VR Ads: 4 Brands That Could Profit
We’ve said it before and we’ll say it again: advertising will generate a huge percentage of VR revenues in the future. And the companies below have some of the most promising concepts. If these companies execute correctly, they could even be worth trillions. Learn which VR/AR companies you should invest in here.
YouTube 360 Ads
On the top of our list, we have Google’s latest advertising offering. Regardless of how ad competitors execute their ideas, Google’s Youtube brand will have an extreme advantage. Not only will they have more capital than the large majority of future threats, they will already have massive brand awareness. Plus a loyal base of users and content creators.
YouTube’s 360-degree video ads aim to let advertisers engage with potential customers in an entirely new way. And it already exists. The tech is available on Chrome and the YouTube app on Android and iOS.
Google knows that the mobile VR experience will gain momentum in the consumer market well before the high-end VR experience. And the combination of their Google Cardboard and early VR ads could make them a lethal force in VR advertising. It certainly wouldn’t be the first time Google generated massive profits through ads.
This company’s original mission statement was very ambitious. Their main goal was in VR. They wanted to use a headset and platform agnostic tool to make VR accessible to publishers, advertisers, and consumers. They wanted to support native 3D and 360° ad insertion—with fully immersive and interactive ad formats.
And they kicked off strong by raising $10M in Sept 2016. Vertebrae managed to accomplish those goals with a team comprised of heavy hitters from companies like Oculus, Google, Activision. and Twitter.
They snagged some promising clients, too. Like Lionsgate—a big movie company for those who are unfamiliar. Together, Lionsgate and Vertebrae produced a VR ad for a Blair Witch promotion. The Blair Witch VR ad trailer was a short experience built to grow hype for the movie.
While their VR experiences are notable, it appears the company has pivoted a little since their launch. At this point, they seem more bullish on AR applications and delivery. Which may speak to some uncertainty in the future of VR adoption. Like Google, Vertebrae probably wants to focus on tech that is immediately deployable to most of the population via smartphones.
OmniVirt’s landing page has a lot going for it when it comes to highlighting benefits. They estimate businesses can see up to a 10x uplift in ad performance with thier 360° VR ad formats and their publisher network.
They go on to highlight 5X brand recall and +300% click-through. If these numbers are true, you can bet businesses will flock to this platform to get more out of their ad spend. This company appears to have a strong marketing team, attention to social proof, and appeal to authority.
Here’s what advertisers can do with their 360 Ads right now:
Choose from their templates to build high impact ads.
Distribute ads on premium inventory like The New York Times
Target people by geo, device, and more
Optimize placement and creative to increase return on spend
Even though they are early in development—and are an inherently risky investment for venture capitalists—they have already managed to land some impressive work. Like a 360 ad for the latest and greatest Mission Impossible movie. By allowing studios to advertise with their VR platform, this company (and others like it) could get a piece of the Hollywood pie.
This company wanted to start from scratch and make the best possible advertising experience for VR. They promise to deliver gorgeous, immersive, 360 degree advertisements for the world’s top brands. And like Vertebrae, it appears VirtualSKY is platform agnostic. Since launching, they’ve come to adopt pretty much all mobile and standalone solutions.
Here’s what advertisers can do on their platform right now:
ExperienceAds – short 360 experiences that launch at natural breaks in VR content
SponsorAds – 5-10 second, 360 experiences that play when the consumer launches VR content
360Ads – advertisements that pan and scan as the user moves their iOS or Android devices
VirtualSky also published a study in 2016 with some interesting takeaways. They estimated that VR ads are 1.5 to 18x more effective than more traditional video, depending on the content and particular metric. Brand recall was one of the major ones, coming in at 8x more effective across all brands.
Early Days, Early Buy-In
All in all, VR advertising is a young concept—and many VR Ad companies have already come and gone (Immervs and Plump to name a couple). In most treasure hunts, not everyone makes it to the gold. But those who pay attention might just have a shot at investing in a trillion dollar advertising platform. Discover tech secrets before the mainstream media does >> Sign Up.
Are we missing any VR Ad companies? Let us know in the comments!