Advancements in AR (Augmented Reality) advertising in 2023 have seen significant growth and innovation. Insider Intelligence predicts a rise in AR users in the U.S. to 97.1 million by 2023, with U.S. companies expected to spend $235.67 billion on mobile advertising by 2025, including AR-enabled solutions. This growth is driven by consumer demand for more mobile and engaging shopping experiences. Snap, for instance, reported that 250 million users tried their AR shopping features 5 billion times in a year, demonstrating the popularity and effectiveness of AR in retail.

AR advertising allows users to experience products in full 360 degrees and life-size, offering a level of personalization not possible with other media. This technology leads to higher customer satisfaction and lower return rates. Examples of AR advertising include the partnership between Amazon and Snap, enabling virtual try-ons for thousands of sunglasses.

However, challenges remain, such as the need for a 3D pipeline to create AR assets for entire product lines, and the complexity of deploying AR at retail, including the design of messaging around QR codes and ensuring consumer comfort with new technologies like full body scanning.