What do journalists and media companies need to know about immersive advertising?

The answer to every VR content creator’s biggest fear

As I’m sure most of you know, revenue generation has been a major hindrance for VR/AR startups. The market is not purchasing at the rate content creators need to justify the continuous development of software, and hardware companies aren’t selling at the rate they would like because of the lack of available software.

It’s a chicken and egg situation.

Aside from the saving grace of an angel investor or a venture capitalist, these startups don’t have much of a chance of staying afloat. And if you believe in the power of VR/AR and the significant impact it will have on our lives in the future, this problem is terrifying.

The solution is advertising in immersive environments. Its value goes beyond making a simple buck — it has the potential to drive the VR/AR industry forward.

We know you journalists and media companies value content and sometimes see ads as the enemy.

But hold on — don’t start downloading that ad blocker yet. I’m not talking about interruptive pop-ups. I’m talking about interactive product placements.

Let’s take a moment to admire the value of these product placements before I tell you how they work.

Product placement has been around forever and for good reason: It works! When Jules Verne was writing Around the World in Eighty Days in 1872, shipping and travel companies vied for a mention in the serialized novel as the chapters were published in a French newspaper. Since then these types of promotions have become even more valuable.

Subtlety is the key here.

Enticing a consumer to buy is as easy as presenting the product at the right time, because just seeing it can actually induce a desire. Look at that pizza, now you’re hungry!

This is what I’m talking about when I say “advertisements,” so let’s all get the idea of a greasy used car salesman out of our minds. These placements will not disturb the virtual experience in any way and in some cases can make it seem more realistic, because we are used to seeing branded products in everyday life.

Real estate, gaming, medical training, live events, sports, movies, etc., are all huge players in VR content development because the applications are truly valuable. A family in New York can tour a home in Texas without hopping on a plane and incurring all the expenses that go along with purchasing a home out of state. A medical student can practice surgery in a simulation with the same equipment used by surgeons in an actual operating room. Beyoncé fans living thousands of miles away from her New York City concert can experience her performance live via 360 streaming.

With VR development increasing, more and more users are interacting with virtual reality in a way they’ve never imagined. This drive of traffic to various content can be extremely valuable to businesses and brands trying to expand their market reach and increase sales.

News apps and media companies can confidently sell virtual ad space to increase digital ad sales. For example, in a medical journal, a drug company can promote a new over-the-counter or prescription medicine with a 3D model placed in an article’s sidebar. Consumer brands can place a 3D product model into a 360 video. Niche music publications can place ads across the stage of a 360 concert to sell relevant products or, based on the viewer’s location, place videos promoting an upcoming concert and sell tickets for the show.

The possibilities are endless. Media companies and journalists can now comfortably know they can utilize VR as an effective medium to capture audiences but also to increase their ad sales revenue.

Q & A with Michael Rapoport, co-founder of Pletra, a VR advertising firm

Q: Ballpark…how much does a content creator get paid for each VR immersive ad?

A: Depends on the amount of ads, impressions, and the industry. Can be [tens of] thousands [of dollars] per month.

Q: Ballpark…what does an immersive ad cost an advertiser?

A: $3 to $10 CPM/CPC. Lower for an optimized campaign ($0.10 to $3). Again, varies per industry, demand, etc.

Q: How are these ads measured? Is there a click-through or gaze-through calculation?

A: Both. Depends if web based, headset, or VR immersive.

Q: How do you set up immersive advertising on your app or web VR experience? Is it just a line of code?

A: Yup. More customization requires a bit more, but basic ad blocks are lines of code with CSS customization.

Q: How many people do these ads reach?

A: Depends on the industry, but tens of millions.

Q: Where in your opinion is the best place to place an ad that doesn’t distract from the story? (These are journalists who create VR video stories.)

A: For web VR, below content, above, sidebar. If in the video [i.e., VR immersive or advanced browser] (a future update we release), then in the background of the scene or on a secondary object, e.g., a Coke on a table.