The Present and Future of XR (Cross Reality) ~ Marketing Strategies Deciphered from Latest Case Studies

In recent years, we have had more opportunities to hear the term "XR (Cross Reality)" in various aspects of life and business.
XR is a general term for technology that creates new experiences by fusing the real world and the virtual world, and it is rapidly developing in a wide range of fields such as entertainment, advertising, education, and business. In this article, based on the latest XR cases, we explore its possibilities from a marketing perspective.

XR can be viewed as a concept that encompasses the following five technologies.

AR (Augmented Reality): A technology that overlays digital information onto the real-world view (e.g., Pokémon GO).
VR (Virtual Reality): A technology for experiencing a complete virtual space (e.g., Meta Quest).
MR (Mixed Reality): A technology where virtual and reality are fused and interact with each other (e.g., HoloLens).
SR (Substitutional Reality): A technology that creates illusions about the perception of reality and virtuality.
DR (Diminished Reality): A technology that deletes or transmits parts of reality through digital processing.

In recent years, the practicality of XR has improved dramatically due to the evolution of devices and the development of 5G communication technology. In particular, the use of XR as a corporate marketing measure is accelerating as linkage with wearable devices and the metaverse progresses.

・Squid Game Virtuals (Sandbox VR)

The experiential attraction game "Squid Game Virtuals," which recreates the popular drama "Squid Game" in VR, was a massive hit, selling over 10,000 tickets for 30-minute/approximately 10,000 yen play sessions in three days.

It is thought that there are two factors in the background of this success.

●Success points

Acquiring repeaters: VR content is often thought of as "I've experienced it once, so I'm fine with the second time...", but "Squid Game Virtuals" succeeded in acquiring repeaters, with many users playing multiple times by changing the participating members.

Visualization of the VR experience: By providing highlight videos that are automatically generated after play, we not only allowed players to enjoy the experience themselves but also created word-of-mouth effects through SNS diffusion.

From this case study, we can see that for VR and other XR content, measures that overturn the fixed idea that "experiencing it once is enough" and increase repeat potential are important.

The XR creative platform "STYLY" is a platform where you can create VR/AR/MR content and spaces using only a web browser and share them with other users. The content you create can be enjoyed freely on "STYLY GALLERY" and can be delivered on various devices such as VR head-mounted displays, web browsers, and smartphones.

^{STYLY – Spatial Layer Platform https://gallery.styly.cc/about/ja}

With the emergence of such platforms, creators can freely express their ideas in the XR field and gain opportunities to monetize them.

XR adds a "space" to multimedia, allowing users to interact with the brand through more interactive experiences. In particular, the forms of PR events and advertisements are changing, and promotions within virtual spaces are increasing.

With the development of spatial computing technology, advertising will become more personalized and provided in a way that is linked to user behavior.

・In-store promotion using MR: Displaying the optimal advertisement according to the customer's movement.
・Brand experience via AR filter: Improving diffusion power through integration with SNS.

Experiential content is increasing, and marketing measures that actively involve users are in demand.

・Deployment of VR showrooms: Product experience is possible without visiting physical stores.
・VR-izing live events: A new viewing style for enjoying concerts or sports matches in VR.

Buying and selling of land and advertising space in virtual space is becoming active, and new revenue models are being born.

・Virtual real estate in the metaverse: Companies build bases in digital spaces.
・Digital advertising space trading: Advertising in virtual spaces in parallel with real-world advertising.

According to research company PwC, the economic impact of VR/AR is projected to reach 1.54 trillion USD by 2030, up from 95.7 billion USD in 2020. AR in particular is said to generate more than twice the economic impact of VR, and its influence is immeasurable even in the marketing field.

^{Reference: Nikkei Cross-Tech "2030 Economic Impact Over 30 Times Higher, Accelerated by Device Evolution" https://xtech.nikkei.com/atcl/nxt/mag/ne/18/00054/00006/}

In addition, the latest devices such as Apple's "Vision Pro" are also boosting the growth of the XR market. Companies can establish a competitive advantage by creating a strategy to utilize this technology at an early stage.

XR technology is a highly innovative technology with the potential to bring major changes to our lives and business. It is expected that XR technology will continue to evolve, greatly changing marketing methods and points of contact with customers.

In particular, as important points,

•Visualization of XR experience and SNS utilization: The mechanism for sharing determines success or failure
•Strengthening of XR content repeater strategy: Design that promotes continuous use rather than one-time experience is key
•Utilization of new advertising methods using XR space: Perceiving XR space as a new advertising platform and developing effective promotion measures

By incorporating these elements, you will be able to approach targets and situations that could not be reached by conventional marketing methods.

By grasping this change early and utilizing it appropriately, companies can create new business opportunities, can't they?

We will continue to pay attention to the ever-evolving XR technology and the expansion of its marketing applications, and will bring you the latest trends!

XR content is a turning point for success, moving from the "looks interesting" or "seems like it will become a topic" stage to "how to incorporate it into your own marketing".

At BEEATS CO.,LTD., rather than treating XR as a standalone technology, we focus on:
・Corporate/brand challenges
・Usage scenarios such as stores, exhibitions, and promotions
・Linkage with existing marketing measures and customer experiences

We support XR utilization design premised on implementation that considers everything up to that point.
"I want to try using XR for now," "I have a plan idea, but I don't know how to shape it," "I want to make it a promotion that doesn't just end with buzz." There is no problem even from such a stage.

From project planning and content design to implementation and utilization looking at effects, you can consult us consistently.
If your goal is not just "to use" XR, but "to connect it to results", please feel free to consult BEEATS CO.,LTD.

Q1. What is XR (Cross Reality)?

A1. XR is a general term for technology that creates new experiences by fusing the real world and the virtual world. It includes technologies such as AR (Augmented Reality) that overlays digital information on the real view, VR (Virtual Reality) that experiences a complete virtual space, and MR (Mixed Reality) where the virtual and real are fused, and is utilized in a wide range of fields such as entertainment, advertising, and business.

Q2. What are the advantages of utilizing XR in marketing?

A2. The advantage of utilizing XR in marketing is that it can provide an interactive experience in which users actively participate. For example, brand experiences on SNS using AR filters, product experiences in VR showrooms, etc., enable personalized advertising development linked to customer behavior, creating new touchpoints.

Q3. What are the points for making XR content successful in promotions?

A3. The point to success in promotion is to create a mechanism that doesn't end with one-off buzz. Specifically, it is important to visualize the XR experience with highlight videos after play to encourage sharing on SNS, a strategy to gain repeaters by changing the experience content, and utilizing the XR space as a new advertising platform.