Sponsorship collective logo

Augmented Reality and Its Role in Sponsorship 

by | July 31, 2024

Why you can trust Sponsorship Collective

  • The Sponsorship Collective has worked with over 1000 clients from every property type all over North America and Europe, working with properties at the $50,000 level to multi-million dollar campaigns, events and multi-year naming rights deals
  • We have published over 300 YouTube videos, written over 500,000 words on the topic and published dozens of research reports covering every topic in the world of sponsorship
  • All of our coaches and consultants have real world experience in sponsorship sales

Augmented reality is having a moment right now. In 2024, it’s predicted that up to 1.7 billion AR devices are out there in the world. It was only 200 million in 2015, proving what an explosive growth has occurred in almost 10 years. 

Why am I talking about AR on this sponsorship blog, you ask? That’s because the marriage between augmented reality and sponsorship, although still fresh, is important and becoming more so by the year.

That’s why I thought it would be an excellent idea to peel back the curtain and discuss what AR is in the sponsorship world, what its upsides and downsides are, and how it’s being used today. 

What Is Augmented Reality?

Augmented reality or AR is a form of alternate reality in which the real and digital worlds converge. Putting on an AR headset or using a mobile device with AR capabilities allows you to see the world in new and engaging ways thanks to the introduction of unique, often fantastical 3D elements.

I think Pokémon Go is the best example of AR, as it’s the one most people are familiar with. Back in 2016, you couldn’t find a person who wasn’t playing this game. To an outsider, it looked like a person walking in the park with their phone up in front of them.

However, those playing the game saw 3D pocket monsters they could catch or do battle with. 

How Is Augmented Reality Used in Sponsorship?

Already, especially innovative businesses and brands have jumped on the AR train and are committed to riding it to the station. It has a lot of applications in sponsorship already, some of which you may use yourself or soon use. 

Virtual Fan Experiences

Who doesn’t love a meet and greet with a celebrity, whether a famous movie star, a musician, or a sports star? They’re usually expensive though, and over in minutes, although it feels like seconds. 

Today, celebs can make themselves be almost anywhere thanks to the power of AR. All you have to do is set up an oversized photo booth, such as kiosk-size, and let fans in. 

Although the celeb isn’t really there in the building, they are live in their homes, studio, the airport, or wherever they happen to be. They can chat with the fan as though they were in the same space, take photos, and answer questions. 

Sure, it’s not the exact same experience as meeting someone in person. However, adding a meet-and-greet element to a sponsored event is an awesome way to get people excited and sell more tickets. It’s worth using. 

Virtual Merch Try-Ons

How do you get people jazzed about a product? Let them preview it ahead of time! If your event will have exclusive sponsored merch, you have to try this epic idea. You can let people “try on” merch like hats, shoes, shirts, hoodies, pants, makeup, the whole shebang.

Why did I say “try on” in quotes like that? Well, because the person isn’t technically trying anything on physically. They’re instead modeling a 3D version of a product. 

However, that’s a lot more personalized than looking at a model wearing the same item. It’s your audience wearing it. They’ll know for sure what they want to buy once your event starts.

By the way, these AR try-ons apply to more than clothing and beauty products. They’re also useful for household products of any kind. For example, if your sponsor sells blenders, a customer can see how the blender looks on their counter so they can begin clearing some space.  

Scavenger Hunts

Today’s scavenger hunts don’t have to take place in a physical building anymore. They can be done through AR.

This technological element makes a scavenger hunt a lot easier to plan and more cost-effective too. Rather than decide what the clues will be, place them physically, and provide hints so your audience will find them, you can do it all virtually. 

Attendees can rely on their phones to guide them toward clues, which are 3D objects that don’t exist in the real world. 

That allows you to make your scavenger hunt as fantastical and fun as you want. Just keep in mind that while the scavenger hunt itself may not be “real,” per se, your prizes better be!

Live Enhancements

Are you a motorsports or sports organization that’s hosting a game? Great! Sports sponsorship and AR are especially a match made in heaven. For example, an AR setup at a sporting game could allow attendees to see player stats, fun facts, and other info they’ll find pertinent.

This is a small but impactive way to make what is already a thrilling event feel even more exciting and memorable. 

Behind the Scenes  

You can add AR to any activation, providing behind-the-scenes access that customers or attendees would otherwise never see. Another idea within this vein is a virtual tour. Your audience can get real-time info on the event and a more meaningful experience. 

The Pros and Cons of AR in Sponsorship 

In the future, AR is going to make a lot more sponsorship assets and activations possible. It’s incredibly advantageous, and truly, we’ve probably only just scratched the surface regarding what it’s capable of.

Yet with that in mind, I also think we must look at potential downsides as well to get a fair assessment of augmented reality. 

Pros

Makes Events More Engaging

AR allows you to connect more easily with your customers, attendees, or donors, crafting outstanding experiences. Your audience will post about what a great time they had on social media. They’ll recommend your events to others in their life, like family, friends, neighbors, and colleagues. 

They’ll be eagerly anticipating your next event, rating your services positively. They’ll possibly buy early-bird tickets to your upcoming event. At the very least, they’ll be there with bells on. 

Excellent for Data Collection

You can glean a great assortment of data from augmented reality, especially features that use apps. For example, you can gain insights into user behavior, preferences, and engagement levels. 

The information you gather can indicate which kinds of sponsors might be best for your next event. You can also plan an event that provides even more of what your audience wants and needs. 

Relatively Easy to Implement 

Although AR requires some technical know-how, once you have it (or, you know, if you already have it), you’ll find it’s a lot easier to carry through with your assets and activations. What’s better than a five-star activation that doesn’t take a lot of effort to pull off? In sponsorship, I’m hard-pressed to think of anything. 

Cons

Can Be Expensive

Although everyone is jumping on the bandwagon, that doesn’t necessarily mean AR is cheap. Making an app that uses AR can cost $5,000 at a minimum and possibly up to $10,000 or more. And that’s just for a basic app.

If you want something more involved, now you’re looking at costs of around $250,000.

Maybe that’s within your budget, and if it is, great! But for those of us who are stunned by all those zeroes, AR might be a wee bit too costly right now.  

It’s not new technology, per se, but it is relatively. Therefore, there’s still that big barrier to entry. As AR becomes even more common, its costs should come down. 

Not as Immersive as VR

The difference between AR and VR is the level of immersion. Virtual reality or VR is an entirely virtual universe one can access via wearing a headset. AR has some of those virtual elements but still includes a semblance of the real world.

VR is even more expensive because it requires specialized equipment. For instance, you can use a smartphone app to experience AR, but you need the headset if you want a taste of VR. 

AR is immersive enough, don’t get me wrong, but the better experience overall might be VR.  

Might Be More Useful in Some Types of Sponsorships Than Others 

Do I think AR is appropriate for every type of sponsorship? Not exactly. If you’re a nonprofit or charitable organization, I can’t think of any real benefits of AR off the top of my head. 

Sports is one area where AR is a great choice, and tech is another. Beyond those industries, you may want to be a bit picky and choosy about when you use it. 

FAQs

Can AR improve brand exposure?

Sure, it can! Entering the digital landscape means reaching a broader audience and spreading brand awareness. If that’s a goal your sponsor is interested in, then AR could be a good fit. 

That said, it offers plenty of other pluses that make it appealing to prospective sponsors. 

What AR software options might I explore for my sponsorship opportunity? 

You have all sorts of options, including Vossle, Streem, ARKit, Scope AR, Cluetivity, and Hololink. Some of these tools are recommended for specific uses, such as Hololink for educational scenarios and Cluetivity for AR-based games.  

Wrapping Up 

Augmented reality already plays a pivotal role in sponsorship, especially in areas like sports and tech events. While its place will inevitably be cemented as AR begins appearing at more sponsored events, right now, it has a good range of uses. 

For instance, you can connect star and fan, make scavenger hunts more interesting, and add interactive elements to many activations that your audience won’t soon forget.