[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/aokmarketing.com\/augmented-reality-ar-and-virtual-reality-vr-in-digital-marketing\/#BlogPosting","mainEntityOfPage":"https:\/\/aokmarketing.com\/augmented-reality-ar-and-virtual-reality-vr-in-digital-marketing\/","headline":"Augmented Reality (AR) and Virtual Reality (VR) in Digital Marketing","name":"Augmented Reality (AR) and Virtual Reality (VR) in Digital Marketing","description":"Global Overview: Immersive Tech Transforming Marketing Augmented reality (AR) and virtual reality (VR) have rapidly evolved from novelties into powerful marketing tools worldwide. Businesses across industries are embracing these technologies to create immersive, interactive brand experiences that captivate consumers. The global AR market alone is projected to exceed $100 billion by 2025, and VR is &hellip; <a href=\"https:\/\/aokmarketing.com\/augmented-reality-ar-and-virtual-reality-vr-in-digital-marketing\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">Augmented Reality (AR) and Virtual Reality (VR) in Digital Marketing<\/span><\/a>","datePublished":"2025-06-02","dateModified":"2026-04-16","author":{"@type":"Person","@id":"https:\/\/aokmarketing.com\/author\/jana-legaspi\/#Person","name":"Jana Legaspi","url":"https:\/\/aokmarketing.com\/author\/jana-legaspi\/","identifier":8,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/ba3039ce7c5eedb92f315518b69aea1d90d5c2076ce893d078c6f29cf6ddd032?s=96&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/ba3039ce7c5eedb92f315518b69aea1d90d5c2076ce893d078c6f29cf6ddd032?s=96&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"AOK Marketing","logo":{"@type":"ImageObject","@id":"https:\/\/aokmarketing.com\/wp-content\/uploads\/2025\/07\/AOK-Marketing-Logo.png","url":"https:\/\/aokmarketing.com\/wp-content\/uploads\/2025\/07\/AOK-Marketing-Logo.png","width":126,"height":53}},"image":{"@type":"ImageObject","@id":"https:\/\/aokmarketing.com\/wp-content\/uploads\/2025\/06\/augmented-reality-headset-illustration.png","url":"https:\/\/aokmarketing.com\/wp-content\/uploads\/2025\/06\/augmented-reality-headset-illustration.png","height":678,"width":683},"url":"https:\/\/aokmarketing.com\/augmented-reality-ar-and-virtual-reality-vr-in-digital-marketing\/","about":["AI","Online Marketing Essentials","PPC - Pay Per Click Marketing","Search Engine Marketing (SEM)","Search Marketing","Video Production and Marketing"],"wordCount":2842,"keywords":["AR marketing","Augmented Reality","Digital marketing trends","future of marketing","metaverse marketing","Virtual Reality","VR marketing"],"articleBody":"Global Overview: Immersive Tech Transforming MarketingAugmented reality (AR) and virtual reality (VR) have rapidly evolved from novelties into powerful marketing tools worldwide. Businesses across industries are embracing these technologies to create immersive, interactive brand experiences that captivate consumers.The global AR market alone is projected to exceed $100 billion by 2025, and VR is also on a strong growth trajectory. By the end of 2024, an estimated 1.73 billion devices will support AR,\u00a0reflecting how widespread this tech has become. VR adoption, while smaller due to hardware needs, still tops 171 million users globally (with 77 million in the U.S.).\u00a0Notably, 91% of businesses report having adopted or planning to adopt AR\/VR tech in some form,signaling broad confidence in its marketing potential.Importantly, AR is currently more ubiquitous in marketing than VR. AR experiences are easily delivered via smartphones, which most consumers already own, whereas VR often requires dedicated headsets.\u00a0This accessibility has positioned AR as a mainstream marketing channel, from social media filters to retail apps. VR, by contrast, offers fully immersive engagement and has been especially impactful in experiential campaigns and virtual events. Both technologies let marketers blend digital content with the real world (in AR) or transport users to virtual worlds (in VR), enabling memorable storytelling and product interaction that go beyond traditional media.\u00a0In short, AR\/VR are reshaping digital marketing by engaging consumers in deeper, more personalized ways than ever before.AR in Digital Marketing: Applications and ExamplesAR\u2019s strength lies in enhancing reality with digital overlays, making it ideal for product visualization, interactive ads, and on-the-go experiences. Marketers are using AR to let consumers \u201ctry before they buy\u201d and interact with products virtually \u2013 increasing confidence and purchase intent. For instance, beauty retailer Sephora\u2019s Virtual Artist app enables users to try on makeup via AR, which boosted conversions by 11.4% and cut return rates by 35%.Furniture giant IKEA\u2019s Place app lets shoppers see true-to-scale furniture in their own homes through AR, reducing returns by 30%. In e-commerce, these AR try-on tools bridge the gap between online convenience and in-store tangibility, resulting in up to 94% higher conversion rates compared to standard product pages. \u00a0Consumers clearly appreciate such AR utilities \u2013 61% prefer retailers that offer AR experiences, and 71% say they would shop more often if AR were available.AR has also become a staple of digital advertising and social media marketing. Brands create AR filters, lenses, and effects that users can interact with on platforms like Snapchat, Instagram, and TikTok, blending advertising with fun user-generated content. A famous example is Taco Bell\u2019s Snapchat lens for Cinco de Mayo, which turned users\u2019 heads into a giant taco. This quirky AR lens was viewed 224 million times in a single day, setting a Snapchat record and demonstrating the viral reach of AR campaigns.Likewise, cosmetics brands and fashion retailers now regularly deploy AR lenses that let users virtually try on a new lipstick shade or pair of sunglasses within social apps \u2013 effectively turning consumers into brand ambassadors as they share these AR-enhanced selfies.Pepsi\u2019s \u201cUnbelievable\u201d bus shelter in London used AR to entertain commuters with scenes of alien invasions and robots on the street, illustrating how creative AR campaigns can grab public attention. Beyond personal devices, AR is invigorating physical advertising and out-of-home marketing. A standout case is Pepsi\u2019s AR bus stop stunt in London: Pepsi installed a digital screen on a bus shelter that looked like a transparent window, then overlaid unbelievable AR visuals onto the live street view \u2013 from UFOs descending to a tiger on the loose. Unsuspecting commuters were astonished by the prank, which perfectly conveyed Pepsi Max\u2019s \u201cLive For Now \u2013 Unbelievable\u201d message. A video of people\u2019s reactions went viral with over 8 million views on YouTube. The campaign generated massive earned media buzz (reaching 385 million people) and even lifted local Pepsi sales by 35% during that period.\u00a0This success underscores how AR, when cleverly integrated with a brand story, can capture both live audiences and online viewers through shareable content.AR is equally powerful for interactive promotions and gamified marketing. Fast-food chain Burger King\u2019s \u201cBurn That Ad\u201d campaign is a prime example of using AR for engagement. In 2019, Burger King\u2019s app invited users in Brazil to point their smartphone at rivals\u2019 print or billboard ads; the AR experience would virtually set the competitor\u2019s ad on fire and then reveal a coupon for a free Whopper. This tongue-in-cheek stunt not only fit BK\u2019s playful brand image but also drove people to download the app (over 1.5 million new app downloads) and redeem coupons in-store. By blending the real world with dramatic digital effects, Burger King turned a traditional ad war into an interactive game for consumers.In retail and experiential marketing, AR adds a layer of information and entertainment that can increase customer engagement on-site. Retailers have used AR in stores and packaging \u2013 for example, Toys \u201cR\u201d Us Canada worked with Snapchat to create AR \u201ctoy store portals\u201d that shoppers could walk through using their phones, resulting in 38% higher engagement and a 22% boost in conversions for featured products. Even convenience stores are experimenting with AR: 7-Eleven\u00a0introduced AR-enhanced shelf labels that shoppers can scan to see nutritional info and promotions, making the shopping experience more interactive. \u00a0These examples show that from home try-outs to outdoor billboards, AR\u2019s ability to merge digital content with the real environment opens up endless creative avenues for marketers.VR in Digital Marketing: Applications and ExamplesVR offers a different value proposition by immersing consumers entirely in virtual brand worlds. It\u2019s being used to deliver story-driven experiences, virtual tours, and rich demonstrations that can evoke emotions and engagement in ways standard media cannot. One prominent use of VR in marketing is to enable consumers to experience destinations or products virtually \u2013 a strategy often termed \u201ctry before you buy\u201d in travel and real estate.A classic example is Thomas Cook\u2019s travel VR campaign, where the tour operator set up VR headsets in its stores to let customers take a five-minute virtual vacation to New York City. The result was a 190% increase in real-world bookings for New York excursions at those locations,\u00a0proving that an immersive preview can significantly influence purchase decisions. Similarly, Marriott Hotels created the \u201cVR Postcards\u201d and Teleporter experiences: VR installations that let people teleport to a Hawaiian beach or a London skyscraper complete with 4D sensory effects like breeze and mist. This innovative campaign not only generated extensive PR, but Marriott reported that the immersive experience inspired higher interest in travel among participants.Marriott\u2019s \u201cTeleporters\u201d allowed users to step into a phone booth\u2013like VR pod and visit far-off destinations virtually using Oculus Rift headsets, blending sight, sound and even physical sensations to deepen engagement.\u00a0VR is especially effective for brand storytelling and experiential marketing. By putting on a VR headset, consumers can be transported into scenarios that convey a brand\u2019s narrative or values in an unforgettable way. For example, Marriott\u2019s Teleporter (shown above) toured various cities to promote the idea of travel; users who entered the booth felt as if they were standing on a Maui beach or atop a London tower, thus associating Marriott with cutting-edge, aspirational travel experiences.Automotive brands have also leveraged VR for marketing \u2013 allowing virtual test drives of new car models or showcasing concept cars in immersive showrooms. Audi and Volvo were early adopters, offering VR car demos that let customers \u201csit\u201d in a virtual vehicle and drive through realistic environments, saving the need for physical inventory while exciting car enthusiasts.\u00a0 Such VR demos can build anticipation and preference for a product before it even hits dealerships.Entertainment and sports marketers have used VR to create buzz and deeper fan engagement. From HBO\u2019s Game of Thrones \u201cAscend the Wall\u201d VR experience (which let fans virtually ride a lift up a 700-foot ice wall) to the NBA\u2019s VR courtside experiences, these initiatives drive brand loyalty by offering exclusive immersion. Even consumer goods have found creative angles: Oreo released a whimsical 360\u00b0 VR video whisking viewers into the \u201cOreo Wonder Vault\u201d \u2013 an animated fantasy world inside a cookie, reinforcing its playful brand image. In advertising contexts, 360-degree videos and VR content shared on platforms like YouTube and Facebook have become popular; they invite users to look around and explore ads interactively, dramatically increasing viewing time compared to standard videos. For instance, The New York Times distributed Google Cardboard VR viewers to subscribers and released immersive branded films (sponsored by brands like MINI and Volvo) \u2013 blending journalism, marketing, and VR tech to keep audiences engaged.Moreover, VR is becoming a fixture at events and trade shows. Brands are setting up VR booths or simulations that attract crowds and generate media coverage. A notable case was Samsung\u2019s product launch showcases: Samsung has used VR at launches to give global audiences a front-row experience of new devices.\u00a0Likewise, companies like Coca-Cola have dabbled in VR games and virtual concerts as part of their marketing in the so-called metaverse.\u00a0These efforts illustrate how VR can amplify event-based marketing, allowing people anywhere to participate virtually. While VR campaigns typically reach a smaller audience than mass-market AR (due to headset requirements), they offer unparalleled immersion and emotional impact. As VR hardware becomes more affordable and untethered (e.g. Oculus Quest or the upcoming Apple Vision Pro), marketers are anticipating broader reach for VR initiatives. In fact, industry research predicts the AR\/VR user penetration will surpass 50% of consumers by 2025.\u00a0We can expect VR to increasingly complement AR in digital marketing, reserved for those high-impact storytelling moments and experiential tie-ins that truly wow an audience.Future Outlook: The Next Frontier of AR\/VR MarketingLooking ahead, experts agree that AR and VR will play pivotal roles in the future of digital marketing \u2013 with capabilities enhanced by other emerging technologies. One clear trend is the integration of AR\/VR with AI and advanced analytics. AI can help personalize AR experiences (for example, recommending products to try in AR based on user data) and create more realistic virtual environments in VR.\u00a0The rollout of 5G networks is another enabler, as it provides the low latency and high bandwidth needed for smooth, high-quality AR\/VR content streaming. This will likely lead to more cloud-based AR apps and VR streaming services, making immersive experiences accessible on-demand, without large downloads. In terms of hardware, the industry is abuzz about upcoming AR glasses and mixed reality headsets (spurred by devices like Apple\u2019s Vision Pro) that could bring immersive marketing literally into consumers\u2019 field of view in everyday life. As Apple\u2019s CEO Tim Cook predicted, AR may become something people use daily \u201calmost like eating three meals a day,\u201d becoming an integrated part of shopping and brand interactions.Market forecasts back up this optimism. Global spending on AR\/VR marketing is climbing fast \u2013 one analysis projects AR\/VR in marketing will be a $24+ billion market by 2033, growing ~18% annually.\u00a0 Specifically, AR advertising revenue worldwide is forecast to reach $5\u20138 billion by 2025, as more brands invest in AR ads and sponsored filters. The U.S. immersive marketing segment (AR\/VR-powered marketing) is expected to expand over 25% yearly through 2030. This growth is fueled by proven ROI: AR experiences have been shown to double consumer engagement compared to non-AR media,\u00a0and VR campaigns can drive measurable lifts in brand favorability and sales (as seen in case studies above). Consumer attitudes are also increasingly favorable. Surveys show 71% of consumers tend to favor brands that offer AR capabilities, and younger generations in particular are keen on these interactive, tech-savvy experiences.In the coming years, we can expect AR to become more standard in e-commerce and social media marketing \u2013 think ubiquitous AR product try-ons on every major retail site, AR influencer content, and location-based AR promotions via your phone\u2019s camera. VR will likely see greater adoption for high-impact storytelling, training, and branded entertainment as devices spread. The concept of the metaverse \u2013 a convergence of AR, VR, and online worlds \u2013 has prompted many brands to experiment early, hosting virtual showrooms or events in platforms like Roblox, Fortnite, or dedicated VR spaces. While the metaverse hype is still shaking out, it\u2019s clear that the lines between digital and physical brand experiences will continue to blur. Marketers who skillfully blend these realms stand to capture the attentions of an audience that is both increasingly digital-native and craving authentic, engaging experiences. As one agency executive put it, AR\/VR should not be used as mere gimmicks but as tools to \u201celevate the delivery of the message\u201d beyond what traditional tech can do.\u00a0When used thoughtfully, these immersive technologies can strengthen emotional connections, boost loyalty, and ultimately drive growth in ways that set brands apart from the competition.Local Perspective: Trends and Players in Canada\u2019s AR\/VR MarketingCanada offers a representative microcosm of the AR\/VR marketing boom, with its own emerging trends and notable players. Canadian consumers are highly receptive to immersive tech \u2013 66% of Canadian shoppers favor AR for visualizing products before purchase. This demand is reflected in the marketing strategies of Canadian retailers and brands. In 2025, a report found that Canadian retailers using AR (for virtual try-ons, interactive catalog apps, etc.) achieved up to 250% increases in conversion rates on their e-commerce platforms.\u00a0 Major brands in Canada have been quick to leverage proven AR solutions from global playbooks: Sephora Canada uses the AR makeup try-on to let customers virtually sample products, and IKEA\u2019s AR furniture placement app is popular among Canadian homeowners \u2013 both aiming to boost customer confidence and reduce returns. \u00a0In fact, Shopify \u2013 the Ottawa-based e-commerce platform \u2013 has built-in AR features for online stores; Canadian merchants using Shopify\u2019s AR functionality see 94% higher conversion on average than those without AR. \u00a0This has encouraged even small and mid-sized businesses to explore 3D modeling and AR integration in their marketing, often with the help of local AR\/VR developers.Beyond retail, Canadian marketers are blending AR into physical experiences and campaigns. Toronto-based agency Femme Fatale Media reports that when they incorporate AR filters or AR gamification into beauty brand campaigns, post-campaign engagement jumps by 65% compared to traditional media. Brands have also partnered with tech platforms to create localized AR experiences \u2013 for example, Toys \u201cR\u201d Us Canada\u2019s collaboration with Snapchat (as mentioned) drew in families to stores for an interactive adventure, and convenience chain 7-Eleven Canada\u2019s AR-enabled info labels add value to the in-store journey. \u00a0These initiatives show a trend in Canada towards using AR not just for online shopping, but to enrich omni-channel marketing: connecting digital content with real-world retail environments to drive traffic and sales. On the VR front, adoption in Canada has been steadier but growing. We see VR used in industries like real estate (virtual condo tours in Vancouver and Toronto\u2019s hot property markets), tourism (virtual tours by Destination Canada to entice international travelers), and automotive (dealerships offering VR car explorations). The Canadian VR market was valued at roughly $325 million in 2024 and is projected to expand as consumer VR usage rises and more content becomes available.\u00a0Companies like IMAX opened a VR Centre in Toronto for a period, and Montreal\u2019s vibrant gaming sector has spilled into VR experiences that sometimes double as marketing for entertainment franchises.Notably, Canada is also home to several top AR\/VR tech firms and marketing agencies that are driving innovation. For instance, MetaVRse (Toronto) and LBC Studios (Vancouver) have created AR\/VR marketing content for global brands. This local expertise helps Canadian campaigns remain cutting-edge. The Canadian government and industry groups have supported immersive media through grants and incubators (like Ontario Creates), further bolstering the ecosystem. As a result, Canada\u2019s share of the AR marketing software market is growing \u2013 forecast to reach CAD $308.6 million by 2025 in retail alone.In summary, Canada\u2019s marketers are quickly learning that AR and VR are not just flashy tech, but practical tools to boost sales and engagement. Canadian consumers, much like global audiences, respond with enthusiasm to AR\/VR when it offers utility or delight: whether it\u2019s finding the perfect sofa size via AR or being wowed by a VR experience at a local event. The key players in this region \u2013 from retail brands to tech startups \u2013 are increasingly collaborating to integrate immersive experiences into marketing strategies. This local momentum mirrors the global trajectory: AR and VR are set to become regular elements of the marketing mix. Brands that embrace these technologies early, both globally and in Canada, have the opportunity to stand out in crowded digital marketplaces by offering customers something more vivid, interactive, and personal. \u00a0As AR and VR continue to mature, the line between marketing and entertainment will blur, and the winners will be those marketers who can craft experiences that resonate on a human level through the clever use of these immersive tools.Sources: The information and examples above are supported by market research and industry reports, including AR\/VR usage statistics threekit.com demandsage.com, expert analyses loungelizard.com marketingdive.com, and case studies of brand campaigns marketingdive.com marketingdive.com, grandvisual.com."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Augmented Reality (AR) and Virtual Reality (VR) in Digital Marketing","item":"https:\/\/aokmarketing.com\/augmented-reality-ar-and-virtual-reality-vr-in-digital-marketing\/#breadcrumbitem"}]}]