It boosts purchase intent by 7%, study finds.
Brands can use 360° video ads to drive brand KPIs, particularly higher purchase intent, provided they properly incorporate brand messages to encourage higher recall, according to new research from YuMe, MAGNA, the IPG Media Lab.
According to “The 360° Effect” study, 69% of consumers expressed intent to interact with brand videos in the future. Consumers are also eager to experience 360-degree video, even in advertising, but they expect the content to be fun and exciting. To drive higher purchase intent with 360-degree video, marketers must balance entertainment with brand messaging, as 88% of users who found 360-degree video ads to be “entertaining” plan to interact with similar efforts in the future.
As marketers continue to put a greater focus on mobile video strategies, 360-degree campaigns offer opportunities for sharing content that’s not only visually-focused but also highly interactive. Along with BMW, Royal Caribbean and PBS, other brands have seen impressive results with the format. In November, PepsiCo’s Mountain Dew used a 360-degree video teaser to promote a VR experience where viewers could compete against the street basketball player Grayson Boucher. The campaign saw a 63% video completion rate and 22% post-video click-through rate.
While embracing 360-degree video can help brands target younger consumers who tend to be more tech-savvy, marketers still face some challenges. The newness of the technology can be distracting for some users, according to the report, so adding cues for users can help them better navigate the experience and improve its overall quality.
Key insights include:
- Consumers are eager to experience 360° video even when created by brands. However, they have high expectations for fun and excitement, which were reported as the top reasons for engaging with 360 video in the future. 88% of those who found 360° “entertaining” intend to interact with 360° video ads in the future.
- Early tech adopters are most likely to engage with and enjoy 360° video, making it a big opportunity for brands targeting tech savvy consumers.
- Providing simple instructional cues delivered the best user experience. Some consumers didn’t engage with the video because they weren’t sure what to do.
- Overall, 360° video can be an effective format in delivering against brand KPIs above and beyond traditional video. However, challenges persist in creating memorable experiences given the inherent distractions of the format.
- The payoff is big once consumers recalled the brand, with +7% purchase intent increase on smartphones and +12% in agreement that the brand “has a unique story to tell” compared with a traditional video ad.
- While VR headset environments serve as the ideal platform, smartphone was the next best option. 360° video outperformed on smartphones compared with the same ad on PC, with a +10% in purchase intent.
- Contextual targeting can make a difference – pairing a 360° ad with content that is also 360° improves branding impact. The same ad is perceived as 8% more relevant compared with running in front of standard (non-360°) content.