How Virtual Reality Is Impacting the Advertising Industry

Virtual Reality

The world is changing with virtual and augmented reality. Full immersion allows users to experience the stories they have always wanted, travel to exotic places without ever leaving their homes, and interact with products like they are in real life. Virtual reality advertising is a type of marketing that uses technology and immersion to give customers a real-world experience with the company’s products or services.

According to eMarketer, 60.8 million users in the United States have access to virtual reality devices. The market for VR is growing steadily. Find out how advertisers can create a new market for their brand in virtual reality.

How VR is Impacting the advertising industry


Virtual reality has made window shopping obsolete. Virtual reality allows customers to visualize what their dream sofa would look like in their living room, the appearance of the latest makeup on their skin, and even the way their favorite shoes would look from their perspective.

Virtual reality campaigns have been implemented by companies like Gucci, L’Oreal, and IKEA. Customers can place company products in their rooms using their smartphones. This allows them to get a better idea of what the product looks like before even going to the store. L’Oreal offers a virtual makeover app called Makeup Genius that allows customers to choose from a range of hair colors and makeup styles using their phones’ cameras. Gucci’s app had briefly a filter that allowed customers to see the new Ace shoes on their feet. This filter was later made universal for Snapchat, giving users greater access.

Also read: 12 B2B Marketing Trends You Need to Know at the Right Time

Branded AR filters

Social media users are increasingly using AR filters to create custom AR filters. Instagram and Snapchat have made it possible to create AR filters that any user can make. To promote their brands through augmented reality, companies have created their own filters. Coca-Cola Poland, for example, created a filter that shows a virtual version of their polar bear mascot in the room.

AR filters are used by brands to encourage consumers to use them and to spread their use to their friends on social media. Prada, for example, has used VR advertising techniques in the past. In 2020, the brand used the technology to make a random acronym from their company name and share it on social media. AR filters can create awareness across all media with little effort. Users simply need to create a filter that they can interact with and have fun with.

Virtual rooms

VR allows companies to interact with customers on an emotional level. VR can be used to create 360-degree virtual reality videos, immersive test drives, and other brand-related experiences.

The inherent advantage of VR advertising is that it doesn’t distract from traditional marketing. Companies are encouraged to produce high-quality content that engages the viewer for as long as possible. Virtual rooms are different from other forms of VR advertising, such as a 360-degree immersive experience. The user interacts with the content throughout their time in the virtual room.

Storytelling and the VR approach

Advertising in virtual reality has a new type of storytelling at its core that attracts both advertisers and users. Traditional media supports linear storytelling. There is a clear beginning, middle, and end to the entire advertisement. VR allows the user to be autonomous within the story and can view and move anywhere.

Immersive storytelling plays a key role in the development of VR technology. Different companies offer education to brands about how to use VR and responsive storytelling in order to improve a company’s brand.

Future of VR and advertising

Empathy can be increased through in-person experiences

VR advertising allows for the creation of in-person experiences that drive empathy, allowing future ads to have a greater impact. These marketing strategies are more effective at capturing an audience’s emotions. They go beyond someone sitting on a couch watching a television ad. The personalized VR advertisement will capture more positive emotions. The more the ad engages viewers and has an impact on consumers, the better. Companies can get more advertising for their VR ads by sharing them across multiple media on the internet.

Also read: 4 Ways to Improve Your Facebook Ads Conversions

Virtual engagements rather than in-person events

The COVID-19 pandemic has prevented many events in person from taking place over the last few years. Virtual engagements offer a great alternative. Virtual online meetings not only address safety concerns but also lower shipping and travel costs. These decisions might be viewed by consumers as tech-savvy and forward-thinking. Virtual reality engagements offer great networking opportunities. Users can create tools to personalize their avatars and host virtual exhibits. A company can reach a wider audience by engaging virtually. Customers who are unable to travel long distances to attend a large company event may find it difficult to get there. However, If everyone can access an event virtually, there will be more people available for the virtual engagement.

Ad monetization

In the last few years, VR advertising has seen a surge in popularity and engagement. The quality of VR advertising is higher than traditional advertising methods in terms of brand recall, impressions, and other metrics. Immersion is a key factor in advertising in the virtual universe. It can generate high engagement with different ad types, and offer companies the opportunity to expand their marketing horizons. In-app purchases are another avenue for revenue, especially as virtual advertisements continue to gain popularity. VR follows the same path as video, mobile apps, social media, and games. As the platform matures, VR will see similar patterns in ad acceptance.

VR and AR are still in development

Although virtual and augmented reality is new technologies, they are still in development. This tech is expected to revolutionize the way people consume media. Advertising and marketing will follow if this tech does develop and become a major entertainment medium here in America. Advertisements won’t ruin a user’s experience if marketers are able to self-monitor. Instead, integrated ads and immersive virtual room-type experiences will let consumers interact with products while they are enjoying the content.

The interest [in VR] “VR is very popular,” Julie Shumaker is senior vice president of revenue, create at Unity Technologies. She said that unlike most ads, which are almost entirely driven by agencies, Instead, it seems like a consumer experience driven primarily by the brands. “

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