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New Study Proves Effectiveness Of Brand Marketing In Virtual Reality

Stacy Jones | January 3, 2017 at 9:29 AM
Stacy Jones

Is Virtual Reality The Future Of Product Placement And Advertising?

Airpush, makers of the virtual reality platform VirtualSky, has teamed up with POST cereal, PETA and CharityWater to release the first study of its kind into the effectiveness of brand marketing in virtual reality. 

What they found could be big news for brands looking to expand their entertainment marketing strategy into the new and developing world of VR. In fact, according to the study, brand recall was at least 8x more effective across all brands with immersive VR as well as double the intent to share.  In this blog, Hollywood Branded looks at how the recent study on brand recall in virtual reality is, proving how effective product placement in the medium is and how it may be changing the way brands choose to market themselves.


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Virtual Reality: The Billboards Of The Future

Virtual reality, or VR for short, used to be something made up by creative writers in Sci-Fi movies. But with the release of Google's new made-for-VR phone as well as the Samsung Gear VR tailored to fit their devices, it's becoming more and more clear that VR will soon be a big part of our culture. 

It's no secret we here at Hollywood Branded are excited about the future of marketing and product placement in the world of VR. (Check out our blog post, Virtual Reality - The Future Of Product Placement) And this new study is even further proof of why you should be too. 

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ExperienceAds, Airpush's groundbreaking new platform for advertisements in VR, is designed to provide users with immersive ad experiences during breaks from gameplay or app use. The study was meant to investigate the effects of VR ads on viewers and proved that it was more effective across the board at brand recall, between 1.5x to 18x, which is a very significant improvement.

According to the study, much of this was due to the elimination of distracting surroundings as well as the novelty of the technology itself and its immersive experience, encouraging brand marketers around the world looking to get into the VR space.


What Does This Mean For Product Placement?

Proving the effectiveness of brand recognition in VR paired with the knowledge that product placement is more effective than traditional ads only goes to show that product placement in VR is the way of the future.

While more traditional ads are being tested now, we know many users choose ad avoidance with premium versions of games and apps as well as streaming video on demand. Brands know this - and many of those that are incorporating VR into their marketing strategy have chosen to do so with product placement in popular video games.

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One of the highly innovative brand marketers to be at the forefront of technology and trends is actually movie studios themselves.  They know the power of using content to bring awareness and engagement - even in The Secret Life of Pets a movie poster brands the back of a truck for the Christmas holiday release of Sing.  Movies also have always also pursued branding opportunities in video games based on the proven heightened awareness.  Posters for Despicable Me have been seen in popular video games as well as logos of brands on things like trucks, t-shirts and many more. In an immersive virtual experience, these brands' recognition is amplified.


Is Virtual Reality Marketing Right For My Brand?

A few years back, people were hesitant to get involved with virtual reality, worried about making an investment in a technology that may not pan out. Those days are officially over. VR is becoming a larger part of our everyday lives and there are so many opportunities for brand integration - especially for a Millennial and Gen X market.

Not only will you be effectively and creatively marketing to consumers, but you will be a part of groundbreaking technology - something that has been proven to improve brand perception to consumers of all ages. And because the concept is so new, there are plenty of opportunities to be had.


What To Do Next

Before you spend another dollar on traditional advertising, consider the use of product placement/brand integration in your entertainment marketing strategy. Watch our video to learn techniques to conquer common advertising challenges!

Learn solutions to 5 common advertising challenges

Topics: Social Media Strategy, Benefits

Stacy Jones

Written by Stacy Jones

Stacy, our agency’s founder, has over twenty years of leadership experience building global entertainment branding campaigns for top Fortune 500 companies and hundreds of brands. Her career started after receiving her BFA in Theater Production & Scenic Design from the University of Arizona. Acknowledged as an expert in the field, she has appeared on CNN and MSNBC; spoken at conferences around the globe from Germany to Beijing; and has been featured in Forbes, The Wall Street Journal, The Hollywood Reporter, Financial Times, The Economist, Brandweek, Advertising Age, Variety, B&C and Mediaweek amongst others. Originally from Texas, you will still hear her ya’ll as she gathers the team for strategy planning sessions. Like all true entrepreneurs, Stacy is an adventurer at her core – having sky dived, hang glided off bi-planes, swam with crocs while rafting the Zambezi in Africa, photographed grizzly bears in Alaska, trekked Mayan ruins in Belize, explored the ocean as an avid scuba diver, and who loves owning an advertising agency where she swims with a different type of Hollywood shark on a daily basis.