Virtual reality advertising with brand experiences: the effects of media devices, virtual representation of the self, and self-presence

Abstract

Virtual reality (VR) is gaining mainstream attention, but little is known about the effects of VR advertising (VR ad). This study examined 360-degree video-based advertising, which presented an entire view of the scene and allowed users to pan around the view interactively. In particular, the study sought to answer the following questions: (a) does the effect of VR ad vary when it is viewed with different media devices?; (b) what is the effect of virtual representation of the self (VRS) in VR ad?; and (c) does self-presence mediate the association between VRS and the user’s experience with an advertised brand? An experiment (N = 203) was conducted using a 2 (VRS: present vs. absent) × 3 (media devices: smartphone vs. computer vs. head-mounted display) between-subjects design. Primary findings indicate that absence of VRS in VR ad had positive effects on users’ liking the ad and favorable attitude toward the advertised brand. Self-presence was found to be a significant mediator that explains why absence of VRS led to favorable experiences. The study did not find any significant difference on VR ad experiences across media devices. Theoretical and practical implications of VR ad were discussed. © 2020 Advertising Association.