VR Marketing – It’s Coming (So Get Prepared)
VR Marketing: What It Is and How to Prepare for It
VR marketing is the use of virtual reality technology to create immersive brand experiences that drive significantly higher emotional engagement than traditional video or static content. The VR industry is currently estimated to be worth around $7 billion, and according to a report by Greenlight Insights, revenues could reach nearly $75 billion by 2025 — making it a marketing channel brands cannot afford to ignore.
What Is VR Marketing and How Does It Work?
VR marketing is not the same as augmented reality (AR). Understanding the distinction is essential before investing in either format.
| Technology | What It Does | Example |
|---|---|---|
| Virtual Reality (VR) | Replaces the user’s entire environment with a simulated one via a headset | Marriott VR Room Service, Thomas Cook Manhattan flyover |
| Augmented Reality (AR) | Overlays digital elements onto the real-world environment | Pokémon Go, IKEA Place app |
VR works by placing the user inside a fully rendered environment through a headset that covers their entire field of vision. As the user turns their head, the image follows their motion — producing a genuinely immersive experience. VR is not simply a fancier video format; it creates a whole new reality rather than adding to an existing one.
Major technology companies have already committed significant investment to VR platforms:
- Google — Cardboard
- Facebook — Oculus
- Samsung — Gear VR
Why Does VR Marketing Produce Higher Engagement?
VR marketing produces higher emotional engagement because it replaces passive viewing with active immersion, triggering stronger emotional and cognitive responses than 2D or 3D video formats.
According to YuMe and Nielsen, a study found that:
- VR content elicited 27% higher emotional engagement than the same content in 2D
- VR content produced 17% higher emotional engagement than the same content in 3D video
VR marketing is proven to outperform standard video on emotional engagement metrics. For brands where emotional connection drives purchase decisions — travel, hospitality, luxury — this difference is material.
VR marketing is also not limited to passive experiences. A VR experience can include a call to action at the end: the viewer looks at a call-to-action element for a set period of time to follow a link, with the headset’s eye-tracking technology recording the interaction. This makes VR marketing direct and measurable rather than reliant on lasting impression alone.
Real-World VR Marketing Results From Brands That Have Used It
VR marketing is not only supported by studies — brands that have deployed it have reported concrete, measurable outcomes.
- Destination British Columbia — Released the Great Bear Rainforest VR experience and recorded a 5% increase in visitors
- Marriott — After their VR Room Service campaign, 51% of participants said they wished they stayed with Marriott more often
- Thomas Cook — Offered a VR flyover of the Manhattan Skyline, resulting in a 40% ROI and a 190% increase in NYC excursion bookings
These results demonstrate that VR marketing is not theoretical. The format allows a creative, dynamic, storytelling approach that produces audience responses far superior to those of a static image or standard video.
What Are the Current Limitations of VR Marketing?
VR marketing is not without significant barriers. Before committing budget, marketers should weigh the following constraints:
- High production cost — VR content requires its own dedicated production pipeline
- Limited content portability — Content produced for VR cannot be effectively repurposed across other channels the way images or standard video can
- Small current audience — VR headset ownership remains limited, meaning campaigns reach a narrow segment today
- Falling costs over time — As the technology matures and competition increases, costs are expected to decline
VR marketing is not yet a mass-market channel, but the trajectory of investment from Google, Facebook, and Samsung signals that affordability and accessibility will improve. Brands that begin developing VR competency now will be better positioned when the technology reaches mainstream adoption.
How to Prepare Your Brand for VR Marketing
VR marketing preparation should begin before the technology reaches mainstream adoption — not after. The following steps provide a practical starting framework:
- Audit your content strategy — Identify where emotional engagement is most critical in your customer journey and flag those touchpoints as VR candidates.
- Study existing VR campaigns — Review what Marriott, Thomas Cook, and Destination British Columbia have done to understand format, length, and call-to-action mechanics.
- Define your VR audience — Assess whether your current or target customers are likely early VR adopters.
- Monitor hardware cost curves — Track the price trajectories of Oculus, Gear VR, and Google Cardboard to anticipate when your audience will have access.
- Plan for standalone VR content — Budget and brief for VR production separately; do not expect to repurpose existing video assets effectively.
Frequently Asked Questions About VR Marketing
What is VR marketing?
VR marketing is the use of virtual reality technology — typically delivered via a headset — to place consumers inside an immersive brand experience. It is distinct from augmented reality, which overlays digital elements onto the real world rather than replacing it entirely.
How much more effective is VR marketing compared to standard video?
According to YuMe and Nielsen, VR content produces 27% higher emotional engagement than 2D content and 17% higher emotional engagement than 3D video. Thomas Cook recorded a 190% increase in NYC excursion bookings after deploying a VR experience.
Is VR marketing suitable for small businesses right now?
VR marketing is not currently cost-effective for most small businesses. Production costs are high and the content cannot be easily repurposed across other channels. However, as hardware costs fall and headset adoption grows, the barrier to entry will decrease.
What is the difference between VR and AR in marketing?
VR creates an entirely new virtual environment for the user, replacing their physical surroundings. AR adds digital overlays to the existing environment — as seen in the Pokémon Go app and the IKEA Place app. Both have marketing applications but serve different use cases.
When will VR marketing become mainstream?
VR marketing is not yet a mainstream channel, but the investment from major technology companies — including Google, Facebook, and Samsung — indicates the technology will become more affordable and widely adopted. Brands are encouraged to build capability now in preparation for broader rollout in the coming years.
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