Virtual reality is here, and it’s not going anywhere. The technology has reached a turning point where it is at such a low price point that it is accessible to the average consumer and there are enough providers of VR experiences to make it enjoyable.
At this point, companies have the opportunity to take full advantage of the situation and capitalize on this new marketing medium. But as with anything, very few will be willing to take the risk and the majority will look back with regret.
What is virtual reality?
Virtual reality, or VR, is viewed through a headset that blocks out the outside world entirely, immersing you in a screen directly in front of your face. This is linked to hand controls and moves intuitively with your head.
This means that you can be transported to another world where you can walk around, see new things and interact with different objects. All of this is made possible by using 3D models and sophisticated video engine software that can create immersive experiences.
VR And Advertising
One possibility that has been used extremely rarely so far is to include traditional advertising within virtual realities. This could be as simple as having a small banner ad in the corner of your vision that disappears after a few seconds.
However, the possibilities are endless and companies have already talked about using product placement in the same way that TV shows earn revenue for including a can of Coca-Cola or Pepsi.
It’s not unrealistic to think that the creators of these virtual reality environments will team up with advertisers during the creation process to generate revenue. This would allow them to release the VR environment for free, ultimately increasing the number of people who could use it.
Immersive Experiences
Many people only have the opportunity to experience VR at a mall booth or trade show. Companies with huge advertising budgets are using VR to allow visitors to walk around virtual showrooms and interact with their products.
NASA wanted to show off their rocket technology at SXSW in 2016, but transporting a humongous spaceship wasn’t a realistic option. Instead, they created a VR experience that allowed viewers to tour it virtually instead.
You could make the argument that this was far better because NASA could include visual and audio information during the VR experience to add extra value. Plus, VR is still a new technology so it is far more exciting for viewers.
These immersive experiences can be used by all types of companies. If you are a car manufacturer, you could show people how you create the car and enable them to see directly inside the engine so they can understand how it works. As a real estate developer, you could let your investors physically walk around a virtual apartment rather than showing them a digitally rendered video. VR gives viewers much more perspective and makes it easier to understand what they are purchasing.
Virtual Events
Intel recently held a live presentation where the entire audience was asked to wear virtual reality headsets. Everybody was physically at the event, but they were also within a virtual reality. By doing this, Intel could add in digital objects, effects, information and enhancements that turned a standard presentation into an immersive and fun event that attendees wouldn't soon forget.
I expect to see major adoption of virtual events in the coming years because it will improve presentations so drastically. Rather than having to bring physical objects to show the audience on a screen, you could create a virtual version that each audience member can "hold" and interact with. Imagine how amazing the latest phone release would be if you could see it through a VR headset as if it were in your hands. You could interact with it, look at the dimensions and see how it looks up close, all from the comfort of your seat.
Why is this such a huge opportunity?
First of all, few companies are using virtual reality right now, especially outside of the tech industry. This gives plenty of businesses the opportunity to be the first to introduce VR as a marketing technique.
Not only is VR enjoyable, it’s also becoming more common for consumers to have their own VR headsets. This opens up the possibility for companies to create immersive marketing experiences that consumers want to watch. It's equivalent to creating an advertisement that people watch optionally, just because the medium is new and gives advertisers the ability to create something interesting.
"Imagine being one of the first companies to play a TV and having consumers flocking to watch an advertisement, just because they wanted to see the TV," said Spenser Baldwin of Snap Agency.
Every time there is a vast technological leap like VR, there is a massive opportunity for companies who are willing to take the risk and invest in a new marketing channel. It’s impossible to know who will be the major winners, but I’m confident that decades from now we will look back and wish we took full advantage of the situation.
