WHAT’S THE IMPACT OF VIRTUAL
REALITY ON BUSINESSES:
IMPLEMENTING VR INTO YOUR
MARKETING STRATEGY.
CDD are keen advocates of innovation, and always try to keep up with the latest
industry trends and new technologies. We’ve been watching VR grow and evolve,
and wanted to share our passion for the subject with the wider audience. We’re
looking at the technology from the UX and usability perspective: waiting for when
VR becomes easy to learn, efficient to use and pleasant.
Marketing Manager
katt@cddnation.com
KAT TERLECKA

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Many marketers believe that 2016 is the year of virtual reality. However, this is
not exactly accurate. Saying that 2016 is the year that people start talking about
virtual reality would be more appropriate.
The range and availability of VR headsets is indeed continuously growing and
improving, but the high cost of quality hardware is still making people hold off
from buying. We’ve seen a similar trend with TVs, mobile phones and other pieces
of technology. Consumers are waiting for the prices to go down, and as most of
them have not even had a chance to try on and test a headset, investing into one
may be seen as a bit risky and unnecessary (unless they’re into gaming, or are
those who need to have the latest gadgets first).
A lot of brands have already looked into allocating some of their marketing
budgets and efforts to VR and are producing new types of content. Some have
done really well and managed to generate a lot of interest and revenue, others not
so. The outcome was either unappealing, underdeveloped or affected by the poor
performance of the early headsets.
VR will become a big deal, but marketers have to carefully time and size their
investments. According to Raconteur, VR is going to be the biggest advancement
in technology since the smartphone. It will revolutionise the way people view and
interact with content, bringing experiences to life in a way that has never been
possible before.
VR is going to be the biggest
advancement in technology
since the smartphone. It will
revolutionise the way people view
and interact with content
Raconteur, 2015
“
Imagecaptionordescriptionasappropriate
INTRODUCTION

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In this thought leadership piece you will be able to find more insights* about the
following aspects of virtual reality:
- Brief history and introduction to VR
- Types of headsets: how you can view VR content
- Impact of VR on businesses and industries
- Applications of VR
- The future of VR
- ROI in VR.
Imagecaptionordescriptionasappropriate
*All information given in this document is based on the content of CDD’s Grain Feeder event that took place on the
11th of October 2016 and supported by internal and external research.

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Before we can talk about the various applications and future trends for VR we
need to cover the basics: What VR actually is and what’s its history?
Virtual reality can be defined as:
“A computer-generated environment that lets you experience a different reality.
A VR headset fits around your head and over your eyes, and visually separates
you from whatever space you’re physically occupying. Images are fed to your eyes
from two small lenses. Through VR you can virtually hike the Grand Canyon, tour
the Louvre, experience a movie as if you are part of it, and immerse yourself in a
video game without leaving your couch.” (CNET, 2016)
In other words, VR is an artificial environment, software created content is
demonstrated to the user in such a way that suspends belief and is accepted as a
real environment.
Let’s have a look at some key dates and events** to learn how the technology has
evolved:
HISTORY OF VIRTUAL REALITY
**source:VirtualRealitySociety,HistoryofVirtualReality,2016
http://www.vrs.org.uk/virtual-reality/history.html
1930s
1950s
1960s
1980s
1990s
Now
Pygmalion’s spectacles
- Stanley G. Weinbaum
explained a Goggle-
based game in which
individuals could
watch a holographic
recording of virtual
stories including touch
and smell
With the initial surge
after Oculus Rift,
companies all over
the world began
developing their own
VR headsets. With
so many new devices
coming out from
various world’s top
manufacturers, huge
developments around
apps, 360° cameras,
inexpensive headsets,
VR glass experiences
and more can be seen.
The Virtuality Group
launched a range of
arcade games and
machines. Players
would wear a set of VR
goggles and play on
gaming machines with
realtime, immersive
stereoscopic 3D
visuals
Virtual reality - the
name was born
The first VR Head
Mounted Display by
Morton Heilig;
Headsight – first
motion tracking HMD;
The Ultimate display
by Ivan Sutherland
Cinematographer
Morton Heilig
developed the
Sensorama that was an
arcade-style theatre
cabinet, which would
stimulate all the
senses, not just sight
and sound
The concept of virtual reality has been around for decades, even though the public
really only became aware of it in the early 1990s. The companies that currently
dominate the market are: Google, HTC, Samsung, Oculus and Sony. These are
sure to be followed by many other enterprises in the next few years, when the use
of VR headsets becomes more common.

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At the moment, there are four major options for viewing virtual reality content:
an immersive VR headset, a simple VR viewer which uses a mobile phone, a
smartphone on its own, or a web video player (“360” video format).
The best method to experience VR is with a headset, as it offers “look all around
you” 3D vision and “hear things behind you” stereo sound (Within, 2016).
A headset is the best method to
experience VR as it offers “look all
around you” 3D vision and “hear
things behind you
Within, 2016
“
THE BEST VR HEADSETS INCLUDE:
- HTC VIVE
- OCULUS RIFT
- SAMSUNG GEAR VR
- SONY PLAYSTATION VR.
As of now, the HTC Vive is the most complete VR experience on the market. It
is built from the ground up for room-scale VR, which lets you physically move
around objects in the virtual space. The headset itself has two 1080p screens
which makes for a very crisp image. “The HTC Vive is an incredible gateway into a
new medium, one that is currently dominated by short demos and rough-around-
the-edges games, but should one day play host to full-length films, television
shows and contemporary art.” (TechRadar, 2016)
If you’re looking for a cost-effective option, you can get a simple Cardboard VR
viewer. The easiest and cheapest way to try virtual reality, Google Cardboard
is a piece of folded cardboard with some low cost embedded lenses. Cardboard
viewers work along with your smartphone and are available in a variety of styles
from a range of companies. Once you get a cardboard version all you have to do is
download some apps and individual videos and insert the phone into the viewer to
enjoy your first VR experience. It’s quick and easy.
AdobeStock_104910875
HOW YOU CAN VIEW &
EXPERIENCE VR CONTENT

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H LISTICUSEREXPERIENCE
There is no doubt VR will have a major impact on businesses in the next few
years. The technology is already being used in a number of ways by the business
community:
- Virtual tours and meetings
- Staff interviewing and training
- Product or service development
- Improved prototyping
- Detecting design problems at an early stage.
Virtual reality will be particularly useful to companies that produce dangerous or
potentially harmful products which need to be evaluated before use.
The total number of active virtual reality users worldwide is forecast to reach 171
million by 2018 (Statista, 2016), which means that there is a lot of pressure on
businesses to consider implementing VR technology in order to stay relevant and
keep up with the requirements and interests of their future customer.
IMPACT OF VR
ON BUSINESSESS

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Virtual reality is and will be revolutionising a wide range of industries and services
that brands provide. It’s a completely new medium whose true purpose is slowly
being discovered and realised.
APPLICATIONS OF VR
Visiting destinations without having to travel,
or seeing places before travelling to make sure
they meet the requirements; at the moment
the tourism industry is using the technology for
the more mundane purpose of showcasing the
real-world offerings, but that will evolve in the
next 5 years
TRAVEL & TOURISM

One of the most obvious applications these
days; it is giving game designers the freedom
to take games to incredible new places and
users the opportunity to get truly immersed
and touch things, and turn their head to look,
instead of mastering a complex controller
GAMING

VR enables large groups of students to
interact with each other as well as within a
three-dimensional environment; medicine,
chemistry, physics and astronomy would
be some of the main subjects to benefit
from the implementation of the technology;
VR simulations will offer practice runs at
techniques, designs and ideas
EDUCATION, SIMULATION
& TRANING


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H LISTICUSEREXPERIENCE
The video has helped 56 million people gain a deeper understanding of autism.
That sometimes, autistic people can become overloaded by everything around
them. Which can make the outside world feel like a terrifying place. And for their
families, all the looks, judgements and tuts make it feel like a lonely and isolated
place.
CASE STUDY: EXPERIENCE TOO MUCH
INFORMATION IN VIRTUAL REALITY
WATCH FOR YOURSELF
Take a look at our award entry for the Dadi’s. The entry went on to win ‘Best Professional Website’
YOUTUBE.COM/WATCH?v=Lr4_dOorquQ
***source:TheNationalAutisticSociety,2016
http://www.autism.org.uk/
***

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Sports events, live-streamed concerts and
theatrical performances are just some of the
experiences people can dive into through VR
headsets; new cameras are being created to
capture these VR stories, and tools to upload
and livestream them are growing in number
ENTERTAINMENT

Being able to tour a potential new property
from miles away, walking right through it as
if you were there; or walking into a virtual
clothing store with infinite shelf space, where
any shirt, blouse or pair of shoes can be seen
and tried on; shopping is never going to be the
same again
REAL ESTATE &
SHOPPING

Being able to commute to work or attend
meetings by inhabiting a telepresence robot
with cameras mounted on its body; VR will save
individuals’ and companies’ time and money,
and help people be places almost instantly,
wherever they’re in the world.
TELECOMMUNICATIONS


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When it comes to the future of VR, there have been many speculations on what
the technology might bring us in the next 5 to 10 years. Given what we’ve seen
and experienced already, these are some pretty solid forecasts:
WHAT IS THE
FUTURE FOR VR
The goal for the next generation of VR hardware is 4K or Ultra High
Definition (UHD).
The core technologies will shrink, leading to less bulky, more compact
headsets, potentially wire-free at some point.
VR headset manufacturers are driving both the development and distribution
of VR content by investing significant technical and monetary resources in
developers, in an effort to build up an exclusive content library.
Ads featured on VR headsets will likely have higher view-through rates than
standard video ad spots.
VR will become another media consumers use on a daily basis.
Ownership of VR headsets could rise more than threefold in just two years,
even before the predicted peak in 2021.
The revenue of virtual reality products is projected to reach $4.6 (£3.7) billion
in 2017 to more than $162 (£130) billion in 2020 (worldwide).
VR will take over and become gaming’s next big trend.
VR has the potential to out-monetise TV over the next decade.
Brands will be able to provide customised virtual experiences for consumers,
such as entertainment, travel and social interactions, as well as corporate
solutions.
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One of the biggest challenges of creating branded virtual reality campaigns is
justifying the value of them, cost of production, and calculating the ROI.
The benefits are not just monetary. Of course, the sales and the revenue increase
is extremely important. However, until VR platforms and headsets become more
widely used by the general public and become more utilitarian, the key is to focus
on projects that are aimed at delivering that “wow” effect.
Below is the list of major objectives businesses could achieve by implementing VR
technology for their marketing campaigns:
- Improved brand perception (existing customers) and enhanced brand
recognition (new audiences)
- Production of compelling VR content that will create instant emotions
and prompt users to share, like and comment on it
- Being perceived as creative, innovative and up to date with current
trends brand
- Creating personal connections with existing and new audiences.
Imagecaptionordescriptionasappropriate
ROI IN
VIRTUAL REALITY

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Virtual reality is definitely the next big thing. All reports, articles and opinion
pieces indicate that. Will the headsets and technology be commonly used by the
end of next year? Possibly. Will there be more content in 2017? Absolutely.
We hope this thought leadership piece has helped you to better understand the
definition, application and some future implications for virtual reality.
We’ve also put together a list of key takeaways from the paper:
Imagecaptionordescriptionasappropriate
CONCLUSION &
KEY TAKEAWAYS
VR is an artificial environment, created with software and
demonstrated to the user in such a way that s/he suspends belief
and accepts it as a real environment.
1
There are four major options for viewing virtual reality content: an
immersive VR headset, a simple VR viewer which uses a mobile
phone, a smartphone on its own, or a web video player (“360”
video format).
2
The HTC Vive is the most complete VR experience on the market
right now.3
VR can be applied across the whole range of different industries
including travel and tourism, gaming, education, simulation
and training, entertainment, real estate and shopping, and
telecommunications.
4
VR will become another media consumers use on a daily basis
with the revenue of virtual reality products projected to reach more
than $162 (£130) billion in 2020 (worldwide).
5
Main benefits of implementing VR into marketing strategies:
improved brand perception and brand recognition, compelling
content, being perceived as creative, innovative, and creating
personal connections with existing and new audiences.
6

ABOUT CDD
We make digital experiences that solve business problems. We believe that
creativity is the answer to some of the big challenges in an organisation today.
We are a bunch of designers, developers, technologists and strategists delivering
meaningful business change through innovation and digital platforms.
As a design team, we are constantly striving to better our internal processes
and improve the way we collaborate with clients. We work on a rich variety of
projects, consequently there is no one size fits all approach to user experience
design and information architecture.
CDD
The Grain Store
Enterprise House,
Ocean Way,
Southampton
SO14 3XB
www.cddnation.com
Want to chat or need some assistance
with your digital project?
Feel free to give us a call or
drop us an email
 02380664747
 hello@cddnation.com
Author
KAT TERLECKA
Kat is Marketing Manager at CDD, who joined the company
with an extensive experience in B2B environment,
previously working on both the client side and at a couple of
other marketing agencies on the south coast. She is also an
alumna of the University of Southampton, having graduated
with a MSc in Digital Marketing.

AR/VR Magazine (2016) The Value and ROI of Branded Virtual Reality Campaigns
(http://www.arvrmagazine.com/the-value-and-roi-of-branded-virtual-reality-
campaigns/), [1 Nov 2016].
CNET (2016) Virtual Reality 101 (https://www.cnet.com/special-reports/vr101/),
[1 Nov 2016].
Forbes (2016) How Virtual Reality Will Impact Businesses In The Next Five Years
(http://www.forbes.com/sites/forbestechcouncil/2016/07/22/how-virtual-
reality-will-impact-businesses-in-the-next-five-years/#34772fe82241), [1 Nov
2016].
Raconteur (2015) Virtual Reality (https://raconteur.uberflip.com/i/616458-
virtual-reality), [2 Nov 2016].
ReadWrite (2016) Virtual Reality Will Change Business as We Know It (http://
readwrite.com/2016/03/09/vr-changing-business/), [2 Nov 2016].
Sapphire Nation (2016) The Future of VR: from Virtual Reality Goggles to UHD
VR Glasses (http://sapphirenation.net/future-of-vr/), [1 Nov 2016].
Statista (2016) Number of Active Virtual Reality Users Worldwide from 2014 to
2018 (https://www.statista.com/statistics/426469/active-virtual-reality-users-
worldwide/), [1 Nov 2016].
TechRadar (2016) HTC Vive Review (http://www.techradar.com/reviews/
wearables/htc-vive-1286775/review), [1 Nov 2016].
The National Autistic Society (2016) Experience Too Much Information in Virtual
Reality (http://www.autism.org.uk/VR), [2 Nov 2016].
Virtual Reality Society (2016) History of Virtual Reality (http://www.vrs.org.uk/
virtual-reality/history.html), [1 Nov 2016].
Within (2016) How to Watch VR (http://with.in/how-to-watch-vr/), [1 Nov 2016].
REFERENCES