The retail and advertising sectors have significantly transformed in recent years, mainly owing to the seminal introduction of augmented reality (AR) and virtual try-ons. These technologies have transformed the shopping landscape. They have introduced immersive and interactive platforms that enhance virtual engagement with products. The present study deeply explores these pivotal technologies, scrutinizing their role and impact on digital advertising. It seeks to unravel the complex nuances associated with these technologies and their profound influence on various aspects, including consumer behaviour, economic frameworks, societal norms, and environmental sustainability, all the while emphasizing a shopping experience that is both inclusive and sustainable. The research uses a structured methodology to explore core digital advertising and AR theories. It reviews extensive literature to identify gaps and suggest future research directions. The study leverages a comprehensive case study analysis focusing on IKEA's AR application, IKEA Place. This example illustrates how successfully these technologies have been integrated into the retail industry. It highlights how AR and virtual try-ons enhance the shopping experience, making it richer and more satisfying. Consequently, these technologies have emerged as powerful drivers for economic growth, inclusivity, and environmental sustainability, heralding a promising future for digital advertising.
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