There was a time when Augmented Reality (AR) in the digital space meant goofy dog ear filters and chaotic face swaps. Was it fun? Yes. Useful? Probably not. Years later, the same technology is now revolutionising how audiences perceive and interact with brands.
AR is enabling experiences such as virtual try-ons, immersive product demonstrations and gamified advertising campaigns, allowing consumers to step into a brand’s world before making a purchase. For a generation grappling with shorter attention spans and persistent ad fatigue, this interactivity and involvement is a welcome change.
According to the ‘State of AR in India’ report by Snap Inc. and Kantar, about three in five Gen Z users say AR content holds their attention longer than traditional posts and ad formats. Nearly two in five Gen Z consumers also say that AR influences their purchase decisions.
The shift is clear—AR is not a novelty or a gimmick anymore; it is an effective marketing tool driving real business outcomes.
Niraj Ruparel, Creative Tech Lead, WPP and WPP Media India believes that the expectation of presence over messaging is driving this change. “Gen Z doesn’t want to watch ads; they want to step into them. Technologies like AR and VR enable the shift from storytelling to story living,” he says.
Further highlighting the impact of tech-driven experiences on Gen Z’s consumer behaviour, Ruparel says, “The generation has grown up on high-speed Internet, creator platforms and real-time participation. With 5G unlocking faster computing on mobile, we’re seeing a natural shift from passive 2D consumption to immersive interactive 3D experiences.”
Saurav Das, Creative Director, Kinnect shares the sentiment, “Interactive always wins over interruptive.” Personalisation and control make AR a game-changer in a digital advertising space that overwhelms more than it impresses.
However, beyond all this, Das believes that the primary reason Gen Z is drawn to AR ads is that the technology is not alien to them. “Snapchat thrives on innovative filters, so does TikTok, and to some extent, Instagram,” he says.
Snapchat filters and lenses are key drivers of branded AR experiences. Explaining how Gen Z is engaging with these, Neha Jolly Sawhney, Head of Ad Revenue, Snap Inc. says, “We have long understood that Gen Z prefers self-expression over passive consumption. They communicate visually, in real time, and in ways that feel authentic to them, which is why AR fits so naturally into their behaviour. Over 80% of Indian Snapchatters engage with Lenses daily, showing how immersive, participatory experiences have become a natural part of how this generation communicates.”
The AR brandwagon
According to a report by DataM Intelligence, the immersive technology in advertising market size is expected to reach USD 153.8 billion by 2032, growing at a CAGR of 28.1%.
In India, too, the Extended Reality (XR) domain is only expected to grow. Ruparel shares, “As a leapfrog economy, we’re not following legacy adoption curves. We’re building our own XR playbook driven by mobile-first behaviour and massive scale.” This presents a unique opportunity for brands to leverage immersive technology.
Karan Bhardwaj, Founder and CEO, ExperientialEtc. reveals, “AR was previously used as a gimmick. Now, it is more centred on simulations, virtual try-ons, and visualising products in specific environments, thereby making it a high-impact commercial tool. We have worked on over 200 AR projects for our clients. While some brands roll out AR campaigns only to get on the bandwagon, others focus on strategic factors like utility, accessibility for target audience and measurable outcomes.”
But how does one toe the fine line between gimmick and innovation? Ruparel is of the opinion that utility, relevance and cultural context matter. “If AR is just added as a layer, it feels gimmicky. But when it enhances the core idea or solves for engagement in a meaningful way, it becomes powerful.”
He adds, “Our Federal Bank Onam experience blended cultural celebration and technology, turning bank managers into festive storytellers through XR and AI.” In the campaign, QR codes across print, OOH and other channels unlocked an AR experience featuring hidden deals and interactive festive elements.
Or Lenovo’s recent ‘India’s Gone Football’ campaign, which announced their association with FIFA as tech partners as well as for ticket giveaways. Das reveals, “We created an AR game built on how India reimagines football in its alleys and corridors. Log on to the website, point your camera at anything you think looks like a goal, and a ball and goalkeeper magically arrive. Score against the goalie, compete for the leaderboard and win tickets to the World Cup.”
The overall data suggests that such AR campaigns with interactive formats are more appealing to Gen Z. Sawhney highlights, “In India, we have seen this translate into strong business results for brands. Swiggy’s Friendship Day campaign using our Total Takeover format reached more than 66 million users in a single day, while driving 50 per cent new or dormant users and over 60,000 transactions.”
The neAR future
AR can prove to be a goldmine for brands. But it doesn’t come cheap or without challenges.
“The industry is still evolving and (there is a gap in) how we benchmark immersive success. There are also creative capability gaps which require hybrid talent across storytelling, design, AI and spatial computing,” Ruparel states.
Bhardwaj adds, “Accessibility and ease of using AR remains a key consideration. Additionally, maintaining the quality of AR campaigns as assets are optimised can sometimes prove to be a challenge.”
Brands are figuring out ways to navigate this complex and evolving landscape. Yet, the momentum continues. “Gen Z has everything available at their fingertips and are the most tech-undaunted generation yet. How much our brands appeal to them depend on how well we adapt new tech into the truths that have always defined good advertising,” Das concludes.
