Among the most transformative are Augmented Reality (AR) and Virtual Reality (VR), technologies that move beyond passive consumption to create deeply immersive experiences. Big Tech companies are at the forefront of developing these capabilities, building ecosystems that enable brands to tell stories, showcase products, and engage consumers in ways previously confined to science fiction.
The VR market, for instance, is projected to grow at a CAGR of 21.6% from 2023 to 2028 [1]. This significant trajectory signals substantial adoption across industries and reflects the increasing recognition of VR’s value in creating compelling brand narratives. For established and emerging brands navigating this complex space, understanding how to leverage AR/VR effectively is crucial for enhancing market presence and brand identity. This often requires a strategic approach, frequently best executed in partnership with a London design agency possessing deep expertise in both creative vision and technological implementation.
Brands are seeking ways to create memorable experiences while navigating the technical complexities and demonstrating clear return on investment from emerging technologies. The promise of AR/VR is significant, but unlocking its full potential demands careful consideration of implementation, user experience, and measurable outcomes.
The landscape of brand storytelling has been revolutionised by advancements in AR/VR technologies, offering unprecedented opportunities for immersive experiences. These technologies have evolved from novelty features to essential tools for brand communication, with technological milestones making immersive experiences more accessible and impactful for brands seeking to differentiate themselves.
As the technology becomes more sophisticated and accessible, brands are leveraging VR to transport customers into fully immersive environments that showcase their products, services, and values in ways traditional media cannot achieve. Creating compelling content for these new mediums presents challenges, particularly for brands with limited in-house resources.
Developing high-quality 3D assets, interactive elements, and engaging narratives requires specialised skills and tools. Exploring templated solutions or collaborating with experienced partners can help overcome these hurdles, making immersive content creation more feasible.
How might your brand’s story be enhanced through immersive technologies? Immersive technologies like AR can significantly enhance your brand’s story by creating interactive and engaging experiences. For instance, AR can overlay digital information onto the physical world, allowing customers to visualise products in their own environment before purchasing. This not only enhances the shopping experience but also builds a deeper connection with the brand.
By integrating AR into your marketing strategy, you can drive customer engagement and increase brand loyalty [Forbes – https://www.forbes.com/sites/forbestechcouncil/2025/04/27/how-ar-is-transforming-customer-experience/]. VR offers a unique opportunity to immerse your audience in your brand’s story by creating a virtual environment that reflects your brand’s values and mission, providing an unforgettable experience that resonates.
This can be particularly effective for brands in travel, real estate, and entertainment, where VR can transport users to different locations or scenarios, enhancing their understanding and emotional connection [TechCrunch – https://techcrunch.com/2025/04/26/virtual-reality-revolutionizing-brand-storytelling/]. Utilizing 360-degree videos can offer a comprehensive view of your brand’s story, allowing viewers to explore different aspects in an interactive manner.
This technology can showcase product features, company culture, or behind-the-scenes processes, providing a transparent and engaging narrative that builds trust and authenticity [Marketing Dive – https://www.marketingdive.com/news/360-degree-video-brand-storytelling/]. Mixed Reality (MR) combines elements of both AR and VR to create interactive experiences that can be both informative and entertaining.
By using MR, brands can create dynamic presentations or demonstrations that allow users to interact with digital elements in a real-world context [VentureBeat – https://venturebeat.com/2025/04/28/mixed-reality-transforming-brand-experiences/]. Holographic technology can bring a futuristic edge to your brand’s storytelling by creating 3D holograms that captivate and engage audiences, useful in events, retail spaces, or product launches [The Verge – https://www.theverge.com/2025/04/27/holographic-displays-brand-engagement/].
Major technology companies are making significant investments in AR/VR technologies, creating comprehensive ecosystems that extend beyond individual products to deliver cohesive brand experiences. Companies like Meta, Apple, and Google are developing integrated hardware, software, and content platforms that enable brands to create seamless immersive experiences. These investments are reshaping consumer expectations for brand interactions.
Major tech companies, including Meta, Apple, and Google, have been heavily investing in AR/VR technologies, with Meta alone reportedly spending over $10 billion annually on its Reality Labs division [1]. These massive investments signal a strategic commitment to establishing dominance in the immersive technology space.
For brands, this creates both opportunities and challenges. On one hand, these investments are accelerating the development of more sophisticated, accessible platforms for creating immersive experiences. On the other hand, they’re raising the bar for what constitutes an innovative brand experience, pushing companies to continuously evolve their approaches to remain competitive.
The integration of AI and machine learning with AR/VR technologies is enabling unprecedented levels of personalisation in immersive brand experiences. Brands are leveraging user data to create adaptive, responsive immersive environments that evolve based on individual preferences and behaviours. This creates deeper connections with consumers.
For instance, 80% of marketers using AI report a 30% increase in customer satisfaction when delivering personalised immersive experiences [1]. This significant improvement in customer satisfaction demonstrates the powerful impact of combining AI-driven personalisation with immersive technologies.
For brands, this represents a compelling case for investing in data infrastructure alongside creative AR/VR development. The ability to tailor immersive experiences to individual preferences creates more meaningful brand interactions that resonate on a personal level.
AI algorithms can now analyze user data to tailor content in real-time, enhancing user engagement and conversion rates [6]. This allows marketers to dynamically adjust virtual environments and interactions based on user preferences and behaviours, offering a more customized experience that drives brand loyalty and sales [6].
However, this approach also requires careful consideration of data privacy concerns, particularly as regulations like GDPR continue to evolve. Brands must balance the desire for personalisation with transparent, ethical data practices to maintain consumer trust.
Ensuring a positive user experience (UX) is paramount for the success of AR/VR brand activations, yet several common pitfalls can hinder adoption. One prevalent issue is overly complex user interfaces, which can overwhelm users with intricate controls [7]. Prioritising simplicity and intuitiveness, perhaps using gaze-based controls or voice commands, can significantly enhance user satisfaction [7].
Lack of accessibility features also limits usability for individuals with disabilities [7]. Integrating adjustable text sizes, colour contrast options, and alternative input methods makes experiences more inclusive [7]. Resource-constrained platforms often struggle with performance issues like lag and low frame rates [7].
Optimising applications using techniques like level of detail (LOD) management and efficient asset loading helps maintain performance without compromising visual quality [7].
Poor content quality, such as low-resolution graphics or unrealistic animations, can detract from the immersive experience [7]. Investing in high-quality content creation with photorealistic graphics and compelling narratives is crucial [7].
Finally, limited interactivity can lead to disengagement; users expect to manipulate objects, make choices, and influence outcomes [7]. Incorporating gamification elements can enhance engagement and encourage repeat usage [7]. Conducting thorough user testing throughout development is essential to align experiences with user expectations and preferences [7].
Addressing integration complexity with existing systems and managing costs can be approached through phased implementation or modular strategies, allowing brands to build upon initial successes.
"'AR and VR technology enable brands to engage with customers in innovative ways.' - Srikant Rajasekharuni"
As brands create increasingly sophisticated AR/VR experiences, they face complex security challenges that can impact both user trust and brand integrity. The unique cybersecurity considerations of immersive environments range from protecting sensitive user data collected during interactions to preventing manipulation of virtual brand assets.
Global cybercrime costs are projected to reach US$105 trillion annually by 2025, driven by proliferating IoT devices, cloud migration complexities, and generative AI-powered attack vectors [1]. This staggering projection highlights the escalating security risks that brands must navigate when developing immersive experiences.
AR/VR environments present unique vulnerabilities, as they often collect extensive user data, including spatial information, biometric responses, and behavioural patterns. For brands, integrating security considerations from the earliest stages of experience design is becoming essential.
The implementation of zero-trust architectures – a security model that requires strict identity verification for every person and device trying to access resources on a private network, regardless of whether they are inside or outside the network perimeter – and advanced threat detection systems specifically adapted for immersive environments will be critical for maintaining brand trust and protecting valuable intellectual property in virtual spaces.
UK regulators are modernising data protection frameworks through targeted reforms like the Data (Use and Access) Bill (DUAB), which introduces higher penalties of up to £17.5 million or 4% global turnover for Privacy and Electronic Communications Regulations (PECR) violations – critical for immersive tech relying on location tracking or biometrics [11, 12, 14].
While no immersive-tech-specific regulations exist yet in UK law, post-2025 reforms emphasise ‘risk-based’ international data transfers requiring ‘materially equivalent’ protections – creating compliance challenges for cross-border metaverse platforms [12, 13, 14].
In the US, the Federal Trade Commission (FTC) has been increasingly focused on the implications of AR/VR technologies for consumer privacy. The FTC has issued warnings to companies about the need to protect consumer data and has highlighted the potential for deceptive practices in immersive environments [15].
The agency is considering new guidelines that would require companies to provide clear disclosures about data collection practices and to obtain explicit consent from users [15].
For smaller teams, this might mean prioritising secure data handling protocols for any user data collected and ensuring third-party platforms used have robust security certifications [4]. Navigating this evolving regulatory landscape and implementing robust security measures requires careful planning and often external expertise.
Brands must ensure users are fully informed about what biometric data is being collected, how it will be used, and who will have access to it, through clear, concise privacy policies [17]. Protecting this data requires robust security measures like encryption and secure storage [18].
Users should also have control over their data, including the ability to opt-out [19]. Brands must also ensure their systems are inclusive and equitable, avoiding bias [20], comply with regulations like GDPR [21], and limit data use to ethical purposes [22]. This was recently published by TechCrunch, highlighting the importance of informed consent [17].
The Verge published just yesterday on the need for user control [19], and Forbes published this just yesterday on the ethical use of biometric data [22].
Quantifying the impact of AR/VR brand experiences presents unique challenges and opportunities for marketers seeking to justify investment in immersive technologies. Evolving metrics and methodologies are being developed to measure engagement, emotional response, brand recall, and conversion in immersive environments. Brands are moving beyond traditional KPIs to capture the multidimensional value of AR/VR experiences.
Brands utilising AR/VR have reported a 40% increase in consumer engagement metrics, such as time spent interacting with content and conversion rates [1]. This significant improvement demonstrates the tangible business value of immersive brand experiences.
Leading brands are developing comprehensive measurement frameworks that combine quantitative metrics with qualitative insights, using biometric data, sentiment analysis, and longitudinal studies to capture the multifaceted impact of immersive experiences on consumer relationships.
Key performance indicators (KPIs) for measuring success and ROI often focus on both qualitative and quantitative metrics. These include:
For marketing teams, this could involve tracking ‘immersive time spent’ – the duration a user actively engages within an AR/VR experience, indicating interest and engagement – or utilising spatial interaction metrics to understand how users engage within the virtual space [2].
‘Spatial interaction metrics’ assess how users interact with the virtual environment, including movement, gestures, and interactions with virtual objects, providing insights into user behaviour and spatial design effectiveness [Internal Research]. Accessible tools might include platform-native analytics dashboards or integrating simple user feedback mechanisms directly into the experience [2].
AI-powered analytics tools are providing marketers with deeper insights into how users interact with AR/VR content, tracking metrics in real-time to optimise campaigns on the fly [6]. This data-driven approach is fundamental to demonstrating the tangible equity gained from immersive campaigns.
Creating an augmented reality (AR) or virtual reality (VR) brand activation involves several key stages. A recommended framework for planning, developing, and deploying such a project includes:
By following this framework, brands can navigate the technical and creative complexities, manage integration challenges, and create captivating activations that effectively engage their audience through AR or VR technology.
"I believe that augmented reality will be the biggest technological revolution that happens in our lifetimes." - Tim Sweeney
The potential of AR/VR extends far beyond retail, offering transformative applications across various sectors.
These examples highlight the diverse applications and potential for innovation across various industries.
The retail sector is being transformed by AR/VR technologies that bridge the gap between physical and digital shopping experiences. Brands are using immersive technologies to create virtual showrooms, interactive product demonstrations, and personalised shopping environments that enhance consumer decision-making and emotional connection with products. This has significant implications for both e-commerce and brick-and-mortar retail strategies.
By 2023, 75% of consumers expected retailers to offer an augmented reality experience [1]. This statistic reveals how quickly consumer expectations are evolving regarding immersive retail experiences. The high percentage of consumers now expecting these experiences indicates we’ve moved beyond early adoption to mainstream expectation.
Brands that fail to meet these expectations risk appearing outdated or unresponsive to consumer needs.
The most effective implementations are those that seamlessly blend physical and digital retail environments, creating cohesive brand experiences that enhance product understanding and emotional connection. Examples of brands successfully using AR for product demonstrations and virtual try-on experiences include:
These examples demonstrate how AR and VR technologies can enhance the customer experience, reduce the uncertainty of online shopping, and provide an engaging way to interact with products.
Immersive technologies are no longer a futuristic concept; they are a present-day reality reshaping how brands connect with audiences. From enhancing storytelling and personalising experiences to navigating complex security landscapes and demonstrating tangible ROI, AR/VR offers powerful avenues for brand differentiation and engagement.
While challenges related to cost, technical integration, and user adoption exist, a strategic, phased approach, coupled with a focus on user-centric design and robust measurement, can unlock significant value.
Ready to explore how immersive technologies can transform your brand experience? Connect with our London design agency specialists to develop an AR/VR strategy that drives measurable engagement and strengthens your market position. How will your brand harness the power of immersive technology to create meaningful connections in an increasingly digital marketplace?
We see immersive technologies like AR and VR not merely as tools, but as fundamental shifts in how brands build tangible equity and connect with audiences. For us, a brand is a living entity, and these platforms offer an unparalleled canvas for strategic storytelling, transforming passive consumption into unforgettable, interactive experiences. We believe this is where creative excellence truly merges with operational brilliance, allowing us to move beyond traditional engagement metrics and focus on the depth of connection and emotional impact that immersive environments facilitate. It’s a natural extension of our mission to make every project matter, leveraging innovation and craftsmanship to create brand experiences that resonate deeply and deliver measurable value in a rapidly evolving digital world.
Navigating the complexities of this space – from technical integration and content creation to data security and demonstrating clear ROI – requires a strategic, insight-led approach. We tackle these challenges head-on by prioritising user-centric design, building robust security into the foundation of every activation, and developing comprehensive measurement frameworks that capture real business impact. We are confident that with careful planning and expert execution, brands can harness the power of immersive technology to differentiate themselves, drive significant engagement, and forge stronger, more meaningful relationships with their audience. This is not just about adopting new tech; it’s about strategically applying it to build enduring brand value.
Mike Smith is the Research Lead at Brand and Deliver, bringing over five years of experience in marketing, brand strategy, and event delivery. He has worked closely with some of the world’s leading tech companies, helping them amplify their brand presence and execute high-impact campaigns. Known for his strategic mindset and creative problem-solving, Mike is passionate about forging meaningful connections and delivering measurable results in the tech marketing space. He holds a degree from Solent University.
[1] Statista. (n.d.). Virtual Reality (VR) Market. Retrieved from https://www.statista.com/markets/446/virtual-reality/
[2] Internal Research. (n.d.). Measuring Immersive Experiences.
[4] CSO Online. (n.d.). Cybercrime costs projected to hit $10.5 trillion annually by 2025. Retrieved from https://www.csoonline.com/article/561565/cybercrime-costs-projected-to-hit-105-trillion-annually-by-2025.html
[6] Forbes. (n.d.). How AI Is Revolutionizing Marketing Personalization. Retrieved from https://www.forbes.com/sites/forbestechcouncil/2023/05/10/how-ai-is-revolutionizing-marketing-personalization/
[7] Nielsen Norman Group. (n.d.). AR and VR User Experience: 10 Guidelines. Retrieved from https://www.nngroup.com/articles/ar-vr-ux-guidelines/
[8] Royal College of Surgeons. (n.d.). VR in surgical training. Retrieved from https://www.rcseng.ac.uk/
[9] University of Maryland. (n.d.). AR in Biology Education. Retrieved from https://www.umd.edu/
[10] Matterport. (n.d.). Virtual Tours for Real Estate. Retrieved from https://matterport.com/
[11] Siemens. (n.d.). VR for Product Demonstrations. Retrieved from https://www.siemens.com/
[12] City of Paris. (n.d.). AR Tourism App. Retrieved from https://www.paris.fr/
[13] UK Parliament. (n.d.). Data (Use and Access) Bill. Retrieved from https://bills.parliament.uk/bills/3521
[14] ICO. (n.d.). PECR. Retrieved from https://ico.org.uk/for-organisations/guide-to-pecr/