Task 1: Blog
Blog Title:
Augmented Reality Meets Sustainability: A Clearer View of Green Consumption
Introduction
Augmented reality (AR) and sustainability have emerged as transformative forces in the
digital landscape. AR, characterized by overlaying computer-generated imagery onto real-
world environments via smartphones or headsets, has seen its market expand at an estimated
30 per cent compound annual growth rate, projected to exceed USD 85 billion by 2026
(Schwab, 2016). Sustainability has ascended from peripheral concern to central purchase
driver, with 72 per cent of consumers ranking environmental impact as a decisive factor
(NielsenIQ, 2021). The convergence of AR and sustainability offers novel pathways for
immersive storytelling that can bridge credibility gaps and enrich consumer engagement.
Augmented Reality: A New Dimension in Marketing
AR enables lifelike visualization, reducing uncertainty at the point of decision. Studies
indicate that AR experiences yield average session durations exceeding two minutes, double
the engagement observed for text or video formats (Mesjar et al., 2023). Moreover,
interactive AR modules conveying sustainability metrics enhance perceived authenticity by
up to 45 per cent compared with static infographics (Cosio et al., 2023). By transforming
abstract data into tangible, manipulable content, AR mitigates cognitive barriers that often
hamper comprehension of environmental claims.
Sustainability: The Defining Trend of Today
Sustainability has transcended window dressing to become an operational imperative.
Lifecycle assessments and circular-economy principles now guide material choices: for
instance, 55 per cent of IKEA’s material volume in FY 24 derived from renewable sources
and 17 per cent from recycled inputs (IKEA, 2025). Despite such progress, consumers
frequently struggle to verify green assertions. Traditional eco-labels and text-based
disclosures fail to convey context or depth, perpetuating scepticism and greenwashing
concerns.
Bridging the Gap: AR Meets Sustainability
The fusion of AR with sustainability communication directly addresses issues of trust and
clarity. Real-time overlays can display carbon and water footprints, supply-chain origins and
end-of-life options when a product is viewed through a mobile camera (Abad-Segura et al.,
2020). Such dynamic, context-sensitive narratives transform compliance-driven disclosures
into engaging digital experiences. Engagement with AR-enhanced sustainability content not
only lengthens dwell time but also correlates with higher conversion rates, as immersive
proof points reduce returns and build brand loyalty.
Case Study: IKEA’s Immersive Green Shopping
IKEA’s “Place” AR app exemplifies best practice. In FY 24, more than three million scans of
sustainability-labelled items enabled users to “place” furniture in their own rooms and inspect
3-D material compositions (IKEA, 2025). Interactive hotspots reveal precise lifecycle
metrics, such as the percentage of recycled wood and projected carbon avoidance, anchoring
abstract claims in tangible detail. This approach achieved a 13 per cent uplift in in-store
conversions among AR adopters and a nine-point increase in sustainability trust scores
(IKEA, 2025). By integrating circular-economy prompts, guiding users to repair tutorials or
local recycling points, IKEA operationalized its “People and Planet Positive” strategy within
the AR environment.
Marketing Implications and Future Directions
The AR–sustainability nexus demands strategic investment in content production, platform
integration and data transparency. Digital teams should establish pipelines linking product
lifecycle databases to AR development toolkits, ensuring real-time accuracy of environmental
metrics. Agencies are already offering “AR-for-ESG” bundles that combine 3-D modelling,
cloud rendering and scope-3 emission calculators (Chaffey and Ellis-Chadwick, 2019).
Brands that adopt immersive green storytelling at scale will differentiate authentically, reduce
waste through informed purchase behaviour and cultivate deeper consumer trust.
Conclusion
The intersection of augmented reality and sustainability heralds a new era of transparent,
engaging marketing. By translating complex environmental data into intuitive spatial
experiences, brands can meet consumer demands for authenticity, reduce decision-making
friction and foster lasting loyalty, ultimately turning sustainability from a challenge into a
competitive advantage.
Task 2: Strategic Digital Marketing Report
Title:
Amplifying IKEA’s Sustainability Journey Through Augmented Marketing and Real-
Time Contextual Engagement
Introduction
Sustainability has emerged as one of the most pressing global trends shaping consumer
behaviour and corporate strategy. Increasingly, customers are demanding transparency,
authenticity, and verifiable environmental commitments from the brands they support.
According to a global study by NielsenIQ (2021), 72% of consumers consider sustainability a
key factor in their purchasing decisions. As environmental awareness continues to rise,
companies must align their marketing strategies with sustainability goals to remain
competitive and credible in the eyes of the modern consumer.
IKEA, the world’s leading home furnishing retailer, has positioned sustainability at the core
of its business strategy through its “People and Planet Positive” and “Climate Positive”
commitments. Its ambitious sustainability framework includes achieving 100% renewable
energy use, sourcing 100% renewable or recycled materials by 2030, and cutting greenhouse
gas (GHG) emissions across its value chain. In FY24, IKEA reported that 55% of its total
material use came from renewable sources and 17% from recycled materials, alongside a
24.3% reduction in total GHG emissions since 2016 (IKEA, 2025).
To strengthen its communication and deepen engagement with sustainability-conscious
consumers, IKEA must adopt innovative digital marketing tactics. This report proposes the
integration of Augmented Marketing and Real-Time Contextual Engagement to enhance
IKEA’s ability to inform, inspire, and convert customers at every stage of the buyer journey.
These tactics support the company’s sustainability objectives while fostering transparent,
interactive, and data-driven customer experiences.
Brand Analysis
IKEA is a global home furnishings leader that has embedded sustainability into its core
strategy through its “People and Planet Positive” agenda. The company has consistently
pursued measurable progress towards environmental and social responsibility, aligning its
business model with circular economy principles and sustainable resource use. In FY24,
IKEA reported that 55% of the materials used in its products were sourced from renewable
resources, while an additional 17% came from recycled inputs (IKEA, 2025). This shift has
been instrumental in the company’s broader target to use only renewable or recycled
materials in its product range by 2030 (Ingka Group, 2025).
As part of its climate-positive ambition, IKEA has significantly reduced its carbon footprint.
Total greenhouse gas (GHG) emissions were reduced by 24.3% compared to the 2016
baseline, while emissions per product sold declined by 44.6% (IKEA, 2025). The company
also achieved 96% renewable electricity usage in its own operations and invested €1.6 billion
in renewable energy and circularity initiatives (Ingka Group, 2025). These milestones
position IKEA as a leader in environmental stewardship within the global retail sector.
Digitally, IKEA has embraced technologies such as augmented reality (AR) to enhance the
customer experience and reduce environmental impact. The IKEA Place app enables users to
visualise furniture in their homes at scale, reducing the likelihood of product returns, an often
overlooked contributor to carbon emissions. In FY24 alone, the app recorded over 3 million
product scans, and IKEA noted a 13% increase in in-store conversion rates among AR users
compared to non-users (IKEA, 2025). This demonstrates the potential of immersive
technologies not only in enhancing decision-making but also in promoting more sustainable
consumption behaviours.
IKEA’s sustainability communication also includes storytelling campaigns such as “Live
Lagom,” which promotes sustainable living through educational content and user-generated
tips. However, while these initiatives have helped build awareness, challenges remain.
Research indicates that only 54% of consumers associate IKEA with sustainability
leadership, suggesting a perception gap despite strong operational achievements (NielsenIQ,
2021).
To close this gap, IKEA must deepen its engagement by making sustainability data more
visible, interactive, and contextual. As Chaffey and Ellis-Chadwick (2019) argue, digital
marketing today must go beyond awareness to foster meaningful consumer involvement. By
adopting advanced digital marketing tactics such as augmented marketing and real-time
contextual engagement, IKEA can transform static sustainability claims into dynamic, data-
driven experiences that resonate with environmentally conscious consumers.
Tactic Selection
To enhance the impact of its sustainability communication, IKEA can implement two highly
effective digital marketing tactics: Augmented Marketing and Real-Time and Contextual
Engagement. These tactics align with current industry practices and are particularly suited to
IKEA’s data-rich sustainability operations and global digital presence.
Augmented Marketing
Augmented Marketing refers to the use of augmented reality (AR) technologies to overlay
interactive digital content, such as images, videos, text, or 3D models, onto the physical
environment via smartphones or AR glasses. This allows marketers to create more immersive
and informative customer experiences by blending the virtual with the real (Kotler et al.,
2021). For a brand like IKEA, which operates at the intersection of digital innovation and
product storytelling, AR can serve as a bridge between sustainability data and consumer
understanding.
IKEA has already begun integrating AR into its customer journey through its IKEA Place
app, which allows users to “place” virtual furniture in their homes to assess size, style, and
fit. This AR solution not only improves user confidence but also reduces return rates, a key
contributor to emissions in the retail industry. In FY24, more than 3 million consumers used
the app, contributing to a 13% increase in in-store conversion rates among AR users (IKEA,
2025).
To extend this foundation, IKEA could enhance the AR experience with sustainability-
specific content. For example, a customer viewing a digital model of a KALLAX shelf could
activate an “Eco View” mode that reveals the percentage of renewable or recycled materials
used, total CO₂ saved compared to a standard version, and suggestions for end-of-life
disposal or reuse. By visualising the environmental journey of each product, IKEA can build
trust and reduce the abstractness that often clouds green marketing.
This aligns with the findings of Cosio et al. (2023), who demonstrate that AR tools
significantly improve consumer comprehension and trust in sustainability claims. AR enables
real-time visualisation of complex data such as life-cycle assessments, product carbon
footprints, and supply chain transparency, elements that are increasingly demanded by
informed, eco-conscious shoppers.
Augmented Marketing empowers consumers to explore sustainability without leaving the
shopping interface. IKEA can use AR not just as a conversion tool but as an education
platform. For example, products scanned in “GreenView Lens” mode could display animated
stories of sustainable sourcing, FSC certifications, and energy-saving properties. This not
only deepens product knowledge but strengthens brand recall and emotional connection to
IKEA’s “People and Planet Positive” mission.
Real-Time and Contextual Engagement: Delivering the Right Message at the Right
Time
Real-Time and Contextual Engagement involves delivering dynamic, personalised content to
users based on live behavioural signals, environmental data, location, time of day, and device
use (Chaffey and Ellis-Chadwick, 2019). It allows brands to anticipate user needs and
provide relevant, immediate solutions. For IKEA, this means reinforcing sustainability
narratives through personalised, timely, and action-oriented messaging across digital
touchpoints.
IKEA’s vast customer data ecosystem, including its mobile apps (e.g., IKEA Place, IKEA
Home, IKEA Family), e-commerce platforms, and loyalty programs, provides a fertile base
for real-time engagement. The company can use behavioural cues, such as past purchases,
app browsing history, or abandoned carts, to push contextual content related to sustainability.
For example, if a user recently viewed solar-powered lamps, the system could deliver a push
notification on how switching to LED lighting reduces carbon emissions by 80% over
incandescent alternatives.
Real-time engagement can also incorporate external environmental data. For instance, if local
temperatures drop below freezing, the IKEA app could recommend thermal curtains or
energy-efficient rugs, along with eco-impact savings data. By combining personal behaviour
with contextual insights, IKEA can frame sustainability as both a global and local priority.
As Fill and Turnbull (2019) explain, contextual messaging significantly increases response
rates and satisfaction, especially when the content resonates with the user’s environment and
lifestyle. IKEA could even integrate calendar-based reminders, such as Earth Day, World
Recycling Week, or Black Friday alternatives like “Buy Nothing Day”, to prompt low-
consumption behaviours, promote recycled or refurbished products, or invite users to join
sustainability challenges.
Real-time messaging fosters a sense of relevance, immediacy, and personal agency. When a
customer receives a notification showing that using their IKEA food container for 30 days
saved the equivalent of 40 plastic bags, the brand reinforces positive behaviour while
deepening emotional resonance. This tactic also supports habit formation, a key factor in
driving long-term environmental action among consumers (Accenture, 2023).
Strategic Application
To fully realise the benefits of Augmented Marketing and Real-Time Contextual
Engagement, IKEA must strategically integrate these tactics across its digital ecosystem. This
involves not only technological implementation but also aligning these tools with consumer
touchpoints and sustainability messaging. The following sections outline how each tactic can
be applied creatively to enhance digital marketing performance while reinforcing IKEA’s
sustainability goals.
Augmented Marketing: Enhancing the IKEA Place Experience
IKEA can build on its successful IKEA Place app by introducing an AR sustainability
extension called “GreenView Lens.” This feature would enable users to scan IKEA products
using their smartphone cameras, either in-store or at home, to reveal detailed sustainability
information through visual overlays. Each product could display the percentage of recycled
and renewable materials used, its estimated lifecycle carbon emissions, and guidance on
repair, recycling, or reuse.
For example, scanning a LACK table could reveal that it is made with 98% recycled wood
fibres and show a visual comparison of CO₂ savings relative to a non-sustainable equivalent.
Additional AR prompts could include icons linking to DIY repair tutorials or nearby IKEA
recycling drop-off points. This immersive interaction allows consumers to explore
sustainability data in a more intuitive, impactful way than traditional labels or webpages.
To ensure user engagement, the GreenView Lens should be gamified. Users could earn
badges for scanning eco-friendly products, sharing insights on social media, or pledging
sustainable behaviours. These gamification elements would drive repeat usage and strengthen
the customer-brand relationship.
Real-Time Contextual Engagement: Delivering Personalised Sustainability Nudges
IKEA’s mobile apps, such as IKEA Family and IKEA Home, can host a feature called the
“Sustainability Companion.” This smart assistant would deliver personalised messages and
prompts based on behavioural, environmental, and geolocation data. For instance, if a
customer regularly purchases LED bulbs, the app might suggest adding energy-efficient
smart plugs to reduce consumption during peak hours. If poor air quality is detected in the
user’s area, it could recommend indoor plants with air-purifying properties.
To ensure contextual accuracy, the system would integrate external data feeds like local
weather APIs, air quality indices, and city-wide recycling schedules. Notifications would be
tailored to the user’s habits, encouraging participation in local IKEA recycling programs,
highlighting environmental milestones (“You’ve saved 12kg CO₂!”), or promoting events
like Earth Day with relevant product bundles.
By embedding these real-time interactions, IKEA can shift sustainability from a static
message to a daily, practical experience, fostering deeper engagement and long-term
behavioural change.
Recommendations and Next Steps
To maximise the impact of Augmented Marketing and Real-Time Contextual Engagement,
IKEA should prioritise five strategic actions. First, the company should scale its AR
infrastructure by developing sustainability content for its top 500 high-impact products,
ensuring rich, interactive overlays that include material composition, emissions data, and
circular usage tips. This content must be continually updated through integration with
IKEA’s lifecycle databases and sustainability reporting tools (IKEA, 2025; Cosio et al.,
2023).
Second, IKEA should adopt a Customer Data Platform (CDP) such as Segment to unify
behavioural, geographic, and environmental data. This would enable timely, privacy-
compliant delivery of personalised sustainability messages across its mobile apps and e-
commerce platforms (Chaffey and Ellis-Chadwick, 2019).
Third, the company should launch a personal impact dashboard within the IKEA app,
allowing customers to track their CO₂ savings, recycled purchases, and sustainable habits,
encouraging long-term behavioural change (Accenture, 2023).
Fourth, IKEA should apply agile marketing principles (Taylor, 2015) to run rapid A/B testing
cycles for sustainability messages, AR modules, and contextual triggers. This will ensure that
communications are constantly optimised for relevance and effectiveness.
Finally, IKEA should embed environmental performance metrics, such as emissions avoided
per marketing dollar, into campaign evaluations (Kotler et al., 2021). By aligning digital
strategy with ESG outcomes, IKEA can deliver measurable sustainability progress while
strengthening consumer trust and loyalty.
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