What is the role of virtual reality as a local or vertical marketing channel? It’s an important question for the industry.
What we know is that 360 degree video and other precursor technologies are now being applied for local verticals such as real estate, auto, retail and travel. It is fairly commonplace to get a view of new car interiors by mousing over them . But as processing capabilities improve, video costs decline, hardware production scales, and major companies invest, we’ll see full blown virtual reality being presented as a brand new channel for locally targeted brands. There may also be applications by local governments and others.
We also know that interest levels and industry investment levels in VR are high. A report that includes a consumer survey and industry analysis from Greenlight VR, a new VR consulting firm I am advising, shows that VR has high awareness among men and women (but especially men); there is high interest in VR among all age groups (but especially Gen Z, Millennials and Gen X); and consumers anticipate using VR for a wide range of activities, including gaming, travel, entertainment and training.
In anticipation of a breakthrough, companies such as Facebook, Google, Sony, Samsung , VG and Mattel have invested billions of dollars. In fact, Greenlight VR reports there are 160 U.S VR companies now, up from 120 in 2014. But it’s still a greenfield opportunity with no clear leaders at this point. On the processing front, we’ve also seen major support from Intel, NVIDIA and AMD.
Media companies are just beginning to weigh in as well, seeing a potential growth avenue and, possibly, a new way into video. This weekend, The New York Times launched its NYT VR app for iOS and Android, and delivered free Google Cardboard viewers (each normally priced at $24.95) to nearly 1.15 million Sunday print subscribers.
The inaugural VR programming on the Times app – a Mini Cooper promo and a moving, 10 minute warzone documentary produced with VRSE, a VR storytelling firm — was shot with multiple cameras and let consumers take a 360 degree view of various landscapes with studio quality sound (if using headphones.)
Relying on the inexpensive, Viewmaster-like Google Cardboard reader rather than high end computing platforms (expected to cost $300+,) the NYT programs aren’t offering much more than a self-directed, 360 degree view. You won’t see head tracking tech with this.
But it gets the app and reader into the hands of its early adopter, high- end readership. Its importance can’t be under-estimated. To us, it is a major step for both the NYT and Google, as they strive in their own ways to be immersive, comprehensive media and commerce providers. One wonders how a CBS or ABC affiliate, or a local newspaper, will compete against a Google, Facebook and/or NYT that offers virtual reality options, video, listings, commerce, social media and other open loop/closed loop channels.