• by Colin Kirkland , April 23, 2024

With the augmented reality (AR) advertising market expected to reach $14.5 billion in 2027 (up from $3.4 billion in 2022), the Interactive Advertising Bureau (IAB) and the Media Rating Council (MRC) have added game creator Niantic’s Rewarded AR ads technology to the set of ad industry measurement guidelines that both companies first released in February for review.

“The Augmented Reality advertising market is projected to generate $1.2 billion in revenue in the U.S. this year,” explained Zoe Soon, vice president of IAB’s Experience Center, in February, adding: “Thus, as an industry, we need to establish a greater consistency on how we define and measure AR advertising to foster fairness and transparency for buyers and sellers.”

The guidelines laid out by the IAB and MRC account for interactive and immersive formats and experiences in AR-based media that “can accrue non-physical interactions with products, as well as the physical interactions related to browsing in the context of attribution,” according to the companies.

Among the various AR ad formats being considered in the guidelines -- virtual try-ons, interactive world views, interactive 3D objects, portals/gateways, static filters and dynamic experiences masks -- Rewarded AR ads are a major focus, especially in gaming environments.

Niantic's Rewarded AR ads use the smartphone camera to immerse players within branded content in the real world around them, inviting them to engage with the interactive ad units as they move around the real world, unlocking rewards within the game.

Niantic says this advertising type has helped its clients, including Circle K and Lunchables, reach desired audiences near key physical locations.

“AR Ad Engagement deviates from more passive digital advertising metrics due to the interactive and immersive qualities of AR ads,” says Niantic, explaining that AR experiences begin with user triggers such as tapping or moving the camera, which can then be measured for engagement.

“When assessing the effectiveness of Rewarded AR ads, it's not just about tracking clicks and views; it is also essential to consider Engaged-Through conversion. This measures user interactions over a specific timeframe, providing insights to better grasp AR's unique impact,” Niantic adds.

To count as a valid ad impression, the ad must load within an AR session -- when a player opens the game and enables the opt-in camera to when the camera is disabled or the ad is closed and starts rendering -- ensuring accurate tracking of audience engagement.

Niantic -- which has already partnered with several leading industry verification platforms, including DoubleVerify -- says it is aligning with IAB's AR ad baseline measurement metrics for Rewarded AR ads, providing verification across ad delivery, viewability measurement, brand safety, and fraud detection.

Niantic is just one of several companies the IAB and MRC partnered with to finalize the list of AR ad guidelines.