Introduction to Digital Marketing
The world of digital marketing has experienced a large surge prior to now decade, with search engines like google and yahoo and social platforms delivering hundreds of thousands of sponsored messages from advertisers every minute of day by day. However, the competitive nature of promoting has created a brand new problem, where advertisers are seeing diminishing returns on every promoting dollar, causing their overall ROI figures to drop significantly. This has opened the door for novel technologies like augmented reality and virtual reality to enter the world as untapped promoting options.
The Challenges of Traditional Digital Advertising
Digital marketers are well aware of the constraints that current digital display ads are facing. These challenges include ad blockers and a growing intolerance from users toward digital adverts. A report by PageFair showed that ad blocking was up 30% between 2015 and 2016, and a few 615 million devices were blocking ads as of December 2016. This trend is anticipated to proceed to rise. Additionally, Adobe Digital Insights’ report shows that web promoting costs are up 12% over a three-year period, which is five times higher than inflation, meaning that firms are paying more for advertisements which are reaching fewer people.
Augmented Reality Basics
Augmented reality has been utilized by global heavyweight Coca-Cola, which recently kicked off a brand new AR campaign with Alipay to assist have a good time Chinese New Year. Other big players which have experimented with AR include Nivea, Starbucks, and Volkswagen. The efficacy of those campaigns stays debatable, though, as many consumers see this avenue as more of a gimmick or novelty than a legitimate promoting tool. However, global augmented reality promoting spend tells a distinct story, with an almost 100% jump in spending, from $6.6 billion in 2016 to $12.8 billion in 2017.
The Rise of Augmented Reality
The best current example of the success of augmented reality is the runaway success of the mobile AR game Pokémon Go, which experienced massive popularity in mid-2016. The popularity of this game led to partnership deals with Sprint, McDonald’s, and Starbucks. AR technology is currently in its infancy, with large players corresponding to Microsoft, Apple, and Google only now working on the primary iteration of devices and software development. Manufacturers predict wearable AR tech to be the subsequent big thing, with products like Microsoft’s HoloLens and Intel’s Vaunt trying to integrate people’s digital lives more effortlessly than ever before.
Virtual Reality Basics
Virtual reality is an immersive type of digital entertainment, where sensors allow head movement to change content, giving users the impression of perspective and motion. The final result is eerily realistic. Another spin-off technology that has emerged because of VR implementations is 360 video, which is where the vast majority of VR promoting efforts will likely be aimed in the long run. Some automotive manufacturers, including the likes of Audi and Porsche, have already begun offering their clients a VR showroom experience that enables customers to view the interiors of their vehicles in several configurations and colours.
The Future of Virtual Reality
The biggest hurdle that VR manufacturers need to clear is that of pricing, which can ultimately determine how accessible the technology can be for future consumers. VR hardware in its current form is prohibitively expensive for the vast majority of consumers, with a price tag of $300-$600, not including additional gaming consoles or PCs. However, because the technology catches up with the vision of promoting inside VR and AR gaming environments, we are going to begin to see more engaging and interactive promoting content being pushed to consumers.
The Future of VR and AR Advertising
The most vital challenge that the brand new VR/AR world will hold for advertisers is ad placement. There can be no place for display ads, no video pre-rolls, and no header bidding, so if those aren’t any longer in play, where will the ads be placed? How will the publisher earn a living, and the way will the advertiser gain traffic? As the technology advances, we are going to begin to see more modern and interactive promoting content being pushed to consumers. Traditional billboards will give option to AR-designated spaces, allowing 3D content to be streamed on to consumers, while specially created VR content will start to look in online games in the shape of in-game promoting.
A New World of Advertising
To understand just how much VR commercial and placement will change, imagine this scenario: You are online at your favorite virtual jazz bar, and also you look across the table and see your friend drinking a chilly beer. At that exact moment, the AI system will recognize that beer and make a purchase order suggestion to you. You will then be prompted with a one-hour delivery option of that very same brand of beer via Amazon drone, and a straightforward yes or no will complete the transaction or cancel it. This is so much to digest, but there may be a brave latest world of promoting and promoting waiting just behind the subsequent curve within the road.
Conclusion
The world of digital marketing is changing rapidly, and the rise of augmented reality and virtual reality is opening up latest avenues for advertisers to succeed in their audience. As the technology advances, we will expect to see more modern and interactive promoting content being pushed to consumers. While there are still challenges to be overcome, the long run of VR and AR promoting looks promising, and it’s going to be exciting to see how this latest world of promoting and promoting unfolds. Are you ready for it?
