Market Insights Advertising & Media AR & VR

AR Advertising - Europe

Europe

In Europe, revenue in the AR Advertising market market is projected to reach €1.2bn in 2024.
The revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 9.43%, leading to a projected market volume of €1.8bn by 2029.
While the projected market volume stands at €1,135.0m in 2024, it is notable that the majority of revenue is generated the United States.
In Europe, the AR advertising market is increasingly focused on enhancing consumer engagement through immersive experiences, reflecting a shift towards personalization and interactivity.

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Monnaie

Analyst Opinion

The AR Advertising market in Europe is experiencing significant growth and development, driven by changing customer preferences and the increasing adoption of augmented reality technology across various industries.

Customer preferences: Customers in Europe are increasingly seeking immersive and interactive experiences when engaging with brands and advertisements. Traditional advertising methods are becoming less effective in capturing consumers' attention, leading to a shift towards more innovative and engaging forms of advertising. Augmented reality offers a unique and interactive way for brands to connect with their target audience, allowing them to create immersive experiences that blend the digital and physical worlds. This appeals to customers who are looking for more personalized and engaging advertising experiences.

Trends in the market: One of the key trends in the AR Advertising market in Europe is the integration of augmented reality technology into mobile applications. With the widespread use of smartphones and tablets, brands are leveraging these devices to deliver AR experiences directly to consumers. Mobile AR advertising allows brands to reach a wider audience and engage with customers on a more personal level. This trend is expected to continue as the technology becomes more advanced and accessible. Another trend in the market is the use of AR in the retail sector. Retailers are using augmented reality to enhance the shopping experience by allowing customers to virtually try on products, visualize how furniture would look in their homes, or see how makeup would look on their faces. This not only improves the customer's shopping experience but also increases the likelihood of purchase as customers can make more informed decisions.

Local special circumstances: Europe is known for its strong creative industries and innovative technology sector. This provides a fertile ground for the growth of the AR Advertising market. Countries such as Germany, France, and the United Kingdom are leading the way in terms of AR technology development and adoption. These countries have a large number of tech-savvy consumers who are open to trying new technologies and are more likely to embrace AR advertising.

Underlying macroeconomic factors: The growth of the AR Advertising market in Europe is also influenced by underlying macroeconomic factors. The European economy has been steadily recovering from the global financial crisis, leading to increased consumer spending and confidence. This provides brands with the opportunity to invest in innovative advertising strategies, such as AR, to capture the attention of consumers and drive sales. Additionally, the European Union has been actively promoting and supporting the development of emerging technologies, including augmented reality, through funding and regulatory frameworks. This support has created a favorable environment for the growth of the AR Advertising market in Europe.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on AR advertising revenue, which includes pop-up advertising displayed in social media apps, gaming apps, and eCommerce apps as well as advertising that is integrated into the virtual world.

Modeling approach / market size:

The market size is determined through a top-down approach. We use annual financial reports of the market-leading companies and industry associations, as well as third-party studies and reports to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as consumer spending, internet penetration, 4G coverage, and historical developments.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are level of digitalization, adoption of technology, GDP per capita, and internet penetration.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).