360 video ads boost purchase intent by 7%, study finds

Dive Brief:

Video ads using 360-degree technology drive 7% higher purchase intent on smartphones and a 12% increase in the belief that a brand has a "unique story to tell" when compared to traditional video ads, according to a new study by IPG's Magna and IPG Media Lab units done in conjunction with YuMe by RhythmOne.
"The 360° Effect: Understanding Immersive Video," whose findings were made available via email to Marketing Dive, analyzed consumers' perspectives on 360-degree video from brands including BMW, Royal Caribbean and PBS. It found that 360-degree ads paired with other 360-degree content were viewed as 8% more relevant than when a 360-degree ad ran with more traditional content.
Virtual reality headset environments were the ideal platform for viewing 360-degree ads, according to the report, followed by smartphones. Such ads on smartphones had a 10% lift in purchase intent over ads delivered on PCs.

Dive Insight:

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.

According to "The 360° Effect," 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.

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