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Thanks to Augmented Reality (AR) and Virtual Reality (VR) experiences, brands are letting customers interact with their products like never before. Trying on items virtually or even VR travel experiences before booking a trip has become a reality. These are not technologies of the future anymore. They are here and being used widely in marketing to create immersive brand experiences.
With revenue in the AR and VR market worldwide projected to reach US$46.6bn in 2025, it is evident that brands investing in these experiences are gaining an edge over competitors.
Adopting immersive brand experiences with AR and VR is therefore the next obvious step in customer engagement for marketers.
AR is technology that displays digital features such as images, animations or sounds onto the real world. It builds up on the user's physical surroundings with virtual enhancements.
AR is commonly experienced through smartphones, tablets, and AR glasses. It lets users explore and enjoy an enhanced version of their real-world environment.
VR is an immersive technology with which users are taken into a computer-generated environment, disconnected from the real world.
Users can explore 3D spaces, feeling as if they are physically present in a digital world.
VR is used in many industries such as gaming, training simulations and tourism. In 2025, VR revenue is expected to reach $14.49 billion, reflecting the expanding adoption of VR technologies across various sectors.
Brands use VR to offer virtual store experiences that keep customers completely hooked.
Here are some of the many ways businesses can employ AR technologies in their marketing strategies to make interaction with their customers engaging.
A survey by NielsenIQ revealed that 56% of shoppers believe AR gives them more confidence in product quality, and 61% prefer retailers offering AR experiences.
VR takes brand experiences to the next level. Engaging VR experiences create completely immersive digital environments where customers can engage with products, services, or brand stories.
IKEA’s AR app, “IKEA Place”, allows customers to picture how furniture will look in their homes before making a purchase. Using augmented reality, shoppers can place true-to-scale 3D models of furniture in their space via their smartphone, helping them be more confident in their buying decisions.
Choosing the right shade for your skin tone has been made a breeze with Sephora's Virtual Artist, an app powered by AR technology. Customers can try on makeup virtually through the app and retail partner platforms without actually visiting a store. The brand has seen enhanced online sales through this app, making it a success.
Among the most enjoyable AR marketing was perhaps Pepsi’s AR bus stop. The brand converted a London bus stop into an interactive AR experience. Commuters saw completely unexpected and thrilling scenarios like UFOs and tigers appearing in their surroundings through an AR-enabled display. This creative campaign was widely talked about for quite a long time.
BMW has created one of the best VR experiences in marketing by giving customers a simulated test drive and showroom experience. Buyers are allowed to explore different car models, customise features, and get a feel for their dream car before visiting a dealership. This has helped enhance customer engagement and speed up the decision-making process.
When customers can interact with a brand’s offerings in a lifelike environment, they are more likely to remember the experience and associate it with positive emotions.
One of the greatest advantages of AR and VR in marketing is their ability to reduce purchase hesitation. When customers have the chance to virtually try on products and visualise how a product fits into their lives before committing to a purchase, they get a boost in confidence. These tools ultimately help minimise returns.
Brands that use AI-driven AR and VR can personalise interactions to individual customer preferences and create experiences that feel more relevant and impactful.
We must admit that no advancement, technological or otherwise, comes without its set of challenges.
Creating immersive AR and VR experiences requires quite an investment in hardware, software, and skilled developers. Small and mid-sized businesses may struggle to allocate budgets for these technologies. Hence, large-scale adoption may become a challenge.
Not all consumers have access to high-end AR and VR devices. While mobile AR solutions are more widely available, VR often requires specialised headsets. This can limit reach. Brands need to consider how to make these experiences accessible to a broader audience.
Many consumers are still unfamiliar with AR and VR applications. If the technology is too complex or unintuitive, users may be reluctant to engage. Brands must focus on making these experiences user-friendly to ensure widespread adoption.
AR and VR experiences often collect large amounts of user data to provide personalisation. This raises concerns about data privacy, security, and compliance with regulations like GDPR. Companies must make sure they have transparent data policies and secure handling of user information.
A poorly designed AR or VR experience can harm a brand’s reputation. Low-quality graphics, slow loading times, or technical glitches can frustrate users rather than engage them. Brands need to ensure their AR/VR content is high-quality and interactive.
For AR and VR to be effective, they must complement a brand’s overall marketing strategy rather than operate as standalone gimmicks. Ensuring perfect integration with social media, e-commerce, and other digital platforms is crucial for maximising impact.
AR and VR technologies are growing rapidly. Brands investing in these experiences must continuously update their offerings to stay ahead of trends. This requires ongoing resources and adaptation.
Despite challenges, the potential benefits of AR and VR in marketing totally outweigh the hurdles. Brands need to balance creativity with practicality to use these technologies and get the best results. Companies that make full use of these innovations are sure to gain a competitive edge in an increasingly digital world.
