Augmented Reality Marketing – Gimmick or Growth-Driver?

A Quick Tour of Reality-Bending AR Marketing Tactics #

Unlike virtual reality, you don't need VR goggles to engage in AR marketing experiences. You can give your target audience an experiential marketing adventure simply through digital content or a mobile app. Let’s see what some of those experiences look like, and if they’re worth it:

Face & World Filters #

Filters allow brands to layer playful digital elements onto a user’s face or surroundings through their mobile cameras. Remember Taco Bell’s giant-taco-head Snapchat filter? 24 hours after launch, it racked up 224 million views!

Pros

• Fast and affordable: A designer, a 3-D asset, and a Spark AR template can have you live in a week.
• Built-in virality: People love sending goofy selfies to friends, turning your audience into unpaid distributors.
• Easy A/B testing: Swap colors, stickers, or copy in minutes to see which version travels farther.

Cons

• Short half-life: Unless you refresh the effect, the novelty fades after a day or two.
• Harder revenue tie-in: Without an on-screen link or end card, filters only go so far as brand awareness.
• Platform dependency: Rule changes at Snapchat or Instagram can bury your effect overnight.

The brands that win with filters solve awareness problems, not conversion problems. Taco Bell's giant taco head worked because it reinforced their "think outside the bun" positioning while giving users a reason to engage with the brand outside of meal times. The 224 million views weren't just vanity metrics; they kept Taco Bell top-of-mind during competitor advertising blitzes.

Virtual Try-Ons #

With virtual try-ons, glasses, shoes, makeup, or even watches appear on a live selfie or hand shot, letting shoppers try before they buy. Just look at Warby Parker, who saw a record number of downloads when its app let users flip through frames on their own faces instead of guessing based on static photos.

Pros

• Purchase confidence: Shoppers pick the right size or shade first time, cutting returns and restocking costs.
• Rich first-party data: Each try-on logs SKU interest, informing inventory and retargeting.
• Heavy social proof: Users share side-by-side “Which color?” pics that double as product placements.

Cons

• Precise 3-D modeling required: Every variant needs accurate geometry and textures or the illusion breaks.
• Device calibration quirks: Older phones mis-size products, undermining trust.
• Narrow product fit: Works great for wearables; trickier for, say, power tools.

Warby Parker's success wasn't just about cool tech; it was about eliminating the most significant barrier to online eyewear purchases. Before AR try-ons, customers had to order multiple pairs, try them at home, and return the rejects. The AR eliminated that friction while generating data on frame preferences that informed inventory decisions. The result: lower acquisition costs and higher customer lifetime value.

3-D Product Placement #

With interactive product demonstrations, you can showcase products in 3-D and even drop life-size virtual objects into real rooms to answer the “Will it fit?” question. IKEA Place is a great example of this, allowing customers to move a sofa around their living room before committing to delivery.

Pros

• Solves a core buying barrier: Size, style, and color decisions happen in context.
• Increases average order value: Seeing a lamp beside the new couch sparks add-on sales.
• Reduced costly returns: Fewer “didn’t fit through the door” complaints hit support.

Cons

• Large file sizes: High-fidelity models and textures can slow mobile load times unless you use progressive loading.
• Lighting mismatch: Virtual items can look fake if light estimation in the real-life environment fails.
• Higher production budget: Scanning, optimizing, and QA for dozens of SKUs adds up quickly.

IKEA Place succeeds because it solves the #1 furniture buying objection: "Will it fit and look right in my space?" But the real genius is in the data layer. IKEA now knows which products customers place in which room types, informing everything from catalog photography to seasonal promotions. They turned a customer problem into a competitive intelligence goldmine.

Portal Experiences #

Portal experiences turn any phone screen into a 360° virtual environment. Take Quantas, for example – a travel agency that launched an AR portal that lets users walk into a destination experience, complete with 360° views, ambient sounds, and info on travel packages.

Pros

• Head-turning wow factor: Press loves immersive stunts, delivering earned media without extra ad spend.
• Longer session times: Users wander, tap, and discover, increasing on-page dwell metrics.
• Event synergy: Perfect for product launches or trade-show booths where you need a showstopper.

Cons

• High production cost: Scripting, environment design, and QA easily cost 6 figures.
• Can drift off-message: Without tight goals, visitors treat it as a game and skip the CTA.
• Device strain: Lower-end mobiles stutter in 360°, risking frustration and app deletions.

Qantas understood that travel booking is an emotional purchase disguised as a logical one. Their destination portals don't just show features; they sell feelings. The 360° environments let customers emotionally commit to a trip before seeing the price, shifting the conversation from "Can I afford this?" to "How can I make this happen?"

Location-Based Games #

With location-based games, GPS overlays turn physical spots into branded arenas. Remember Pokémon GO? Starbucks sponsored PokéStops inside Pokémon GO to encourage more foot traffic as players refueled between catches.

Pros

• Drives real-world visits: Rewards for check-ins translate to coffee sold or coupons redeemed.
• Community buzz: Local groups plan meet-ups, giving your brand organic event marketing.
• Ongoing engagement: Weekly challenges keep users returning long after launch.

Cons

• Complex partnerships: Coordinating with game publishers or map providers adds legal layers.
• Uneven reach: Rural users may struggle to participate, limiting universal appeal.
• Safety and crowd control: A surge of players at one site can overwhelm staff if you’re not prepped.

The most successful location-based AR drives behavior that benefits both players and businesses. Instead of just borrowing from Pokémon GO's success, smart retailers create their own location-based experiences. A furniture store might reward customers for AR "placing" items in their actual homes, then offer location-specific discounts for nearby showroom visits.

The AR Decision Matrix: When It's Worth Your Budget #

Before you fall in love with any AR concept, run it through this filter. We use this framework with clients to separate genuine opportunities from expensive distractions:

High-Impact Criteria (Must have at least 2):

• Solves a specific purchase barrier (size, fit, visualization)
• Reduces support costs or returns
• Generates measurable first-party data
• Creates content users naturally want to share

Medium-Impact Criteria (Nice to have):

• Differentiates from direct competitors
• Extends existing customer journey touchpoints
• Leverages current mobile app or platform

Red Flags (Avoid if present):

• Requires new app download just for the AR feature
• No clear path from AR interaction to purchase
• Success metrics limited to "engagement" or "impressions"
• Timeline under 8 weeks (quality AR takes time)

The Reality Check: If your AR idea scores low on the high-impact criteria, you're probably looking at an expensive marketing stunt rather than a growth driver. The brands seeing real ROI from AR are solving customer problems, not just creating cool moments.

Can AR Really Improve Conversion Rates? #

71% of shoppers say they’d buy more often if AR were available, and more than half of smartphone owners already used it in 2024. But here's what those stats don't tell you: the brands seeing real ROI aren't just adding AR, they're strategically targeting high-friction moments in their customer journey.

The AR campaigns below show how the right experiences can actually impact bottom lines:

• Rebecca Minkoff let visitors spin handbags in 3-D; shoppers who played with the feature were 65% more likely to purchase.
• Sephora saw AR mirror tests lift overall sales by 31% and deliver conversion rates up to 90% higher than non-users.
• Pepsi Max turned a London bus shelter into an AR thrill ride, scoring 8 million views and a 35% sales jump during the launch month.

What separates these winners from AR failures? They each solved a specific conversion barrier:

• Rebecca Minkoff eliminated the "What does it look like from all angles?" hesitation
• Sephora removed the "Will this shade work for me?" uncertainty
• Pepsi Max created urgency around a product launch with a memorable experience

The pattern is clear: successful AR marketing doesn't just engage users, it removes the friction that stops them from buying. Companies that see 30%+ conversion lifts from AR are targeting specific moments where customers get stuck, not just adding cool tech because they can.

The business model reality is that AR pays off fastest for companies with high return rates, complex product configurations, or significant "try before you buy" barriers. If your customers already convert easily, AR might solve a problem you don't have.

Read our other blog, “How to Increase Website Conversions & Make Your Site Work Harder” for more.

How We Evaluate AR Projects #

When marketing directors and business owners come to us with AR ideas, we don't start with "Can we build it?" (We usually can.) We start with "Should we build it?" Here's our process:

The Problem Audit: We dig into your actual conversion barriers. Where do customers drop off? What questions hit your support team repeatedly? What drives returns? If AR doesn't address a real friction point, we'll tell you to spend the budget elsewhere.

The Technical Reality Check: Not all AR ideas work on all devices. We test concepts on older phones, slower connections, and different lighting conditions. If your target audience can't actually use it, the fanciest AR in the world won't move revenue.

The Measurement Framework: We define success before we write a single line of code. "Engagement" isn't a business metric. We establish clear KPIs, including conversion lift, return reduction, time-to-purchase, or customer acquisition cost improvement.

The Hard Truth: About 60% of AR requests we see would be better solved with simpler solutions, better product photos, clearer sizing guides, or improved mobile checkout. AR is powerful when you need it, but it's expensive when you don't.

The best AR marketing doesn't feel like AR marketing. It feels like a natural part of your customer experience that happens to use augmented reality technology. When customers stop noticing the tech and start solving their problems, you know you've got it right.

The Benefits of Augmented Reality Marketing #

While you definitely need to consult an expert to figure out if an augmented reality marketing move is right for your strategy, we can’t deny the obvious upsides to AR:

Better Customer Satisfaction #

"Try on" AR experiences let shoppers see sneakers on their feet or a sofa in their living room using their mobile devices, increasing confidence while trimming costly returns and support tickets.

First-Party Insights #

Because most AR lives inside branded mobile apps, every try-on and color swap directly feeds behavior and customer engagement data for more strategic remarketing, inventory calls, and product tweaks.

Storytelling Users Spread for You #

Face filters, portals, and mini-games practically beg for screenshots. Each share lands as peer-to-peer content, widening reach without extra spend on advertising campaigns.

Hard-to-Copy Competitive Advantage #

Lowe’s room-measuring augmented reality experiences drew press and SEO long before rivals. Solve a real pain with AR, and shoppers quickly tag you “innovator.”

Global Showroom, Zero Leases #

Digital try-ons scale from one codebase, allowing you to reach global audiences, slash showroom costs, and speed up new-market entry.

Gimmick or Growth Driver? Our Verdict on AR #

When brands bolt AR onto a page because “everyone’s doing it,” they’re usually just a victim of shiny object syndrome.

But if the experience removes friction, augmented reality technology has a ton of potential. The key to success is solving real problems. Ignore user pain points, and you’ll end up with a pricey toy that quickly burns out after launch week.

The brands that will dominate with AR in 2026+ are the ones thinking strategically about it in 2025, not the ones chasing viral moments.

If you’re weighing up AR technology for your marketing strategy but don’t want it derailing long-term goals, let’s talk. We’ll help you test, measure, and either scale or shelve – so new never outruns real ROI.

Reach out to our developers and let’s make sure your next big idea earns its keep.