The Impact of AR + VR Technology on Advertising Effectiveness

| Updated on January 29, 2025
ar and vr tech

Are you into virtual reality (VR) or augmented reality (AR)? These technologies are no less than a fantasy come true. You get to experience things as they are without having to be present anywhere, but do you know it affects advertising?

According to a study, the market value of these sectors is going to hit USD 13 billion by the end of 2025, this showcases the significant growth in comparison to 2022 when it was just USD 7.9 billion. 

In this article, I’ll tell you about the impact of AR + VR technology on advertising effectiveness. So, make sure that you pay attention and don’t miss out on anything. 

What Is AR?

Augmented reality or AR is a technology that adds digital images or information in real-time. It wouldn’t be there physically, but you can still see it as it is an extra layer. For example, if you need to buy new furniture but are not sure how it would look in your room with AR, you can see that without having to buy it.

Popular Pokémon GO is also an AR-based game where your phone’s camera and GPS are used, and you get to see Pokémon in real life. 

What Is VR?

Many might think that virtual reality (VR) is the same as AR, but no, they are different. For VR, you need to wear specialized headsets. This gives you a real feeling of being in a different place as it creates a 3D space.

You can experience things like being in a game, rollercoaster, swimming, etc., without having to go anywhere. 

How Companies Use AR and VR For Advertising

Businesses have been trying different things, and now they have started using AR and VR to make their advertisement more optimized and interactive. But how? Look at the points given below: 

Here are some examples of how companies use VR and AR for advertising:

  1. Trying Products Before Buying: Several companies give this feature where customers can use AR and use the product. You can see how lipstick would look on you without even applying it. 
  2. Exploring Virtual Stores: With VR, you can walk around a virtual store and see items just like in real life. This approach helps you shop without leaving your home.
  3. Learning About Products: With the help of AR and VR, businesses show people how they use their products and how they work. Like, new car drivers can take virtual tests before driving a real car with this. 
  4. Alongside Ad Intelligence Software: Companies use tools like ad intelligence software to ensure they use AR and VR best to engage customers. 

Use these ideas as inspiration for integrating these technologies into your advertising campaign. In the infographic, you can see other ways in which they can use AR and VR. 

How Business Can Use VR & AR

Why AR and VR Make Ads Better

Since technology has been advancing, old-school methods are no longer in trend. This enhancement has changed the customer’s expectations and to meet their new expectations companies are adopting new things, like the explosion in the popularity of devices like the Meta Quest 2

AR and VR make ads more exciting and valuable. Here are some reasons why they work so well:

  1. Interactive Experiences: AR and VR provide more interactive experiences to customers. This attracts them to different goods.
  2. Better Understanding: People get a better understanding of how a product works in real life, making it easier for them to decide whether they should invest or not.
  3. Memorable Ads: When an ad is fun and different, people remember it better. AR and VR ads stand out because they feel new and interesting.

Consider how VR and AR improve ads before deciding whether to invest in them to offer more engaging experiences to customers. 

How AR and VR Help Businesses

Businesses love AR and VR because these tools help them sell more products by offering more engaging experiences that customers remember, leading to higher sales and revenue. 

Here are some ways AR and VR make advertising effective for companies:

  1. Reaching More People: Since everyone has smartphones these days, they have easy access to AR apps. This way, more customers are available to such facilities. 
  2. Saving Money: You might think such technology will cost you money, but it helps you save money instead. Companies can invest in just one VR store instead of building a real one. This way the company doesn’t need any physical space and customers can still keep shopping.
  3. Standing Out from Competitors: Businesses that use AR and VR look modern and creative, which helps them stand out from other companies.

Review how VR and AR help businesses and consider how you could benefit from them. 

Challenges of Using AR and VR

AR and VR offer impressive capabilities, but like any technology, they are not perfect. Knowing the challenges helps you understand how to implement them and whether to target VR and AR-enabled ads to markets. 

Challenges of VR and AR include:

  1. Expensive Equipment: VR headsets can be costly. Not everyone has one, so businesses must consider how many people can use VR ads.
  2. Learning New Technology: Some people find using AR and VR apps challenging. Businesses must ensure that their tools are easy to use.
  3. Internet Speed: AR and VR need fast internet. If someone has a slow internet connection, the experience might not work well.

Understand all the challenges of VR and AR to optimize how you use them in advertising. 

FUN FACT
The first known VR was created in 1968 by Ivan Sutherland, a Harvard Professor!

Conclusion

Augmented and virtual reality are drastically changing how businesses advertise. These innovative and interactive technologies let people try products, explore virtual spaces, and better understand items. 

AR and VR make ads more exciting, help businesses sell more, and give customers a new way to shop. As they improve, they will become an even bigger part of advertising.

However, always understand new technologies before integrating them into your advertising campaigns. VR and AR present many challenges, and when you know them, you can create the best campaigns that engage customers and increase revenue and success




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