Virtual Reality Advertising: Use Cases, Examples and Benefits to Businesses

Virtual reality technology is rapidly growing across various businesses driven by the demand for immersive, interactive experiences and technological advancements. Instead of just seeing a product, imagine fully immersing yourself in it, making it part of your experience. This is the power of virtual reality advertising—allowing users to connect with products on a deeper level, creating unique, memorable experiences that go beyond traditional ads. As technology evolves, the VR advertising market is expected to reach $174 million by 2024 and expand to $186.1 million by 2029, according to Statista.

Companies are seeing VR as a powerful tool to engage their audience, create lasting brand experiences, and boost sales. In this article, let us find out how virtual reality and advertising go together, share real examples, and examine how it is changing business relationships.

What is VR Advertising

VR advertising uses virtual reality technology to promote brands, products, and services by creating immersive and interactive experiences. Unlike traditional ads, VR ads engage consumers through headsets and controllers, allowing them to explore virtual environments. This approach helps brands stand out from a crowded advertising landscape. Furthermore, it makes marketing campaigns more memorable and effective in capturing consumer interest and loyalty.

VR Advertising: A Unique Approach to Marketing

IMMERSIVE AD CAMPAIGNS

Immersive VR ad campaigns are transforming how brands connect with consumers by offering interactive and personalized experiences. For instance, VR technology can create fully immersive product showrooms or even build social and gamified worlds where consumers can engage with the brand on a deeper level. A notable example is a luxury car manufacturer that developed a VR experience simulating a drive-through scenic route in their latest model. This campaign was accessible in showrooms and at select public events, allowing customers to experience the car’s performance in various environments.

Escape the Mission for instance is an app developed by AnotheReality in collaboration with LatoC to support the advertising for the release of the new Nissan Juke model. The app incorporates gaming, virtual reality (VR), and augmented reality (AR) to interact with users and assist in choosing the product.

BRAND STORY TELLING

Unlike traditional media, where consumers passively watch or read a story, VR enables them to be active participants, experiencing the brand’s message firsthand. For example, TOMS, the shoe company, used VR to take customers on a virtual journey to Peru, showing how their purchase of TOMS shoes helps children in need. This “Virtual Giving Trip” experience not only conveyed the brand’s mission more powerfully but also fostered a deeper emotional connection with the audience.

Statistics highlight the effectiveness of VR in storytelling. Research by YuMe and Nielsen in the neuroscience-informed research report found that VR elicited a 27% higher level of emotional engagement than a 2D environment and a 17% higher level of emotional engagement than a 360-degree video. Thus, VR storytelling can drive consumer engagement and strengthen brand loyalty by offering unforgettable, interactive experiences.

IMPROVED CONSUMER INTERACTION

Virtual reality in advertising and marketing will be very different from traditional advertising. Developers and designers are creating innovative ad campaigns, focusing on user involvement and immersion. For example, a renowned fashion label hosted a VR-enabled runway show, allowing a global audience to virtually sit front-row. This approach expanded the brand’s reach, making high fashion more accessible and inclusive. Also, in VR ads, metrics like head movements and engagement points provide valuable insights into what aspects of the experience resonate most with users.

VIRTUAL PRODUCT DEMONSTRATION

Virtual product demonstrations using VR allow consumers to interact with products in a simulated environment, showcasing features and benefits that are hard to present in real life. This method is particularly useful for complex items like medical devices or industrial equipment. 

SurveyMonkey for instance used a VR demonstration to highlight its product’s ease of use and integration with platforms like Slack. Although lengthy, this VR demonstration effectively illustrates how SurveyMonkey fits into users’ daily routines, providing a clear and interactive understanding of the product.

Benefits of Virtual Reality Advertising

1. Improves Customer Engagement

The primary reason brands use VR advertising is to boost customer engagement and foster brand loyalty. VR ads capture attention by mimicking real-world scenarios, allowing consumers to interact with products in a virtual environment. This immersive experience makes online shopping more engaging, as it offers a realistic preview of products or services, enhancing customer interaction and increasing the likelihood of loyalty to the brand.

2. Takes Advantage of ‘Try Before You Buy

Convincing customers to make a purchase can be tough if they can’t see, touch, feel, or experience the product. Virtual reality (VR) helps businesses overcome this challenge by allowing customers to “try before they buy.” This makes them confident of their purchase. For example, Volvo uses VR to provide virtual test drives using smartphones. This lets people experience the feeling of driving a Volvo before deciding to test drive or buy the car.

3. Easily Introduces New Products to the Market

VR enables you to show off new products to your customers in an exciting way. You can use VR to create an interactive shopping experience and present your products virtually. This helps customers connect with your brand on an emotional level, which can make them more likely to stick with your brand and buy more from you in the long run.

Patrón Tequila used VR well to launch a new product. They made a VR video that takes you through the whole life of their product using computer graphics and live action. This is a great example of how VR can help introduce a new product to customers and make them trust the quality you’re offering.

4. Reduces the Language Barrier

Overcoming the language barrier can be a major challenge when creating advertisements for any business. Using virtual reality, one can personalize a simulation to cater to all customers. Communicating with clients from diverse linguistic backgrounds can be difficult. However, with VR advancements, it’s now simpler to eliminate language barriers in marketing efforts. VR in advertisement creates content that resonates with customers worldwide, irrespective of their language.

5. Higher Rates of Ad Conversion

When you incorporate VR ads into your marketing campaigns, you can expect even more conversions and higher engagement compared to traditional methods like text-only landing pages. VR allows customers to virtually try products, increasing their likelihood to purchase. Additionally, VR ads, especially 360-degree formats, tend to hold users’ attention better than standard ads, leading to improved engagement and, ultimately, better conversion rates.

Examples of Virtual Reality Advertising

1. OREO

Mondelēz, the company that owns OREO, collaborated with 360i to produce a 360-degree video showcasing a whimsical world of cupcakes and cookies. Virtual reality aimed to narrate the story of OREO’s diverse flavors, with a special focus on introducing their new Filled Cupcake and evoking emotional connections through a journey inside their “Wonder Vault.” This creative approach effectively reinforces the brand’s longstanding ability to delight consumers’ palates while generating interest among Oreo enthusiasts regarding introducing new flavors.

2. Adidas

Adidas developed an innovative way to promote its outdoor apparel and accessories line, TERREX, by immersing viewers in a VR landscape alongside world-renowned mountain climbers. In this unique experience, viewers can join extreme athletes Ben Rueck and Delaney Miller on their exhilarating mountain-climbing journey, virtually scaling the challenging terrain of Delicatessen using VR headsets and sensory remote controls.

3. Qatar Airways

Qatar effectively used virtual reality and advertisement to offer a near-real experience of the new level of luxury provided in their business class suite. The advertisement features a 360-degree virtual tour of the business class cabin, allowing viewers to virtually experience one of the most luxurious business class seating environments. The VR video offers viewers the opportunity to explore the cabin from every angle and experience its comfort firsthand, accompanied by soothing background music.

4. Walmart

Walmart has developed an immersive “in-store” shopping experience that showcases the future of retail technology. The recently released behind-the-scenes video provides an insight into this innovative approach to shopping. In the virtual reality (VR) tour, customers can enjoy a lifelike shopping experience within a Walmart store. By donning a VR headset, they can browse, select, examine product details, and add items to their cart. Additionally, they have the freedom to remove items from their cart and view a running total of their bill. Walmart aims to captivate and involve customers by introducing them to their VR store using this engaging technology.

READY TO GET STARTED?

The future of virtual reality in advertising holds immense potential as technology becomes more advanced and accessible. Despite current challenges like motion sickness and lack of standardization, the evolving landscape promises innovative and engaging campaigns that will create unforgettable consumer experiences. With the right creative approach, VR can significantly boost brand engagement and purchase intent.

Ready to explore VR ads? Out expert VR team, a leading VR development company, is ready to guide you through an immersive 3D experience.