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MobiusTrend: New Changes in Global Hologram AR Advertising Market

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MobiusTrend: New Changes in Global Hologram AR Advertising Market

August 20
00:29 2020

Hong Kong – MobiusTrend, a market research organization in Hong Kong, recently released a research report on ‘New Changes in Global Hologram AR Advertising Market‘. According to Artillery Intelligence, global AR advertising revenue reached $1.5 billion in 2019 and is expected to reach $8.8 billion by 2023. AR advertising is favored by advertisers because of its interactivity and interest. Meanwhile, this novel form of advertising can not only improve the user experience of social media, but also enhance the user’s understanding of the brand. Besides, this can also attract more brands’ attention, which is also beneficial to the platform. AR content created by users is easier to share and spread, helping users expand the scope of influences of social media activities.

Nowadays, through AR technology, users can use immersive products to show their creativity and experience the effect of empathy, which reflects the scope of influence and audience potential of AR technology. However, it should be noted that the vitality of AR advertising depends largely on whether users, advertisers, and platforms can continue to make profits.

In 2016, the application market size of holographic AR in China’s entertainment industry was 600 million yuan (CNY), which is expected to grow at a CAGR of 83.5% in 2016-2020 and 92.8% in 2020-2025, reaching 180 billion yuan (CNY) by 2025. This growth is attributed to the increasing popularity of entertainment radio programs, particularly live radio programs, including ceremonies, concerts, evening parties, and sporting events. Among these programs, AR has great potential. In addition, the enhancement of live broadcast functions brought by smartphones and other portable digital devices has contributed to the growth. Relying on the leading original technical strength, WIMI Hologram will further empowering the advertising and entertainment industry with AI+AR, bringing new impetus to advertising practitioners and partners, and jointly promoting the innovation and development of China’s holographic AR advertising entertainment and applications.

The core of WIMI’s business is holographic AR technology, which is used in software engineering, content production, cloud, and big data to provides customers with AR-based holographic services and products. The products mainly include (i) holographic AR advertising services and (ii) holographic AR entertainment products. In 2019Q1, about 80.3% of the revenue came from holographic AR advertising services, and 19.7% came from holographic AR entertainment products.

Holographic AR adware enables users to insert real or animated three-dimensional (“3D”) objects in video clips and seamlessly integrate with scene clips. It is mainly used to embed holographic AR ads in films and programs hosted by China’s leading online streaming platforms. In 2019Q1, the holographic enhanced advertisement produced by WIMI software generated about 2.3 billion views, and the number of views in 2018Q1 was about 1.2 billion, with a year-on-year growth of 91.7%. In 2018, the holographic AR ads produced by the company’s software generated about 6.6 billion views. In 2017, the number of views was approximately 4.9 billion views, with a year-on-year increase of 34.7%.

Through WIMI’s proprietary image and video recognition technology, WIMI’s software enables users to analyze underlying video clips at the pixel level to identify advertising spaces that can be enhanced by 3D objects. Advertisers and their agents buy these advertising spaces through application programming interfaces or APIs, integrated with WIMI’s systems, specifying their target audiences and budgets, and usually providing 3D models embedded in the video. When the advertising spaces are detected, and 3D objects are generated, the 3D objects will be automatically embedded in the underlying streaming video according to the batch processing determined by the WIMI software.

Innovation is the driving force that continues to promote the development of the digital media ecosystem. It is estimated that almost all the growth expenditure of the global advertising budget is expected to be spent on digital channels, and most will be used for programmatic. In reviewing the development of media technology, we can see the tremendous impetus that technology brings to the media. In reviewing the development of advertising forms, we see the powerful influence of media technology on advertising forms. The digital wave has placed advertising in a broader space and brought more opportunities and challenges. By sorting out the development process of technology and media, we have the reasons to believe that, in the context of today’s digital technology, there is a major development opportunity for the advertising industry.

About MobiusTrend

MobiusTrend Group is a leading market research organization in Hong Kong. They have built one of the premier proprietary research platforms on the financial market, emphasizing on emerging growth companies and paradigm-shifting businesses. MobiusTrend team is professional in market research reports, industry insights, and financing trends analysis.

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