Will VR Change Advertising?
Virtual Reality has certainly grabbed the headlines over the last several months. Now it seems VR is about to grab – and change – advertising, as well.
Reports WebProNews: “Virtual Reality is in its infancy but will very shortly have a major impact on everyone, especially marketers. Every major tech company is focused on Virtual Reality and because of that the technology has rapidly improved over the last couple of years.”
In fact, last year Digi-Capital released a post headlined: “Augmented/Virtual Reality to hit $150 billion disrupting mobile by 2020.”
The piece continues: “We think VR’s addressable market is primarily core games and 3D films, plus niche enterprise users. VR could have tens of millions of users, with hardware price points similar to console. We anticipate consumer software/services economics similar to current games, films and theme parks, but don’t expect substantial additional data or voice revenues from VR. There could be meaningful enterprise VR revenues, but we think that AR could take more of that market.”
“We think AR’s addressable market is similar to the smartphone/tablet market. So AR could have hundreds of millions of users, with hardware price points similar to smartphones and tablets. This could drive large hardware revenues for device makers.”
How does this connect with advertising?
WebProNews connected with Adam Luber, who runs VR/Cardboard Partnerships at Google.
WebProNews: “Luber explains that VR creates a time machine like experience where what you record now can be played back in the future and it will seem like you were there. For families, VR recordings of your daughters 4th birthday or your own wedding will let you relive the events, bringing much more emotional impact than traditional video.”
“This is why advertisers are so interested in VR. Emotion sells products much more than utility and that reality positions Virtual Reality as a game changer in the advertising industry.”
Indeed, as the piece quotes Stanford University Professor Jeremy Bailenson: “Virtual Reality is not a media experience. When it’s done well, it’s an actual experience said. In general, our findings show that VR causes more behavior change, causes more engagement, causes more influence than other types of traditional media.”