Virtual and Augmented Reality (VR/AR) is changing the way advertising and marketers are playing in the digital world. We have already spoken here at Aussie Sounds about how Mark Zuckerberg is doubling down on the Metaverse because it is the environment where he can completely control the data, and more importantly the advertising space. He is not the only major company to dive into this world of immersive and interactive content and he will not be the last.
Who will dominate the field is open to conjecture as few have the financial backing to win the battles ahead, but the corporate giants are already using the AR/VR technology to profound effect. They know this is the future environment that generations to come will exist in. While expensive at this moment in time, the headsets will inevitably drop to lower price points and that makes the world of Ad Tech even more inviting.
What is Ad Tech?
Ad Tech is a broad term that categorizes the software and tools that agencies, brands, publishers, and platforms use to target, deliver, and measure their digital advertising efforts. Adtech is vital because it is all about the data. Total digital ad spend globally is now expected to reach US$738.5 billion by the end of this year. With that amount of cash being spread around, companies need to understand who they are targeting and whether they are cutting through to their audience.
The ultimate goal is to focus ad placements, design the most effective content, and have a spending balance sheet that is well articulated. Behavioural data is the starting point to achieve this to help drive and measure a successful campaign. Thanks to these insights from billions of consumers’ device interactions, it has become more popular as companies discover how cost-effective these solutions are.
What does it have to do with AR/VR?
With Q2 earnings dropping for the social media giants, eyeballs on content are now more important than ever. The science fiction that we once only imagined is right here and now and content providers are well on the way to creating immersive and innovative campaigns. Using AR/VR gateways to launch a user into a new experience for domestic consumption is key, rather than traditional static ads that are frankly underwhelming to audiences that are bombarded with spammy media.
Research has highlighted the relationship between AR and its neurological effects on the consumer. By using brain imaging technology researchers were able to track the brain’s response to the different stimuli the participants were exposed to. The results also indicated that users spent double the amount of time engaging with AR enabled content than with traditional forms of advertising. This means big bucks to the companies determined to leverage this capability and Ad Tech is the beast that supports this.
Letting Customers Try Before They Buy
Remember the bad old days when you had to guess if a product was the right fit for you, only to receive that purchase through the mail and discover it was not the feel-good item you thought it was going to be. Potential customers have always wanted to try products before purchasing them and with the advent of AR/VR that is all now possible. Fitting rooms, cosmetic samples, automobile test-drives, and many other related concepts are the next step in that seamless customer experience.
By leveraging clients behavioural messaging through their streaming experience, that tailored content management becomes an even more valuable asset for companies operating in the retail sector. It was a need that was amplified by the pandemic and once consumers changed their purchasing habits, bricks and mortar shopfronts are struggling to maintain relevance.
Where is the targeting most effective?
At this point in time, it is the world of gaming that is providing some of the biggest opportunities but running a close second is musical content. Statistics show that the average time spent on music streaming is just over 1.5 hours a day with the younger generations making up large swathes of that cohort. This is creating a long-lasting symbiotic association between advertisers, brands and artists.
The dependency on musicians to fuel that revenue stream is a concept well understood by us at Aussie Sounds. Vertically integrating advertising into the live and on-demand experience with ground-breaking artists is creating an environment where all participants can maximise their earning potential. Musicians get great returns on their art and advertisers get to participate in and build a reputation as company on the cutting edge of the new digital horizons.
The Technology is Here to Stay
What does this mean for current investors and advertising agencies? There is no point them burying their heads in the sand and thinking that traditional advertising will continue as it has previously. Just like newspapers who have lost out and become almost redundant for current generations, if advertisers do not adopt the new strategy, they will no doubt be left to wander in the wilderness and locked out from the new world order.
Future generations will interact with AR/VR and adopt it as the place to spend their time. The wave is coming, and Aussie Sounds is surfing it all the way to the beach. Employing the latest streaming technology and some of the most gifted digital architects in the business, we are redefining how artists communicate with the world. It is no longer a pipe dream, with a schedule of live performances set to excite the senses and engage the mind.
Integral to that model is the advertising that will year-on-year expand earnings for companies in a way never previously imagined. The potential is limitless and there is nothing that cannot be achieved as the technology exponentially grows. Investors are clamouring to join with us on this new adventure and position themselves as companies who are embracing the future and ensuring their sustainability in an increasingly challenging marketplace.
Heath is the founder of Australian Sounds Live and is a dynamic and innovative business strategist with the talent, experience and drive to recognise good ideas across a range of industries and rapidly transform these into market-busting offerings. Combined with a deep understanding of what it takes for a digital-age business to thrive, and a rare ability to energise the teams propelling those businesses into the future, Heath’s passion for creating and developing new ventures unlocks potential and yields high returns.