How Augmented Reality Is Reshaping the Future of Marketing (2025)

Augmented reality (AR) enhances the physical world by layering visual, auditory, or other sensory information in real time- often through smartphones or wearable devices. If you’ve used a Snapchat Lens, tried IKEA Place to preview furniture in your room, or tested a lipstick shade via your phone camera, you’ve experienced AR in action.

Today, AR is no longer just a novelty – it’s a transformative marketing tool used by brands across hospitality, retail, and beyond. In this article, we explore how AR is being leveraged to deepen engagement, personalise experiences, and deliver measurable results for both consumers and businesses.

AR overlays digital content onto real-world environments using devices like smartphones, tablets, and smart glasses. Unlike virtual reality (VR), which creates a fully immersive digital world, AR enhances your surroundings rather than replacing them.

Thanks to improvements in WebAR and 5G connectivity, brands can now deliver seamless AR experiences directly in-browser—no app required—making it easier than ever for users to engage.

Influencer marketing continues to thrive in 2025, with AR emerging as a game-changing complement. Influencers now use branded AR filters, interactive avatars, and digital meet-and-greets to bring fans closer than ever.

• Example: Beauty brands like Sephora partner with creators to deliver AR try-ons directly from Instagram Stories or TikTok Lives.

• Impact: AR campaigns tied to influencers have shown up to 70% higher engagement rates and increased product trial intent.

For brands, this allows for more authentic, scalable, and trackable interactions—without the need for physical presence.

AR’s role in the customer journey is expanding rapidly:

• Retail: From virtual try-ons for clothing to placing digital furniture in your living room, AR is closing the gap between online and in-store shopping. Brands like Warby Parker and Nike are using AR to drive up conversion and reduce returns.

• Hospitality: Hotels and travel brands are turning AR into a discovery tool. Imagine scanning a hotel lobby mural and seeing interactive stories about the property’s history—or pointing your phone at a room to view amenities and book instantly.

Premier Inn‘s use of AR maps to highlight local attractions, and Accor Hotels offering room tours via AR, are just early examples of how this technology elevates the guest experience.

AR isn’t just visual—it’s analytical.

Modern AR experiences can track:

• Time spent interacting with elements

• Where users are focusing attention

• Which features trigger actions or clicks

This data fuels personalised marketing, helping brands serve more relevant content and offers in real time. As privacy regulations evolve, AR also provides a consent-friendly way to gather first-party behavioural insights.

Short attention spans, high expectations, and digital nativity mean Gen Z and millennials crave interactive and immersive content. AR delivers just that—without forcing them to leave the platforms or environments they love.

Stat to know: According to Snap Inc., over 75% of Gen Z engage with AR daily on mobile.

To connect with younger audiences, brands need to move beyond static ads and toward immersive storytelling that resonates.

Final Thoughts: AR With Purpose, Not Just Flash

AR is no longer “the future”—it’s now a proven strategy. But to succeed, brands must avoid using it as a gimmick. The most effective AR campaigns solve real user needs: whether it’s visualising a product, simplifying a purchase, or telling a compelling story.

At Propeller, we help forward-thinking brands across hospitality, retail and e-commerce harness AR to deliver impactful, scalable and brand-aligned experiences. As the lines between physical and digital blur, augmented reality offers the perfect bridge.

Ready to explore what AR can do for your brand?
Let’s talk about integrating immersive tech into your next campaign.