Should CMO’s Care About VR in 2018?

  • 28 July 2017
  • Nathan Kay

Virtual reality (VR) is well and truly here. It is already being used by marketing executives around the world and proving a tremendous success. It’s an effective marketing tool that has brought new life to marketing strategies for many leading organizations.

CMO’s should care about VR. In fact, they should really care!

VR Has Already Hit the Masses

VR headsets cost less than a smartphone and consumers can access VR or augmented reality (AR) programs via apps. According to CMO, the Oculus Rift headsets, Google Daydream VR, Samsung Gear VR, and other affordable VR and AR technologies are reaching a wider audience. It’s not just a gamer technology, it’s reaching everyday consumers.

According to Forbes, 171 million VR users will surface in 2018 and that number will grow in 2019 and beyond. Juniper Research found that hardware revenues from VR headsets, peripherals and 360-degree cameras will exceed $50 billion by 2021. In 2016, sales hit $5 billion and 2017 will see a further increase.

Virtual reality has already changed content marketing and agencies around the globe are adapting to technological advancements to ensure they reach more people. VR has already hit the masses BIG time!

Build a Connection

Industry experts say that the key to a consumer mind is through building a special connection – VR and AR can certainly do that! According to Advertising Age, the key to stimulating the consumer is by targeting three essential parts of the brain that are responsible for our reactions and perceptions: neocortex (higher-level thinking), limbic system (emotion, behavior, motivation), and reptilian brain (primitive instincts).

Today’s consumers also rely on the internet for their source of information, so take that into account when targeting them for business. Make sure your content is engaging, entertaining, factual and to the point. What’s more, when you’re dealing with the latest technologies, make sure you have the budget to match. There’s nothing worse than putting out a basic VR or AR campaign on an expensively built platform. It will do more damage than good!

Don’t Be Left Out in the Cold

Roughly 30 percent of marketing executives will experiment with VR and AR applications this year. Don’t be left out in the cold. Make sure your agency can offer clients the latest trends, or they could go elsewhere. Experts claim that in 2018, VR will drive the marketing industry forward and lead to a brand-new audience.

There’s Already an Audience

Recent research by Deloitte Global found that more than $1 billion was spent in the VR sector in 2016. Experts claim the industry will reach the multi-billion-dollar mark before the end of 2020. Marketing executives are already tapping into both AR and VR’s potential and the technology is set to grow at a rapid rate within the next few years.

VR is the Latest Fad

The power of VR is undeniable. Everybody knows it’s good, entertaining and a niche product and most people want one. It could be a long-lasting fad or a short-lived one – nobody knows. However, even if it is just a short-lived phase VR shouldn’t be ignored. Grab it while you can, grab it while it’s here and target an already existing market.

The Content Marketing Institute found that a sizeable percentage of consumers are looking to experience the power of VR. Results show that 62% of consumers would feel more engaged with a brand who offers a VR experience, while 71% of consumers believe a brand is forward-thinking if it uses AR or VR as part of its strategy. Digi-Capital found that 23 million Americans have tried VR and this number is set to grow at a rapid rate up until 2020.

The Cost

According to CMO, marketing executives are among the early adopters of VR and AR and are helping to bring it to the masses. VR videos cost three-times more than a 360-degree video. There are many different elements to include, with multiple shots and camera angles to cater for. The cost is high but worth it. Entry-level campaigns start at around $25-35,000 and brands around the globe are testing out content variations as integral parts of their marketing strategies. Larger organizations are more inclined to include aanAR or VR element to their marketing strategies today, but as the costs continue to fall more clients will be itching to include VR campaigns as part of their latest strategy.

About Nathan Kay