The 5 Top Brands Using Virtual Reality Marketing

Top Brand Advertiser Virtual Reality Campaigns and a quick and dirty decision framework for new Brand campaigns using Shiny New ObjectsSkyfollow Consulting Group

Chris Rigatusocr@skyfollow.com@crigatuso@skyfollow

April 10, 2016

TopicsDefinitions and Why Now?Market Stats and Growth RatesReasons Brands consider VR campaigns nowExample Campaigns from BrandsMedia content combinations for VRThe decision to produce VR related campaignValuation of the campaign in the Ad spend contextGo / No-go Decision framework

Virtual Reality = VRvirtual realityNoun COMPUTINGthe computer-generated simulation of a three-dimensional image or environment that can be interacted with in a seemingly real or physical way by a person using special electronic equipment, such as a helmet with a screen inside or gloves fitted with sensors.

Why VR Now?

Handsets are dominate technology market with global penetration. Firms who are leaders and non-leaders are incentivized to make new markets and uses for high end mobile devices. Those firms and other smaller upstarts design new computing devices that leverage growth in network bandwidth, new processing and visualization experiences, which here-to-fore were unwieldy or not possible. VR has been around conceptually for a long while, but with the current technology trends, in Cloud, mobile, device, and network bandwidth, the potential for deep experience with under $500 price tag is here; signaling the dawn of a new age and mass adoption.

VR paves the way for new entertainment channels, device markets, consumer experience metaphors, and marketing / advertising engagement that leverage its unique properties of immersion, depth and intrigue.

2016 will be virtual realitys breakthrough year$1bn industry in 2016 marketers are switching on to the technology as the next big content marketing medium.Deloitte:$1bn (710m) barrier for the first time this yearGoldman Sachs : market could be $80bn (56.8bn) by 2025 the opportunities are only going to get biggerGoldman Sachs: AR and VR would together be worth $185bn (131bn) by 2025Digi-Capital Report: AR market is generate $120bn (85bn) in revenue by 2020, compared to $30bn (21bn) for the VR market

Juniper Research Estimates : there will bemore than 12m VR headset salesby the end of 2016. By 2020, the VR industry will have shipped 30m headsets globally

Ford is using VR to aid product development via itsImmersion LabToyota incorporated VR into itsTeenDrive365 campaignto educate teenagers about the dangers of distracted driving; and Samsung plans to help people conquer phobias, such as public speaking or heights, with itsupcoming technology.

http://www.theguardian.com/media-network/2015/dec/03/virtual-reality-in-advertising-2016

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Why use VR in Brand Campaigns?Because its newsworthy now: could generate free press coverageBecause it attracts desirable demographicBecause its very engaging and demands feedbackBecause its new, and shiny and attracts people for that reason!

The 5 Top Brands Using Virtual Reality MarketingVolvo Reality: XC90 Virtual Reality test driveoptimized for Google Cardboard, available broadly on smartphones with a video-only experience so fans can view with the hardware they have available. Volvo reports reaching 238 million media impressions, including being featured inPCMagandFastCoCreate.

2. The North Face VR experience:The North Face VR experience generated a lot of attention with its SXSW debutCoverage in Washington Post, Chain Store Age, Digiday, and Chicago Tribune established The North Face as a brand that is pushing the envelope in retail Virtual Reality experiences.The experience quality is limited by the current capabilities of users devices, but for a limited-time campaign, The North Face successfully grabbed the attention they wanted.

Lowes Holoroom : 3D showroom to re-imagine the way shoppers select products, transforming the browsing process into an engaging design experience.Built with VisualCommerce 3D Virtual Reality Design Studio and Showroom, the Holoroom experience serves up thousands of different models that shoppers can use to design their perfect space.Using Virtual Reality compose tools on iPad and a Holoroom installation for full-scale and up-close viewing in Augmented Reality, the Holoroom was included in theCES 2015 Best of Tech by Digital Trendsand won theBest Enterprise Solutionaward at Augmented World Expo.

Marriott Hotels Virtual Travel Teleporter : TheVirtual Reality Teleportercampaign encouraged participants to share their experiences with the tag #GetTeleportedUsing the Oculus Rift VR headset inside a specially-made booth, Marriott goes a step further to being fully immersive with a 4D sensory experience that includes mist and warm air for exotic destinationsMarriottcaught the attention of both tech (Wired) and travel press (Travel and Leisure), effectively building their brand and enticing viewers to book their next vacation

Art of Patrn Virtual Reality experience:Patronused 3D video captured with a drone camera to tell the rich story behind the way their tequila is made

Google Cardboard : develop the entry-level cardboard viewer that enables VR experiences using a smartphone. To increase the immersive nature of the technology within apps, the tech giant recently added spacial audio to Cardboard, which allows users to experience sounds in a more natural way.

Samsung:launched its Gear VR headset at the end of last year, which sold out on the day of releaseFacebook :started taking pre-orders for Oculus RiftHTCs Vive : We expect 2016 to be a breakthrough year for VR and this was highlighted by the number of companies using Vive across theConsumer Electronics Showin Las Vegas. Sonys PlayStation VR: is rumored to be out this autumn

Use Smartphones: Samsung Gear VR and Google CardboardUse full headset : Oculus Rift and HTC ViveUnicef : created an eight-minute 360-degree film called Clouds over Sidra to draw attention to the Syrian refugee crisis. The film focuses on the life of a 12-year-old girl living in a refugee camp in the Jordanian desert.When it was shown to people on the streets of Auckland, New Zealand the organization doubled donationsUnicef sees VR as a tool for raising awareness, encouraging people to donate and increasing advocacy

Building a business case for VRGames developer Rebellion: created VR game Battlezone for PlayStation VR. Given that these headsets transport users to strange new worlds, a multi-touchpoint, 360-degree, UX-centric customer journey isnt what users are after.TGI Fridays: used VR for its jingle effect campaign over Christmas, creating content based on a survey the brand carried out, which showed that dog sledding was the Christmas activity the majority of respondents wanted to try.

Andrew Smith, vice-chair at EVCOM: creates VR content, says that different screens have different personalities.Louis Jebb, founder and CEOat Immersivly : advises brands to think carefully about how people are going to consume content. Are you going for something where you want to get a cheap and cheerful message across or do you want it to reflect the quality of the brand?lippars focus is on AR not VR: worked with sunglasses brand Ray-Ban to allow customers to virtually see how a product looks on their face before buying.

Steve Dann, CEO at digital development studio Amplified Robot, says: Without a well shot or designed VR experience, the user can have trouble with their sense of balance or inertia with a decrease in the sense of telepresence [the sensation of being elsewhere created by VR], or they could experience cyber sickness, with symptoms of disorientation and nausea.

Dann also believes that as the technology is new, the chances are the average consumer wont be rushing to buy their own device just yet, which is something else for brands to consider.

Jebb at Immersivly : great deal that brands are yet to do in this format. Many have stuck to action pieces, for example motor racing or experiencing a hotel, but for Jebb it is a format that is increasingly seen as an intimate storytelling medium and he believes that this is where the value lies for brands.

Dann : believes brands can still leverage the technology in pop-up experiences, at events and with smartphone apps to deliver content on a whole new level. Virtual reality has so much potential that its impossible to know exactly where its going to go. But its definitely going to be big.

Facebook invested $2bn in buying Oculus Google, Sony, Samsung and Microsoft have made multi-billion investments in this technology and there are several high profile consumer launches expected in H1 2016 Leading brands Nike, Ikea, Volvo, Redbull to create impactful campaignsIt solves a number of problems that brands typically haveOutreach fails to engage with their customersCustomers cannot remember their marketing campaignsLittle or no competitive advantage over their competitors

http://www.mbryonic.com/virtual-reality-guide/

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PlayStation Move motion controllers, magic wands made by Valve, or hand-enclosing controller-gloves that let you reach for imaginary objects.

Microsoft's HoloLens developer-edition kit will arrive early next year for $3,000 -- this is far from consumer tech yet, and its limitations are greater than those of VR.Netflix worked with Oculus to develop a just-announcedapp that allows wearers of the Samsung Gear VR headset to step into the Netflix Living Roomand watch movies and tv shows invirtualreality

http://www.cnet.com/news/how-virtual-reality-will-become-real-in-2016/http://techcrunch.com/2015/10/20/what-the-growth-of-virtual-reality-will-mean-for-brands/

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Fender could put the consumer against the stage watching their favorite guitar player solo on their signature-brand guitar in front of a festival crowd of a 100,000 people.

Virtualrealityis an invaluable tool for creating a deeper connection between consumers, influencers and brands than ever thought possible

http://techcrunch.com/2015/10/20/what-the-growth-of-virtual-reality-will-mean-for-brands/20

BMW, Audi, Porsche, KIA, Volkswagen, Lexus, Chevrolet, and HondaAll incorporated virtual realityand augmented realityexperiences into their marketing strategy.75% of top brands have VR projects

The financial sector: RBC, HSBC and Wells Fargo

http://www.hypergridbusiness.com/2015/10/75-of-top-brands-have-vr-projects/

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Ocean Spray Turns to Oculus Rift to Promote Cranberry HarvestOculus Rift campaign allows the brand to share the beauty of the harvest to consumersVirtual reality experience to 250 influencers in 10 cities around the world later this month, providing two to 15 Oculus Rift headsets to guests at each citys event.The cooperativespent roughly $21 million on measured media in 2014 in the U.S.Ocean Spray had gross sales of more than $2 billion for fiscal 2014

http://blogs.wsj.com/cmo/2015/09/03/ocean-spray-turns-to-oculus-rift-to-promote-cranberry-harvest/

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Canadas Destination British Columbia tourism agencyPaid about $474,000 to create three-minute choose-your-own-adventure virtual reality videos focusing on the regions north central coast.Plans to showcase the videos at up to 10 trade shows this yearPeople in different markets who do group travel abroad, and this makes these tour-travel operators from other countries more likely to lead tours to British ColumbiaThe cost is less than the cost to produce a 30-second TV slot and theyre far more popular than traditional videos.Company found that customers who watch the videos are more likely to upgrade their hotel or travel packages.

http://blogs.wsj.com/cmo/2015/03/04/why-marketers-are-embracing-oculus-and-virtual-reality/

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Merrell worked with virtual reality studio FramestoreProvided some of the graphics from 2013s Gravity.walking across a 10-foot space simulated the experience of walking across a drawbridge in Italys Dolomite region.

appeal to an influential demographic: the young and the hip.big shift from print, things that activate the brand in an emotional way,

http://blogs.wsj.com/cmo/2015/03/04/why-marketers-are-embracing-oculus-and-virtual-reality/http://www.cmo.com.au/article/577228/10-examples-virtual-reality-marketing-action/

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Hyundais virtual rallyInnocean Worldwide Europe has launched a 4D Hyundai driving experience for visitors based on Oculus Rift technologyThe experience was created by IWE and German partner agency, Herren Der Schpfung

Trial of VR by Marriott Hotels4D sensory experience was created to teleport guests to different destinations including beaches in Hawaii and downtown LondonThe phone booth-shaped structure featured the Oculus Rift DK2 virtual reality headset, wireless headphones and a suite on 4D sensory elements3D, 360-degree live-action video, mixed with photo real computer-generated imagery and 4D elements such as heat, wind and mist

http://www.cmo.com.au/article/577228/10-examples-virtual-reality-marketing-action/26

MINI Goes Virtual RealityThe two six-minute shorts Real Memories and Backwater have been available on YouTubecampaign website www.mini.com/360 in more than 20 countries worldwide since 8 September 2015promoted through YouTube pre-rolls and on various social-media platforms, including Facebook, Twitter and Instagramshot in Barcelona using a custom stereo rig with nine RED Dragon cameras offering a combined resolution of 14k. A custom 7 GoPro camera rig was developed specially for scenes inside the carPlans to distribute free 140,000 MINI Virtual Reality Cardboard Viewers worldwideviewed directly onlineavailable shortly for Samsung Gear VR and Oculus Rift virtual-reality viewers.

https://www.press.bmwgroup.com/global/article/detail/T0234122EN/mini-goes-virtual-reality27

WeMakeVR.comand Tommy Hilfiger launch VR Runway Show ExperienceCustomers of Tommy Hilfiger will be able to experience the Fall 2015Hilfiger Collectionrunway show in three-dimensional, 360-degree virtual realityconcept launch on October 19, 2015, at theTommy Hilfigerstore on 5thAvenue in New York City, followed by additional locations in London, Paris, Milan, Amsterdam, Dusseldorf, Florence, Zurich and Moscowcollaboration of Virtual Reality technology and production for the retail market, Bringing the consumer and brand closer together

Video vs CGIThere are two approaches to creating VR content

http://www.mbryonic.com/virtual-reality-guide/29

Evaluating New Marketing Channels for Brand AdvertisingIs it a channel yet?Is it newsworthy?Who will pick up the story in mainstream media?Why will they like it?What new associations to our Brand are created?Does it look like a ploy or a creative Brand extension?Do we have competitors doing similar campaigns?Why are we different?How does that come through in the story? Imagery? Use-case?

Valuation of the CampaignCan we ball park the cost properly?If its $200K, what can we remove from last year of that same amount?What are the experimental ad budget criteria?Is it 5 to 10% of overall marketing budget?Can we use all Above The Line budget?If they channel is very new, there is no DR benefit?Yet because the channel is new, is it still newsworthy?What can we do with it, that has not yet been done?Why will our existing customers care?Which new segments can we now test for awareness?

Deciding Go / No GoBased on past PR and mainstream pickup, estimate the reach of key placements on key websites with the PR target list R(i)Assign probability and reach for each, P(i) x R(i)Estimate follow-up pickup with backlinks for amplification, B(i) count of backlinksEstimate the total cost of production of the campaign CPEstimate the total cost of PR review, submit and follow-up PREstimate the Value of these impressions V(i) (maybe constant for all such i)Compare Cost inputs Value Potential Outputs:Costs[PR + CP] [P(i)*(R(i)+B(i))*V(i)] for ROI estimate

https://searchenginewatch.com/sew/how-to/2249515/social-media-roi-14-formulas-to-measure-social-media-benefits#smroi-cba

http://www.adweek.com/socialtimes/the-definitive-guide-on-how-to-calculate-earned-media-value-emv/300073

http://prguidetomeasurement.org/wp-content/uploads/2013/07/The-PR-Professionals-Guide-To-Measurement.pdf

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Top Brand Advertiser VR Campaignsand a quick and dirty decision framework for new Brand campaigns using Shiny New ObjectsSkyfollow Consulting Group

Chris Rigatusocr@skyfollow.com@crigatuso@skyfollow

March 18, 2016