Immersive Technology in Advertising Market Dynamics: XR Adoption in Travel, Education, and Experiential Marketing | CAGR of 28.1%

Immersive Technology in Advertising Market Size and Forecast

DataM Intelligence has published a new research report on "Immersive Technology in Advertising Market Size 2025". The report explores comprehensive and insightful Information about various key factors like Regional Growth, Segmentation, CAGR, Business Revenue Status of Top Key Players and Drivers. The purpose of this report is to provide a telescopic view of the current market size by value and volume, opportunities, and development status.

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Investment & Funding Landscape: Immersive Tech in Advertising
The immersive advertising and XR ecosystem continues to draw capital from venture investors, strategic partners, and growth lenders, signaling strong confidence in AR/VR‐enabled advertising, spatial content, and AI‐powered ad tech platforms.

🔹 Major Funding & Financing Rounds

Samba TV secured up to $60M in growth financing, including an initial $30M venture debt facility, to accelerate its AI‐driven advertising tech and global expansion - reinforcing investment in cross‐platform ad measurement and immersive audience insights.

Gracia AI raised $1.7M in December 2025 - funding aimed at volumetric spatial video tools that are key for next‐gen immersive advertising and XR content creation pipelines.

Immersv closed a $10.5M Series A, backing mobile VR/AR advertising and 360° ad formats while expanding its market reach and product ecosystem.

🔹 Adjacent Growth Rounds Supporting the Ecosystem

While not strictly advertising platforms, XR and spatial computing investments like XPANCEO's $250M Series A demonstrate how deep‐tech funding in immersive form‐factors (e.g., smart contact lenses for XR) contributes to a broader infrastructure that advertisers and brands will leverage in coming years.

🔹 Broader Funding Themes

Investors are increasingly focused on AI and data‐driven marketing platforms, creator‐centric spatial content tools, and cross‐device immersive experiences that amplify engagement beyond traditional digital displays.

Venture capital and strategic lenders are backing solutions that enable measurement, attribution, personalization, and scale across AR/VR formats - bridging immersive tech with real business ROI.

Recent Developments:

📅 January 2026
• Academic research shows XR experiential advertising drives stronger empathy and purchase intent than traditional 2D ads.
• Marketing communities report wider adoption of AI‐powered AR/VR for interactive product demos and personalized experiences, boosting engagement and conversions.
• New KPIs and multi‐touch attribution models emerge to measure engagement and interaction depth in immersive ad formats, beyond traditional CTR.

📅 December 2025
• Industry forecasts show the immersive advertising market surging toward ~$153 B by 2032 as brands shift to AR/VR consumer engagement.
• Digital marketing trend reports highlight AR‐based product experiences, interactive content, and omnichannel engagement as key drivers for 2026 ad strategies.
• Smart glasses and XR wearables gains accelerate, with launches and platform enhancements fueling new channels for immersive brand storytelling.

📅 November 2025
• Industry analyses predict a major overhaul of immersive marketing with VR, AR, and haptic tech boosting engagement and long‐term consumer metrics.
• Market reports show interactive mixed‐reality ad formats becoming core to festive season campaigns, moving from experimentation to mainstream strategy.
• Broader tech trend insights highlight AR/VR becoming mainstream in experiential and trade show marketing, supported by 5G and improved hardware.

Immersive Advertising & Ad Tech M&A: Signals of Strategic Consolidation
The immersive technology and advertising ecosystem is rapidly evolving and recent M&A activity highlights where the market is heading:

🔹 Pinterest's acquisition of tvScientific underscores how CTV and programmatic video ads are becoming integral to immersive brand engagement, blending high‐intent user data with automated ad delivery.

🔹 A U.S. AR/VR platform's acquisition of a volumetric video tech startup signals a shift toward richer, interactive 3D media that can power next‐gen XR ad experiences.

🔹 Vertoz's acquisition of Webimax LLC highlights the ongoing importance of AI and automation in scaling immersive and personalized marketing.

🔹 Verve's acquisition of Captify strengthens contextual intelligence a crucial asset as immersive ad formats demand deeper audience insights.

Key Players:

Google LLC, Meta Platforms, Inc., Microsoft Corporation, Apple Inc., Snap Inc., Unity Technologies, Sony Corporation, Samsung Electronics Co., Ltd., NVIDIA Corporation, HTC Corporation.

Growth Forecast Projected:

The Global Immersive Technology in Advertising Market is anticipated to rise at a considerable rate during the forecast period, between 2025 and 2032. In 2024, the market is growing at a steady rate, and with the rising adoption of strategies by key players, the market is expected to rise over the projected horizon.

Research Process:

Both primary and secondary data sources have been used in the global Immersive Technology in Advertising Market research report. During the research process, a wide range of industry-affecting factors are examined, including governmental regulations, market conditions, competitive levels, historical data, market situation, technological advancements, upcoming developments, in related businesses, as well as market volatility, prospects, potential barriers, and challenges.

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Key Segments:

By Technology:
The market is segmented by technology into Augmented Reality (AR), Virtual Reality (VR), Mixed Reality (MR), and Extended Reality (XR). AR dominates due to its ability to overlay digital content onto the real world, enhancing customer engagement and shopping experiences. VR is widely used for immersive simulations and entertainment, while MR combines physical and digital elements for interactive applications. XR, encompassing AR, VR, and MR, is gaining momentum as a comprehensive solution for multi-dimensional experiences across industries.

By Deployment:
Based on deployment, the market includes mobile devices, head-mounted displays, smart glasses, kiosks, and web-based platforms. Mobile devices account for the largest share due to their accessibility and widespread use in daily life. Head-mounted displays and smart glasses provide immersive experiences for gaming, training, and enterprise applications. Kiosks are commonly deployed in retail and public spaces, while web-based platforms offer easy integration and accessibility without specialized hardware.

By Application:
The market is categorized by application into product visualization, virtual try-ons, gamified advertisements, location-based advertising, social media filters, and others. Product visualization helps customers explore products virtually before purchase, improving confidence and reducing returns. Virtual try-ons are especially popular in fashion and beauty sectors, allowing personalized experiences. Gamified advertisements and social media filters drive engagement and brand interaction, while location-based advertising targets consumers in specific areas for contextual relevance.

By End-User:
By end-user, the market spans retail & e-commerce, media & entertainment, automotive, healthcare, travel & tourism, and others. Retail & e-commerce lead due to the growing demand for interactive shopping experiences. Media & entertainment leverage immersive content for storytelling and gaming. Automotive uses AR/VR for design, training, and sales demonstrations. Healthcare adopts XR for surgical simulations and patient education, while travel & tourism utilize immersive experiences to showcase destinations. The "others" segment includes education, real estate, and industrial applications where XR technologies are increasingly being adopted.

Regional Analysis for Market:

North America - Largest market with approximately 38% share, driven by advanced AR/VR adoption and digital marketing investments.

Europe - Holds around 25% share, fueled by growing digital campaigns and immersive retail experiences.

Asia-Pacific - Accounts for roughly 22% share, supported by rising smartphone penetration and tech-savvy consumers.

Middle East and Africa - Contributes about 8% share, expanding through innovation in experiential marketing and events.

South America - Smallest share at 7%, growing gradually due to increasing brand adoption of interactive advertising.

Benefits of the Report:

Chapter 1: Lays the foundation by defining the scope of the report, highlighting core market segments across regions, product types, and applications. It delivers a clear snapshot of current market size, growth potential, and how the industry is expected to evolve in both the near and long term.

Chapter 2: Spotlights the most impactful market insights, unveiling the transformative trends and forces shaping the future of the industry.

Chapter 3: Provides a deep dive into the competitive landscape of , covering revenue shares, strategic initiatives, and notable mergers & acquisitions that are reshaping the market.

Chapter 4: Presents detailed company profiles of leading players featuring financial performance, product portfolios, profit margins, and key milestones that set them apart in the industry.

Chapters 5 & 6: Break down revenue analysis at both regional and country levels, offering precise data on market size, growth drivers, and expansion opportunities across global markets.

Chapter 7: Analyzes the market by product type, spotlighting segment-specific opportunities and helping stakeholders identify untapped, high-growth areas.

Chapter 8 :Explores the market through application-based segmentation, assessing demand across industries and pinpointing downstream sectors with the strongest potential for growth.

Chapter 9: Maps the industry's supply chain in detail, tracing upstream and downstream activities to provide clarity on value creation across the ecosystem.

Chapter 10: Wraps up with a concise summary of the report's key insights distilling the most critical findings and strategic takeaways for decision-makers and stakeholders.

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FAQ

Q1: What is the current size of the Immersive Technology in Advertising Market?

A: The Immersive Technology in Advertising Market was valued at US$21.2 billion in 2024 and is forecasted to reach US$153.8 billion by 2032.

Q2: How rapidly will the Market expand?

A: The Immersive Technology in Advertising market is projected to grow at a CAGR of 28.1% between 2025 and 2032.

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