- Immersive ads outperform static formats across attention, engagement, and brand recall.
- Brand perception improves—consumers view AI-enabled ads as more premium and innovative.
- Transparency is critical: disclosure of AI use builds trust, especially among Millennials.
- AI is an enhancer, not a replacement: marketers emphasize the need for human oversight.
- Best practice: focus AI on objects, environments, and personalization—avoid photorealistic humans.
Data confirms immersive formats drive stronger attention, engagement, and full-funnel brand lift.
A new global study from PMG, Snap, and eye square provides one of the clearest signals yet that generative AI (GenAI) and augmented reality (AR) are reshaping how advertising secures consumer attention. With responses from more than 14,800 consumers across seven markets, plus insights from 150 U.S. marketing professionals, the findings show that immersive formats powered by GenAI consistently outperform traditional static creatives.
Attention, once the scarcest resource in digital marketing, is now being redistributed toward ads that are interactive, adaptive, and immersive. Static formats may still serve baseline functions, but the data indicates a growing divide between ads that merely appear on-screen and those that generate lasting engagement.
GenAI and AR as Full-Funnel Drivers
The study found that GenAI-powered video and AR Lens ads not only command attention but also strengthen performance across the entire marketing funnel. Compared to static ads, these formats deliver higher recognition, stronger emotional connections, and more meaningful brand recall.
Crucially, the impact does not stop at awareness. Respondents exposed to GenAI-enabled formats were more likely to seek additional product information, visit brand websites, and share recommendations within their networks.
This positions GenAI and AR as tools that bridge upper-funnel storytelling with measurable lower-funnel outcomes, giving marketers a more integrated pathway from inspiration to conversion.
Shifting Brand Perceptions
The perceptional shift linked to immersive formats is striking. Consumers reported that brands using GenAI and AR are more likely to be viewed as innovative, premium, and entertaining. These attributes align closely with how younger demographics define relevance and authenticity in digital culture, highlighting why static ads are losing resonance.
The positive association also extends to advocacy. When brands deploy GenAI-powered formats, audiences are not only more likely to engage with the content but also more inclined to speak about the brand with peers. For advertisers, this blurs the boundary between paid impressions and earned amplification, expanding the overall return on investment.
Transparency as a Strategic Imperative
One of the most critical findings in the study is the role of transparency. Consumers expressed a clear preference for brands that openly disclose when AI has been used in creative production. Failure to do so risks eroding trust, while disclosure can actively enhance credibility, particularly among Millennials.
Generational differences matter: Millennials tend to reward transparency with more favorable perceptions, while Gen Z shows heightened skepticism when AI use is revealed. Interestingly, AR formats soften negative sentiment, suggesting that immersive experiences can create a stronger sense of authenticity even when AI involvement is disclosed.
For marketers, this signals that disclosure is no longer optional. It is a differentiator that can build trust and reinforce brand positioning in an increasingly AI-driven advertising environment.
AI as Augmentation, Not Replacement
From the marketer perspective, GenAI is not viewed as a wholesale replacement for creative teams. Instead, 87% of surveyed professionals regard it as an enhancer that expands capacity for ideation, iteration, and execution. While 68% believe GenAI will eventually replace some traditional methods of content production, there remains a strong consensus that human oversight is indispensable.
This tension reflects both the potential and the risk of AI-driven marketing. On one hand, it enables faster output and personalized creative at scale. On the other hand, it raises concerns around misinformation, indistinguishable fake ads, and erosion of human creativity. Brands that balance automation with a human touch are more likely to preserve authenticity and avoid backlash.
Best Practices Emerging from the Data
The PMG × Snap study also identifies boundaries for consumer acceptance. AI-generated environments, products, and objects are welcomed, as are animation-style executions. However, photorealistic AI depictions of humans receive far less approval, underscoring the importance of applying AI with restraint.
Personalization remains a high-value application. AI-powered recommendations, chatbots, and virtual try-on experiences are among the features consumers find most compelling. This signals that the future of AI in advertising lies less in imitating reality and more in augmenting consumer journeys with tailored, context-driven interactions.
A New Creative Playbook for Brands
Taken together, the findings position GenAI and AR not as experimental add-ons but as core tools for the next era of digital marketing. They offer marketers a way to capture attention more effectively, enhance brand perception, and connect campaigns across the full funnel. Yet success will depend on how responsibly these tools are deployed.
Marketers who invest in immersive formats while embracing transparency and retaining human oversight are best placed to lead in this new environment. Those who treat AI as a shortcut to automation risk undermining both trust and long-term brand equity.
