Analytical Report On VR Changing The Scope Of Advertising

With growing demand for virtual experiences, the advertisers are sensing the opportunity to relate with much larger audiences and correlate with them at an emotional level.

According to latest Consumer Tech Preferences survey by GroupM, nearly one in three respondents reported that they own an AR or VR device, and fifteen percent intend to buy this device in the next one year. Apart from that, customers are very enthusiastic about advertising-enabled content experiences. The survey also revealed that 73 percent of respondents are glad to watch regular ads if the content consumed comes at a lower cost.

In other words, as more and more audiences consume content in VR, their acceptance to ad consumption indicates there are genuine opportunities for brands. This blog post explains how VR could transform advertising.

Virtual Reality Advertising

VR advertising involves brands creating and serving immersive Mobile Advertising experiences using VR technology, blending in the ordinary physical and digital ad channels. A VR ad occurs in a simulated 3D world, allowing the viewers to interact with AD content in an undisrupted environment.

It is different from augmented reality (AR) ads, since VR advertising avoids blending the real world with simulated elements. On the contrary, customers are taken to completely immersive virtual spaces to allow the consumption of content detached from their physical surroundings.

VR Advertising Concept

VR advertising is not a new concept, as during mid-2010s forward-looking brands have capitalized on VR to relate with consumers on an emotional level; and delivered rich visual experiences not possible with traditional mediums. A virtual reality video created by Gucci made a great splash in 2017 holiday season and augmented the company’s gift-giving campaign.

Two factors are leading advertisers to VR today than ever before. One, VR headsets have become more affordable and accessible. Devices like Oculus Quest 2 can be bought for $299 USD and there is a fall in prices of PlayStation VR compared to its launch price of $499 USD. VR headsets come at competitive prices in comparison to various flagship smartphones, so are now a consumer item, not a luxury piece.

Two, many companies are working on the development of Metaverse, which is an integrated VR realm with adaptable experiences, multiple use cases; and dependence on AI & blockchain technology. Metaverse allows for seamless VR content consumption, where ads can be easily incorporated into content.

4 Ways VR Will Change Scope Of Advertising

According to a recent PwC report, VR is growing at a high speed all over the world with a 30 percent compound annual growth rate (CAGR). Means, it is growing more than cinema and OTT, allowing abundant advertising and VR Strategies use cases:

VR Powered Ads in the Travel Industry

Ad content in the travel industry cannot really recreate the real look and feel of a holiday destination. Nevertheless, Virtual Reality will change this by allowing brands to recreate complete travel experiences. From virtual sunsets to landscapes, and travel to distant locations, to chats with historic figures, the potential for VR use cases is limitless.

VR in Non-profit Advertising

VR advertising can recreate personal experiences to spark empathy, helping the advertisements to have a deeper impact. A typical example of this is the VR experience developed by Stanford that analyzed the effect of racism and bias in healthcare environments and its potential to cause microaggressions in the workplace. 94 percent of the audience accepted that VR was an effective tool for audience targeting.

Ads in VR Gameplay

Gaming has been one of the top use cases for consumer VR, and it is still growing rapidly as an industry. Brands can work with gaming companies to embed ad content into gaming experiences, the same way real-world brands have used Pokémon Go, to drive customers to their retail stores. Game characters may don branded apparel, and display boards would simulate real-world brands. Moreover, there micro stories in games would present a meaningful brand story.

VR and NFTs

VR offers customers an extra medium to engage with their favorite brands. This is especially true for brands with a consumer base of loyal customers, along with products pricing and utility factors.

Within VR companies can sell 3D replicas of real-world products as NFTs, where customer becomes legal ‘owner’ of the piece. These replicas also act as a piece of permanent advertising, refreshing buyers’ memory regarding brands and their value. Companies like Nike and Adidas have launched many sneaker NFTs as a Mobile Marketing Strategy. These NFTS can be purchased for use in VR.

The Bottom Line

The age-appropriate nature of ad content must be ensured when targeting users. Brands should keep in mind that a whole lot of VR users, especially in gaming, may be children and teenagers. Scaling VR ads is another challenge in front of brands since the medium relies on heavy network consumption.