Virtual reality is finally here, and advertisers are looking at how to utilize this new technology.
The advertising industry is always rapidly changing, and technology plays a major role in those changes. It was just a few years ago when phones were not in everyone’s pocket, and now more than 95% of people admit that they are reached by mobile advertisements in the United States.
Virtual reality seems like it’s the next big jump advertisers will take.
Recently, Immersv, a mobile advertising network, showed off its plan for virtual reality advertising. The company is currently targeted at VR developers, who can purchase advertisements in other VR games.
According to the IB Times, Immersv’s advertisements allow interaction by enabling users to virtually “click” by locking eyes. The experience takes the user to an entirely different world, and at the end of the ad, they’re virtually taken to a store where they can purchase whatever was advertised.
Mihir Shah, chief executive of Immersv, told International Business Times that these VR ads work much better than traditional mobile ads. “You get much more engagement in VR than a movie ad,” Shah said. During testing, about 80% of Immersv videos where watched until the end. Only half of mobile advertisements are watched to completion.
There are many companies that are eager to be firsts in the VR adverting industry.
McDonald’s is one of those companies looking to jump onto to the VR bandwagon. The Verge reports that at the recent SXSW festival, McDonald’s demonstrated their VR experience. The user is placed in an all-white room with a paint wheel in one hand and half paint brush half paint gun in the other. While the user paints and makes a mess, the McDonald’s logo flashes from all sides while a virtual Happy Meal drifts around.
Ross Gerber, co-founder of Gerber Kawasaki Wealth and Investment Management, thinks that VR technology will be able to advertise for many different companies.
“I think it’s going to be huge for travel and hotels,” Gerber said. “Imagine having the Sports Illustrated model showing you around the Four Seasons in Wailea.”
“This is not about marketing to baby boomers,” Gerber added. “The younger demographics are all about experiences.”
This new virtual reality technology will be able to literally alter our realities, but marketers will be just as eager to use this breakthrough technology for their advertising needs.