As digital fatigue deepens and consumers increasingly skip, scroll past, or ignore traditional advertising, augmented reality (AR) is emerging as a high-impact format that is not just capturing attention but also driving business outcomes. A new study by Snap Inc. and Kantar India underscores how AR is reshaping engagement strategies, particularly among Gen Z, a cohort that has proven notoriously difficult for advertisers to hold.

The report, State of AR in India, highlights that immersive formats are moving beyond novelty to become integral to marketing effectiveness. Nearly two in three Gen Z consumers surveyed said AR influences their decision to try or buy a product, while three in five reported that AR content holds their attention longer than conventional social media posts.

Can AR solve the growing problem of ad fatigue?

This comes at a time when brands are grappling with shrinking attention spans and rising ad clutter across digital platforms. Unlike traditional formats that rely on passive consumption, AR enables active, voluntary engagement—users choose to interact with branded lenses, filters, or experiences rather than being forced to watch or view ads.

The study points out that AR lenses are the strongest drivers of attention, delivering over twice the effectiveness and three times the efficiency in capturing active attention compared to other formats. This ability to command user focus, despite being skippable, positions AR as a critical tool for marketers seeking meaningful engagement.

More significantly, AR is proving effective beyond awareness. The report suggests that immersive experiences are influencing mid- and lower-funnel metrics, including product understanding and purchase intent. Two in three Gen Z respondents said AR helps them better understand products, bridging the gap between discovery and decision-making.

Is AR now influencing purchase decisions, not just awareness?

“The data shows that AR is reshaping consumer decision-making in measurable ways. It enhances understanding, builds believability, and increases intent—three critical drivers of conversion. For marketers, this represents a significant opportunity to rethink how immersive formats can drive effectiveness across the purchase journey, not just awareness,” said Soumya Mohanty, managing director & chief client officer, South Asia, insights division, Kantar. 

India is emerging as a key market in this shift. The study finds that 92% of Indian consumers believe AR will transform how they shop, learn, or connect online. This growing acceptance is prompting platforms like Snapchat to double down on AR-led innovation as part of a broader multi-format advertising strategy.

Cultural relevance is also amplifying AR’s impact. Campaigns linked to festivals, local events, and shared social moments are seeing stronger engagement, indicating that contextual storytelling combined with immersive technology can deepen brand connections.

At the same time, AR is becoming embedded in how Gen Z creates and shares content. Nearly three in five respondents said they prefer posting AR-driven interactive content over static formats, while a similar proportion noted that AR makes brand experiences more immersive and entertaining. The format’s shareability further boosts its appeal, turning users into co-creators rather than passive viewers. 

For Snap, this behavioural shift signals a larger transformation in digital advertising.

“India is one of the most dynamic AR markets globally, and what we’re seeing is that AR is moving beyond experimentation and starting to drive real results. When two in three Gen Z consumers say AR helps them decide whether to buy, it signals that immersive experiences are no longer upper-funnel engagement tools—they are influencing real business outcomes,” said Neha Jolly Sawhney, head of Ad Revenue, India, Snap Inc.

The study essentially states that as brands look to cut through noise and drive measurable impact, AR’s blend of interactivity, creativity, and commerce could well redefine how advertising works in a mobile-first, Gen Z-driven market.