NexTech AR Solutions Corp (CSE:NTAR) (OTMKTS:NEXCF) announced Tuesday that it has built ad creatives that have passed Google's 3D validation tool and is now working with the Internet giant to launch a series of 3D ads for its clients.
In a statement, NexTech said it is directing its proprietary 3D asset creation technology, previously used for WebAR clients, to create content for Google’s new 3D ad platform -- positioning both companies to be at the forefront of the emerging 3D-AR market.
Over the next 30 days, the company will be working directly with Google to launch its first 3D “Swirl ads” ads.
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Google, which is owned by Alphabet Inc (NASDAQ:GOOGL), explained how the ads work:
"Swirl brings three-dimensional assets to display advertising on the mobile web, which can help educate consumers before making a purchase. They can directly zoom in and out, rotate a product, or play an animation."
NexTech CEO Evan Gappelberg said: “We are excited to be working directly with Google on their new 3D ads platform which is the first step in bringing fully immersive AR ads to market."
The launch is expected in 2020, as “companies are looking for ways to rapidly transform 2D assets to 3D assets for advertising, eCommerce and training,” he said.
With the company’s state of the art 3D capture capabilities, Gappelberg noted that NexTech is the first AR company to offer the industry's first end-to-end solution for advertisers and brands from the creation of 3D assets, online 3D display ads, WebAR 3D product views, 3D shopping experiences. Ultimately all this will lead to the purchasing of goods all in a frictionless and seamless 3D virtual environment.
“Our 3D-AR solutions work incredibly well with all major platforms and add tremendous value providing rich product experience to online shoppers who are craving more and more when making online purchasing decisions,” he said.
Available through Google's Display and Video 360 formats, “Swirl ads” will enable brands which have existing 3D assets to build them into their ad units. In this instance NexTech will be building the 3D assets to meet Google's 3D display process which involves creating the 3D asset, coming up with a creative, publishing in DV360 and then monitoring the campaign metrics.
Creating interactive ads
The 3D models can then be spun, enlarged, and interacted with directly by the consumer within the ad itself. Split-testing by Sketchfab-branded 3D ads versus traditional static ads bears out just how dramatically engagement can improve -- showing a 633% increase in sign-up conversions and a 376% increase in click-through rates, NexTech said.
Brands and retailers can implement NexTech's 3D AR ads through a few simple lines of Web AR embed codes, providing the versatility to create interactive ads that are compatible with all major ad networks, including Google Ad Network and Doubleclick.
Brands also can publish 3D ads from the same assets utilized to create Web AR images with no additional work required, other than building the ad itself.
According to NexTech, eMarketer forecasted last year that digital ads will account for 50% of total eCommerce ad spending by 2020, at more than $357 billion.
The company said the 3D ads enable consumers to experience products for themselves while shopping online, from any angle and with rich, true rendering. Providing consumers the ability to fully review an item for size, shape, color and fit before purchasing online can ultimately lead to greater revenues and reduced returns for online retailers.
NexTech, which is based in both New York and Toronto, is known for its proprietary e-commerce platform, ARitize, which enables retailers to transform two-dimensional images into true 3D AR experiences for consumers.
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