interim report.pdf

8/10/2019 interim report.pdf

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Report on

Virtual Reality in Advertising

Submitted to:

Prof. Neelam Kinra

Professor

Promotional Strategy

IIM Lucknow

Submitted by:

Group-3, Section A

Anupam Debnath PGP29099

Deepali Choudhary PGP29013

Gaurav Verma PGP29014

Kaustubh N PGP29103

Prachi Gupta PGP29038

Shikhar Gupta PGP29163


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Introduction to virtual realityVirtual reality is the term used to describe a three-dimensional, computer generated

environmentwhich can be explored and interacted with by a person. That person becomes part of

this virtual world or is immersed within this environment and whilst there, is able to manipulate

objects or perform a series of actions. They are aided by various sensory stimuli such as sound, video

and images which form part of mostvirtual reality environments.But many newer environments

include touch or force feedback through a haptic devicesuch as a data glove which further

enhances the experience. Many people who work with virtual reality prefer to use the term virtual

environments instead. This is a response to a perceived negativity to this technology which has

often turned out to be true.

There are people who view virtual reality with little enthusiasm and dismiss it as science fiction,

seeing it as having no practical application in the real world. Most current virtual reality

environments are primarily visual experiences, displayed either on a computer screen or through

specialstereoscopic displays,but some simulations include additional sensory information, such as

sound through speakers or headphones.

The simulated environment can be similar to the real world in order to create alife like experience

for example, in simulations for pilot or combat trainingor it can differ significantly from reality,

such as in VR games. In practice, it is currently very difficult to create a high-fidelity virtual reality

experience, because of technical limitations on processing power, image resolution, and

communication bandwidth. However, the technology's proponents hope that such limitations will be

overcome as processor, imaging, and data communication technologies become more powerful and

cost-effective over time.

Uses and features of virtual reality

But there are in fact, a wide variety ofapplications for virtual reality which include architecture,

sports, medicine, arts and entertainment.

There are many different types of virtual reality systems but they all share the same

characteristicssuch as the ability to allow the person to view three-dimensional images. These

images appear life-sized to the person.

Plus they change as the person moves around their environment which corresponds with the change

in their field of vision. The aim is for a seamless join between the persons head and eye movements

and the appropriate response, e.g. change in perception. This ensures that the virtual environment is

both realistic and enjoyable.

A virtual environment should provide the appropriate responses in real time- as the person

explores their surroundings. The problems arise when there is a delay between the persons actions
http://www.vrs.org.uk/virtual-reality-environments/index.htmlhttp://www.vrs.org.uk/http://www.vrs.org.uk/http://www.vrs.org.uk/http://www.vrs.org.uk/http://en.wikipedia.org/wiki/Stereoscopyhttp://en.wikipedia.org/wiki/Lifelike_experiencehttp://www.vrs.org.uk/virtual-reality-applications/index.htmlhttp://www.vrs.org.uk/virtual-reality-applications/index.htmlhttp://en.wikipedia.org/wiki/Lifelike_experiencehttp://en.wikipedia.org/wiki/Stereoscopyhttp://www.vrs.org.uk/http://www.vrs.org.uk/http://www.vrs.org.uk/virtual-reality-environments/index.html


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and system response or latency which then disrupts their experience. The person becomes aware

that they are in an artificial environment and adjusts their behaviour accordingly which results in a

stilted, mechanical form of interaction.

How VR can be applied in the real world by marketersVirtual reality is being used more and more by some of the most well-known brands and their

marketers to not just promote their products and brands but also to bring the potential customers

closer to get a feel of the product even before they do it. This they do through various means like:

1. Augmentation also called augmented reality

2. Consumer virtual reality device (CVRD)

3. Simulation

4.

Smart Posters

5. Kiosks

Although marketers cannot be fully sure of consumer choices in constructing virtual realities, they

can approximate choices by reducing uncertainty. Talking of order wise, a first-order approximation

of consumer choice is based upon the probability that any single consumer would choose any single

sign for a certain symbolic environment. A second-order approximation is based upon the

probability of any consumer choosing a second sign given the choice of a first sign. The process

continues through third-order, fourth-order and so on until subsequent probabilities indicate

insignificant additional meaning, i.e. small sign value, to consumers.

Examples of virtual reality (VR) and augmented reality (AR) being used by marketers:

Product Packaging- Starbucks Used AR to Show Some Holiday Love

Last year, Starbucks launched their Starbucks Cup Magic mobile app to bring their patrons a little

holiday AR love. The motive was to use the app to make their signature coffee cups a bit more

festive for both Christmas and Valentines Day.

Online Commerce- Bella LucesApp Lets You Try and feel a Ring on Before You Buy It

Online commerce is one of those areas where marketers are consistently looking for ways to utilize

technology to facilitate and encourage more sales. Bella Luce Jewelry has included a combination of

virtual reality and augmented reality to show a potential customer what a particular ring would look

like on their finger.

This approach makes use of a virtual showroom and could be beneficial to so many other types of

businesses that sell online. Clothing, furniture and home improvement/decor are all examples of

industries that could utilize this type of augmented reality technology to more customize theshopping process.


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Print Advertising- Blippar Tricks Out Virgin Media Magazine Using AR & VR

Virgin Media has used using the popular virtual reality mobile app Blippar to enhance the reader

experience for its customer magazine. When viewing the magazine through the Blippar app on a

mobile device, the reader is treated to a video of Virgin founder Sir Richard Branson and other coolvideos, app download offers and interactive gaming-like ads.

Product Packaging LEGO mixes VR and AR to Showcase Products in 3D

LEGO has created virtual reality kiosks on which consumers can hold up a play set box and see a 3D,

animated rendering of what that set will look like. The plan is for these kiosks to be deployed to

LEGO stores around the world.

Promo Posters Dominos Uses ARand VR to Sell More Pizzas

Display advertising like posters and billboards are a great fit for virtual and augmented reality if they

are located in an area that allows for a person to spend time in front of the ad a bit longer than

usual. Bus stops, airports, train stations and street corners are all great locations for VR cum AR-

enhanced display advertising.

How can marketers create a virtual world for consumers throughadvertisingAs the importance of virtual reality and its use in advertising is increasing in the world of marketers,

it has become imperative to understand the impact of this evolving strategy on its target market.

Some of the biggest brand houses known today have actively involved themselves in the virtual

interactive marketing.

While trying to advance beyond the amusement, brands, for example, Coca Cola, Nissan and HBO

are putting resources into virtual reality, predicting a period when the right now extravagant and

cumbersome innovation will be promptly accessible in different shopping outlets. At the point when

the product has gotten up to speed with buyer requests, the three business titans hope to have the

Dominos has put up 6,000 posters across Britain thatlook like a normal promo poster (see pic below) but

also serve as an AR marker when viewed through

the Blippar App, as if you were going to take a picture

of the poster. When it is viewed through the app

called Blippar, the user has the option to download

deals for their nearest Dominos store, get the

Dominos mobile ordering app, be aFacebook fan or

take a look at their local menu.
http://blog.weduhosting.com/blog/wp-content/uploads/2012/03/dominos-blippar-augmented-reality-promo1.jpghttp://blog.weduhosting.com/blog/wp-content/uploads/2012/03/dominos-blippar-augmented-reality-promo1.jpg


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capacity to convey virtual encounters to their clients hailing another cutting edge age for

publicizing and promoting.

Coca Cola has officially explored different avenues regarding virtual reality, most as of late at the

FIFA World Cup where the beverages monster permitted customers who were associated with

virtual reality Oculus Rift goggles to move from the locker room in the Maracana Stadium onto the

pitch to 'play'.

Correspondingly, Nissan made it workable for guests to the Tokyo Motor Show to wear the Oculus

goggles and investigate the Nissan Idx idea auto, whereas HBO have created a virtual imitation of

'The Wall' (a huge ice divider) from the TV arrangement Game of Thrones in a 90-second show.

A late estimate from Markets and Markets predicts the virtual reality industry will produce to the

extent that $1.06 billion in worldwide incomes by 2018.

Matt Wolf, the head of worldwide gaming at Coca Cola, noted that virtual reality is about "the

credibility" of the experience, for example, "being inside" the Maracana stadium or the Nissan Idx

auto. This offers incredible open doors for both advertising and publicizing experts and their related

organization.

The story of acquisitions by the facebook evidently explains the increasing importance of virtual

reality marketing amongst the business houses. Clearly facebook is betting big on virtual reality.

When Facebook acquired Instagram for $1 billion in 2012, industry specialists accepted the social

networking titan overpaid for the photograph application. The same brand of thinking followed

Facebooks $19 billion acquisition of WhatsApp in February this year. Viewed as the tech

arrangement of the century, business conclusion was part down the center on whether the

arrangement will benefit well or Facebook enormously overpaid for Whatsapp.

And after that in March, Facebook proclaimed itswant to procure Oculus VR, the creator of virtual-

reality for $2 billion (the arrangement was affirmed by the FTC in May); the securing was finished in

July. Doubtlessly, the arrangement evoked spellbound responses from the industry and the stock

market.

Facebook appears to recognize what it is doing, a reality that is reflected in its most recent income

reports. With $2.91 billion dollars in income and $0.42eps in Q2 2014, the organization's profit have

surpassed business desires. Mark Zuckerberg utilized the second-quarter income call to stretch

Facebook's dedication for putting vigorously in virtual reality (VR). Obviously, Facebook is wagering

enthusiastic about VR and doesn't consider it "bet" that may or may not pay off over the long haul.

Clearly, Facebook is investing a lot on Virtual Reality and doesnt think of it as gamble that might

or might not pay off in the long run. The question is Why? The general sentiments think that it is


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because there is no harm in making a few informed presumptions and it is still early days yet before

the market knows exactly how the company plans on leveraging virtual reality moving forward.

Virtual reality could be transformative for the ad industry. Instead of interrupting people with ads,

marketers could sponsor virtual experiences people actually seek out. But first, the ad industry has

to understand this new playground. As more and more brands are being promoted by virtual reality,

the scope of innovation and creativity will increase. But one thing is for sure, the experience of the

consumers will improve and will become even more enriching.

What will be the perceptions of virtual reality by consumers in the real world

Virtual Reality has been gaining a lot of attention because it enables consumers to experience

product virtually. This helps a lot of internet based service/product providers to alleviate consumers

lack of physical contact with the product. Compared to static and traditional interface different

experiments demonstrated that consumer shows significantly higher level of product knowledge,

attitudes and purchase intentions with a Virtual Reality interface. The experiments also showed that

the type of products use VR interface impact consumer perception and learnings. In general, VR

enables consumer to learn about products thoroughly by pro viding high-quality three-dimensional

images of products, interactivity with the products, and increased online presence. In addition,

congruent with the theory of cognitive fit, the effects of VR are more pronounced when it exhibits

products whose salient attributes are completely apparent through visual and auditory cues. Two

types of products virtually high experiential (VHE) and virtually low experiential (VLE) products in

terms of the sensory modalities that are used and required for product inspection. It was found that

the moderating effect of VR which provides more actual product knowledge was more for VHE

products than VLE products.

According to one theory the repetitive pattern of television's mass produced messages and images

forms the mainstream of a common symbolic environment. Traditionally TV has been the common

story teller and the viewer cannot avoid absorbing the recurrent patterns of TV advertisements.

Though VR is not yet common but one VR center is likely to have a stronger impact on consumer

perception than one violent TV show or advertisement.

The VR space along with its immersive virtual environment enable to induce customer to perceive

virtual objects. Imaginary pleasurable experience though VR about product use could be entailed by

high level of interaction and customization which could affect consumer memory association in a

more effective manner than static text and picture. Consumer experience of tele presence, VR

instrumental values would be determined by consumers response. So for determining consumer

perception about virtual advertisement and traditional advertisements it important to examine

consumer perception on 2D product representations to 3D product visualization and propose an

alternative product affordance i.e. virtual affordance. It was also found that virtual reality provides a

platform which have positive effect on consumer satisfaction when compared to ordinary shopping


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experience. The three explanatory variables including conveniences, quality assurances, and

enjoyments are improved in the virtual reality platform.

Risk Reduction

Learning about how to reduce risk has always been important phenomenon and regarded as a

strong explanatory variable in consumer behavior. Specially perceived risk cannot be neglected in

businesses which are limited to visual information like online retails. So mostly virtual reality has

been adopted to complement the limited visual information to change consumer perception of risk

involved with these businesses. Three-dimensional (3D) virtual reality have been regarded as the

major technologies for online apparel retailers to improve the product presentation through two

dimensional images. The here dimensional virtual reality can encourage consumers to revisit and

purchase products which has limited physical presence. Use of these technologies could help to

attract more consumer through non traditional ways.

Lets take the following scenario of online apparel shopping where a virtual model created through

virtual reality could help to reduce consumer risk about the purchase of the product.

How will the virtual advertising influence consumers recallAnimation

The new animation technique available is rotoscoping. Rotoscoping is the technology of digitally

painting or sketching figures into live sequences. This technology thus makes it possible to have both

the live characters and the animated characters in the same frame. The creative can also merge or


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modify various live scenes within the same frame. Another method is the clay animation such as the

personification in the form of Pillsbury Doughboy.

Animation is mostly used in:

Television spots

Movie trailers

Internet ads

Moving animation: one that involves moving objects and does not provide extra information to the

users. This is without initiative animation as there is no direct interaction with the users.

Moving animation encompasses motion and is visually distinctive from the rest of the stimuli and

thus attracts user attention because of it. The objects in moving animation are likely to stand out

from other static objects and once viewers attention is captured, these distinctive moving objects

may enhance their memory of the emphasised contents. The viewers may then exhibit selectiveprocessing of information, leading to quicker responses, better recall and deeper impression of the

animated contents.

Impact of animation on banner ads:

Animated banner ads facilitate quicker location of items by users

They increase brand awareness, brand preference

They also increase purchase intention as compared with static ads

They affect viewer cognition towards the brand

Impact of animation on the product recall:

Recall is a measure of the extent to which the message has been imprinted on the person i.e. the

amount of information a person can remember about the product. Moving animation encompasses

dynamic and orienting objects which may draw selective attention from the consumers, consumers

may allocate more resources to encode and store the animated components.

As per the research , the sample was asked to write down the:

1. Product category (product category recall)

2. Brand name (brand recall)

3. Color of the logo (logo recall)

4. Slogan of the product (slogan recall)

The results were as follows:

Animated webpage Static webpage

Mean Standard deviation Mean Standard deviation


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Recall 3.06 0.786 2.84 0.75

Thus it is established fact that using animations in virtual advertising increases the brand recall and

also imposes positive attitude towards the product.

Since it is not possible to conduct the product recall tests for every age group, a study was

conducted by Chattopadhyay on the effects of execution formats on teenage boys. A sample size of

400 was taken for the study. The basic approach to the study was that consumer is a processor of

information. He said that the quantity and quality of information retained by the consumers

depends on the cognitive and perceptual operations employed at the time of encoding.

Number of advertisements selected was 20 out of 300. These advertisements comprised of all

permutation and combination of message strategy (cognitive and affective), 10 types of execution

formats (slice of life, animation, demonstration, testimonial, informative, fantasy, scientific

evidence, personality symbol, dramatization and comparison). All the brands selected were familiar

brands that might be purchased by the individual under study.

Source: international journal of business science and applied management, Volume 5, Issue 2, 2010

The above diagram illustrates the relative effects of the various execution formats on the recall of

the brands. As illustrated, personality symbol creates the most impact on the brand recall followed

closely by slice of life and animation.


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