Latest / Social Media Marketing with Fexingo: Instagram, TikTok, LinkedIn, and Platform Strategy / Why Brands Are Using Social Media for Collaborative AR Shopping
Transcript
- Lucas: So you're scrolling Instagram, you see a pair of sneakers you like, and instead of just tapping 'buy now', you tap a button and your friend's avatar appears next to yours, both of you trying on the same shoe in real time. That's what a few brands are quietly piloting right now. Luna: Wait — like two people in different cities, looking at the same digital sneaker on their feet, together? Lucas: Exactly. It's called collaborative AR shopping. And the results so far are kind of wild. e.l.f. Cosmetics tested a shared lipstick try-on on Snapchat last quarter, and they saw a 40% higher average order value when two people used it versus one person trying alone. Luna: Forty percent — that's huge. And it makes sense, right? Shopping with a friend is more fun, more validating. But how does the tech actually work? Lucas: It's a combination of simultaneous localization and mapping — SLAM, for short — plus shared anchor points. Basically, both phones recognize the same flat surface, like a floor or a table, and place a digital object there that both users can see and rotate. Then the app syncs their avatars and hand movements in real time. Snapchat's AR Kit and Instagram's Spark AR have been building out these multiplayer capabilities for a couple of years now. Luna: And you mentioned this is a quiet pilot. Which brands are actually running it beyond e.l.f.? Lucas: IKEA has a version in their Place app where you and a friend can co-design a room layout — you drop a virtual sofa, they can move it, change the color. Nike is testing a shared fitting room for sneakers inside their SNKRS app. And then there's a smaller brand, Warby Parker, that lets two people try on glasses together over Facebook Messenger. It's still experimental, but the conversion numbers are making brands pay attention. Luna: Conversion numbers — what are they seeing? Lucas: e.l.f. reported a 3x higher conversion rate for collaborative AR sessions versus their standard AR try-on. And returns dropped by about 60% for items that were purchased during a shared session. The theory is that when you get real-time validation from a friend, you're more confident in your choice, so you keep it. Luna: That 60% return reduction is the kind of metric that makes CFOs sit up. Returns are brutally expensive for e-commerce. Lucas: Totally. The average return rate for apparel bought online is around 25 to 30 percent. If collaborative AR can cut that by more than half, the cost savings alone justify the investment in the tech. Luna: But I want to push back a little. You're talking about syncing camera data and real-time hand movements. That's a lot of personal data flowing through a social platform. Are users aware of what they're sharing? Lucas: It's a fair concern. Most of these AR sessions only process the data on-device — it's not uploaded to the cloud. But the platforms do collect metadata about what you try on and for how long. e.l.f. says they anonymize everything and only see aggregate data. Still, privacy advocates have raised flags about the potential for social pressure — like, if your friend can see you trying on something, do you feel obligated to buy? Luna: Right, the social dynamic cuts both ways. It can increase confidence, but it could also nudge you toward a purchase you wouldn't have made alone. I wonder if we'll see regulations around that, like a mandatory 'buy alone' mode. Lucas: That's an interesting idea. For now, the brands I've looked at are positioning it as a tool for connection, not pressure. The tagline from e.l.f. was 'shop the way you already hang out'. That's smart positioning. Luna: And it's clearly aimed at Gen Z. They treat shopping as a social activity — they already use screen share and FaceTime to shop together. This just makes it more immersive. Lucas: Exactly. A report from Accenture last year found that 67% of Gen Z shoppers said they'd be more likely to buy from a brand that offered a shared virtual experience. Compare that to only 22% of Boomers. This is a generational play. Luna: So if you're a brand marketer listening, what's the first step? Do you need to build your own AR experience, or can you piggyback on existing platforms? Lucas: Right now, you piggyback. Snapchat's AR Shopping Templates let brands create a basic multiplayer try-on in about two weeks, according to their product docs. Instagram is rolling out similar tools through Spark AR. The barrier to entry is actually quite low if you already have product imagery and a 3D model. Luna: And what about the cost? I've heard AR production can run into the hundreds of thousands. Lucas: It can if you're building a full custom experience from scratch. But the platform templates are much cheaper — think twenty to fifty thousand dollars for a campaign. And with the return reduction and conversion lift, the ROI can be positive within a single campaign. Luna: That's compelling. But I want to zoom out: is this a genuine shift in how we shop, or is it a pandemic-era experiment that fades? Lucas: I think it's here to stay, but it'll evolve. The tech is still a bit clunky — sometimes the avatars don't sync perfectly, or the lighting is off. But as 5G and edge computing improve, those glitches will disappear. And once Apple's Vision Pro or Meta's Quest get integrated with social AR shopping? That could be a whole new channel. Luna: Speaking of new channels — we should mention that this show is ad-free, and we'd like to keep it that way. If these marketing conversations have sparked something you've actually used, you can support our no-ads choice at buy me a coffee dot com slash fexingo. No pressure, just a link if you value what we do. Lucas: Absolutely. And we mean that — we don't run ads, we don't do sponsored segments, and that's because listeners like you chip in. So if you find value here, that's the place. Okay, back to collaborative AR. Luna: So Lucas, where do you see the biggest friction point for brands trying to adopt this? Lucas: The biggest friction is actually internal: getting the 3D product assets created and maintained. If you're a fashion brand with thousands of SKUs, that's a massive 3D modeling pipeline. Most brands only have 3D assets for their hero products. So for now, this works best for limited-edition drops or high-margin items. Luna: That makes sense. And it also aligns with the exclusivity angle — limited collaborative try-on events create FOMO. Lucas: Exactly. e.l.f. ran their collaborative lip try-on as a one-weekend event. They promoted it as a 'friends' night in'. They sold out of two shades that weekend. The scarcity plus the social element is a potent mix. Luna: It's almost like a virtual pop-up. And you mentioned IKEA — their co-design tool is less about purchasing and more about inspiration. Do you see that as a different use case? Lucas: It is different. IKEA's is more about planning and collaboration, not immediate purchase. But it still drives store visits and cart additions later. They found that users who co-designed a room were 2.5 times more likely to visit an IKEA store within a week. So it's a lead generation tool disguised as a game. Luna: Smart. So the metric isn't always direct conversion — it can be engagement that leads to offline behavior. That's harder to track but potentially more valuable. Lucas: Right. And that's where the attribution models need to evolve. Currently, most social platforms give you last-click attribution. But collaborative AR might influence a purchase that happens days later in a physical store. Brands are starting to use matched panel studies to connect those dots. Luna: Let's talk about the competitive landscape. Snapchat seems ahead of Instagram here, but Meta has a much larger user base. Who wins? Lucas: Snapchat has the edge on AR maturity — they've been at it since 2017 with Lens Studio. They also have a younger demo, which is the target. But Instagram is closing the gap. They recently launched collaborative AR ads in beta, and with their commerce infrastructure already built, they could leapfrog Snapchat on the shopping side. Luna: And TikTok? I haven't heard much from them in AR shopping. Lucas: TikTok is experimenting with collaborative effects, but they're more focused on video and livestream. Their AR is still largely for filters and effects, not product try-on. But given their growth, I wouldn't count them out. They have the engagement, just need the tech. Luna: So a brand should probably start with Snapchat or Instagram, depending on their audience. Any pitfalls to avoid? Lucas: The biggest pitfall is treating collaborative AR like a gimmick. It has to add genuine value — solving a real friction in the shopping journey. If you force it, users will drop off. Also, make sure the experience works flawlessly on mid-range phones, not just the latest iPhones. Otherwise you exclude a huge chunk of your audience. Luna: Good point. The digital divide still exists, even in AR. What about measurement — what KPIs should brands track? Lucas: Beyond conversion and returns, track session duration: are people spending more than 30 seconds in the shared experience? That indicates genuine engagement. Also track share rate — are users inviting friends? That's organic reach. e.l.f. saw a 15% share rate on their collaborative lens, which is high. Luna: Fifteen percent share rate is impressive. Most branded AR lenses see around 2 to 3 percent. So the collaborative aspect really drives virality. Lucas: It does. Because it's inherently social — you need someone else to use it. That's a built-in network effect. Every session is a mini-marketing campaign. Luna: Alright, so the takeaway: collaborative AR shopping is early but promising, especially for Gen Z, high-margin products, and brands that already have 3D assets. Start with a limited campaign, track share rate and returns, and don't forget the privacy angle. Lucas: And I'd add: think about the emotional payoff. The best collaborative AR experiences make people feel like they're together, even when they're apart. That's a powerful brand connection. I'm curious to see whether this becomes a standard checkout option in two years or stays a niche tactic. Luna: My bet is it becomes standard for certain categories. Fashion, beauty, home decor — anything where fit and style matter. But maybe not for commodity goods. Lucas: I think you're right. And as the tech gets cheaper and faster, it'll spread. For now, the early movers are building a data advantage that'll be hard to catch. Luna: Alright, that's a wrap on collaborative AR shopping. Next time, we'll look at something completely different — maybe soundtrack licensing for brand posts. See you then. Lucas: Sounds great. Thanks for listening, everyone.