Immersive advertising leverages technologies like virtual reality, augmented reality and the metaverse to create engaging and multisensory experiences for users. This study explores how these technologies can enhance customer engagement and drive purchase intentions by providing vivid mental imagery and interactive experiences. By integrating physical and virtual realms, businesses can create seamless customer journeys and maximize value creation.
The study highlights the effectiveness of immersive advertising in the visitor economy, using examples from the Coachella festival and Emirates Airline. These case studies demonstrate how immersive technologies can attract and engage audiences, ultimately converting virtual interactions into real-world purchases.
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Before the resurgence in interest in AI, virtual reality was the technology everyone was excited about. Despite the hype, advertisers have been slow to adopt VR environments. Why is this? This study, which was recently made available early online on the Journal of Advertising Research’s website, explores the potential and challenges of VR environments for advertising in its current state.
Widespread adoption has stalled, the study finds, due to obstacles such as limited reach, anticipated lack of ROI, lack of technical expertise and poor interoperability. However, the metaverse offers unique opportunities for advertisers, leaving a sort of resonating impact that other media cannot convey, because they do not engage the user in as immersive an experience as VR offers.
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Augmented reality holds much promise for advertising. However, little research has investigated the impact of it or virtual mirrors in advertising. This study, recently published in the Journal of Advertising Research, focuses on how self-referencing, self-awareness, self-focused attention and self–brand relationships affect consumer attitudes and purchase intentions within this new virtual frontier. The research highlights the potential of augmented reality to enhance consumer engagement and satisfaction by allowing users to visualize products on themselves in real-time.
The authors conducted a laboratory experiment with university students to investigate the effects of viewing perspectives, types of endorsements and the use of beauty filters in virtual mirrors. The findings suggest that while virtual mirrors can enhance product attitudes, they do not significantly influence purchase intentions. The study provides valuable insights for marketers on tailoring augmented reality advertising strategies to different cultural contexts.
More analysis and the full study is available to ARF members.
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Explore the impact of racial minority representation in TV advertisements on consumer choices in the mortgage market in this new MSI working paper. The study employed a double machine learning model to control for high-dimensional video and text features, ensuring robust estimates. Its findings reveal that higher minority presence can significantly increase TV advertising effectiveness.
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