Augmented Reality in the Beauty Industry

In the evolving landscape of urban aesthetics, public murals continue to shift from simple decorative elements into powerful vehicles for storytelling, community engagement, and brand messaging. As we progress through 2025, the convergence of technology, sustainability, and social consciousness is transforming how we conceptualize, create, and engage with public art. Whether you are a muralist, a public art commissioner, an OOH advertising executive, or a marketing leader seeking innovative brand expression, grasping the current trends can help you maximize the impact of your next mural project. 1. Interactive and Immersive Augmented Reality Murals Perhaps the most exciting development in the mural space is the mainstream adoption of augmented reality (AR) integration. Static walls are now portals to dynamic digital experiences, creating multilayered storytelling opportunities that engage viewers on both physical and virtual planes. Augmented Reality (AR) murals are revolutionizing public engagement by allowing viewers to point their smartphones at a mural and witness its transformation—characters move, narratives unfold, and additional content emerges. This technology has evolved significantly in recent months, with advancements in spatial anchoring that ensure AR elements stay perfectly aligned with the physical artwork, regardless of viewing angle or distance. For brands and marketers, AR murals provide unprecedented metrics and engagement data, offering insights into how audiences interact with the artwork. Companies such as PepsiCo and Nike have leveraged this technology to create memorable campaigns that enhance the impact of their OOH investments while collecting valuable consumer interaction data. Key developments in this space include: Persistent AR experiences that multiple users can access simultaneously Geofenced content that changes based on time of day or special events Interactive elements that respond to viewer gestures or social media actions Integration with social platforms allowing for instant content sharing Payments built directly into AR experiences to easily one-click buy Viewing AR Murals through new AR glasses from Meta and Snapchat 2. Projection Mapping and Dynamic Murals While traditional painted murals remain predominant, projection mapping technology has developed to enable dynamic, changing murals that transform throughout the day or in response to various inputs. These "living walls" preserve the scale and public nature of murals while introducing temporal dimensions that static paintings cannot achieve. Recent advances in projection technology have made these installations more energy-efficient and visible even in daylight conditions. Sony and Epson have developed specialized projectors specifically for public art applications, enabling longer-term installations without excessive power consumption.  Noteworthy applications include: Seasonal narrative shifts that evolve throughout the year Weather-responsive projections that change based on local conditions Traffic or noise-responsive installations that reflect urban rhythms Scheduled transformations that create appointment viewing experiences These dynamic murals are particularly effective for areas with high repeat traffic, as they provide new experiences for regular viewers.

Introduction Out-of-Home (OOH) advertising – encompassing billboards, transit signs, and digital displays – has experienced a remarkable technological evolution since the internet's emergence in the early 1990s. As consumers became increasingly connected online, the traditionally static OOH medium began incorporating digital capabilities to maintain its relevance and effectiveness. This research report, directed at OOH advertising executives and Fortune 1000 marketing leaders, chronicles key advancements in OOH technology in the U.S. (with global comparisons) over the past few decades. It emphasizes high-level trends and widely adopted technologies, including digital billboards, programmatic digital OOH (DOOH) buying, geolocation and mobile integrations, data-driven targeting, augmented/virtual reality (AR/VR) enhancements, improved measurement and attribution, and the growing role of artificial intelligence (AI). The objective is to illustrate how OOH advertising has evolved from static posters into a dynamic, data-driven channel, while providing insight into the industry's future direction headed. 1990s: Laying the Groundwork in a Connected World In the 1990s, the rise of the Internet did not immediately change the predominantly analog nature of out-of-home (OOH) advertising, but it laid the groundwork for future innovation. During this era, OOH advertising in the U.S. was still dominated by static billboards, posters, and transit signage. The decade witnessed ongoing investment in traditional formats (such as vinyl billboards replacing paper for enhanced durability) and iconic illuminated signs (like the neon-lit billboards in Times Square). While OOH remained a physical medium , the emerging digital revolution suggested new possibilities. Initial digital signage experiments began to appear in high-traffic areas—for instance, electronic displays in locations like Times Square and Las Vegas—but these were custom installations rather than widespread advertising networks. The OOH industry acknowledged the Internet’s potential to facilitate remote content control and data sharing , even though the technology was not yet prepared for mainstream use. By the late 1990s, companies were investigating how new digital display technologies (like LED screens) and internet connectivity could eventually be applied to billboards. These early endeavors set the stage for the digital out-of-home revolution that would unfold 2000s. Early 2000s: The Advent of Digital Billboards The early 2000s marked a pivotal turning point as digital billboards made their entrance, fundamentally transforming out-of-home (OOH) advertising. Breakthroughs in LED display technology and reduced electronics costs reached a tipping point around 2000, suddenly making large-format digital screens economically viable for outdoor use. In 2001, Lamar Advertising installed the industry’s first large digital billboard, a low-resolution LED display in Baton Rouge, Louisiana; this groundbreaking pilot demonstrated the concept’s potential. Over the next few years (2001–2004), major OOH companies trialed digital displays in select markets, refining the technology and demonstrating a return on investment. By 2004–2005, costs had decreased and reliability improved to the point that digital billboards entered a phase of rapid growth , with manufacturers shipping dozens of units per week to meet demand demand. These LED billboards offer several advantages over traditional static signs. They are bright, eye-catching, and visible even in daylight, allowing multiple ads to rotate in the same location and multiplying revenue opportunities for operators. For advertisers, digital screens provide flexibility that was previously unheard of in traditional out-of-home (OOH) advertising—content can be updated remotely in real-time, eliminating the costs and delays associated with replacing printed vinyl. By the late 2000s, major U.S. cities and highways were dotted with digital billboards, enabling advertisers to experiment with creative digital content, such as animated visuals or countdown clocks, to better engage passersby. This trend was mirrored globally in other markets, from the bright digital facades of Tokyo and London to the digital screens in emerging markets, although the U.S. remained a leading adopter. Consequently, OOH ad spending began to shift toward digital formats. (As a reference point, global OOH advertising revenue was approximately $30 billion in 2017 and continued to grow, with over 25 million digital OOH units deployed worldwide by 2018.) Today, in the U.S., roughly one-third of all OOH ad spending is on digital formats, reflecting how quickly digital billboards have become a cornerstone of the industry. Late 2000s: Networking, Geolocation and Mobile Integration As digital screens proliferated in the late 2000s, the focus shifted to connecting OOH with the mobile revolution . The introduction of smartphones (after 2007) and widespread mobile internet access created new opportunities to link outdoor ads with consumers’ devices. OOH operators began equipping digital signage with network connections and software to enable more sophisticated content control, scheduling, and targeting. By leveraging live data feeds, billboards could start to display contextually relevant messaging – for example, showing weather-specific ads (such as a coffee ad on a cold morning) or real-time information like news and sports scores. This period also saw OOH campaigns encouraging viewers to engage via their phones. Simple integrations emerged: SMS short codes on billboards to request more information, or the appearance of QR codes and social media handles on OOH posters. Such tactics bridged physical ads with digital engagement, foreshadowing deeper mobile integration to come. A major development was the use of geolocation and geofencing to enhance the impact of out-of-home (OOH) advertising. By leveraging the GPS capabilities of smartphones and location data, advertisers discovered they could retarget individuals exposed to OOH ads with follow-up advertisements on their mobile devices. In practice, this involved setting up virtual perimeters—known as "geofences"—around OOH units: when a user’s phone entered that area, it could trigger a relevant mobile ad or later determine if that user visited a store. By the end of the decade, early adopters were combining OOH and mobile campaigns to increase engagement. For instance, an outdoor billboard could be synchronized with in-app ads, ensuring that audiences received a coordinated message on their phones after viewing the billboard. This convergence of OOH and mobile advertising significantly improved measurability and targeting in what was previously an untrackable medium. Industry research indicated that mobile click-through rates rose substantially (with some studies reporting increases of 15% or more) when supported by OOH ads, thanks to these retargeting methods. Location data from carriers, apps, and sensors became “the secret sauce,” providing insights into audience movement and enabling OOH to approach one-to-one marketing. By 2010, the OOH industry was actively welcoming mobile integration, paving the way for the data-driven era of the 2010s. 2010s: The Rise of Programmatic and Data-Driven DOOH The 2010s represented a transformative decade for OOH advertising, as digital technology, data, and automation converged to establish a genuinely smart medium. By the early 2010s, a substantial number of digital billboards and place-based digital screens (located in malls, transit hubs, airports, etc.) were operational. This laid the foundation for programmatic Digital Out-of-Home (pDOOH) – the implementation of automated, data-driven ad buying for OOH inventory – similar to the changes already seen in online advertising. Around 2012, the first programmatic OOH platforms and exchanges were launched, allowing advertisers to buy digital billboard space via demand-side platforms (DSPs) and real-time bidding algorithms. Companies like Broadsign (in Canada) and Vistar Media (in the U.S.) led the way in connecting digital signage networks to programmatic buying systems. This development enabled marketers to log into a platform, set targeting parameters (location, time, audience demographics, budget), and automatically have their ads displayed on digital billboards across various operators. By the mid-2010s, programmatic DOOH gained traction, with major OOH networks making their inventory available for real-time, impression-based advertising buying. Crucially, data became the lifeblood of OOH campaigns during the 2010s. Advertisers began utilizing a wealth of data sources to target OOH ads more precisely and contextually. Location data, aggregated from mobile devices, enabled brands to choose billboard locations based on the movements and demographics of the audience passing by. Advertisers could also schedule content according to factors like the time of day, the day of the week, or even weather and traffic conditions. For example, a fast-food chain could display coffee ads on digital screens during the morning rush and switch to dinner promotions by late afternoon, or a retailer could trigger ads for raincoats on a billboard when meteorological data indicates rain in that area. This data-driven flexibility introduced a level of targeting and timeliness to OOH that was previously unattainable. One industry report referred to this period as a “data-driven revolution,” highlighting that programmatic ad platforms enabled OOH campaigns to target audiences with precision based on location, time, and weather, just as easily as online ads Another significant advancement was in measurement and attribution . Historically, out-of-home (OOH) advertising was challenging to measure; advertisers relied on traffic counts or surveys to estimate impressions. During the 2010s, new tools emerged to quantify and link OOH audience exposure to outcomes. Mobile location data played a crucial role: if a user’s device was detected (anonymously) within view of a billboard and later appeared inside an advertiser’s store, that movement could be attributed to OOH influence. Specialized firms began offering OOH attribution services that tracked increases in store visitation or website visits among those exposed to an outdoor ad. Simultaneously, computer vision technologies made progress—some digital displays were equipped with sensors or cameras to count passersby or even estimate their demographics (gender, age range) by anonymously analyzing imagery. These camera-equipped “smart billboards” could then adjust content to suit the observed audience (e.g., displaying an eyewear ad if many viewers wore glasses) and provide detailed analytics on how many people looked at the screen. Thanks to these data and sensor innovations, by the end of the 2010s, OOH campaigns could deliver advertisers far more granular reports, including impressions, dwell time, and engagement metrics. As a result, OOH joined the omni-channel, ROI-driven digital ecosystem— a significant departure from the one-size-fits-all posters of the past. From a business perspective, these capabilities fueled considerable growth in the DOOH sector. Advertisers invested more budget into OOH, knowing they could target and measure it like their digital ads. Programmatic buying also reduced the barriers to entry, attracting a broader range of advertisers, including small brands, to purchase billboard space in flexible, short-term increments. By 2019, analysts projected programmatic OOH would evolve into a billion-dollar segment, and overall OOH spending was on a steady upswing. Notably, global data indicated that both traditional and digital OOH were expanding, but digital was growing at a faster pace; by the mid-2020s, DOOH accounted for roughly 40% of global OOH revenue. In the U.S., the digital OOH revenue share reached about 30% of total OOH spending by 2023 , recovering from a brief pandemic dip. The 2010s firmly established that the future of OOH would be digital, data-driven, and integrated with the same programmatic infrastructure as online advertising media.

Executive Summary Augmented Reality (AR) “smart mirrors” are emerging as transformative tools in beauty retail, allowing customers to virtually try on makeup in-store with lifelike realism. Leading beauty retailers and brands—including Sephora, L’Oréal, and Estée Lauder—have launched and expanded AR mirrors to enhance the in-store experience, resulting in significant increases in sales conversion, basket size, and customer engagement. In-store AR mirrors address key issues, such as hygiene concerns, limited trial time, and choice overload, by enabling touchless, rapid try-ons of multiple products. The results are notable: Sephora’s AR mirror trials led to an estimated 31% increase in sales , and AR try-on users demonstrate conversion rates up to 90% higher than those who do not engage. Estée Lauder reports that AR experiences yield 2.5 times higher conversion for lipstick purchases, and Clinique’s AI-driven AR mirror increased basket size by 30% while extending dwell time five-fold . Major U.S. beauty chains are adopting AR mirrors as a strategic tool to drive in-store sales and customer loyalty , with international retailers (e.g., Watsons in Asia) experiencing double-digit sales growth after implementing AR mirror experiences. This executive case study examines the business case for in-store AR mirrors, the technology and ecosystem (key providers and partners), and detailed case studies of Sephora, L’Oréal, and Estée Lauder implementations. It also presents key ROI metrics and practical considerations for retail leaders looking to adopt AR mirrors. The evidence indicates AR mirrors are evolving from novelty to an essential part of an omnichannel beauty strategy , merging the convenience of digital try-ons with the tangible services of physical retail to enhance both customer satisfaction and profitability. The Business Case for AR Mirrors For beauty retailers, the in-store AR mirror offers an innovative solution to a longstanding challenge: how to enable customers to confidently try and buy cosmetics with minimal friction. Traditional in-store sampling has limitations — applying and removing multiple products is time-consuming and raises hygiene concerns. AR mirrors address this issue by allowing shoppers to “try on” numerous shades virtually in seconds , without ever touching their face. This establishes a safe and sanitary try-on process , a priority heightened by the pandemic. When testers were removed from many stores in 2020, AR mirrors and virtual try-on tools became essential alternatives, significantly accelerating the adoption of the technology. From a business perspective, AR mirrors drive sales by enhancing customer confidence and encouraging exploration. By visibly “wearing” a new lip color or eyeshadow through AR, customers can discover products they might not have previously considered — effectively expanding their basket . Sephora found that AR experiences foster impulse purchases: its virtual mirror convinced shoppers to buy items they hadn’t initially planned on. The interactive and enjoyable nature of AR also keeps shoppers in the store longer, which generally correlates with higher spending. Industry reports indicate that immersive technology like AR can significantly increase dwell time in retail. In one instance, a beauty AR experience resulted in an average in-store dwell time of over 4 minutes , far exceeding typical engagements. Longer engagement provides more opportunities for associates to upsell and for customers to add items to their cart baskets. Critically, AR mirrors address the “try-before-you-buy” expectation of modern consumers. Over 50% of consumers desire augmented shopping experiences to assist in product selection. By meeting this demand, retailers boost sales in the short term and cultivate brand loyalty. Shoppers view the brand as innovative and customer-centric. The novelty factor of AR mirrors — essentially a magic mirror that instantly showcases new looks — also creates buzz and foot traffic. Executives observe that these tech-driven experiences result in memorable store visits that attract shoppers, despite the convenience of online options. From a financial ROI perspective, multiple data points highlight the business case. Shopify reported that products featuring AR content experienced a 94% higher conversion rate than those without. Perfect Corp (a leading AR provider) commissioned a study revealing that AR try-on use made shoppers 1.6× more likely to purchase and to spend 2.7× more on cosmetics . In other words, AR-driven trials lead to higher conversion rates and increased average order values. These gains can directly enhance same-store sales. Beauty giant L’Oréal estimates that augmented reality and AI initiatives contributed to its e-commerce and in-store sales growth (52% e-commerce growth in 2019) by facilitating more personalized, confident purchases at scale. In summary, AR mirrors align with core retail KPIs: increasing conversion, basket size, dwell time, and customer satisfaction, all of which ultimately drive revenue and profitability. Technology Overview AR mirrors combine augmented reality software, cameras, and display screens in a fixture resembling a vanity mirror or digital kiosk. At the core is real-time facial tracking and rendering technology: a camera captures the customer’s face, and AR software overlays ultra-realistic 3D images of makeup (lipstick, eyeshadow, foundation, etc.) onto the live video feed. Unlike simple 2D photo filters, advanced AR mirrors utilize 3D facial geometry and AI to simulate how products appear from different angles and under various lighting. For example, ModiFace, a pioneer in beauty AR, calibrates its rendering by analyzing how makeup looks on models of different skin tones and lighting conditions, yielding a highly lifelike result. The goal is a virtual application that is nearly indistinguishable from real makeup application. Early augmented reality (AR) mirrors were essentially large screens or tablets that ran AR try-on software. Sephora’s first installations between 2014 and 2016 featured 3D AR mirrors co-developed with ModiFace, which included a camera and screen housed in a vanity-like frame. Today’s implementations vary from full-length smart mirrors to iPad-based kiosks found at beauty counters. For example, the AR mirror launched by MAC Cosmetics in 2017 is a freestanding screen that maps the user’s face 30 times per second, realistically overlaying 30 different eye makeup looks. Other setups, such as Charlotte Tilbury’s “Magic Mirror,” utilize a mirror-shaped display with built-in lighting, evoking the ambiance of a glamorous vanity Crucially, the tech has evolved to require no learning curve from shoppers: no app download or menu navigation is needed . Users simply stand in front of the mirror and see themselves with virtual makeup; the interface often lets them change shades with a simple gesture or tap, or even automatically recommends a look. Keeping the experience seamless is key to encouraging engagement, as noted by AR developers who avoid complex UIs to make mirrors universally inviting . Behind the scenes, AR providers and tech partners create an ecosystem that enables these mirror experiences. In the beauty industry, several specialists stand out (see Table 1). ModiFace , acquired by L’Oréal in 2018, supplies AR and AI technology for makeup try-ons across many of L’Oréal’s 36 brands and has previously collaborated with Sephora and others. Perfect Corp. , the maker of the YouCam Makeup app, offers a turnkey AR mirror solution used by retailers such as Ulta and Watsons; it features patented AgileFace® tracking for high accuracy. Agencies like Holition develop custom AR mirror experiences for luxury brands (e.g., Charlotte Tilbury) with tailored hardware and content. Newer startups (e.g., BrandXR ) concentrate on pop-up AR installations for brands (as seen with Valentino Beauty and Makeup by Mario mirrors). These providers offer features ranging from virtual product try-ons to shade finders and integrated purchase functions (scanning a QR code from the mirror to add the product to the cart). Table 1 compares some leading AR mirror solutions and their notable brand deployments: Table 1. Leading In-Store AR Mirror Solution Providers and Deployments

Traditional billboards are evolving beyond static displays into interactive augmented reality (AR) experiences that captivate and engage audiences in unprecedented ways. For marketing executives and outdoor advertising leaders seeking to push the boundaries of out-of-home (OOH) advertising, AR billboards represent the next frontier in consumer engagement. This article explores how to design effective AR billboard campaigns that drive measurable results and create lasting brand impressions. The Evolution of Billboard Advertising: From Static to Interactive Billboard advertising has undergone a remarkable transformation from its humble beginnings as painted signs to today's technologically advanced AR experiences. The trajectory has moved from: Traditional static billboards Digital billboards with rotating content Interactive digital displays Full AR-integrated experiences According to recent industry data, AR-enhanced OOH advertising generates 3.5x higher engagement rates than traditional billboards. For Fortune 1000 companies, this represents a significant opportunity to stand out in crowded marketing environments. Why AR Billboards Are Revolutionizing OOH Advertising AR billboards transcend the limitations of conventional OOH advertising by transforming passive viewing into active participation. This fundamental shift offers several key advantages: Deeper Engagement Metrics Unlike traditional billboards that can only be measured by estimated impressions, AR experiences provide detailed analytics on user interaction. Marketing executives can now track: Activation rates Time spent engaging with AR content Conversion paths from physical to digital touchpoints Social sharing metrics Post-engagement behavior Extended Brand Interactions The average viewer spends 6-8 seconds looking at a traditional billboard. In contrast, AR billboard experiences average 45-75 seconds of active engagement, creating a 7-10x increase in brand exposure time. Personalized Experiences AR allows for dynamic content customization based on: Time of day Weather conditions User demographics Previous interactions Proximity to retail locations Critical Components of Successful AR Billboard Campaigns 1. Seamless Activation The friction between noticing a billboard and engaging with its AR component represents your campaign's most vulnerable point. Industry benchmarks show that each additional step in the activation process reduces participation by approximately 20%. Best Practice: Implement QR codes prominently with clear, concise instructions. Consider NFC or beacon technology for even more frictionless activation for high-traffic urban locations. 2. Compelling Visual Triggers The visual elements that initiate AR experiences must be instantly recognizable while maintaining curiosity value. Case Study: Monster Energy drink deployed AR billboards featuring minimalist design and an animated "scan to reveal" element. These billboards achieved a 37% activation rate, significantly outperforming the industry average of 12-15%. 3. Value-Driven Experiences Successful AR billboard campaigns deliver clear value to participants through: Entertainment (gamification, visual spectacle) Utility (information, wayfinding) Exclusive offerings (time-limited promotions) Social currency (shareable content)  Best Practice: Align the AR experience with your brand's positioning while prioritizing user benefit over overt promotion. Research indicates that AR experiences perceived as useful have a 2.8x higher completion rate than those perceived as purely promotional.

In today's hyper-competitive digital landscape, marketing leaders are constantly searching for innovative ways to break through the noise and create genuine connections with their audience. Augmented Reality (AR) murals represent one of the most exciting frontiers in experiential marketing, offering a perfect blend of physical artistry and cutting-edge digital engagement. This comprehensive guide explores how Fortune 1000 companies can leverage AR murals to create viral moments that amplify brand presence across social media platforms. The Convergence of Physical Art and Digital Innovation Augmented Reality has transcended its early novelty status to become a powerful marketing tool that bridges the gap between physical and digital experiences. AR murals transform traditional public art into interactive digital gateways that can surprise, delight, and engage audiences in previously unimaginable ways. These installations represent more than just eye-catching artwork—they serve as content-creation machines that turn passive observers into active participants and brand advocates. By integrating AR technology with public art, brands can create immersive experiences that resonate emotionally and technologically. Why AR Murals Are Marketing Gold for Enterprise Brands 1. Creating Unforgettable Brand Experiences In an era where consumer attention is the most valuable currency, AR murals deliver what traditional advertising cannot: genuine surprise and delight. These immersive, interactive installations combine artistic expression with technological innovation to create truly impactful experiences. When consumers encounter an AR mural, they're not just seeing another advertisement—they're participating in an experience worthy of sharing. This emotional connection forms the foundation for viral social media moments, as users naturally want to share unique experiences with their networks. 2. Transforming Audiences into Content Creators The most powerful aspect of AR murals is their ability to transform your audience into a content creation engine for your brand. Each person who interacts with your AR mural becomes a potential content creator, capturing and sharing their experience across multiple platforms. This user-generated content carries exceptional value: It's perceived as more authentic than brand-created content It reaches networks that might be otherwise inaccessible to your brand It generates organic impressions without additional media spend It creates social proof that can influence purchasing decisions AR murals effectively turn your audience into an extension of your marketing team by enabling fans and followers to market for you through shareable, engaging branded content. 3. Optimizing for Data Collection and Engagement Metrics Modern marketing leaders understand that data drives decisions. AR murals deliver creative impact and concrete performance metrics that can inform broader marketing strategies. Through associated AR applications, brands can collect valuable data on: User demographics and engagement patterns Geographic distribution of interactions Time spent engaging with the experience Social sharing patterns and reach Conversion actions taken after engagement This rich data ecosystem allows marketing teams to understand the Who, What, Where, When, and how of audience engagement. We know marketers like numbers and graphs, so we've got you covered! 4. Enhanced Brand Visibility Through Strategic Integration AR murals offer multiple touchpoints for brand integration. From the physical mural itself to the digital experience it unlocks, each element can be strategically designed to showcase sponsor logos, messaging, and media. This layered approach to brand visibility creates multiple impressions within a single experience: The physical mural attracts attention in high-traffic areas The AR experience delivers immersive brand messaging The shareable content spreads brand awareness across social networks The associated digital assets improve search visibility 5. Unmatched Scalability: Design Once, Deploy Infinitely One of the most compelling advantages of AR murals for enterprise marketing leaders is their scalability. BrandXR can scale the campaign to all formats at no additional costs. The image tracking technology that powers AR experiences allows cameras to detect, track, and augment images in the real world. This means a single AR experience can work across multiple physical formats, including: Large-scale murals Billboard advertisements Promotional merchandise like t-shirts Marketing collateral such as stickers Brand-relevant products like skateboards  This "design once, deploy infinitely" approach delivers exceptional ROI by eliminating the need for multiple creative executions across different formats.

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