Virtual reality is a revolutionary technology for business and marketing. It can transform how we connect with customers, maintain an audience, build brand awareness, raise profits, and impact society as a whole.
In this blog post, let’s delve into what many see as the coolest recent development in advertising – Virtual Reality (VR) – and how it is changing how we do business. By examining consumer behaviour and content consumption habits, let’s identify how VR applications will shape future marketing strategies and narratives.
The Rise of VR
VR has reached a fever pitch in the last few years, with 2019 seeing more commercial activity than ever before. Michio Kaku, an American theoretical physicist, summed up the current market stating, “Virtual reality and augmented reality will change the way we shop.”
According to techjury, the VR worldwide market share was $6.1B in 2020, and Facebook has bragging rights as the largest vendor of VR headsets in 2020. The global VR market will be worth $20.9 billion by 2025.
How VR is Changing Consumer Behaviour?
VR is fundamentally changing how we engage with customers, create content and build brands. The technology has the potential to make screen-based advertising redundant, at least in the medium term.
It does this by creating a high user experience that immerses people into environments that are impossible to replicate on a flat-screen. For this reason, VR will become an integral part of how businesses engage with customers through all forms of media channels, including social media, online portals, and even events. There were plenty of VR conferences in 2021. This means that businesses will start creating immersive content for social platforms to encourage users to share branded experiences across multiple media channels.
The use of VR is also expected to significantly impact how brands are built, particularly high-end luxury brands that are often characterized by ‘authenticity. This is why there is a demand for companies like Elegant Media that are at the forefront of creating apps that complement this VR experience. As consumers are increasingly engaging with products through immersive experiences rather than watching videos or reading content, brands will change their marketing approach. This will require more authentic, less scripted approaches to advertising and brand building.
How VR is Changing the Content Market?
With the rise of media consumption, technologies like Netflix and Amazon Video mean that everyone has access to unlimited content today. This has resulted in consumers binge-watching series, consuming up to 10 hours of content per day. As technology advances, VR is likely to make the Video on Demand (VoD) experience more like physical reality by creating virtual worlds that users can feel like they are inside.
This means that content will become less about what’s on your screen and more about what you do with it. This will also be helped by digital natives growing up with an expectation that content is available on-demand and more likely to consume linear content like TV programs on a mobile device rather than using a TV or computer screen. Therefore, VR content will have a more significant impact on advertising and brand building.
The Future of VR Advertising
VR has a significant opportunity to shape the entire industry’s future by delivering an immersive experience that doesn’t exist on traditional digital media channels. Therefore, it is likely that the industry will move from linear TV advertising to more interactive forms of advertising, such as VR advertising, which can be delivered across many different media channels.
On top of this, VR is likely to influence how we consume content and interact with brands through all forms of media. This means we could see a shift in how we spend our time and money in marketing and spend more time in-store with sales staff rather than browsing online stores.
VR technology is still in its infancy, and many challenges need to be addressed before it becomes the norm. However, it is safe to say that VR will significantly change business operations in the short term. With businesses being able to offer immersive virtual experiences and being able to create them, the future of advertising looks very bright. It will be interesting to see how marketers leverage this technology to connect with consumers in new and exciting ways.