Augmented Reality in Retail Ads: Enhancing Customer Engagement

Published On
July 25, 2025
Augmented Reality is changing how brands connect with customers. From virtual product previews to fun, interactive experiences, AR in retail ads increases trust, encourages buying, and creates lasting brand impressions.

Augmented Reality (AR) is changing the way people shop. It makes shopping more fun and interactive. Retailers use AR in ads to help customers see products in new ways. This makes customers more interested and likely to buy. In this blog, we will discuss how AR is making retail ads better and how it helps engage customers.

What is Augmented Reality in Retail?

Augmented Reality adds digital images and information to the real world. In retail, it means you can see a product in your home or on your body before buying it. For example, you can use your phone to see how a sofa looks in your living room or try on sunglasses without going to a store.

  • AR uses your phone camera to show digital products in real life.
  • It helps customers make better choices by seeing products in real settings.
  • AR makes shopping more fun and less risky.

How AR Enhances Customer Engagement? 

Customer engagement means how interested and involved customers are with a brand. AR helps this in many ways:

  1. Customers can try products at home.

You can see how a new shirt looks on you or how a lamp fits in your room.

  1. Shopping becomes interactive and fun.

You can move around, zoom in, and see products from all angles.

  1. Customers feel more confident about their choices.

Seeing a product in your space reduces the chance of returning it.

Facts and Data About AR in Retail Ads

Here are some important facts and numbers about AR in retail ads:

Big Market Growth

  • The global AR market will be worth over $198 billion by 2025.
  • The AR-in-retail market was $19.9 billion in 2024 and will grow to $64.6 billion by 2030.

Customer Preferences

  • 61% of shoppers prefer retailers who offer AR experiences.
  • 71% of shoppers would shop more often if they could use AR.
  • 40% of shoppers would pay more for a product if they could see it through AR.

Reduced Returns

  • AR helps customers make better choices, so fewer products are returned.

Younger Generations Love AR

  • 91.75% of Gen Z is interested in AR-based shopping.
  • 94% of Gen Z likes using AR for furniture placement.

How Retailers Use AR in Ads? 

Retailers use AR in many creative ways. Here are some examples:

  • Virtual Try-Ons: Try on clothes, glasses, or makeup using your phone.
  • Product Placement: See how furniture or home decor looks in your room before buying.
  • Interactive Ads: Play with products, see reviews, and get personalized suggestions.
  • In-Store AR Experiences: Use AR mirrors or screens in stores to try products instantly.
  • Social Media AR Ads: 85% of mobile AR users access AR through social media platforms.

Benefits of AR in Retail Ads

Using AR in retail ads has many benefits:

  • More Engagement: Customers spend more time looking at products and ads.
  • Higher Sales: Customers who use AR are more likely to buy.
  • Reduced Returns: Customers see products in real life, so they make better choices.
  • Better Brand Image: Brands using AR look modern and innovative.
  • Personalized Shopping: AR can suggest products based on your preferences.

Challenges and Future of AR in Retail Ads

Even though AR is growing, not all retailers use it yet:

  •  Only 1 in 100 retailers use AR to sell products.
  • Many retailers need more time to start using AR.
  • Technology needs to be easy and fun for everyone.

But the future looks bright:

  • More retailers will use AR to attract customers.
  • AR will become more common in ads and social media.
  • Customers will expect AR experiences from their favorite brands.

Top 5 SERP Insights on AR in Retail Ads

Looking at the top results online, here’s what stands out:

  1. Market Growth: AR in retail is growing fast, with billions in market value.
  1. Customer Demand: Most shoppers want AR and will shop more if it’s available.
  1. Reduced Returns: AR helps customers make better choices, so fewer products are returned.
  1. Younger Audiences: Gen Z loves AR and expects it from brands.
  1. Social Media Integration: Most AR users access it through social media, making ads more powerful.

Conclusion

Augmented Reality is a game-changer for retail ads. It makes shopping more fun, interactive, and personal. Customers enjoy using AR to try products and see how they fit into their lives. Retailers who use AR in their ads get more engagement, higher sales, and happier customers. As technology improves, AR will become a normal part of shopping for everyone. Looking for a seasoned retail advertising agency to launch your next campaign? Connect with Vigyapan Mart. 

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