Immersive ads go mainstream this festive season as brands embrace mixed reality

New Delhi: With the festive season at its peak, marketers are increasingly turning to immersive and mixed reality-led formats to break through the clutter. What was once a novelty is now emerging as a mainstream strategy.

According to Nidhi Kohli Nandode, Head of Marketing at Flam, interactive advertising has decisively moved from trial to core planning. “Last year was about experimentation. This year, interactive advertising is not an add-on; it’s part of the core strategy,” she said, emphasising that both emerging and established brands are integrating immersive tools into their festive campaigns.

In 2025, she added, the conversation has shifted. “It is no longer about whether we should do print or digital. It’s about combining both to create richer, more interactive experiences for consumers. Earlier, I would see a brand run one campaign and promote it on LinkedIn or Instagram just to create some buzz. Many brands did this mainly to be in the news or to reach audiences on ad-free platforms. But this year, it is a core part of every festive strategy. In a season crowded with brand messages, this is the best way to stand out through immersive storytelling.”

Although often described as mixed reality (MR), Flam positions its solutions under the broader banner of interactive advertising. “Traditional ads were passive. Layer them with mixed reality and they become interactive as there’s storytelling, engagement, and measurable consumer action,” Kohli explained.

Flam has built a multi-layered suite of products across its Instant App, Experience App and Fandom App. Under the Instant App, formats like Prism keep experiences within the campaign image, while Prism Extended allows them to spill beyond. Prism Interactive adds swipe, voice and clickable elements, Immersive 3D – Alpha brings campaigns to life with three-dimensional visuals emerging from static images, and Interactive 3D – Alpha lets users explore products through interactive models and walkthroughs.

The Experience App introduces Spatial campaigns that place content directly into the user’s environment via QR codes or links, with advanced variants like Spatial 3D and Spatial 3D Interactive enabling floating or interactive 3D objects, especially effective for e-commerce, tech and interiors. 

On the fandom side, the Fandom App enables consumers to virtually pose with celebrities or characters through Fandom AI, or record and share content via Fandom Video and Interactive Fandom Video, a format that has already gained traction during IPL and film promotions.

Kohli argued that Flam is uniquely positioned in a space that still has very limited players. “There are very few companies in this field, just one or two in India, and even they are giving only basic solutions. We are far ahead in terms of the range and depth of our products,” she said. 

Most rivals, she added, stop at simple video overlays triggered by QR codes, while Flam’s tools enable interaction, storytelling, and user-generated content, offering brands deeper engagement possibilities.

One of the biggest barriers to adoption has been perception. “This is a perception, not reality. Interactive ads may feel premium because they are new, but they are not expensive. With enterprise deals, they become scalable across touchpoints and budgets,” Kohli explained. 

She added that as case studies accumulate, marketer awareness is improving, helping break myths about cost and complexity.

Flam is now moving away from one-off festive activations to a more scalable enterprise model, offering brands year-long access to its platform. “This is how a company like Flam becomes scalable. We want to be like a SaaS company, offering year-long experiences instead of one-time activations,” Kohli said.

She noted that this approach is also more cost-effective for brands, enabling them to integrate immersive formats seamlessly across print, TV, digital and outdoor campaigns. 

Currently, the Flam platform is available to advertisers year-round, but the company also plans to expand it to the creator economy in the future.

Currently, Flam sees the strongest traction coming from retail, e-commerce, FMCG and auto, alongside growing adoption in BFSI, SaaS and luxury.

Flam has witnessed robust results across print, digital, and connected TV, while outdoor advertising remains a niche market. 

Kohli shared that print, in particular, has delivered surprising results, with campaigns for Flipkart and Samsung achieving scan and engagement rates of 8–15%, compared to zero interactivity in conventional print formats.

Addressing a common perception around costs, Kohli clarified that Flam’s offerings are not as expensive as they may seem at first glance. “Our offerings are premium, but that’s different from being expensive,” she said. 

She explained that while interactive advertising is often considered costly, this notion is changing quickly with modular, technology-driven solutions that make campaigns scalable across different budgets and touchpoints. 

Interestingly, non-metro markets are showing higher responsiveness. “Scan rates and engagement are strong outside metros. Adoption of technology and e-commerce is growing faster there,” Kohli observed.

While immersive formats come with clear calls to action and conversion potential, Kohli stressed that brand building remains the primary goal. “The expectation is not immediate sales; it’s about storytelling and emotional connection. Like influencer marketing in its early years, performance will come later. Right now, the aim is a stronger consumer connection,” she said.

Kohli identified four major hurdles in the journey of immersive advertising:

• The perception of high cost, which Flam is tackling through scalable enterprise models.
  

• Limited awareness among marketers, though this is improving as successful case studies emerge.
  

• Compatibility concerns, countered by Flam’s web-based, app-less platform that works across devices without downloads.
  

• The need for measurement standards, now being addressed with common KPIs such as scans, engagement time and conversions.
  

Flam has already begun its international expansion, launching a US office last month and closing initial deals in that market. The company is also preparing to open its platform to creators worldwide, allowing them to build immersive experiences alongside enterprises.

Recently, Flam raised $14 million in its Series A round, led by RTP Global with participation from Dovetail and other strategic investors.