The Burst of Augmented Reality (AR) and Virtual Reality (VR): Current Adoption, Future Prospects over the Next Half Decade

The Burst of Augmented Reality (AR) and Virtual Reality (VR): Current Adoption, Future Prospects over the Next Half Decade

In the ever-evolving world of marketing, augmented reality (AR) and virtual reality (VR) are no longer novelty additions but essential tools for boosting engagement, brand recall, and sales.

Jeremy Pounder, Futures Director at Mindshare, foresees AR being used beyond brand engagement applications, transitioning towards being more assistive and providing services or utilities[1]. This shift is already being reflected in the strategies of major brands.

Samsung's 2025 TikTok AR campaign, the #VideoSnapChallenge, showcased the Galaxy S21 FE's camera capabilities, achieving 14.8 billion views and global brand awareness[1]. Nike leveraged AR for a 30% boost in online sales, while L’Oréal reported threefold higher conversion rates using virtual try-on AR experiences[3].

Retail giants like Sephora and Adidas are also leveraging AR. Sephora's Virtual Artist App allows customers to virtually try on makeup and recommend beauty products, while Adidas introduced location-based AR at ComplexCon, guiding customers to purchase limited-edition sneakers[2].

Other applications include store navigation enhancements with AR overlays in large shopping venues, improving customer experience and providing data analytics for marketers[4]. Brands are also using AR-powered gamification and interactive advertising to drive virality and in-app purchases[4].

The global AR and VR market is expected to exceed $94 billion within the next five years[5]. Companies like Lowe's are capitalizing on this trend. Lowe's first launched the Holoroom in 2014, allowing users to virtually design a room and view it in a VR experience. The company has announced two new AR apps: Measured and Envisioned, scheduled for release in October[2].

Domino's Pizza simplified the ordering process using AR within a social media app, and LinkedIn now allows users to send voice messages within the mobile app, up to one-minute long[6]. Facebook has launched Watch Party for global audiences, allowing group members to watch videos together in real time[6].

As AR and VR technologies continue to evolve, they are expected to become more about function and less about flash. Industry insiders believe that these technologies will offer significant competitive advantages for Fortune 1000 companies[1]. Projections suggest AR advertising will grow to $8 billion by 2029 with a $342 billion market opportunity by 2037[1][3].

The MarTech conference, taking place in Boston from Oct. 1-3, will have four tracks: Marketing, Technology, Management, and Solutions[7]. It offers Beta rates for registrations in August, providing an opportunity for marketers to stay ahead of the curve in this rapidly growing field.

[1] Search Engine Journal [2] TechCrunch [3] AdWeek [4] Forbes [5] Statista [6] The Verge [7] MarTech Conference

Artificial intelligence (AI) could be integrated with augmented reality (AR) and virtual reality (VR) technologies to enhance customer experiences and provide personalized recommendations, following the footsteps of brands such as Samsung, Nike, L'Oréal, Sephora, and Adidas. With the global AR and VR market projected to exceed $94 billion within five years, AI might play a crucial role in AR advertising, estimated to grow to $8 billion by 2029 and offering a $342 billion market opportunity by 2037.

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