AI-Led Marketing, Video Commerce, UGC Strategy, and AR/VR Playbooks

Region: Global

Table of Contents

AI-Driven Marketing — The Frontier of Efficiency and Hyper-Personalization

• Introduction: A new AI-led marketing era
• Generative AI is reinventing ad production
• 2-1. Shorter, optimized production cycles
• 2-2. The rise of next-gen platforms
• Advanced personalization
• 3-1. Addressing diversified consumer behavior
• 3-2. Lowering customer acquisition cost
• Ethics and transparency
• 4-1. A tightening regulatory climate
• 4-2. Trust at stake
• Blending automation with human value
• 5-1. Efficiency isn’t enough
• 5-2. Building a collaborative ecosystem

Video Commerce — Shoppable Experiences and Cultural Nostalgia

• The arrival of the video-first era
• 1-1. Video dominates the digital landscape
• Evolution of shoppable video
• 2-1. Interactive buying journeys
• 2-2. Growth market potential
• Personalized video content
• 3-1. AI-driven optimization
• 3-2. High-income users and Gen Z
• Short-form video and editing advances
• 4-1. The dominance of short-form
• 4-2. AI editing and avatars
• Nostalgia strategies and cultural resonance
• 5-1. A re-appraisal of “millennial cringe”
• 5-2. Emotion-led brand strategy
• Strategic takeaways

UGC × AI — Balancing Trust and Scalability

• Introduction: UGC at center stage
• How AI amplifies UGC value
• 2-1. Achieving scale
• 2-2. Multilingual, multi-market readiness
• Safeguarding credibility
• 3-1. Preserving authenticity
• 3-2. Compliance and ethics
• Human–AI co-creation outcomes
• 4-1. Better results via collaborative editing
• 4-2. Accelerating marketing investment
• Success cases in UGC–AI integration
• Strategic takeaways

AR/VR and Immersive Marketing — The Next Wave of Customer Engagement

• Introduction: Immersion becomes mainstream
• Rapid AR/VR market growth
• 2-1. Expanding global market size
• 2-2. Aggressive retail & entertainment investment
• AR use cases
• 3-1. Virtual try-on
• 3-2. Seamless links with physical stores
• VR for immersive experiences
• 4-1. Virtual showrooms
• 4-2. Entertainment extensions
• Evolving with AI
• 5-1. Dynamic personalization
• 5-2. Richer interactions
• Strategic takeaways

Summary and Strategic Outlook Beyond September 2025

• Key trends as of Sep 2025
• Where the market is heading
• 2-1. Deeper AI and automation
• 2-2. Video-led communication
• 2-3. Brand–UGC co-creation
• 2-4. Mass adoption of immersive experiences
• Strategic recommendations
• 3-1. Build AI-based data strategy
• 3-2. Multi-layered video content
• 3-3. UGC quality control & guidelines
• 3-4. Optimize AR/VR investment
• Conclusion

AI-Driven Marketing — The Frontier of Efficiency and Hyper-Personalization

• 1. Introduction: A new AI-led marketing era

As of September 2025, rapid advances in generative and agentic AI have brought marketing to an inflection point. Teams are shifting from manual production to data-driven, automated workflows where efficiency and outcomes must scale in tandem.

• 2. Generative AI is reinventing ad production
• 2-1. Shorter, optimized production cycles

Sir Martin Sorrell notes that generative and agentic AI have delivered unprecedented speed and efficiency. Processes that once took months (ideation → production → distribution) now finish in weeks or even days.

• 2-2. The rise of next-gen platforms

Tools like Runway, Luma, and Minimax are improving both quality and speed. Agency models are shifting from hourly billing to outcome-based compensation, accelerating structural change across the industry.

• 3. Advanced personalization
• 3-1. Responding to diversified behavior

With consumer preferences more fragmented and complex, one-size-fits-all marketing underperforms. Real-time, AI-powered hyper-personalization is now standard for delivering optimal experiences to each user.

• 3-2. Reducing customer acquisition cost

According to IBM, companies adopting these approaches report up to 50% reductions in CAC. Mining purchase histories and behavioral data to deliver timely, relevant messages boosts loyalty and engagement.

• 4. Ethics and transparency
• 4-1. A tightening regulatory climate

The AI surge highlights issues of privacy and algorithmic fairness. With stricter regimes like GDPR and CCPA, explainable AI and operational transparency have become urgent priorities.

• 4-2. Trust at stake

Neglecting ethical risks can erode brand equity and customer trust. Balancing convenience with ethics is now a top priority in AI marketing strategy.

• 5. Blending automation with human value
• 5-1. Efficiency isn’t enough

Despite automation, customers still expect human empathy and personal care. Over-reliance on bots is already depressing satisfaction in many service contexts.

• 5-2. Building a collaborative ecosystem

Brands must construct hybrid CX models where AI’s speed/precision complements human flexibility and judgment.

Video Commerce — Shoppable Experiences and Cultural Nostalgia

• 1. The video-first era
• 1-1. Video dominates the digital landscape

In 2025, video is no longer a supporting asset. Roughly 82% of internet traffic is video, and consumers watch 100+ minutes/day. IAB reports U.S. digital video ad spend grew 18% YoY to $64B in 2024, with $72B forecast for 2025. Video wins on information density, storytelling, and immersion.

• 2. Shoppable video evolution
• 2-1. Interactive buying

Platforms like TikTok Shop, Instagram Shopping, YouTube Shopping normalize watch-and-buy flows. In China and SE Asia, shoppable live streams are mainstream, with 1.5–2× the conversion of traditional EC.

• 2-2. Growth potential

The video-commerce market is growing ~26% CAGR and could reach $6T by 2030. Gen Z and Millennials naturally adopt “watch while buying,” requiring brands to realign strategy.

• 3. Personalized video content
• 3-1. AI optimization

AI enables instant, individualized video ads based on browsing, purchase, and preference data—lifting engagement and purchase intent.

• 3-2. High-income users & Gen Z

Idomoo reports 93% of Gen Z and 88% of high-income users want personalized videos; 93% of consumers show strong interest in interactive video.

• 4. Short-form supremacy & editing tech
• 4-1. Short-form dominance

TikTok, Reels, and Shorts remain dominant; 30–60s assets show the highest engagement and superior completion/share rates.

• 4-2. AI editing & avatars

Auto-editing and AI avatars let brands mass-produce high-quality video at low cost while tailoring stories by audience.

• 5. Nostalgia & cultural resonance
• 5-1. The comeback of “millennial cringe”

Brands like Crocs, Duolingo, and Taylor Swift win with self-aware yet sincere content, resonating strongly with youth.

• 5-2. Emotion-led strategy

Authenticity and emotion-forward storytelling are essential to build trust and loyalty.

• 6. Strategic takeaways

Video commerce: Double down on shoppable formats to make purchases seamless.

Personalization: Deploy AI for real-time, individualized video ads.

Short-form: Prioritize tightly edited short videos for peak engagement.

Nostalgia: Use cross-generational, emotion-centric storytelling.

UGC × AI — Balancing Trust and Scalability

• 1. UGC at center stage

By 2025, UGC has become a core brand lever. With ad fatigue rising, genuine user voices now wield unprecedented influence.

• 2. AI lifts UGC value
• 2-1. Scale

Generative tools and auto-editing make it possible to produce large volumes of UGC-based ads quickly, speeding campaign rollout.

• 2-2. Multilingual, multi-market

AI translation/localization lets brands repurpose domestic UGC globally with auto-subtitles and voiceovers, accelerating exposure.

• 3. Ensuring credibility
• 3-1. Maintain authenticity

Over-editing risks undermining “realness.” Brands need transparent disclosure and solid rights/contracts with creators.

• 3-2. Compliance & ethics

Be rigorous with copyright/image rights. If AI-generated assets are used, clearly distinguish them from original UGC and stay legally/ethically clean.

• 4. Human–AI co-creation wins
• 4-1. Collaborative editing

Studies show AI-generated titles perform, but human-tuned versions further lift watch time/engagement. Human + AI wins.

• 4-2. Investment accelerates

At Cannes Lions 2025 CMO Insider, 71% of CMOs said they’d invest $10M+ in AI over the next year—driven by the ROI of UGC × AI.

• 5. Success cases

Globalizing cosmetics brand: AI-translated/optimized UGC deployed across markets → +120% YoY overseas sales.

Restaurant chain: AI-edited review videos as shorts → menu item sales +30% during campaign.

Fashion EC: AI trend analysis + UGC-infused ads → higher repeat purchase rates.

• 6. Strategic takeaways

UGC policy: Codify editing rules that protect authenticity and disclosure.

AI integration: Use AI across translation, editing, analytics to raise efficiency.

Guidelines: Update legal/ethical playbooks.

Co-edit model: Formalize human–AI collaboration to balance quality and speed.

AR/VR and Immersive Marketing — The Next Wave of Engagement

• 1. Immersion goes mainstream

AR/VR has moved from “experimental” to central in customer experience. 5G, cloud, and wearables enable online–offline hybrid touchpoints.

• 2. Market growth
• 2-1. Global expansion

Analysts estimate the AR/VR market at ~$30B in 2022, rising to ~$520B by 2031, fueled by Apple Vision Pro and advances from Meta/Microsoft.

• 2-2. Retail & entertainment invest

Fashion/beauty deploy virtual try-on to raise conversions and cut returns.

• 3. AR use cases
• 3-1. Virtual try-on

A leading cosmetics brand’s real-time AR for lips/eyeshadow boosted online sales to 150% YoY.

• 3-2. Store linkage

Scan-to-view info and demos are now common, aiding decisions in-store.

• 4. VR use cases
• 4-1. Virtual showrooms

Real estate, travel, interiors: high-fidelity VR + real-time control increases close rates.

• 4-2. Entertainment

VR concerts are approaching parity with physical revenues, creating new marketing revenue streams.

• 5. Fusing with AI
• 5-1. Dynamic personalization

AI tailors AR/VR content in real time based on behavior and purchase history.

• 5-2. Richer interaction

Gesture, voice, and eye-tracking enable intuitive control; brands run two-way experiences that deepen relationships.

• 6. Strategic takeaways

Market entry: Pilot small AR/VR campaigns, scale in phases.

Data integration: Connect CX to AI for real-time optimization.

ROI tracking: Set KPIs and measure continuously.

Brand expansion: Build omnichannel journeys uniting digital and physical.

Summary and Strategic Outlook (Post-Sep 2025)

• 1. Four intersecting pillars

• 2. Market trajectory
• 2-1. AI & automation deepen:

Within 12–18 months, AI assists end-to-end from strategy to analytics.

• 2-2. Video-led comms:

Even shorter/more immersive formats rise; interactivity becomes a key ROI lever.

• 2-3. Brand–UGC co-creation:

UGC evolves into co-built platforms, with AI enabling real-time iteration.

• 2-4. Immersion at scale:

Falling device costs and better networks drive mass adoption across retail and travel.

• 3. Strategic recommendations
• 3-1. AI-based data strategy

Stand up an AI-enabled data integration platform

Improve algorithms underpinning personalization

Strengthen privacy/security

• 3-2. Multi-layered video

Blend short + long formats in cross-media plans

Tailor to each platform’s grammar

Institutionalize performance loops for video ads

• 3-3. UGC governance

Transparent policies to preserve authenticity

Update legal/ethical guidelines

Standardize AI-assisted UGC ops

• 3-4. AR/VR optimization

Start small, scale by results

Measure ROI with clear KPIs

Design integrated digital + real experiences

4. Conclusion

As of September 2025, marketing is defined by the integration of AI, video, UGC, and AR/VR. Customer experiences are becoming more individualized and sophisticated. To build durable advantage, brands must treat technology not just as tools but as part of a strategy that fuses data, creativity, and ethics. With change accelerating, now is the time to build sustainable models that deliver short-term wins while compounding long-term brand value.