VR is the Future. Or is it?

Virtual reality has quickly become a common household accessory, and a lot of brands and social platforms are getting in on the action. But is VR the right marketing move for your business? Maybe… or maybe not.

In this article, we’re going to take a look at all of the awesome uses of virtual reality in marketing—and whether or not VR could be the right strategic move for your brand in particular.

What is virtual reality?

Virtual reality (VR) is when a user enters a new experience or world through digital content. This can be something “small” like a virtual tour of a house or hotel, or it can be fully immersive where they’re completely brought into another world with the use of 360-degree technology.

In this article, we use the terms virtual reality and augmented reality interchangeably, although they’re slightly different. Virtual reality is when the user is inside the experience, like they’ve put on a headset and transported to a new land.

Augmented reality is when you place content into the “real world,” like the popular Pokemon Go example. In the case of AR, people use their devices to integrate content into their everyday lives. AR is actually more popular for content marketing, but VR is quickly ramping up as headsets become more commonplace.

What is VR video?

Virtual reality video is a specific type of VR marketing strategy that a lot of bigger brands have started to implement. Companies are utilizing VR video to interact with and engage their audience in novel ways. You create a video with 360-degree tech that allows users to feel like they’re physically in that world by putting on a headset or other VR device.

VR video has become a tool for both physical storefronts and online businesses. Storefronts are using in-house VR experiences to bring in foot traffic and create a unique experience. Online businesses are providing VR video options so customers can feel like they are in the store, touching and holding and trying on the products.

Is VR video worth implementing in your business? That’s the question we’ll look into below.

What are the pros of virtual reality video?

1. Big players are adopting VR video.

Big brands and social platforms are investing in the virtual reality space. Facebook has already rolled out Oculus Go, which even includes Oculus “Rooms” where you can virtually hang out with your friends. Apple uses AR with their animoji feature. Zillow allows you to take 3D tours of homes that are listed for sale.

When big players, especially social media platforms, start adopting something, it’s time for brands to take note in turn. These organizations usually don’t do anything without a purpose, so their research is telling them that VR is a strategic business move.

As it becomes more commonplace on social media as well, it will start to be more accessible as a marketing platform in tandem. That means more watchers will have access to consuming VR, and more brands will have a place to put this VR content.

2. VR is an innovative medium.

If you want to really “wow” your audience, VR is the way to do it. There’s no other marketing medium out there that’s quite as interactive and engaging as VR or AR.

And since most businesses aren’t using VR video, the ones that do use it stand out.

For example, NASCAR debuted a live VR, 360-degree video for their fans to watch championship races. The VR puts them inside the pre-race events, offering unprecedented access to behind-the-scenes looks on race days. If fans can’t make it to the race, they can still get “in” on the action—so NASCAR can ensure they’re remaining top of mind with their fans.

Because VR is so interactive, it’s showing a high rate of engagement and immersion that tends to lead to better recall and enhanced conversion rates. We’re excited to see what VR will continue to do for advertising metrics as implementation becomes more widespread.

3. It’s becoming easier for consumers to participate in VR.

Virtual reality used to be solely headset-based. If someone didn’t own the applicable headset and apps, they couldn’t see the VR content. But now with advancements in VR and AR, consumer interaction can extend past just headsets.

Both virtual and augmented reality are now allowing consumers to participate without a headset simply by using their mobile devices or computers. What was once the biggest barrier to entry—technology—has become as commonplace and accessible as the mobile device you hold in your hands.

Regardless, headsets are still a big part of virtual reality content consumption. Statista experts anticipate there will be more than 82 million active headset units by the end of 2020, and that’s just the beginning. That means brands will have the option to use mobile-based AR and/or headset-based VR to reach consumers in new and exciting ways.

Overall, it seems that there is an appetite for VR—from both consumers and brands alike.

(An appetite in the public doesn’t mean it’s right for your brand, though. You want to make sure there’s an appetite in your target audience specifically, which we’ll discuss in depth below.)

What are the cons of virtual reality?

The future of virtual reality is pretty much unknown. It’s still a risk to move to a VR video strategy… and it’s not an inexpensive risk, either.

Ultimately, the future of virtual reality depends on its adoption by the masses and how easily available the tech will be moving forward. As it currently stands, access to VR is low for most of your target audience because of the high price of headsets.

In addition, simply convincing people to get involved isn’t always the easiest. VR already needs to be a part of daily life in order for it to be an effective marketing strategy. Social media marketing wouldn’t work if social media didn’t first establish itself as a “must” in our everyday lifestyles. Even TV ads wouldn’t exist without television itself being so prevalent. In like, VR has to make it into the commonplace lifestyle in order for it to show efficacy with marketing.

Highlights of concerns with VR include:

• High costs of tech to create VR video
• Convincing audiences to put on a headset or get involved
• Uncertain future and longevity
• Uncertain (un-analyzed) return on investment

We’re noticing that a lot of early adopters of VR video are simply doing it to claim the status of “early adopter” in case VR hits it large. However, we’re not seeing a major return on investment in terms of ad spend or consumer loyalty as of yet.

That doesn’t necessarily mean the investment is bad… It’s just uncertain at this point.

How are people using VR videos in marketing?

VR video has become a hot marketing tool in a variety of industries. We’ll take a look at the five most popular uses for marketing virtual reality videos.

1. Events

A lot of brands are using VR video to give online fans a chance to go behind-the-scenes or be a part of the experience with some sort of event. This could be anything from the NASCAR race mentioned above to backstage at a brand’s fashion show to even letting “online attendees” walk through vendors at an international conference.

VR video is most effective if you want to engage fans who can’t be physically present at an event and/or you want to enhance the experience of participants at the event itself.

2. Tourism

A lot of travel businesses are using VR as a way to entice visitors to use their service or travel to their destinations. For example, you can take a tour through an Austrian museum or visit a beach in Australia. (See more examples here.)

Some companies will even let you go through an “experience” with your headset with the hopes you’ll be so entranced, you’ll have to book a ticket there. For example, The Wildlife Trust of South and West Wales has been marketing Wales as an eco-tourist destination with 360-degree experiences diving with a dolphin or flying with a kingfisher. It’s hard not to fall in love with a place (and want to visit0 when you’ve “experienced” it firsthand.

3. Real estate

360-degree videos are becoming a popular use of VR, especially since there are a lot of online platforms that make it easy to use without a headset. 360-degree cameras can map out entire homes, so you can actually “stand” in a room and look all around—from the comfort of your home. There are no “hidden” spots that you worry about when looking at flat, 2D images of a home. You can feel and experience it as though you were at an open house in person!

Zillow is working to further roll out their 3D home virtual tours, so consumers will be able to “walk through” Zillow listings right from the comfort of their own homes.

4. Home décor/improvement

Home improvement companies like Ikea and Lowe’s are using VR systems to help consumers envision their dream rooms with potential furniture or design pieces. Many of these AR systems let you hold up your phone in the room you’re designing, and you can place furniture and elements throughout the room—and they’ll actually stay in place as you move around. Lowe’s Holoroom actually lets you create your dream room in-store, so you can feel confident about your design choices during a renovation.

5. Retail

A lot of retail stores are using VR to either entice people into the stores for a unique experience and/or allow online customers to get the feel of a store as though they were shopping in person.

This includes everything from virtual dressing rooms to in-store experiences and events, like Barney’s New York spring fashion show. We expect that you’ll see a lot more augmented reality hitting storefronts, especially those in major cities looking to attract foot traffic.

Should your brand use VR video?

Using VR video is a novel and unique way to engage with your audience. Not a lot of businesses are using VR video, so that would put your VR video (and your brand’s marketing strategy) at a competitive advantage.

However, there’s a lot that goes into VR video. Not only does your business need access to 360-degree cameras and VR editing equipment, but your consumers also need to have the applicable technology (like headsets) to engage with that content.

Whether or not you should use VR video comes down to a few questions:

1. How invested and involved is your audience in VR? Have they already adopted it on their own? Would your brand have to convince them to use VR (in addition to convincing them of your brand itself)?
2. How will you use VR video? Will it be usable on any device, or do your consumers need headsets and specific equipment?
3. What will the benefit of VR video be for your brand specifically? What can/will VR provide to your audience that you can’t do through other channels?
4. Are you willing to take the risk to invest in VR video if your audience isn’t outwardly asking for it?
5. How much risk are you willing to accept to be on the cutting edge of your industry?

So…

Should or shouldn’t you?

Virtual reality is inevitably the future. We anticipate that more and more businesses will adopt VR into their marketing and sales campaigns, especially as it becomes a more commonplace aspect of everyday lifestyles.

Right now, though, the world of VR video marketing is still somewhat up in the air. It can work really well in specific instances, like showing off a home listing in 3D or letting consumers “try on” your clothes at home.

But, for most businesses, virtual reality might not be a viable option right now. And that’s okay

Even if VR video doesn’t seem like the right choice for you today, it’s important to keep it in mind as it continues to grow on social media platforms. If there’s a major uptick in usage, it might be worth considering.

If you think VR video might be right for you, we have some good news for you. You don’t need to invest in all of the expensive equipment and skills trainings. True Film Production is constantly experimenting with visual storytelling opportunities including 3D videos, live streaming, animation, and more.

Contact True Film Production right now to start strategizing your brand’s marketing plan. We’re excited to begin telling your story with you!