AR/VR

Discover the Future of Advertising through Immersive Technologies

  • Journal of Advertising Research

Immersive technologies, including augmented reality (AR), virtual reality (VR) and mixed realities (MR), are expected to become increasingly important in advertising. These technologies create extended realities (XR) that enhance consumer engagement and provide new opportunities for marketers. While the fully immersive “metaverse” is still in development, platforms like Fortnite, Roblox and Zepeto already provide touchpoints where consumers connect physical and virtual realities.

Despite the potential of immersive technologies to transform advertising, there are challenges in effectively deploying them within communication strategies. Limited knowledge on how to use specific technologies or combinations of technologies to achieve different promotional objectives, siloed research on AR and VR applications, and the infancy of these research areas are some of the key challenges. This special issue of the Journal of Advertising Research addresses these challenges and provides insights into the future of immersive technologies in advertising.

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Immersive Advertising through Co-Creation: Lessons from the Visitor Economy

  • Journal of Advertising Research

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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Virtual Influencers, Advertising’s Financial Impact, and Avatars in the Metaverse

  • JAR INSIGHTS STUDIOS

At this Insights Studio, researchers from top institutions presented pioneering work addressing the evolving landscape of advertising. Topics of discussion included: an exploration of virtual influencers and the effectiveness of virtual influencers in real-world versus virtual-world settings, a comprehensive synthesis of over 250 studies examining the complex relationship between advertising and a company’s stock price, and a deep dive into the emerging world of the metaverse with a study on how the presence of employee avatars in virtual stores influences consumer behavior.

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The Impact of Avatar Presence on Consumer Behavior in VR Environments

  • Journal of Advertising Research

This set of two studies, recently published on the Journal of Advertising Research’s website, investigates the impact of retail store employee avatar presence on consumer behavior within virtual reality environments. Not much research has investigated avatars in this context and what influence they may have on consumer attitudes and behavior.

This study duo reveals that consumers experience aversive responses to employee avatar presence in embarrassing shopping settings, such as the purchase of condoms or adult diapers. It also demonstrates that employee avatars decrease consumers' purchase behavior, including time and money spent on a purchase in embarrassing VR contexts. Consumers are also less likely to recall the brand of an embarrassing product.

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Current Opportunities and Challenges VR Presents for Advertisers

  • Journal of Advertising Research

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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Are Virtual Influencers More Effective in Real-World Settings?

  • Journal of Advertising Research

Virtual influencers are computer-generated personas that engage with audiences on social media and in the metaverse. This study explores whether virtual influencers are more effective in advertising when they include real-world elements, such as interacting with real humans or endorsing real-world products. The research is grounded in the Computers Are Social Actors (CASA) framework and investigates how social cues and product types influence consumer perceptions of authenticity and attitudes toward both the influencer and the brand.

The findings suggest that virtual influencers are perceived as more authentic and favorable when they are shown alongside real humans and endorse real-world products. This perceived authenticity positively impacts consumer attitudes toward the virtual influencer and the brand, providing valuable insights for advertisers looking to leverage virtual influencers in their marketing strategies.

More analysis and the full study is available to ARF members.

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How Virtual Mirrors Influence Attitudes about Beauty Products

  • Journal of Advertising Research

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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