The ROI of Augmented Reality – What Every Decision-Maker Should Know
- Jaykishan vansadawala
- 3 days ago
- 3 min read
Augmented Reality (AR) is no longer just a “cool tech.” It’s delivering real business impact: stronger engagement, higher conversions, and lasting brand recall.
From retail to real estate, marketing & branding, packaging, fashion, textiles, media agencies, AR is empowering every industry, helping customers see, explore, and experience products in ways that drive measurable outcomes. It enhances product visualization, streamlines employee training, improves operational efficiency, and delivers real business value, making AR a key driver of digital transformation and sustainable growth.
The Measurable Business Value of Augmented Reality (AR)
Let’s have a glance at some facts & figures from authentic and credible sources to know the global business impact of Augmented Reality:
Table: Key Metrics of AR ROI – Facts & Figures
Metric / KPI | Impact / Result | Source |
Increased Conversion Rate | Use of AR leads in marketing to 94% conversion rate. A Survey of 15 global markets, including Australia, Canada, France, Germany, India, Japan, Malaysia, Mexico, the Netherlands, Norway, Saudi Arabia, Sweden, the United Arab Emirates (UAE), the United Kingdom, and the United States. This survey also includes interviews with over 50 AR industry experts. In AR marketing campaigns, AR engagement is up nearly 20% since the beginning of 2020, with conversion rates increasing by 90% for consumers engaging with AR compared to those who don’t. | [Deloitte Digital & Snap Inc. report via ET Brand Equity] https://www.enginecreative.co.uk/blog/unlocking-potential-augmented-reality/? |
Increased Sales/ Increased ROAS | AR & 3D rendering campaigns in consumer goods reported +10% average sales uplift and a 3.1× return on ad spend (ROAS). | https://web-assets.bcg.com/img-src/BCG-Augmented-Reality-Apr-2018-r_tcm9-188072.pdf [Boston Consulting Group (BCG) report on “Augmented Reality and 3D Rendering”] |
Increases Purchase Intent | According to a study, 59% of consumers say they would be more likely to buy a product after experiencing it via AR. AR strongly influences behavioral intention to purchase, particularly when consumers can interact with products via AR. | https://artillry.co/wp-content/uploads/2022/04/AR-Marketing-Consumer-Behavior.pdf From a report on AR & VR research, “The Gateway” Rashmi, C. P., Jain, M. L., Saroj, N., Bhavsar, R., & KP, Z. (2025). The Impact of Augmented Reality (AR) on Television Advertising: A Consumer Perspective. Advances in Consumer Research, 2, 4073-4085. |
Increases Consumer Attention & Curiosity | AR marketing campaigns significantly increase consumer attention and curiosity, which mediates higher ad effectiveness. | Yang, S., Carlson, J. R., & Chen, S. (2020). How augmented reality affects advertising effectiveness: The mediating effects of curiosity and attention toward the ad. Journal of Retailing and Consumer Services, 54, 102020. [https://www.sciencedirect.com/science/article/abs/pii/S0969698919306149] |
Increases Dwell Time | AR-based marketing campaigns average a dwell time of 75 seconds, indicating strong consumer engagement. | |
Increases Brand Awareness | Around 80% of businesses that have implemented AR lenses or filters have reported a boost in brand awareness metrics. | |
Enhances brand experience and consumer-brand relationships. | A research article found that VR/AR-based brand experiences contribute positively to how consumers relate to brands. | Zeng, J. Y., Xing, Y., & Jin, C. H. (2023). The impact of VR/AR-based consumers’ brand experience on consumer–brand relationships. Sustainability, 15(9), 7278. [https://www.mdpi.com/2071-1050/15/9/7278] |
Reduces Return Rate as it Enhances Customer Decision-making | Studies show AR/VR technologies help customers make better buying decisions and thus reduce return rates; one study shows a positive impact on sales & returns. | Research paper by the University of Edinburgh, MA Social Policy and Economics, United Kingdom. Jinyoung, H. (2024).Impact of Augmented Reality (AR) and Virtual Reality (VR) on Retail. Magna Scientia Advanced Research and Reviews Учредители: GSC Online Press, 12(1), 295-307. [https://magnascientiapub.com/journals/msarr/sites/default/files/MSARR-2024-0165.pdf] |
High willingness to pay | According to a study, approximately 73% of consumers are willing to pay more for products that offer transparency through AR experiences. |
Growth in the Global AR market:
The global augmented reality market is projected to reach $87.3 billion in 2025, up from $62.9 billion in 2024, reflecting a significant growth trajectory. By 2032, the AR market is expected to soar to $1.87 trillion, indicating its transformative potential across various industries. | |
The global AR/VR market is projected to reach $89.83 billion in 2025, growing from $62.75 billion in 2024, reflecting a CAGR of 31.6%. The mobile AR market will grow at a CAGR of around 31.1%, reaching approximately $112–115 billion by 2030, driven by gaming, e-commerce, and navigation applications.AR advertising is set to generate $6.72 billion by 2027, driven by immersive ad experiences. |
Conclusion: AR is a new Strategic Business Tool
The data shared above paints a simple picture: AR is no longer just an innovative technology; it’s a business performance tool. And decision-makers who prioritize practical value over hype are the ones gaining a competitive advantage.
If you’re considering AR as part of your digital transformation strategy, we can help identify high-impact use cases that deliver measurable outcomes for your business.
Let’s connect to explore how AR can drive ROI for your organization:
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