Virtual Reality Advertising: Coming To A Headset Near You?
How big is VR going to be? According to a recent report by Goldman Sachs, virtual reality (along with augmented reality) is forecast to become an $80 billion market by 2025. As this budding medium quickly grows, advertising will undoubtedly play a big role. The question, though, is in what form? A new virtual reality advertising network launched last week by Flo VR gives us a glimpse into the possibilities.
What Is Flo VR?
Flo VR was started and is run by Roger Perry, a serial entrepreneur with over ten years of experience in the Canadian advertising industry. With Flo VR, Perry is aiming to provide a new way for VR brands and advertisers to connect with consumers by doing so directly through apps and games.
Wait, you might be saying. Are consumers really going to okay with directly advertisements in the middle of their games? Well, the answer to that might surprise you…
A Novel Approach To Virtual Reality Advertising
In-game advertisements may seem likely to bother users. Although, in a vacuum, this is true, what Flo VR has learned is that the majority of gamers are open to engaging with advertisements if there is personal benefit to them. Specifically: in-game rewards.
In a blog post last week, Perry revealed the results of a recent survey his company conducted. Among Flo VR’s discoveries, two things stood out:
- Nearly 80% of players confirmed they are open to engaging with video ads for in-game rewards.
- User conversion rates when rewards are involved are between 60 to 70%
If those conversion rates seem high, it’s likely a byproduct of how immersive this medium is.
“For the brand and user,” Perry explains, “the intimacy of VR advertising is second to none, It’s a new and exciting medium to tell a powerful story in a way that’s much more personal and up close than brands are normally able to do. Placing the user right in a branded 360 scenario and allowing them to control the ad is one of the absolute best ways for a brand to connect with a consumer.”
Analytics And Target Audiences
Although, up to this point, our post has primarily focused on how Flo VR can benefit brands, it’s important to note that–for this business model to work–the company is equally as focused on partnerships with developers. In this respect, that makes Flo VR the middle man between advertisers and developers.
As a result, Flo VR is in a position to maximize the benefit for both advertisers and developers as they are able to leverage their in-house analytics for maximum impact. Meaning that advertisers will be happy because their 360-degrees will be consumed by an ideal target audience and developers will be happy that their users are being exposed to the ads most likely to suit their desires.
Only time will tell how effective Flo VR’s virtual reality advertising model proves to be, but in a nascent medium this unique ad platform provides a glimpse into what we might expect in the years ahead. And, all things considered, it’s a pretty great glimpse to start with.
To learn more about Flo VR, check out the explainer video below…