The landscape of advertising is undergoing a transformative shift, with over one and a half billion individuals now actively engaged with Augmented Reality (AR) on their mobile devices. In 2023 alone, the AR advertising market is poised to generate revenue of around $4.4 billion, leading to a market value of $7.5bn by 2028 (Statista). In this blog, we explore what AR is and what it means for the future of out of home advertising.
What are AR, VR and Spatial Computing?
Augmented Reality (AR) is a cutting-edge technology that overlays digital information, such as images, videos, or 3D models, onto the real-world environment, enhancing the user’s perception and interaction with their surroundings. Unlike Virtual Reality (VR), which immerses users in a completely simulated environment, AR supplements and enriches the real world by adding virtual elements. AR allows users to experience a blended reality where digital content seamlessly integrates with their physical surroundings. While VR creates a fully immersive but often isolating digital experience, AR enhances and interacts with the existing environment, offering a more integrated user interaction.
AR augments and enriches real-world experiences, opening new frontiers for entertainment, education and interaction across industries world-wide. This makes it a key player in any marketing strategy. Mixed reality (MR) is a more advanced form of AR with more interactivity and a more immersive experience. MR is also used to describe headsets that use video pass through to create AR experiences.
Spatial computing and extended reality (XR) are umbrella terms that encompass virtual reality (VR), augmented reality (AR), and mixed reality (MR). They are used to describe the spectrum of experiences that merge the physical and virtual worlds, offering users a comprehensive range of immersive interactions across various realities.
The Rise of AR
Augmented Reality (AR) is evolving rapidly, moving from niche applications to becoming a ubiquitous part of daily life. Over 1.4 billion people use AR monthly, primarily via smartphones, reflecting its growing integration into how we navigate, interact, and engage with the world around us. What started with social filters and gaming apps is now transforming into a powerful tool for real-world augmentation.
Here’s how AR is accessed today:
- Smartphone Apps
Smartphones remain the most common medium for AR. From games like Pokémon GO to practical tools like Google Maps’ AR directions, these apps use cameras and sensors to blend digital overlays with physical environments. Social media platforms such as Instagram, TikTok, and Snap further extend AR’s reach, making it accessible and engaging through creative lenses and filters. - WebAR via Browsers
WebAR technologies allow AR experiences to be accessed directly through modern browsers without requiring additional apps. Using tools like WebXR, WebAR eliminates barriers to entry and brings AR experiences to a broader audience. - Wearable Devices and Smart Glasses
The transition to wearable AR devices marks the next major phase of AR’s evolution. Unlike traditional headsets or bulky devices, the latest innovations focus on lightweight, stylish smart glasses that integrate AR into everyday life seamlessly. Companies like Meta, Apple, and Google are leading this charge, and you can read more about the advances in hardware here. - Visual Positioning Systems (VPS)
Visual Positioning Systems take AR’s potential further by providing centimetre-level accuracy in locating devices. Unlike traditional GPS, VPS uses AI-based computer vision to identify landmarks and structures, enabling AR content to interact convincingly with the physical environment. This technology underpins AR’s ability to integrate seamlessly into applications such as navigation, advertising, and urban planning.
As wearable devices become more advanced, AR is set to transition from handheld experiences to hands-free, immersive interactions. Property owners and cities must stay ahead of this trend by managing Property Digital Rights (PDRs) to regulate and monetise the content layered over their physical spaces. By embracing this shift, stakeholders can unlock new opportunities while shaping the next era of AR innovation.
AR also requires specialist software for serving the content:
- Augmented Reality SDKs (Software Development Kits): Both Android and iOS have their own AR SDKs. Developers can create AR experiences using AR SDKs provided by Apple (ARKit) and Google (ARCore). These SDKs enable the development of AR apps for iOS and Android devices. Other development platforms, such as Unity for gaming, build upon these basic SDKs to simplify development work.
- Location technologies: The most exciting recent development in AR technology is location services which enable developers to tie their content to specific real world locations. Google’s ARCore Geospatial API gives developers a map of the world, enabling them to remotely attach content to any area covered by Google Street View and create AR experiences on a global scale. Niantic Lightship’s software offers a similar service, using scanned real world mapping and semantic segmentation, to enable developers to build AR experiences and create a real-world metaverse.
AR is already used across multiple sectors, whether entertainment, information, education or training. Because it layers digital content over real world environments it is more interactive and more engaging than traditional digital formats. The accessibility of AR continues to expand as technology advances and more applications and devices are developed to support augmented reality experiences.
AR in Cities: Transforming Urban Spaces
AR advertising and content is turning cities into immersive digital landscapes, enabling new ways to engage residents, visitors, and businesses. By layering dynamic content onto physical spaces using technologies like Visual Positioning Systems (VPS), cities can foster creativity, drive revenue, and enhance sustainability.
Opportunities for Cities
- Immersive Engagement: AR can power tourist trails, public art, and city-wide events, enriching cultural and community experiences.
- Revenue Generation: Location-based AR advertising offers cities and property owners a significant opportunity, with the potential to generate revenue.
- Creator Economy: Cities can collaborate with local developers and artists to transform urban spaces into interactive digital playgrounds.
As AR adoption grows, cities must regulate immersive advertising content just as they do physical signage, addressing challenges like virtual graffiti and safety concerns. Property Digital Rights (PDRs) provide a framework to control and monetise digital content, ensuring safe and equitable use.
AR reduces the need for physical signage and supports urban planning through digital twins, creating cleaner, smarter, and more liveable cities. With strategic planning and proactive management, AR can transform cities into vibrant, tech-enabled environments that benefit everyone.
AR is revolutionising in Out-of-Home Advertising
The convergence of digital and outdoor media in AR out-of-home advertising is reshaping consumer interactions and providing brands with an unparalleled avenue for creativity and engagement with their target market. By playing on the curiosity of the audience, AR effortlessly extends the impact of out-of-home advertising.
Powerhouse brands like McDonald’s, HP, and Paramount+ are already harnessing the potential of AR outdoor media to elevate awareness and engagement to unprecedented levels. This form of advertising serves as the ultimate extension to traditional out-of-home and digital advertising, offering a novel way to captivate audiences and drive consideration and conversion.
4 key advantages of AR Out-of-Home advertising:
- Massive user adoption: With over a billion users already immersed in AR experiences and a 70% increase in device users from 2022 to 2024 (Statista), the potential reach of AR out-of-home campaigns is unprecedented.
- Global brand success stories: Recognisable brands have already paved the way, showcasing the efficacy of AR Outdoor Media in driving meaningful brand interactions and conversions.
- Revolutionising traditional spaces: AR transforms static billboards and physical spaces into dynamic, interactive showcases, redefining the possibilities for out-of-home advertising.
- Redefining the customer experience: By seamlessly integrating digital elements into the real world, AR creates immersive and interactive encounters that enhance engagement, product exploration, and brand connection
The advertising landscape is undergoing a revolution. The convergence of digital and real world makes AR out-of-home advertising a powerful and innovative strategy. Brands that embrace the transformative potential of AR are positioned to captivate audiences.
Our series, AR 101, will delve into several different aspects of AR with a key focus on location based out of home. Stay tuned for more instalments coming soon!
