Virtual Reality (VR) is the fastest growing media and entertainment category in terms of revenue, based on the latest PwC report.
The advisory firm’s research showed that VR will have a global average annual growth rate or compound average growth rate of 40% over the next five years. (See graph below.) VR exceeds video games, e-sports, internet advertisements, and over the top (OTT) media services like Netflix.
And, as the trends become digitally-driven, revenue of print media (i.e. magazines and newspapers) are predicted to decline within the given timeframe.
PwC also projected VR’s revenue growth to rise as the sales of VR headsets increase.
The agency predicts that by 2022, there are about 175.2 million VR units bought in the US, Japan, China, South Korea, UK, France, Germany, Russia, Italy, and Spain. The increasing global sales push the revenues up.
“Growth will be driven by the second wave of hardware that is easier to use, better supported and ultimately priced for the masses entering the market over the forecast period,” said Mark Maitland, the Head of Entertainment and Media at PwC (United Kingdom).
Why you should care
Altogether, these data mean virtual reality is one of today’s most powerful marketing tool you can use to leverage your business.
Customers are becoming more and more sophisticated. They are looking for authentic experiences that are engaging, interactive, and personal. And, VR is the consumer technology that can provide that.
It’s a good thing that technological development and lower production costs have recently made VR more available for marketing. More businesses are already able to use it for increasing brand awareness, enhancing engagement, and improving customer experience.
Virtual reality directly affects the consumers too. According to Greenlight Insights, more people engage with brands that offer a VR experience. They think a brand is innovative and forward-thinking if it integrated virtual reality into the business.
Thus, PcW sees VR will disrupt some of today’s business models, becoming the next major platform shift after the web and mobile devices.
Make marketing great again
The greatest advantage of VR is that it establishes a strong emotional connection with the customer. The interactive and realistic content engages them and encourages them to make a purchase.
For example, an architect letting a client explore on a 3D virtual fit-out would be nicer than looking at a 2D or 3D rendering image of a home project. The method moves the client and captivates him/her with the design.
Another benefit is a visual showroom where your consumers can see how various furniture and home decor look in their homes. It also gives you a sense of volume in the room you can’t get on a 2D image. E-commerce websites can use this technology to drive their sales and increase revenue.
In real estate, they use virtual tours to sell off-plan properties. With this application, property developers and real estate agents can show their client a sneak peek of their valuable investment.
Join the VR Boom
By 2025, experts predict the VR industry will be worth US$110 billion. Because VR is now in a long-term growth phase, more and more businesses want in on the action. Entrepreneurs diversify beyond the dominant VR content categories such as games and video to find new business opportunities.
“To succeed in the future that’s taking shape, companies must re-envision every aspect of what they do and how they do it,” PwC stated in their report.
“It’s about having, or having access to, the right technology and excellent content, which is delivered in a cost-effective manner to an engaged audience that trusts the brand,” they added.
VIZ360 helps businesses who care about their customers’ experiences and who are willing to invest in interactive 3D content. Talk to us about this Enterprise VR Application here.