How augmented reality and VR are entering the mobile advertising of tomorrow

by bold-lichterman

Virtual reality is “the new field of communication”, for Mark Zuckerberg. It is also no coincidence that the boss of Facebook, the world’s leading social network whose economic model is mainly based on online advertising, invested $ 2 billion in 2014 to buy Oculus Rift, manufacturer of headphones most promising virtual reality model on the market. Brands are just starting to take an interest in it, yet virtual reality, like augmented reality, is one of the technologies foreshadowing the future of online advertising. And especially on smartphones.

From the failure of Google Glass to the great success of Pokémon GO. Augmented reality is not really new. Remember, in 2012, the frenzy around Google Glass: these futuristic glasses hiding an interactive screen that offers additional information, in real time, in order to interact with its user at the heart of his daily environment.

Four years later, Google Glass was thrown into oblivion, but the principle of augmented reality – using the real environment to display virtual objects or interactions – has never been so present. The credit goes to one game: Pokémon GO. The application that offers to catch creatures invented for Nintendo consoles is a worldwide success on smartphones and rakes in millions of dollars in revenue. Something to inspire the world of online advertising.

From mass market to precision market. In order not to run out of steam and continue to capture the attention of Internet users, online advertising is constantly in search of new formats. From this perspective, augmented reality – as well as virtual reality – is a new breath, a technology of the future. According to Deutsche Bank Research, the sector should grow from 500 million to 7.5 billion euros by 2020. With Pokémon GO, this format has gone from niche technology to democratized technology, used by millions of people. Over the next five years, the number of users affected by augmented reality will increase from 60 million to 350 million, an annual growth of close to 35%. This explains the strong interest of many advertising players for augmented reality.

For the moment, it must be recognized that the examples of advertising in augmented reality are not legion. However, by combining different technologies that already work perfectly, augmented reality could make it possible to target mobile Internet users much more precisely and effectively. And this is what brands are looking for more and more: advertising tends less and less towards the “mass market”, more and more towards the “precise market”. All this is made possible by technology: GPS, personal data (anonymous of course), favorite content, past and future events, etc. Some mobile advertising platforms are now able to send advertising content to the user in less than 100 milliseconds, after having drawn up an ultra-precise profile of the mobile Internet user.

What gives another dimension to this technology is precisely the evolution of possibilities in terms of data: now, with the information collected, advertising is able to reach mobile users as closely as possible to their expectations. For example, couponing – offering a one-off reduction in a store or on a particular product – combined with geolocation and augmented reality, can guide the user to the nearest brand, using an application. mapping. All that remains for the user to do is show his coupon directly from the screen of his smartphone, when paying, to benefit from the reduction.

Tomorrow, it will be possible to point your smartphone at a 4 × 3 panel, using a simple application: the resulting TV spot will then be triggered instantly on the screen. Then, at the end of the sequence, a reduction coupon will be offered to the Internet user on their smartphone, who will then be directed, from the same application, to the nearest store so that they can use this same coupon. All thanks to augmented reality, programmatic and ultra-fine user targeting.

Virtual reality is almost for tomorrow. The advertising market must not stand on its own merits and must turn to innovation. If augmented reality is for tomorrow, the future portends an explosion of advertising in virtual reality. Today, virtual reality headsets remain imposing and are not yet optimized in their use as in their operation. It is still a private accessory, an object of curiosity that one cannot imagine for a second wearing all day. Nevertheless, by 2018, some 25 million virtual and augmented reality headsets should be sold to the world. Google has also just presented, alongside its latest smartphone named Pixel, a new virtual reality headset, Daydream View. The Web giant – and online advertising – is preparing around thirty applications, including Google Maps, YouTube and Street View, compatible with its futuristic accessory.

Video games are the first market to really exploit virtual reality and this major trend will completely disrupt the industry according to Goldman Sachs. In fact, in a report, the investment bank estimates the virtual reality market, for video games alone, at $ 11.6 billion in 2025. For the KZero firm, there are now 200,000 players using headsets and virtual reality to transform their gaming experience. They could be 56.8 million in 2018.

During a demonstration, we were able to see a reconstituted version of Time Square, in the center of New York, which displays huge advertising screens. In this virtual reality reconstruction, the advertisements adapted to the tastes and desires of the user, at 360 degrees, according to certain data collected: we are not yet in the film Minority Report, but the technology is fast approaching. And the more the number of virtual reality users increases, the more advertising will progress and adapt to uses and users.

In a few years, we will certainly be able to see pedestrians walking around with virtual reality headsets on their noses, in the street, having an immersive, 360-degree experience. And this will no longer surprise anyone, just like an interactive advertisement, on their smartphone or directly from the screen of their virtual reality headset. The future of advertising is therefore already there, in our pocket.

stephane-pitoun-2016Stephane Pitoun has more than 15 years of experience in the development of online media strategies in France and abroad. He has advised several large accounts and companies on online and offline issues in the short or long term. After having been Director at Fullsix for 7 years, Stéphane Pitoun launched Ybrant France, the French subsidiary of the international advertising network of the same name. In 2009, Stéphane Pitoun joined the headquarters of the parent company, Ybrant Digital, to take care of commercial and international development. Stéphane Pitoun then created Ybrant Mobile. With his accumulated experience in programmatic and mobile, and his entrepreneurial spirit, Stéphane founded Adxperience – a mobile programmatic marketing platform – with Fabrice Guez in 2011.

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