WebAR Isn’t Dead — It’s Growing Up: What 8th Wall’s Shutdown Means for Real-World AR ROI

8th Wall, one of the platforms that helped define WebAR (augmented reality experiences that run in a mobile browser), has announced it will wind down its services after more than seven years. For many developers and brands, this is a big moment—because 8th Wall didn’t just provide tools, it helped prove that high-quality AR could live on the web.

But here’s the more important question for businesses:

If a major WebAR platform is shutting down, does that mean AR isn’t worth investing in?

Not at all. What it signals is a shift: AR is moving from “cool demos” toward measurable, outcome-driven experiences—and the brands that win will be the ones who treat AR like a performance channel, not a novelty.

Sources: Remix Reality – 8th Wall to Shut Down After Seven Years of Advancing WebAR

Why businesses still hesitate to use AR

In Malaysia (and globally), many businesses are interested in AR, but adoption is slower than expected. The reason is simple:

• Users won’t take extra steps “just because it’s cool.”
• If AR requires downloading an app, scanning a QR, enabling camera permissions, or waiting for assets to load, many users drop off.
• If the AR experience doesn’t clearly answer “what’s in it for me?”, it becomes a gimmick.

So the real challenge isn’t “How do we build AR?”

It’s: How do we design AR that people actually use—and that drives ROI?

What 8th Wall’s shutdown really tells us about AR

8th Wall pioneered browser-based AR and helped mainstream the idea that AR should work “everywhere, for everyone.” It also powered thousands of commercial experiences and worked with major brands.

At the same time, the industry is clearly changing. Recent shutdowns of other AR creation platforms (like Adobe Aero and Meta’s Spark AR) show that AR is consolidating and evolving—toward:

• AI-assisted creation pipelines
• new hardware ecosystems (headsets / spatial computing)
• more focus on durable, ownable experiences (not dependent on a single platform)

For businesses, the takeaway is not “AR is dying.”

The takeaway is: platform risk is real—so your AR strategy must be outcome-first and portable.

The ROI question: what can businesses realistically expect from AR campaigns?

AR ROI is real—but only when the campaign is tied to a business outcome.

Here are the most common ROI paths we see in real-world AR:

1) Trust is the New Currency: Why Authority Outweighs Visibility

Best for: retail, beauty, eyewear, furniture, property.

AR reduces uncertainty. When customers can “preview” a product on themselves or in their space, they buy with more confidence.

How to measure ROI: – Conversion rate uplift vs non-AR traffic – Add-to-cart rate uplift – Lower return/refund rates (where applicable)

2) Lower cost per lead (interactive lead magnets)

Best for: education, healthcare services (within compliance), B2B events.

AR can be a high-engagement “lead magnet” when it’s tied to something useful: – interactive product explainer – guided quiz + personalized result – event-based AR experience with instant redemption

How to measure ROI: – Cost per lead (CPL) – Lead-to-appointment rate – Lead quality (sales acceptance rate)

3) Higher engagement that improves paid media efficiency

Best for: brands running Meta/TikTok/YouTube campaigns.

AR can increase time spent and interaction rate. That often improves downstream metrics like click-through rate and retargeting pool quality.

How to measure ROI: – View-through rate – Engagement rate – Cost per landing page view – Retargeting audience growth

4) Offline impact (footfall + redemption)

Best for: malls, clinics, showrooms, exhibitions, tourism.

AR works best when it’s connected to a real-world action: – scan to unlock voucher – AR treasure hunt with prize redemption – in-store AR guide

How to measure ROI: – Voucher redemption rate – Store visits / footfall lift (where trackable) – Sales during campaign period vs baseline

The biggest myth: “AR = high ROI by default”

AR is not magic. If your AR experience is built as a standalone “wow moment,” it will usually underperform.

The winning approach is:

AR should remove friction, increase confidence, or reward the user.

If it doesn’t do at least one of those, users won’t take the extra step.

A practical AR ROI framework (what we recommend)

At Kode Digital, we treat AR/VR/XR like any other digital growth initiative: strategy first, execution second. Here’s a simple framework to keep AR grounded in ROI:

Step 1: Define one primary conversion goal

Pick one: – lead – booking – purchase – store visit – retention / repeat purchase

Step 2: Design the “reason to use” in 3 seconds

Users decide fast. Your AR hook must be instantly clear: – “See how it looks on you.” – “Preview it in your home.” – “Unlock a reward.” – “Get a personalized recommendation.”

Step 3: Reduce steps (or make the steps worth it)

If AR requires extra steps, compensate with value: – instant voucher – exclusive access – personalized output

Step 4: Track like a performance campaign

Minimum tracking setup: – UTM links + event tracking – QR codes per placement – funnel reporting (view → interact → click → convert)

Step 5: Build for portability (platform risk management)

With platform shutdowns happening, businesses should avoid being locked into a single ecosystem.

That means: – keep assets documented – plan for migration – choose formats and workflows that can be reused

So… should businesses still invest in AR in 2026?

Yes—if AR is used for real user value and tied to measurable outcomes.

The brands that will win aren’t the ones doing AR because it’s trendy.

They’re the ones using AR to: – shorten decision time – increase confidence – create memorable real-world interactions – improve marketing efficiency

How Kode Digital helps (AR/VR/XR with business outcomes)

Kode Digital helps Malaysian businesses plan and build AR/VR/XR experiences that are designed for adoption—not just attention.

If you’re considering AR, the best starting point is a short strategy session to map: – your audience’s friction points – the right AR format (WebAR, social AR, in-store AR, etc.) – what ROI should look like for your business

Want an AR campaign that actually converts?
Reach out via kodedigital.expert and we’ll recommend a practical AR approach based on your industry and goals.

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