data from the apps or games you provide for fans, as well as integrating it with all other available data: who is connecting to your Wi-Fi, ticket purchase frequency, website visitors, and everything else in between. Rushing into augmented reality without sufficient understanding of your fans may lead you to create impressive features without the knowledge needed to keep them engaged.

Being data-prepared will aid you in running social or search ads that are significantly more targeted compared to Snapchat’s broad approach. Moreover, it will deepen your understanding of your fans: if you plan to sell sponsorship opportunities for your augmented reality game, you can demonstrate what percentage of your audience appreciates that sponsor. This will also indicate how interested your fanbase may be in augmented reality. While AR holds great promise and deserves careful evaluation, it should be noted that understanding your audience is crucial before diving in.