AR Advertising: How is it materializing today? 


Executive Summary

Augmented reality continues to evolve and take shape as an industry. Like other tech sectors, it has spawned several sub-sectors that comprise an ecosystem. These segments represent standalone topics in ARtillery Intelligence’s ongoing analysis, including monthly Intelligence Briefings like this.

Prominent sectors include industrial AR, social, gaming, and AR shopping. But existing alongside all of them – and overlapping in a classic Venn diagram – is AR advertising. This includes immersive animations that let consumers visualize products in their space through the smartphone camera.

AR advertising is actually one of the most lucrative AR subsectors, on pace to reach $1.41 billion this year according to ARtillery Intelligence estimates, and $8.02 billion by 2024. These figures measure the money spent on sponsored AR experiences with paid distribution on networks like Facebook and Snapchat.

As we’ve examined in past reports, the factors propelling this revenue growth include brand advertisers’ growing affinity for, and recognition of, AR’s potential. Its ability to demonstrate products in immersive ways resonates with their creative sensibilities, transcending what’s possible in two-dimensional formats.

Beyond that high-level appeal among creative constituents, there’s a real business case. AR ad campaigns continue to show strong performance metrics. This was the case in “normal” times and has accelerated during the Covid era when retail lockdowns compel AR’s ability to visualize products remotely.

Proof points can be seen in the numbers, such as campaign performance metrics analyzed in Part I of this report series, as well as ARtillery’s recent Global Mobile AR Revenue Forecast. We’re now doubling down on those narratives and data with a procession of case studies.

Put another way, Part I introduced the what, why and how of AR advertising. In this second installment, we go deeper on the how, using real campaign examples. What’s working and not working in these early stages while the AR advertising playbook is still being written?

Another thing you may remember from Part I is how AR ad campaigns are taking shape in ways that map to advertisers’ varied goals, building on AR’s unique ability to span the consumer purchase funnel. As noted, these include upper-funnel reach-driven campaigns and lower-funnel conversion-driven campaigns.

We’ll organize the case studies in this report accordingly. This will include structured sections that each dive into campaigns that map to the stages of the purchase funnel and, correspondingly, advertisers’ goals. We’ll also examine the various and evolving analytics: what are the metrics being used to track AR advertising’s effectiveness?

As a bonus, ARtillery Intelligence will create a dynamic tracking sheet for AR ad campaigns, available to PRO subscribers. This will be an at-a-glance chart that shows hundreds of AR ad campaigns, including results and other key attributes and source links. As always, the goal is to empower you with a knowledge position.

Price: $999

The fastest and most cost-efficient way to get access to this report is by subscribing to ARtillery PRO. You can also purchase it a la carte by contacting us.

Video Companion


This report highlights ARtillery’s Intelligence viewpoints, gathered from its daily in-depth coverage of the XR sector. To support the narrative, data are cited throughout the report. These include ARtillery Intelligence original data, as well as that of third parties. Data sources are attributed in each case.

For market sizing and forecasting, ARtillery Intelligence follows disciplined best practices, developed and reinforced through its principles’ 15 years in tech sector research and intelligence. This includes the past 4 years covering AR & VR exclusively, as seen in research reports and daily reporting.

Furthermore, devising these figures involves the “bottom-up” market-sizing methodology, which involves granular ad revenue dynamics such as campaign pricing and spending. More about ARtillery Intelligence methodology can be seen here, and market-sizing credentials can be seen here.

Price: $999

The fastest and most cost-efficient way to get access to this report is by subscribing to ARtillery PRO. You can also purchase it a la carte by contacting us.

Disclosure & Ethics Statement

ARtillery Intelligence has no financial stake in the companies mentioned in this report, nor received payment for its production. With respect to market sizing, ARtillery Intelligence remains independent of players and practitioners in the sectors it covers, thus mitigating bias in industry revenue calculations and projections. Disclosure and ethics policy can be seen in full here.


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