Augmented Reality Advertising in E-Commerce Operations

Publication Date

1-1-2026

Document Type

Contribution to a Book

Publication Title

Encyclopedia in Operations Management

DOI

10.1016/B978-0-443-28993-4.00111-6

First Page

Vol1

Last Page

541

Abstract

Augmented reality (AR) advertising is increasingly important for e-commerce businesses. As a transforming strategy, AR advertising provides interactive and engaging experiences to enhance customer experience, which bridges the gap between online and offline shopping and addresses the limitations of traditional online advertising. In this chapter, we introduce the features of AR advertising and its application in e-commerce, and we explore the impact of AR advertising on e-commerce operations. We investigate whether brands should adopt AR advertising and demonstrate the essential characteristics influencing its adoption. We identify the critical threshold on the AR advertising investment cost for its adoption, and we also explore the impact of e-commerce selling mode on the crucial threshold. By investigating supply chain members’ profits, we show AR advertising weakens the platform's channel power in the reselling mode and moderates the mitigation effect of channel mode on double marginalization in the marketplace mode. Finally, we discuss the challenges faced by AR advertising in e-commerce operations and propose several future research directions.

Keywords

AR advertising, AR technology, E-commerce, Marketplace mode, Reselling

Department

Global Innovation and Leadership

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