The Explosive Advertising Experience: How AI, 3D, XR, and Spatial Computing Are Shaping the Future of Marketing
At CES 2025, industry leaders explored how AI, spatial computing, 3D, and XR are redefining advertising.

The Explosive Advertising Experience: How AI, 3D, XR, and Spatial Computing Are Shaping the Future of Marketing

At CES 2025, a panel of creative and technological leaders convened to explore the evolving intersection of artificial intelligence (AI), spatial computing, 3D, and extended reality (XR). Featuring insights from industry luminaries such as Dustin Callif (Tool of North America), Cathy Hackl (Spatial Dynamics), Eric W. Shamlin (Secret Level), Natalie Comins (independent creative consultant), Diana Caverly (MRM), and Tony Gemma (Yahoo Creative), the discussion examined how these technologies are redefining advertising. From AI-generated campaigns to the rise of synthetic influencers, the panelists charted an exciting—if complex—future for marketing.

Redefining Brand Presence Through Spatial Computing

Spatial computing, heralded as the next leap in human-computer interaction, emerged as a transformative force in marketing. Cathy Hackl, CEO of Spatial Dynamics, described its potential to make brands omnipresent in consumers’ environments by layering digital experiences over the physical world. “If the physical world, if that virtual layer is enabled, and the physical world becomes a canvas, it can also become real estate,” she explained. “For brands, I think it’s a really exciting moment as we head into a future where that digital layer becomes visible and you have enhanced interaction.”

However, Hackl warned that this ubiquity comes with responsibility. As devices like the Apple Vision Pro evolve, brands must adopt ethical practices to prevent intrusive or dystopian experiences. This need for balance was a recurring theme, underscoring the importance of trust as advertising becomes more immersive and integrated into daily life.

AI: Bridging Creativity and Business Impact

Artificial intelligence stood out as both a creative catalyst and a business enabler. Dustin Callif, President of Tool of North America, showcased its transformative potential by recounting a Starburst campaign that leveraged generative AI to create 84 unique ad versions. “When we produced this commercial, we used Gen AI to apply what’s called AI style transfer, like an animation style, to lots of different versions of the commercial,” Callif said. “Instead of creating one commercial, we were able to create 84 unique versions…avoiding ad fatigue while bridging creative and business value.”

Diana Caverly, Global Chief Strategy Officer at MRM, went further, suggesting that AI might “save advertising.” She argued, “AI can stimulate creativity by waking people up to the idea of doing something surprising and impactful.” By identifying anomalies in data, AI can also inspire unexpected ideas. “Some of the best advertising comes when you have surprising connections between data. With AI, we can use algorithms to identify those anomalies that inspire data-driven but creative ideas,” Caverly explained.

Still, the road to widespread AI adoption is fraught with challenges. Tony Gemma, VP and Global Head of Yahoo Creative, emphasized the need for clear regulations. “Creative has lost some footing in the value equation for marketers,” he noted. “AI tools and their users are constrained by a legal gray area, and without precedent, we can’t unlock their full potential.”

The Evolution of 3D and Extended Reality

While AI dominated much of the discussion, 3D and XR technologies also took center stage. Natalie Comins, an independent creative consultant and former Senior Creative Principal at HUGE, shared her excitement about the increasing sophistication of 3D digital artifacts. “Digital and real worlds are suddenly becoming really seamlessly blended together,” she said. “Some 3D objects now have spatial audio qualities and persistence, so they can live in the real world as dynamic elements.”

Eric Shamlin, CEO of Secret Level, acknowledged the promise of 3D but pointed out the limitations of current hardware. “Small teams can do things that would have taken millions of dollars and months previously,” he said, reflecting on how AI can complement 3D content. However, Shamlin noted that the lack of user-friendly devices remains a significant barrier to adoption.

Synthetic Influencers and the Authenticity Dilemma

One of the most provocative predictions came from Natalie Comins, who estimated that by 2025, nearly half of online interactions could involve synthetic influencers. “Technology is getting so sophisticated that it’s becoming increasingly difficult to tell what’s real and what’s fake,” she remarked. These artificial personas offer brands new storytelling opportunities but also raise ethical concerns about transparency.

Diana Caverly echoed these concerns, stressing the need for brands to ensure authenticity. Without clear communication about the use of AI, consumer trust could erode, undermining the innovations meant to enhance engagement.

Toward a More Contextual Future

As media consumption fragments into niche audiences, the panelists agreed that context is becoming the new frontier for advertising. Cathy Hackl observed, “Everything’s fragmented and niche…advertising is becoming more contextual to your experience, your part of the world, and your demographics. The mass market experience doesn’t exist anymore.”

This shift to contextual advertising aligns with what Tony Gemma described as a need for creative technology to adapt to fragmented ecosystems. By integrating creativity and media strategy, brands can deliver impactful campaigns that resonate with diverse audiences.

Predictions for 2025

The panel concluded with bold predictions for the future:

  • Dustin Callif envisioned an “AI aha moment,” where brands fully embrace generative AI without unnecessary legal and creative barriers.
  • Cathy Hackl forecasted advancements in spatial intelligence and large-world models, emphasizing their transformative potential.
  • Eric Shamlin predicted a profound alignment of human creativity and AI, enabling small teams to achieve extraordinary results.
  • Natalie Comins highlighted the normalization of synthetic influencers, warning that distinguishing between real and artificial content will become increasingly challenging.
  • Tony Gemma called for regulatory breakthroughs in AI law, which he believes will be crucial for unlocking the full potential of these technologies.

Conclusion: Embracing the Future of Advertising

The CES 2025 panel illuminated the immense potential of AI, spatial computing, 3D, and XR to revolutionize advertising. Yet, with these opportunities come complex ethical, legal, and practical challenges. By adopting innovative technologies responsibly and prioritizing transparency, marketers can create meaningful, impactful experiences for their audiences. As the industry moves forward, the question is not whether brands will adapt but how effectively they will harness these transformative tools.

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