Will VR Be Defined By Weird Commercials?

The type of realistic virtual reality technology that seemed like science fiction a few years ago is finally taking its first steps toward mainstream entertainment. Unfortunately, the fledgling VR industry may soon be defined by its advertisements.

Analysts now believe that the flood of advertising interest in VR technology may mean that advertisers will end up defining the platform the same way that pop-up ads shaped the early Internet.

Early attempts at VR marketing have proven successful so far. Oreo’s 360-degree “Wonder Vault” animation drew nearly 3 million YouTube views in two weeks. That’s approximately the size of the 12–34-year-old audience of the "Big Bang Theory," the highest-rated TV sitcom.

While artists and film-makers ponder the possibilities that VR technology can offer, advertisers are not waiting around. In fact, six out of the top 10 most viewed 360-degree videos on YouTube in the past year were promotional pieces. The most popular of the group, a “virtual reality raid” for mobile game "Clash of Clans," received more than 35 million views.

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Last year, even AT&T Inc. T splurged on a 360-degree ad.

McDonald’s Corporation MCD is now selling $4 Happy Meal boxes that can be folded it VR viewers (“Happy Goggles”) at its Sweden locations this month.

Of course, Alphabet Inc GOOGL GOOG and Facebook Inc FB, makers of Google Cardboard and Oculus Rift, are two of the market leaders in the VR technology space.

Disclosure: The author holds no position in the stocks mentioned.

Image Credit: Public Domain

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