How AR & VR will transform marketing

In today’s fast-paced digital landscape, brands are continuously seeking innovative ways to captivate their audiences. Enter the era of immersive technology, where virtual reality in marketing is not just a trend but a transformative strategy that allows consumers to experience products in entirely new dimensions. Similarly, Augmented Reality in marketing is revolutionizing the way brands interact with their customers by seamlessly blending digital elements with the real world. Together, these cutting-edge approaches are reshaping traditional marketing tactics and opening doors to more engaging, personalized, and interactive campaigns.

In this article, we delve into how these immersive tools are redefining consumer engagement and paving the way for a new era of marketing excellence.

When to incorporate these technologies into your marketing.

Marketing products with AR and VR

Augmented Reality (AR) and Virtual Reality (VR) have already made their mark in the realm of product marketing, offering innovative ways to engage consumers and elevate brand experiences. While many marketing departments currently exercise caution—waiting for further technological advancements and more cost-effective solutions, particularly in VR—the trend is unmistakable. As these immersive technologies continue to evolve, they are poised to redefine industry standards and consumer expectations, fundamentally shaping the future of marketing.

Forward-thinking brands are increasingly integrating AR and VR into their marketing strategies, recognizing that early adoption can yield a significant competitive advantage. By closely monitoring advancements and investing in scalable solutions, companies can prepare for a future where these technologies transition from experimental novelties to essential components of mainstream marketing campaigns. This article examines the latest developments in AR and VR, underscoring the strategic imperative for businesses to remain agile and proactive in capitalizing on these transformative opportunities.

AR and VR defined

Augmented Reality (AR) enhances the real-world environment by overlaying interactive digital elements—such as images, videos, and data—onto the user’s view. Utilizing devices ranging from smartphones to smart glasses, AR provides real-time contextual information without completely replacing the physical surroundings.

Iconic examples include mobile applications like Pokémon Go, which seamlessly integrates virtual characters into everyday settings, and the evolving iterations of smart eyewear like Google Glass. Although AR delivers 2D and 3D content that is only partially immersive, it remains a powerful tool for enriching user experience by providing layered, context-sensitive insights. When combined with advancements in artificial intelligence and marketing, AR becomes even more dynamic, enabling personalized and adaptive experiences that resonate deeply with consumers.

In contrast, Virtual Reality (VR) offers a fully immersive experience by generating a completely simulated 3D environment that isolates the user from the physical world. Through dedicated headsets that track movements and provide stereoscopic visuals, VR allows users to explore and interact with digitally constructed spaces as if they were real.

The spectrum of VR devices is broad—ranging from simple cardboard 360 viewers to advanced systems priced at $600 or more, which offer highly realistic and engaging virtual experiences. As these technologies continue to evolve, their integration across various industries, particularly in marketing, is set to further transform the way digital content is delivered and experienced.

When should you incorporate AR and VR technologies into your marketing?

• Your budget AR and VR are still costly, as stated before, though costs are coming down so that both technologies are slowly becoming more available to creators and users.

• How important it is for your brand to embrace the latest tech in your marketing mix? If you are a C-level executive for a large company especially one in the tech industry, for example, you may lose your competitive edge if you fail to be an early adopter. In time, both AR and VR will be integral to our experience of the world.

VR marketing is already being used by travel, tourism, and related industries. It’s especially appealing to Millennials and the up-and-coming Generation Z. If you’re a leading-edge entrepreneurial brand, consumer brand, in real estate, or automobile marketing, current VR/AR technology may be the best way to immerse your audience, especially younger demographic groups in a visceral experience of your product.

While VR and AR may be integral to daily experience in the future, for now, it’s best to take a wait-and-see strategy. Carefully monitor the latest developments in these technologies and keep a steady eye on your competition to see if they choose to become early adopters and, if so, whether that investment has resulted in higher ROI.

Assess how your audience would likely react to VR-based marketing campaigns. By this, I’m not suggesting you create a formal survey of customers. Keep in mind that most audiences respond favorably to AR/VR marketing enhancements that are engaging and functional.

However, if your audience is comprised of techies, engineers (e.g., the oil extraction industry), and others who appreciate the newest technology, introducing AR and VR marketing techniques for those audiences is best sooner rather than later. If on the other hand, your products are low-tech and don’t lend themselves to customer interactive apps, e.g., the lumber industry, you may never need AR/VR marketing for that customer base.

What is the reason for being cautious?

According to Forrester Research, 42% of online respondents have never heard about VR headsets. Last year only 10M Oculus Rift, HTC Hive, and other headsets were delivered, but that’s a drop in the bucket considering the 1.5B smartphones already in circulation.

Only 8% of us have tried immersive VR. VR and AR technologies are still in their infancy. We don’t yet know how exactly people will use VR in the future or what the best overall experience will be. The picture is somewhat clearer for AR.

Is VR marketing a good fit for your company now?

Most users, even those with lots of expendable income, are likely to wait through several more product iterations before purchasing a VR headset. This translates into significantly lower motivation for marketers to use VR tech in their marketing campaigns. So, for most companies, ‘wait and see’ is the best approach. The opposite is true of low-end cardboard 360-degree VR products. This is a ‘here and now,’ inexpensive option.

Why ignoring VR technology could cost your business

Virtual Reality (VR) and Augmented Reality (AR) are no longer just buzzwords—they’re reshaping how consumers interact with brands. A recent survey revealed that 71% of consumers view brands more favorably when they offer VR experiences, while over 50% are more likely to purchase from companies that leverage VR in their marketing strategies. These numbers underscore a clear trend: immersive technologies are becoming a critical differentiator in today’s competitive marketplace.

While some analysts predict VR is on the verge of going mainstream, others caution that adoption rates may not match the hype. For instance, Digi-Capital once projected the VR market to reach $30 billion by 2020, but the reality has been more nuanced. Despite slower-than-expected growth, consumer interest in VR continues to rise, driven by advancements in hardware, software, and content.

The key takeaway? Businesses that invest in VR now are positioning themselves as innovators, ready to capitalize on the next wave of consumer engagement. When combined with SEO and digital marketing campaigns, VR can amplify brand visibility, drive traffic, and create memorable experiences that resonate with target audiences.

The spectrum of VR experiences: from high-tech to accessible

Not all VR experiences are created equal. The technology spans a wide range, from high-end, fully immersive setups to more accessible, entry-level options. Understanding these differences is crucial for marketers looking to integrate VR into their strategies effectively.

• High-End VR (Headset VR)

High-end VR systems, such as the HTC Vive and Oculus Rift, offer the most immersive experiences. These setups typically require a VR-enabled PC, advanced sensors, and a high-quality headset. While they deliver unparalleled realism, the cost and complexity of these systems have limited their widespread adoption—for now. However, as prices drop and technology improves, high-end VR is becoming more accessible to both businesses and consumers.

• Low-Fi VR (Entry-Level VR)

On the other end of the spectrum are low-cost, entry-level VR solutions like Google Cardboard and similar smartphone-based headsets. These devices use 360-degree video to create a basic VR-like experience, allowing users to explore environments from multiple perspectives. While purists argue that 360-degree videos don’t qualify as true VR, they serve as an excellent introduction to immersive technology for many consumers. For brands, low-fi VR offers an affordable way to experiment with VR marketing and reach a broader audience.

The potential of marketing in VR.

VR (and AR) marketing is transforming how brands connect with audiences by delivering immersive, memorable experiences. These technologies allow users to explore rich, interactive environments—whether it’s attending a virtual music festival, stepping inside a movie, or experiencing a product firsthand. By solving problems and telling compelling stories, VR and AR create stronger emotional connections, making marketing messages more likely to resonate—and even go viral.

High-end brands are leveraging VR to offer exclusive in-store or event-based experiences using premium gear, targeting affluent audiences. However, most companies are opting for broader accessibility by delivering VR experiences through smartphones and computers. Tools like Google Cardboard and 360-degree videos make it easy for brands to reach a wider audience without breaking the bank. For startups, integrating VR into their startup experience can be a game-changer, offering a cost-effective way to stand out and engage early adopters.

Google Cardboard: Google Cardboard remains one of the most popular and cost-effective VR solutions. Priced as low as 1to 1 to 10 per 1,000 units, it’s an ideal choice for brands looking to create branded VR experiences. Companies can even customize these viewers with their logos, turning them into powerful marketing tools. For those interested, a quick search for “branded Google Cardboards” will connect you with manufacturers ready to bring your vision to life. Startups, in particular, can leverage this affordable technology to enhance their startup experience and create buzz around their brand.

360 Videos: 360-degree videos capture real-life scenes from every angle, allowing viewers to control their perspective. On smartphones, the video moves as you tilt your device; on VR headsets, it responds to head movements; and on laptops, it follows your cursor. This technology is perfect for branding, virtual tours, test drives, and interviews, offering a dynamic way to engage audiences.

You can easily make your own 360-degree video with one of the special 360-degree cameras, available for purchase beginning at $250. If you don’t want to shoot or edit it yourself, you can hire a company to do it for you. These videos, when in synch with the ‘zeitgeist’ can go viral, some getting 15 million + views.

Innovative VR applications in marketing

Brands are getting creative with VR applications. McDonald’s turned Happy Meal boxes into Happy Goggles, while Disney launched VR games tied to their movies and characters. IKEA’s VR app lets users “walk through” virtual kitchens, opening doors and exploring layouts. Automotive companies are also using VR to offer virtual test drives, enhancing the customer experience and driving sales. For startups, these innovative applications can elevate their startup experience, offering unique ways to showcase their products or services and leave a lasting impression.

Early success stories:

• Tommy Hilfiger’s virtual fashion runway, Marriott Hotel’s VR app that ‘teleports’ guests to different locations, and Hugo Boss’s success in drawing people to real-world events in an online environment are among early successes in low-cost VR marketing.
• VR marketing has also been used successfully to demonstrate product attributes and functionality (e.g., Samsung Gear VR); communicate a brand’s mission while in a store (e.g., Tom’s in Venice, CA); immerse users in a branded entertainment environment (e.g., Game of Thrones); help consumers make better-informed decisions (e.g., Lowe’s); add exciting new dimensions to print (e.g., The New York Times); and target high-end buyers with images of aspirational lifestyles (e.g., Mercedes).

Augmented reality (AR) marketing

AR marketing combines cutting-edge design with a deep understanding of user behavior, creating experiences that captivate and convert. Brands leveraging AR are seeing higher engagement, stronger brand loyalty, and measurable sales growth—proof that this technology is more than just a trend.

Increased customer engagement and brand recognition

Imagine holding a customer’s attention for 75 seconds instead of losing them in 2.5. That’s the power of AR. Recent data shows AR campaigns achieve this engagement leap, directly boosting online conversions and bridging gaps in mobile marketing effectiveness.

Retail giants like Walmart and Target leverage AR for in-store navigation apps, enhancing shopper experiences while driving foot traffic. (Target’s recent success, fueled by premium partnerships like Casper mattresses, underscores how innovation pairs with quality to win markets.)

AR is boosting e-commerce

AR is reshaping online shopping by turning passive browsing into active exploration. IKEA’s IKEA Place app remains a standout example, allowing users to visualize furniture in their homes at scale. More recently, Sephora’s Virtual Artist app lets customers try on makeup virtually, while Warby Parker uses AR to help users “try on” glasses frames. Even Amazon has joined the fray with its Room Decorator tool, enabling shoppers to see how furniture fits in their spaces.

Social media platforms are also driving AR adoption. Snapchat and Instagram have become hubs for AR-powered campaigns, with brands like Gucci and Nike creating shareable filters and virtual try-ons. These campaigns not only boost engagement but also drive 20–40% higher conversion rates, proving AR’s value in e-commerce.

AR apps for retail stores

Brick-and-mortar stores are fighting back against e-commerce with AR-enhanced experiences. L’Oréal’s AR mirrors in stores let customers test makeup looks instantly, while Zara uses AR displays to bring mannequins to life, showing outfits in motion. These innovations reduce decision fatigue and increase purchase intent by 30% or more.

For high-end retailers, AR headsets like Microsoft HoloLens offer immersive experiences, from virtual assistants to exclusive deals. While these devices are still pricey (~$3,000/unit), companies like Ray-Ban Stories and Facebook (Meta) are working on more affordable AR glasses, making the technology accessible to a wider audience.

Partner with OWDT for AR/VR marketing success

The potential of AR/VR in marketing is vast, but realizing that potential requires specialized knowledge. OWDT (marketing and web design company) acts as your strategic partner, guiding you through the complexities of AR/VR development and implementation.

OWDT’s expertise extends beyond AR/VR development. We offer a full suite of digital marketing solutions, including SEO services, to ensure your AR/VR experiences reach their full potential.