Gen Z, the first fully digital-native generation, is reshaping how brands think about engagement. With their high expectations for innovation, immediacy, and authenticity, they’re forcing marketers to move beyond traditional strategies. For brands, this means adapting quickly to gain, and keep, their engagement.
Failing to capture Gen Z’s attention isn’t an option—by 2025, this group will make up nearly 30% of the global workforce in OECD countries, wielding significant spending power and influence. Brands that can’t connect with them on an authentic and purposeful basis risk losing relevance with this audience. With the rise of less-authentic tactics, like faux out-of-home (FOOH), where CGI images are placed in real world environments and shared on social media rather than appearing in the actual location, there is a pressing need to recreate the content in these locations. FOOH is a popular tool for “going viral” within the industry and generating comments such as “Is this real?” on social platforms, but the results beyond vanity metrics and industry buzz, remain to be seen. Enter location-based augmented reality (AR): a cutting-edge tactic that’s transforming the way businesses engage this tech-savvy audience. By bridging the gap between the digital and physical worlds, location-based AR offers an unparalleled opportunity to captivate and connect with Gen Z in a more authentic way. The ability to create user-generated content also allows for content to “go viral” amongst the target consumer demographic.
Here’s 6 ways that show this innovative approach is the key to winning over the generation that’s setting the pace.
1. Engage a Generation That Craves Experiences
Research shows that Gen Z prioritises experiences over possessions. According to Eventbrite, 78% of millennials and Gen Z crave memorable experiences. This focus on creating and sharing these memories drives how they engage with brands that provide them with the opportunity to do so.
Location-based AR taps directly into this mindset by offering interactive, shareable in real-world environments, allowing Gen Z to immerse themselves in an experience and share this on their social media platforms to remember in years to come. From AR treasure hunts to immersive brand activations, these experiences, when done well, transform the everyday into something extraordinary.
2. Bridging the Benefits of the Digital and Physical Worlds
While Gen Z may be digital natives, they value meaningful in-person experiences. Brands often struggle to balance these in a world that is seen as digital-first, but location-based AR bridges the gap seamlessly.
Imagine a shopping centre where visitors can use their phones to uncover AR overlays – exclusive discounts, hidden product features, or even gamified challenges that encourage exploration. Snap’s Snap Street is a great example of using an AR high street experience in a physical location which included ecommerce brands such as Depop. Another idea could be AR, experiences that allow for brands to use popular mascots and characters they’ve created to interact with users, globally (for example, Duo, Duolingo’s popular green owl who has created a cult Gen Z following on TikTok). These experiences combine the immediacy of the physical world with the innovation of digital technology, making everyday environments more engaging.
Retailers like Adidas are embracing AR experiences at specific locations too. Their AR-driven pop-up events allowed people to scan elements to unlock limited-edition products and exclusive content. This approach not only drove sales but created a buzz-worthy in-person experience with digital integration.
3. Perfectly Aligned with Mobile-First Behaviours
With 99% of Gen Z owning a smartphone, according to a survey, mobile is their go-to device for everything from entertainment to shopping and their tech-savvy nature means they expect brands to be constantly evolving. Location-based AR fits naturally into this behaviour, requiring a smartphone to participate.
Whether it’s a digital scavenger hunt in a city or AR-enhanced events that offer on-the-spot interaction, location-based AR meets Gen Z where they already are: on their phones. The simplicity of scanning a QR code or using an app to unlock AR features ensures accessibility globally without overwhelming users with extra steps or complicated technology.
4. Amplifying Social Sharing
Gen Z thrives on shareable moments, with platforms like TikTok, Snap and Instagram dominating their online lives. Location-based AR experiences provide the perfect excuse for creating and sharing content, driving organic reach, increasing footfall and elevating brand visibility with user generated content.
When brands design AR experiences that are visually striking or gamified, they encourage users to capture and share their interactions.
5. Privacy, privacy, privacy
Gen Z places a high value on their data privacy and expects an exchange with brands in order to provide their data. With everyone becoming more aware of privacy regulations, accepting cookies on websites and allowing for remarketing and retargeting adverts is becoming increasingly harder for brands to execute successfully, so traditional targeting and personalisation is not as effective in this space as it once was.
Location-based AR offers an innovative alternative, allowing brands to target digital content at people at specific locations, whilst also providing that “exchange” for data with a valuable experience. For example, a specific brand targeting Gen Z could create an AR experience at a location with high foot traffic for this audience.
6. Driving Emotional Connections
Perhaps one of the most overlooked aspects of location-based AR is its ability to create emotional connections. Unlike static ads or even traditional digital campaigns, AR invites participation and interaction, turning users into active participants in the story.
When a Gen Z user experiences an AR activation that feels fun, personal, and tailored to their environment, it creates a memorable impression. It’s not just about selling a product; it’s about fostering a sense of belonging and excitement.
Staying Relevant with Location-Based AR
Location-based AR is more than just a trend – it’s a game-changer for brands looking to connect with Gen Z. By creating immersive experiences that blend the physical and digital worlds, AR offers a way to engage this generation on their terms. It taps into their love for experiences, their mobile-first habits, and their passion for sustainability, all while encouraging real-world interaction and social sharing.
For brands aiming to stay relevant to Gen Z, location-based AR isn’t just an option – it’s the future. By leveraging this technology, businesses can craft memorable, impactful campaigns that resonate deeply with the most connected and demanding generation yet.
Find out how we can help you on your journey to embracing location based AR. Get in touch with us today.
