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Virtual Reality (VR) technologies greatly enhance game players’ experience by creating hyper-realistic gaming environment through a high level of telepresence. Marketers and advertisers have started to find new opportunities for advertising in this new medium platform. Despite its rapid growth and promising potential, relatively little is known about how consumers process advertising information in a highly immersive and action-based entertainment context. The present study aimed to compare the effectiveness of game embedded advertising in VR and non-VR(2D) game conditions. A 2 (VR versus 2D) ×2 (play versus watch) between-subject factorial experimental design was conducted among 88 undergraduate students. Brand recall, purchase intention and product price estimate were measured as dependent variables. The results show that embedded billboard ads are the least effective on brand recognition for the active players of a VR-based racing game but most effective brand recognition when people are passively viewed in VR game. Participants in the VR game conditions have better overall brand attitude and higher purchase intention than people in other conditions. The findings of this study yield ideas and explorations for researchers, game developers and marketers.
Yanyun Wang, Mike Z. Yao