![AR/VR Magazine (2016) The Value and ROI of Branded Virtual Reality Campaigns
(http://www.arvrmagazine.com/the-value-and-roi-of-branded-virtual-reality-
campaigns/), [1 Nov 2016].
CNET (2016) Virtual Reality 101 (https://www.cnet.com/special-reports/vr101/),
[1 Nov 2016].
Forbes (2016) How Virtual Reality Will Impact Businesses In The Next Five Years
(http://www.forbes.com/sites/forbestechcouncil/2016/07/22/how-virtual-
reality-will-impact-businesses-in-the-next-five-years/#34772fe82241), [1 Nov
2016].
Raconteur (2015) Virtual Reality (https://raconteur.uberflip.com/i/616458-
virtual-reality), [2 Nov 2016].
ReadWrite (2016) Virtual Reality Will Change Business as We Know It (http://
readwrite.com/2016/03/09/vr-changing-business/), [2 Nov 2016].
Sapphire Nation (2016) The Future of VR: from Virtual Reality Goggles to UHD
VR Glasses (http://sapphirenation.net/future-of-vr/), [1 Nov 2016].
Statista (2016) Number of Active Virtual Reality Users Worldwide from 2014 to
2018 (https://www.statista.com/statistics/426469/active-virtual-reality-users-
worldwide/), [1 Nov 2016].
TechRadar (2016) HTC Vive Review (http://www.techradar.com/reviews/
wearables/htc-vive-1286775/review), [1 Nov 2016].
The National Autistic Society (2016) Experience Too Much Information in Virtual
Reality (http://www.autism.org.uk/VR), [2 Nov 2016].
Virtual Reality Society (2016) History of Virtual Reality (http://www.vrs.org.uk/
virtual-reality/history.html), [1 Nov 2016].
Within (2016) How to Watch VR (http://with.in/how-to-watch-vr/), [1 Nov 2016].
REFERENCES](https://image.slidesharecdn.com/157f7dbb-09a8-477f-8cb3-2132c0d022d1-170104130705/85/CDD-Grain-Feeder-WP-Oct16-14-320.jpg)
CDD Grain Feeder WP Oct16
- 1. WHAT’S THE IMPACT OF VIRTUAL REALITY ON BUSINESSES: IMPLEMENTING VR INTO YOUR MARKETING STRATEGY. CDD are keen advocates of innovation, and always try to keep up with the latest industry trends and new technologies. We’ve been watching VR grow and evolve, and wanted to share our passion for the subject with the wider audience. We’re looking at the technology from the UX and usability perspective: waiting for when VR becomes easy to learn, efficient to use and pleasant. Marketing Manager katt@cddnation.com KAT TERLECKA
- 2. KAT TERLECKA | CDD WHAT’S THE IMPACT OF VIRTUAL REALITY ON BUSINESSES 2 © Copyright CDD Many marketers believe that 2016 is the year of virtual reality. However, this is not exactly accurate. Saying that 2016 is the year that people start talking about virtual reality would be more appropriate. The range and availability of VR headsets is indeed continuously growing and improving, but the high cost of quality hardware is still making people hold off from buying. We’ve seen a similar trend with TVs, mobile phones and other pieces of technology. Consumers are waiting for the prices to go down, and as most of them have not even had a chance to try on and test a headset, investing into one may be seen as a bit risky and unnecessary (unless they’re into gaming, or are those who need to have the latest gadgets first). A lot of brands have already looked into allocating some of their marketing budgets and efforts to VR and are producing new types of content. Some have done really well and managed to generate a lot of interest and revenue, others not so. The outcome was either unappealing, underdeveloped or affected by the poor performance of the early headsets. VR will become a big deal, but marketers have to carefully time and size their investments. According to Raconteur, VR is going to be the biggest advancement in technology since the smartphone. It will revolutionise the way people view and interact with content, bringing experiences to life in a way that has never been possible before. VR is going to be the biggest advancement in technology since the smartphone. It will revolutionise the way people view and interact with content Raconteur, 2015 “ Imagecaptionordescriptionasappropriate INTRODUCTION
- 3. KAT TERLECKA | CDD WHAT’S THE IMPACT OF VIRTUAL REALITY ON BUSINESSES 3 © Copyright CDD In this thought leadership piece you will be able to find more insights* about the following aspects of virtual reality: - Brief history and introduction to VR - Types of headsets: how you can view VR content - Impact of VR on businesses and industries - Applications of VR - The future of VR - ROI in VR. Imagecaptionordescriptionasappropriate *All information given in this document is based on the content of CDD’s Grain Feeder event that took place on the 11th of October 2016 and supported by internal and external research.
- 4. KAT TERLECKA | CDD WHAT’S THE IMPACT OF VIRTUAL REALITY ON BUSINESSES 4 © Copyright CDD Before we can talk about the various applications and future trends for VR we need to cover the basics: What VR actually is and what’s its history? Virtual reality can be defined as: “A computer-generated environment that lets you experience a different reality. A VR headset fits around your head and over your eyes, and visually separates you from whatever space you’re physically occupying. Images are fed to your eyes from two small lenses. Through VR you can virtually hike the Grand Canyon, tour the Louvre, experience a movie as if you are part of it, and immerse yourself in a video game without leaving your couch.” (CNET, 2016) In other words, VR is an artificial environment, software created content is demonstrated to the user in such a way that suspends belief and is accepted as a real environment. Let’s have a look at some key dates and events** to learn how the technology has evolved: HISTORY OF VIRTUAL REALITY **source:VirtualRealitySociety,HistoryofVirtualReality,2016 http://www.vrs.org.uk/virtual-reality/history.html 1930s 1950s 1960s 1980s 1990s Now Pygmalion’s spectacles - Stanley G. Weinbaum explained a Goggle- based game in which individuals could watch a holographic recording of virtual stories including touch and smell With the initial surge after Oculus Rift, companies all over the world began developing their own VR headsets. With so many new devices coming out from various world’s top manufacturers, huge developments around apps, 360° cameras, inexpensive headsets, VR glass experiences and more can be seen. The Virtuality Group launched a range of arcade games and machines. Players would wear a set of VR goggles and play on gaming machines with realtime, immersive stereoscopic 3D visuals Virtual reality - the name was born The first VR Head Mounted Display by Morton Heilig; Headsight – first motion tracking HMD; The Ultimate display by Ivan Sutherland Cinematographer Morton Heilig developed the Sensorama that was an arcade-style theatre cabinet, which would stimulate all the senses, not just sight and sound The concept of virtual reality has been around for decades, even though the public really only became aware of it in the early 1990s. The companies that currently dominate the market are: Google, HTC, Samsung, Oculus and Sony. These are sure to be followed by many other enterprises in the next few years, when the use of VR headsets becomes more common.
- 5. KAT TERLECKA | CDD WHAT’S THE IMPACT OF VIRTUAL REALITY ON BUSINESSES 5 © Copyright CDD At the moment, there are four major options for viewing virtual reality content: an immersive VR headset, a simple VR viewer which uses a mobile phone, a smartphone on its own, or a web video player (“360” video format). The best method to experience VR is with a headset, as it offers “look all around you” 3D vision and “hear things behind you” stereo sound (Within, 2016). A headset is the best method to experience VR as it offers “look all around you” 3D vision and “hear things behind you Within, 2016 “ THE BEST VR HEADSETS INCLUDE: - HTC VIVE - OCULUS RIFT - SAMSUNG GEAR VR - SONY PLAYSTATION VR. As of now, the HTC Vive is the most complete VR experience on the market. It is built from the ground up for room-scale VR, which lets you physically move around objects in the virtual space. The headset itself has two 1080p screens which makes for a very crisp image. “The HTC Vive is an incredible gateway into a new medium, one that is currently dominated by short demos and rough-around- the-edges games, but should one day play host to full-length films, television shows and contemporary art.” (TechRadar, 2016) If you’re looking for a cost-effective option, you can get a simple Cardboard VR viewer. The easiest and cheapest way to try virtual reality, Google Cardboard is a piece of folded cardboard with some low cost embedded lenses. Cardboard viewers work along with your smartphone and are available in a variety of styles from a range of companies. Once you get a cardboard version all you have to do is download some apps and individual videos and insert the phone into the viewer to enjoy your first VR experience. It’s quick and easy. AdobeStock_104910875 HOW YOU CAN VIEW & EXPERIENCE VR CONTENT
- 6. KAT TERLECKA | CDD WHAT’S THE IMPACT OF VIRTUAL REALITY ON BUSINESSES 6 © Copyright CDD H LISTICUSEREXPERIENCE There is no doubt VR will have a major impact on businesses in the next few years. The technology is already being used in a number of ways by the business community: - Virtual tours and meetings - Staff interviewing and training - Product or service development - Improved prototyping - Detecting design problems at an early stage. Virtual reality will be particularly useful to companies that produce dangerous or potentially harmful products which need to be evaluated before use. The total number of active virtual reality users worldwide is forecast to reach 171 million by 2018 (Statista, 2016), which means that there is a lot of pressure on businesses to consider implementing VR technology in order to stay relevant and keep up with the requirements and interests of their future customer. IMPACT OF VR ON BUSINESSESS
- 7. KAT TERLECKA | CDD WHAT’S THE IMPACT OF VIRTUAL REALITY ON BUSINESSES 7 © Copyright CDD Virtual reality is and will be revolutionising a wide range of industries and services that brands provide. It’s a completely new medium whose true purpose is slowly being discovered and realised. APPLICATIONS OF VR Visiting destinations without having to travel, or seeing places before travelling to make sure they meet the requirements; at the moment the tourism industry is using the technology for the more mundane purpose of showcasing the real-world offerings, but that will evolve in the next 5 years TRAVEL & TOURISM One of the most obvious applications these days; it is giving game designers the freedom to take games to incredible new places and users the opportunity to get truly immersed and touch things, and turn their head to look, instead of mastering a complex controller GAMING VR enables large groups of students to interact with each other as well as within a three-dimensional environment; medicine, chemistry, physics and astronomy would be some of the main subjects to benefit from the implementation of the technology; VR simulations will offer practice runs at techniques, designs and ideas EDUCATION, SIMULATION & TRANING
- 8. KAT TERLECKA | CDD WHAT’S THE IMPACT OF VIRTUAL REALITY ON BUSINESSES 8 © Copyright CDD H LISTICUSEREXPERIENCE The video has helped 56 million people gain a deeper understanding of autism. That sometimes, autistic people can become overloaded by everything around them. Which can make the outside world feel like a terrifying place. And for their families, all the looks, judgements and tuts make it feel like a lonely and isolated place. CASE STUDY: EXPERIENCE TOO MUCH INFORMATION IN VIRTUAL REALITY WATCH FOR YOURSELF Take a look at our award entry for the Dadi’s. The entry went on to win ‘Best Professional Website’ YOUTUBE.COM/WATCH?v=Lr4_dOorquQ ***source:TheNationalAutisticSociety,2016 http://www.autism.org.uk/ ***
- 9. KAT TERLECKA | CDD WHAT’S THE IMPACT OF VIRTUAL REALITY ON BUSINESSES 9 © Copyright CDD Sports events, live-streamed concerts and theatrical performances are just some of the experiences people can dive into through VR headsets; new cameras are being created to capture these VR stories, and tools to upload and livestream them are growing in number ENTERTAINMENT Being able to tour a potential new property from miles away, walking right through it as if you were there; or walking into a virtual clothing store with infinite shelf space, where any shirt, blouse or pair of shoes can be seen and tried on; shopping is never going to be the same again REAL ESTATE & SHOPPING Being able to commute to work or attend meetings by inhabiting a telepresence robot with cameras mounted on its body; VR will save individuals’ and companies’ time and money, and help people be places almost instantly, wherever they’re in the world. TELECOMMUNICATIONS
- 10. KAT TERLECKA | CDD WHAT’S THE IMPACT OF VIRTUAL REALITY ON BUSINESSES 10 © Copyright CDD When it comes to the future of VR, there have been many speculations on what the technology might bring us in the next 5 to 10 years. Given what we’ve seen and experienced already, these are some pretty solid forecasts: WHAT IS THE FUTURE FOR VR The goal for the next generation of VR hardware is 4K or Ultra High Definition (UHD). The core technologies will shrink, leading to less bulky, more compact headsets, potentially wire-free at some point. VR headset manufacturers are driving both the development and distribution of VR content by investing significant technical and monetary resources in developers, in an effort to build up an exclusive content library. Ads featured on VR headsets will likely have higher view-through rates than standard video ad spots. VR will become another media consumers use on a daily basis. Ownership of VR headsets could rise more than threefold in just two years, even before the predicted peak in 2021. The revenue of virtual reality products is projected to reach $4.6 (£3.7) billion in 2017 to more than $162 (£130) billion in 2020 (worldwide). VR will take over and become gaming’s next big trend. VR has the potential to out-monetise TV over the next decade. Brands will be able to provide customised virtual experiences for consumers, such as entertainment, travel and social interactions, as well as corporate solutions. 1 2 3 4 5 6 7 8 9 10
- 11. KAT TERLECKA | CDD WHAT’S THE IMPACT OF VIRTUAL REALITY ON BUSINESSES 11 © Copyright CDD One of the biggest challenges of creating branded virtual reality campaigns is justifying the value of them, cost of production, and calculating the ROI. The benefits are not just monetary. Of course, the sales and the revenue increase is extremely important. However, until VR platforms and headsets become more widely used by the general public and become more utilitarian, the key is to focus on projects that are aimed at delivering that “wow” effect. Below is the list of major objectives businesses could achieve by implementing VR technology for their marketing campaigns: - Improved brand perception (existing customers) and enhanced brand recognition (new audiences) - Production of compelling VR content that will create instant emotions and prompt users to share, like and comment on it - Being perceived as creative, innovative and up to date with current trends brand - Creating personal connections with existing and new audiences. Imagecaptionordescriptionasappropriate ROI IN VIRTUAL REALITY
- 12. KAT TERLECKA | CDD WHAT’S THE IMPACT OF VIRTUAL REALITY ON BUSINESSES 12 © Copyright CDD Virtual reality is definitely the next big thing. All reports, articles and opinion pieces indicate that. Will the headsets and technology be commonly used by the end of next year? Possibly. Will there be more content in 2017? Absolutely. We hope this thought leadership piece has helped you to better understand the definition, application and some future implications for virtual reality. We’ve also put together a list of key takeaways from the paper: Imagecaptionordescriptionasappropriate CONCLUSION & KEY TAKEAWAYS VR is an artificial environment, created with software and demonstrated to the user in such a way that s/he suspends belief and accepts it as a real environment. 1 There are four major options for viewing virtual reality content: an immersive VR headset, a simple VR viewer which uses a mobile phone, a smartphone on its own, or a web video player (“360” video format). 2 The HTC Vive is the most complete VR experience on the market right now.3 VR can be applied across the whole range of different industries including travel and tourism, gaming, education, simulation and training, entertainment, real estate and shopping, and telecommunications. 4 VR will become another media consumers use on a daily basis with the revenue of virtual reality products projected to reach more than $162 (£130) billion in 2020 (worldwide). 5 Main benefits of implementing VR into marketing strategies: improved brand perception and brand recognition, compelling content, being perceived as creative, innovative, and creating personal connections with existing and new audiences. 6
- 13. ABOUT CDD We make digital experiences that solve business problems. We believe that creativity is the answer to some of the big challenges in an organisation today. We are a bunch of designers, developers, technologists and strategists delivering meaningful business change through innovation and digital platforms. As a design team, we are constantly striving to better our internal processes and improve the way we collaborate with clients. We work on a rich variety of projects, consequently there is no one size fits all approach to user experience design and information architecture. CDD The Grain Store Enterprise House, Ocean Way, Southampton SO14 3XB www.cddnation.com Want to chat or need some assistance with your digital project? Feel free to give us a call or drop us an email 02380664747 hello@cddnation.com Author KAT TERLECKA Kat is Marketing Manager at CDD, who joined the company with an extensive experience in B2B environment, previously working on both the client side and at a couple of other marketing agencies on the south coast. She is also an alumna of the University of Southampton, having graduated with a MSc in Digital Marketing.
- 14. AR/VR Magazine (2016) The Value and ROI of Branded Virtual Reality Campaigns (http://www.arvrmagazine.com/the-value-and-roi-of-branded-virtual-reality- campaigns/), [1 Nov 2016]. CNET (2016) Virtual Reality 101 (https://www.cnet.com/special-reports/vr101/), [1 Nov 2016]. Forbes (2016) How Virtual Reality Will Impact Businesses In The Next Five Years (http://www.forbes.com/sites/forbestechcouncil/2016/07/22/how-virtual- reality-will-impact-businesses-in-the-next-five-years/#34772fe82241), [1 Nov 2016]. Raconteur (2015) Virtual Reality (https://raconteur.uberflip.com/i/616458- virtual-reality), [2 Nov 2016]. ReadWrite (2016) Virtual Reality Will Change Business as We Know It (http:// readwrite.com/2016/03/09/vr-changing-business/), [2 Nov 2016]. Sapphire Nation (2016) The Future of VR: from Virtual Reality Goggles to UHD VR Glasses (http://sapphirenation.net/future-of-vr/), [1 Nov 2016]. Statista (2016) Number of Active Virtual Reality Users Worldwide from 2014 to 2018 (https://www.statista.com/statistics/426469/active-virtual-reality-users- worldwide/), [1 Nov 2016]. TechRadar (2016) HTC Vive Review (http://www.techradar.com/reviews/ wearables/htc-vive-1286775/review), [1 Nov 2016]. The National Autistic Society (2016) Experience Too Much Information in Virtual Reality (http://www.autism.org.uk/VR), [2 Nov 2016]. Virtual Reality Society (2016) History of Virtual Reality (http://www.vrs.org.uk/ virtual-reality/history.html), [1 Nov 2016]. Within (2016) How to Watch VR (http://with.in/how-to-watch-vr/), [1 Nov 2016]. REFERENCES