Though there has been a major increase in online advertising in the last decade, there are many who feel that the effectiveness of online advertising is reducing. Advertisers are complaining that the return on investment (ROI) for digital advertising is reducing, as the internet users are becoming more familiar with the advertisements and learning to ignore them. The cost of online advertising is also increasing for the advertisers. Additionally, the internet users are also using ad blockers more often, there has been a 30% increase in the use of ad blockers. So, advertisers are interested in finding alternate ways of reaching internet users.

One of the newest and most widely discussed technologies are Virtual Reality (VR) and Augmented reality (AR). A large number of products using these technologies are now available, and advertisers would like to find out What are the most effective marketing methods in the age of VR and AR? Many of the most world-famous brands are now using AR as part of their advertising. To celebrate Chinese New Year, Coca-Cola has launched a new advertising campaign, with Alipay. Volkswagen, Starbucks and Nivea are some of the top brands which are experimenting with AR for promoting their products, hoping to get a better ROI.

While the effectiveness of AR, whether through a virtual reality company or another provider, has not been measured accurately, and it is likely that customers will consider it a marketing gimmick instead of a new advertising method. However, the statistics regarding the advertising trends in augmented reality in the last few years, indicated that there has been a massive increase in the amount which has been spent, with amount doubling from 2016 to 2017. Some of AR games like Pok√©mon Go are designed for mobile users, and the popularity of the game, has resulted in promotional partnerships with major consumer brands like Starbucks, Sprint and McDonald’s. However, developing Augmented Reality technology has only recently started, and larger companies like Google, Microsoft, Apple have just begun their research.

Virtual reality, VR uses sensors to detect the motion of the head, and alter the content available to make it appear realistic. This technology is widely used for creating videos, and advertising is likely to focus on these videos. Major car manufacturers like Audi are offering their customers a VR experience, so that they can view the vehicle in different colours, and configurations. However, at present the cost of VR is fairly expensive. In future AR and VR are expected to make advertising more interactive and interesting for viewers and customers.