Why Top Brands Are Obsessed With Phygital Marketing

You’re waiting for the train on your way to work. You’ve got a long day ahead, and don’t feel like swinging by the grocery store afterward. Fortunately, there’s a supermarket kiosk on the platform. You scan the barcodes with your phone and arrange for your food to be delivered when you get home.

As you cross the street to your office building, the strap of your computer bag finally breaks. You don’t have time to run out and get a new one, but that’s okay. Once you’re in your office, you log on to the company’s website, put on the augmented reality headset, and virtually try on different bags.

At lunch, you head down to your usual restaurant. The AI in the touch-screen kiosk suggests sandwiches you might like based on your order history, then uses facial recognition to complete the order and charge your account.

This is phygital marketing – all made possible by advances in augmented reality (AR).

The global AR and virtual reality (VR) markets are expected to reach 18.8 billion USD by the end of 2020 – over 78% growth from spending in 2019. By 2025, that growth is only expected to increase exponentially.

With the sophistication of AR/VR tech, more companies are incorporating it into their campaigns – and more consumers are expecting it.

In this Process Street post, we’ll take an in-depth look at the what and why of phygital marketing, but you can also skip ahead to one of the following sections:

Let’s get phygital!

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It is an unusual word, and you may not have come across it yet; I spent an entire day discussing it with a colleague before they realized I wasn’t saying digital marketing.

You might think “phygital” is yet another buzz word being thrown around as a new fad by marketing teams – and you wouldn’t be alone. In researching this article, nearly every article posed the question is phygital marketing a temporary trend?

Some are curious, some are skeptical, some are excited by the possibilities, but, truth be told, phygital marketing is doing what advertisers have always done: create experiences.

What is phygital marketing?

It’s simple: physical + digital = phygital. Phygital blends physical strategies with digital applications to create a seamless customer experience using the best of both worlds. phygital


“We have the technology to curate the entire collection to their personal style. … They’re seeing the things that they love, that are true to them.” – William R. Adler, CEO True Fit app

Like most trendy terms, claims for coining “phygital” are all over the shop, but Australia-based Momentum was the first to copyright it for their 2013 motto: An agency for the Phygital World.

For 2020, the company has opted for a very sleek front page linking to their biggest campaigns. Instead of being for the phygital world, they now offer the “Total Brand Experience,” claiming “digital is in our DNA.”

The aim of phygital marketing? Create an experience that captures the three I’s:

Immediacy: the experience happens at an exact moment

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