VR advertising: Difference between revisions - VR & AR Wiki - Virtual Reality & Augmented Reality Wiki

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==Introduction==

Virtual reality advertising is a form of marketing communication applied to virtual reality technologies. As of 2017, this form of advertising is still in the early stages, with different companies experimenting with new strategies to bring marketing content to virtual reality (VR) due to the potential this technology holds for VR ads.

[[Virtual reality]] advertising is a form of marketing communication applied to virtual reality technologies. As of 2017, this form of advertising is still in the early stages, with different companies experimenting with new strategies to bring marketing content to virtual reality (VR) due to the potential this technology holds for VR ads.

While there is still not much information regarding the efficacy of VR advertising, there is a general acknowledgment of the immersive potential of VR ads and their impact on the consumers. Results presented in a study by Ericsson ConsumerLab show that e-commerce - mainly being able to see items in real size and form when shopping - is one of the reasons consumers are interested in VR. <ref name=”1”>Johnson, T. (2017). What can we expect from virtual reality advertising. Retrieved from http://www.cpcstrategy.com/blog/2017/07/virtual-reality-advertising/</ref>

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Some companies have already been using virtual reality technologies for VR advertising and offering VR experiences to users. Cadillac, for example, offers virtual dealerships and Mercedes provides a VR experience for its SL model. <ref name=”1”></ref>

The ability of virtual reality to provide an immersive experience to the users, creating an emotional connection with them, entertaining them, or sharing a message or vision is a powerful marketing tool, thereby enticing companies to invest in this new medium. <ref name=”1”></ref>

The ability of virtual reality to provide an [[immersive]] experience to the users, creating an emotional connection with them, entertaining them, or sharing a message or vision is a powerful marketing tool, thereby enticing companies to invest in this new medium. <ref name=”1”></ref>

However, skeptics of VR advertising say that the biggest challenge will be to increase the consumers’ uptake of VR technology. Nevertheless, those who predict that VR will become ubiquitous are already positioning themselves to drive advertising strategies for the digital landscape of the future. <ref name=”2”>D’Angelo, M. (2017). How virtual reality is impacting the ad industry. Retrieved from https://www.business.com/articles/virtual-reality-advertising-augmented/</ref>

==Virtual reality advertising==

Modern digital marketing techniques are considered to be intrusive, manipulative, and misleading, with banner ads, prevideos, and scroll-throughs increasing user frustration. Indeed, there has been an increase in the use of ad blockers - 30% in 2016 - that has negatively affected the advertising industry. Some analysts suggest that current digital marketing strategies will not survive the next decade, with the advent of virtual reality and augmented reality (AR) also contributing to this outcome. <ref name=”3”>Damiani, J. (2017). VR and AR will be the death of pop-up ads and pre-roll videos. Retrieved from https://qz.com/1089554/virtual-reality-and-augmented-reality-are-the-future-of-digital-advertising/</ref>

Modern digital marketing techniques are considered to be intrusive, manipulative, and misleading, with banner ads, prevideos, and scroll-throughs increasing user frustration. Indeed, there has been an increase in the use of ad blockers - 30% in 2016 - that has negatively affected the advertising industry. Some analysts suggest that current digital marketing strategies will not survive the next decade, with the advent of virtual reality and [[augmented reality]] (AR) also contributing to this outcome. <ref name=”3”>Damiani, J. (2017). VR and AR will be the death of pop-up ads and pre-roll videos. Retrieved from https://qz.com/1089554/virtual-reality-and-augmented-reality-are-the-future-of-digital-advertising/</ref>

Another factor that adversely affects the current digital ad model is that it repels Generation Y and Z, its target audience. These two generations exhibit different traits, but they also have things in common such as valuing community, conversation, authenticity, and a dislike of undeserved impositions on their time and attention. <ref name=”3”></ref>

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===Surge of interest in virtual reality===

While some analyst still question if VR will have a global adoption rate, it is nevertheless a technology that has left the realm of science fiction and entered reality. A contributing factor to the raising awareness of VR is the ubiquity and quality of mobile devices that allow turning smartphones into VR head-mounted displays (HMDs). This is allowing people to get their first experiences of virtual reality without needing specific equipment. Indeed, global search interest for VR on Google has increased. <ref name=”4”>Luber, A. (2016). What virtual reality will mean for advertising. Retrieved from https://www.thinkwithgoogle.com/marketing-resources/virtual-reality-advertising/</ref>

While some analyst still question if VR will have a global adoption rate, it is nevertheless a technology that has left the realm of science fiction and entered reality. A contributing factor to the raising awareness of VR is the ubiquity and quality of mobile devices that allow turning smartphones into VR [[head-mounted display|head-mounted displays]] (HMDs). This is allowing people to get their first experiences of virtual reality without needing specific equipment. Indeed, global search interest for VR on [[Google]] has increased. <ref name=”4”>Luber, A. (2016). What virtual reality will mean for advertising. Retrieved from https://www.thinkwithgoogle.com/marketing-resources/virtual-reality-advertising/</ref>

Since any medium can become an advertising medium, the marketing industry is taking note of this surge of interest in VR and investigating the potential of VR advertising. <ref name=”5”>Pathak, S. (2017). Virtual reality ads are still more hype than reality. Retrieved from https://digiday.com/marketing/virtual-reality-ads-still-hype-reality/</ref>

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An enticing characteristic of VR for marketing purposes is that it permits companies to connect with customers on an experiential level. Brands have experimented with 360-degree virtual reality videos, immersion-style test drives, and brand-related product experiences. For example, BMW used VR video technology to create an ad featuring a 360-degree car race and AT&T simulated a car crash to warn against the dangers of driving while using the phone. <ref name=”2”></ref> <ref name=”4”></ref>

VR and 360-degree video are both compelling tools to create empathy and a greater sense of immersion that can increase the impact of the messages conveyed. However, a deeper level of interaction can be achieved with a true VR experience, something that even a 360-degree cannot provide - where the user is merely the observer. Unity, a VR development company, has experimented with creating specific VR experiences as a form of advertising. They have launched ‘Virtual Room’ which is a sort of ad network that allows brands to place ads across VR apps, and partnered with Lionsgate to create a VR experience for the studio’s movie ‘Jigsaw.’ In the experience, players interact with objects and try to figure out how to avoid being killed. <ref name=”3”></ref> <ref name=”4”></ref> <ref name=”5”></ref>

VR and 360-degree video are both compelling tools to create empathy and a greater sense of immersion that can increase the impact of the messages conveyed. However, a deeper level of interaction can be achieved with a true VR experience, something that even a 360-degree cannot provide - where the user is merely the observer. Unity, a VR development company, has experimented with creating specific VR experiences as a form of advertising. They have launched ‘Virtual Room’ which is a sort of ad network that allows brands to place ads across [[VR apps]], and partnered with Lionsgate to create a VR experience for the studio’s movie ‘Jigsaw.’ In the experience, players interact with objects and try to figure out how to avoid being killed. <ref name=”3”></ref> <ref name=”4”></ref> <ref name=”5”></ref>

Agatha Bochenek, Unity’s head of VR/AR and mobile ad sales, referring to their VR ad for ‘Jigsaw’ said that what they are trying to play with “is doubling down on the things that can be entertainment. So, Jigsaw being a great example—it’s [not just] an ad: It’s a piece of entertainment in-and-of itself. The ad shouldn’t be boring. It shouldn’t just throw, ‘Buy Tickets’ in your face the whole time; it should make you feel what the movie feels like.” Another member of Unity, Julie Shumaker, Vice-president of advertiser solutions, explained that the company likes “to talk about the medium of VR advertising as a responsive storytelling ad. Instead of sitting and passively seeing a display or watching a video for a few seconds, this is a completely immersive and interactive experience, and we're able to value [things like] how does the user actually touch the ad unit itself and, ultimately, how much time did they spend with the brand." <ref name=”2”></ref> <ref name=”3”></ref>

Virtual rooms as VR advertising campaigns differ from other virtual reality advertising such as a 360-degree immersive video; the user can interact with the content whenever inside the VR experience. This means that companies can create unique VR sandbox applications, telling interactive stories that can engage and build a relationship with the customer. An evaluation of the users’ response to the Jigsaw’s interactive VR content found that they experienced a higher elevated heart rate, sweating, and muscle activation associated with smiling when compared to those who only watcher the trailer in VR. This means that the interactive aspect of the VR ad contributed to increase ~~the~~ emotional and physical response of the users. <ref name=”2”></ref>

Virtual rooms as VR advertising campaigns differ from other virtual reality advertising such as a 360-degree immersive video; the user can interact with the content whenever inside the VR experience. This means that companies can create unique VR sandbox applications, telling interactive stories that can engage and build a relationship with the customer. An evaluation of the users’ response to the Jigsaw’s interactive VR content found that they experienced a higher elevated heart rate, sweating, and muscle activation associated with smiling when compared to those who only watcher the trailer in VR. This means that the interactive aspect of the VR ad contributed to an increase inthe emotional and physical response of the users. <ref name=”2”></ref>

===Selling ad space in VR app===

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The first idea shared by the company for a potential format of VR advertising is to present a small floating cube to users which can then choose to engage with it or not. Tapping the cube or gazing at it for a few seconds will open a video player where the user can watch the ad. According to Google, the company wants to create useful and non-intrusive solutions that avoid user and application disruption. The company also intends to focus on some other key principles such as VR ad formats being easy for developers to implement, native to VR, and flexible enough to customize. <ref name=”6”></ref> <ref name=”7”></ref>

This is Google’s first venture into virtual reality advertising, leveraging existing ad formats like a flat video. By doing this, no additional ad budget is needed to create a new format. The company plans to test its VR advertising format on Google Cardboard, Daydream, and Gear VR platforms. <ref name=”7”></ref>

This is Google’s first venture into virtual reality advertising, leveraging existing ad formats like a flat video. By doing this, no additional ad budget is needed to create a new format. The company plans to test its VR advertising format on [[Google Cardboard]], [[Daydream]], and [[Gear VR]] platforms. <ref name=”7”></ref>

Besides Google, other companies have started research to develop virtual reality advertising techniques such as Team One, an ad agency in California. <ref name=”1”></ref>