Virtual Reality And Marketing Opportunities

Advertising trends are growing rapidly and exciting advertising opportunities are within reach. In a previous blog, we discussed advertising trends in 2020 and beyond. As technology gets more advanced, more digital advertising possibilities surface waiting to be seized. In this blog, we will address the emergence of virtual reality (VR) and the digital marketing potential it has.

Digital advertising has an immense spectrum to deliver various touchpoints to consumers and feed marketers with more viable and relevant data for optimization. Virtual Reality has an incredible chance to enhance the consumer experience and incorporate unobtrusive advertising. The travel and hospitality industry, for example, can truly capitalize on this by transporting the user to travel destination. It is still in the development stage but the possibilities seem endless. ANA (All Nippon Airways) has a VR experience available, which is now only used as a sales tool: https://vimeo.com/346186764. As VR develops, advertisers will not be far behind. Most households do not own VR set yet but the technology is catching on. Digital marketers are closely following this development and advertisers are not far behind. Moreover, as VR technology becomes more prevalent costs for units will decrease.

Consumers need to be able to connect with brands and VR can offer an enhanced experience. Greater immersion yields higher engagement. For example, the airline Cathay Pacific, has found success with a 360- degree video that gave users a feel for how it is to travel with the airline. This has resulted in a 29% increase in unaided awareness and in 25% increase in brand favorability. Imagine what the automotive industry could do with this technology?

Virtual Reality and Augmented Reality fall under the umbrella term “Extended Reality” and Facebook has announced that AR (Augmented Reality) is now available to all marketers. What is the definition of Augmented Reality? It is a technology that superimposes a computer-generated image on a user’s view of the real world, thus providing a composite view. It is a very interactive experience for consumers and digital advertising has embraced this technology. It is only a matter of time until Virtual Reality reaches a similar milestone. In 2018, Augmented Reality had a worldwide market size of $5.91 billion. In 2025, it is projected to hit around $118.17 billion (source: Statista).

Of course, as with any new technology, it is bona fide question whether the return on investment will make it worthwhile. Now, VR provides an opportunity to engage with potential consumers within gaming experiences. For this, VR headsets are not required and brands like Wendy’s have leveraged the virtual world of gaming.

Digital marketers will continue to test the boundaries of advertising. Some verticals that could truly benefit from VR marketing could be: 1) Travel. 2) Automotive. 3) Outdoors. 4) Home Improvement. 5) Fashion. This list is not exclusive and more brands will embrace this technology as it improves. It is an exciting time to closely follow this development.

For now, stay safe out there and practice good “real world” social distancing until we defeat COVID-19. If you would like to have more information on how 4Elements Digital can help your marketing efforts then drop us line or call us. Cheers!

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