The marketing playbook is being rewritten. Traditional advertising – billboards, digital ads, even polished video campaigns – no longer delivers the impact brands need to cut through the noise. Instead, companies are investing in immersive experiences that put consumers inside the brand story, using virtual reality showrooms, interactive product launches, and multi-sensory retail environments to create lasting impressions.
The numbers tell the story. The global immersive marketing market reached USD 7.28 billion in 2024 and was projected to surge to USD 28.88 billion this year, reflecting a 32% compound annual growth rate. By 2030, analysts expect the market to exceed USD 52 billion as businesses recognize that memorable experiences drive purchasing decisions more effectively than passive content consumption.
James Grifo, Owner and CEO of Audio Visual Nation, a premier staffing and production company for large-scale corporate events, has watched this transformation firsthand while working with brands like Microsoft, Nike, and Cisco Live.
“We’re seeing a significant shift in how brands think about consumer touchpoints,” Grifo explains. “Companies are looking to do more than just tell their story now, by inviting people to step inside it. When you give someone the chance to physically interact with your product in a virtual space or feel the texture of a material through haptic technology, you create a memory anchor that standard advertising simply can’t match.”
Below, Grifo breaks down what immersive marketing means for brands heading into 2026 and why businesses that ignore this trend will struggle to compete.
What Is Immersive Marketing and Why Does It Matter Now?
Immersive marketing uses technology to create participatory brand experiences that engage multiple senses. Rather than watching an advertisement or reading product specifications, consumers interact with brands through virtual reality, augmented reality, haptic feedback, spatial audio, and even scent design.
The approach matters because consumer behavior has fundamentally changed. Research shows that 72% of consumers are more likely to purchase from a brand after participating in an experiential marketing event. Traditional marketing asks people to pay attention; immersive marketing invites them to participate.
“The psychology is straightforward,” says Grifo. “When you actively engage with something, when you touch it, explore it, make choices within it, your brain processes that experience differently than passive observation. That’s why someone who’s virtually walked through a hotel lobby or test-driven a car in VR has a completely different relationship with that brand than someone who just saw a commercial.”
How Brands Are Already Using Immersive Experiences
Major companies have moved beyond testing immersive technology to making it central to their marketing strategies. The applications span product launches, retail environments, and corporate events. Grifo lists the approaches being used, below.
- Virtual Reality Showrooms and Product Try-Ons
Platforms like Meta Quest 3 and Apple Vision Pro now power virtual brand showrooms where consumers can examine products from every angle, customize features in real-time, and experience scale that would be impossible in traditional retail spaces.
Automotive brands use VR to let customers sit inside vehicles and configure options. Fashion retailers enable virtual fitting rooms where shoppers see how clothes look on their body type.
- Real-World AR Activations
Technologies like the Niantic Lightship AR Platform allow brands to create location-based experiences. Companies design AR scavenger hunts that drive foot traffic to physical locations or overlay digital product information onto real-world environments during pop-up events.
“AR bridges the gap between digital engagement and physical presence,” Grifo notes. “You’re not pulling people away from the real world. You’re adding a layer of interaction to spaces they already occupy.”
- Tactile Product Demonstrations
Haptic technology, including systems like HaptX and Teslasuit, brings physical sensation to virtual experiences. Wearable haptic suits let consumers feel texture, weight, and resistance during product demos. A furniture company can let someone feel the fabric of a couch. A tool manufacturer can simulate the grip of a power drill.
- Interactive Retail Environments
In-store projection mapping technology, such as Panasonic SpacePlayer, turns retail spaces into dynamic environments. Walls become interactive displays that respond to customer movement. Products appear to transform or demonstrate functionality without physical demonstration units.
“We’ve built entire event spaces where the environment itself becomes part of the brand message,” says Grifo. “The walls, the floor, the lighting. Everything responds to what’s happening in the room. It creates a sense that you’re not just visiting a brand; you’re inside its world.”
- Virtual Event Worlds
Platforms like Spatial.io enable brands to host virtual lounges, art exhibitions, and multi-user interactive experiences. Companies can gather global audiences in branded virtual spaces where attendees explore products, network with other participants, and attend presentations without geographic limitations.
- Scent and Environmental Design
Systems from companies like AromaPrime and Air Aroma add olfactory elements to brand experiences. Scent creates powerful memory associations. Hotels use signature fragrances in virtual tours. Product launches pair visual presentations with carefully designed aromas that reinforce brand identity.
“Scent is often overlooked, but it’s one of the most powerful memory triggers we have,” Grifo explains. “When you pair a visual experience with a distinctive scent, you’re creating a multi-layered memory. People might forget what they saw, but they won’t forget how a space made them feel.”
The Psychology Behind Immersive Experiences
The effectiveness of immersive marketing stems from how the brain processes participatory versus passive experiences. When consumers actively engage with a brand rather than simply observe it, they form stronger neural pathways associated with that interaction.
Sensory experiences trigger emotional responses more effectively than visual or auditory information alone. A consumer who virtually walks through a hotel, hears the ambient sounds, and experiences the spatial layout forms a more complete mental model than someone who views photographs. The brain treats the virtual experience as closer to real memory than abstract information.
“Traditional advertising creates awareness,” says Grifo. “Immersive experiences create relationships. There’s a massive difference between knowing a product exists and feeling like you’ve already used it.”
James Grifo, Owner and CEO of Audio Visual Nation, commented:
“Brands don’t need unlimited budgets to start integrating immersive elements. The key is identifying which touchpoints in your customer journey would benefit most from participatory experiences. A product launch might use VR to let people explore features before the physical release. A retail space could add AR try-on capabilities. Even a corporate event can incorporate interactive projection mapping to transform presentations into experiences.
“Start by asking what you want people to remember. If it’s how your product feels in their hands, consider haptic demos. If it’s the atmosphere of your brand, look at environmental design and scent. Technology should serve the story you’re telling, not overshadow it.
“The most successful immersive campaigns we’ve supported share one trait: they give consumers agency. People want to explore, make choices, and interact on their terms. Brands that design experiences around participation rather than presentation will build stronger connections and see better conversion rates going into 2026.”
