How Virtual Reality Is Shaping The Future of Marketing

Virtual reality (VR) is a computer technology that uses virtual reality headsets, sometimes in combination with physical spaces or multi-projected environments, to generate realistic images, sounds, and other sensations that simulate a user’s physical presence in a virtual or imaginary environment. A person using virtual reality equipment is able to ‘’look around’’ the artificial world, and with high quality VR move about in it and interact with virtual features or items. VR headsets are head-mounted goggles with a screen in front of the eyes. Programs may include audio and sounds through speakers or headphones.

Virtual reality has created new customer experiences and demonstrated clear business value in applications ranging from fashion to real estate. The technology is still in infancy, however, and many enterprises are still assessing its longer term impact.

VR Marketing Terminology

Hed-Mounted Display (HMD): General term for VR machines that mount on a viewer’s head.

Call to Action (CTA): Instructions for what someone should do to convert.

Gaze-Through Rate (GTR): When someone stares at an ad CTA long enough to activate it.

2D (Monoscopic): Standard video format for television, Netflix, YouTube, etc.

3D (Stereoscopic): Video shot with two views with one presented to each eye; gives illusion of depth.

360: Videos that allow viewers to look around a 360 degree area of the video; similar to looking around in a first-person video game.

VR Brands

Oculus Rift

Owner: Facebook

Founded: 2012

Units sold: 3,600,00 (estimated)

Cardboard

Owner: Google

Founded: 2014

Units sold: 5,000,000

PlayStation VR

Owner: Sony

Founded: 2016

Units sold: 2,600,000

Vive

Owner: HTC

Founded: 2016

Units sold: 140,000+ (2,100,000 estimated)

VR Might Be The Next Big Thing For Advertising and Social Media

According to Facebook, millions of VR users watch 360 videos every day. 360 videos on YouTube also receive millions of views with highly positive reactions. Dynamic streaming makes it possible for users to view 360 videos with immersive resolutions. IKEA launches VR experience on steam, allowing users to walk around and interact with objects in a virtual kitchen.

VR Adoption rates

There are 43,000,000 VR users worldwide. 44% of people are interested in VR. 35% of people have at least ‘’heard of’’ Oculus Rift.

VR & Mobile

There are 10,000,000 downloads of Google Cardboard app. 98% of VR headsets sold are mobile devices. 250+ VR apps on Google Play.

The Growing Reality of VR

The American VR User

The number of VR companies grew 40% in 2016. The VR fund Q1 2017 VR industrry landscape:

VR UK Map

VR & Marketing

81% of people who try VR would tell their friends about it. 73% of Gen Z says they’re interested in VR. 66% of consumers want VR shopping. 53% of adults would buy from a brand that uses VR over a brand that doesn’t. 30% of B2C companies on Forbes 2000 will use VR marketing in 2017.

VR marketing strengths: Immersive storytelling, product demonstrations and content marketing expansion.

VR activities have unique ‘’Emotional footprints’’. Watching a live event in VR generates the highest ratings for ‘’Happy’’ and ‘’Energetic’’ when compares to playing a VR video game, or watching a VR video or movie.

VR Brand Successes

Destination of British Columbia

Created a VR experience of the Great Bear Rainforest

Results: 5% increase in visitors

Marriott

Offered VR room service with ‘’VR postcards’’

Results: 51% of people said they wished they said at Marriott hotels more

Thomas Cook

Offered VR flyover of Manhattan skyline

Results: 40% ROI; 190% increase in NYC excursions

The Future of VR

1. See the Future

Predictive computer programs, praised with VR, will let users play out prospective scenarios, allowing them to visualize – and optimize – what comes next.

2. Boost Productivity

The integration of drone technology with VR will facilitate the creation and operation of fully autonomous factories in previously uninhabitable locations.

3. Maximize Collaboration

Virtual networks will enable hyper-realistic social environments so that those looking to combine creative resources can do so in a fun, easy way.

5. Skip Traffic

Commuting to work will be a thing of the past – your virtual workplace will ‘’commute’’ to you.

6. Revolutionary Retail

Virtual or holographic home goods, apparel, and footwear will be the primary means by which customers make purchasing decisions.

7. Boundless Benefits

No longer predominantly for gaming, VR will be used regularly for shopping transportation, healthcare, workplace, collaboration, and more.

8. Come Together

Social VR platforms built to support new, innovative means of communicating will heavily influence mainstream adoption.

9. Knowledge Is Power

The driving force pushing VR into mainstream will center on education – for both consumers and professionals.

10. Limitless Potential

Commercial VR will permeate every aspect of our lives within the next 10 years.

VR will become more important tool in the workplace, as the technology has bloomed enough to enhance enterprise processes and workflows. Brands and businesses will engage customers with stimulating VR experiences that educate and entertain. Consumers will start becoming active participants instead of passive bystanders, strengthening their relationship with businesses. Massive investments by corporations, large potential audiences and integration into big brands’ marketing campaigns, all these demonstrate that VR is set to have a transformational impact on how both people experience the world and how brands interact with consumers.

Sources: Intel, Thomas Cook, Marriott, Destination of British Columbia, Centric Digital, SuperData, The VR Fund, Skilled, TDMB.