March 2019

Virtual Reality:
Hype or the future?
By Richard Garnham
 Virtual Reality:
Hype or the future?

Introduction
Virtual Reality (VR) technology has been around
for at least a decade and you could say it’s clearly
gone from sci-fi to sci-fact. However, it’s still seen as
KEY TAKEAWAYS
a new technology and has not hit mass adoption.
• We’re only at the beginning of this journey.
So what has gone wrong?
As the technology develops there will
2016 was an interesting year as experts believed be further cost savings as the software/
that the Virtual and Augmented Reality (AR) would computer generated imagery (CGI)
deliver $4.4 billion in revenue. However, it actually only becomes more cost efficient and better
achieved $1.8 billion in revenue1 and a 6% adoption • VR is providing the foundation for other
rate in the US2. In comparison, smartphones only took technology developments such as
10 years for at least 40% adoption in the US3. Artificial Intelligence, Internet of things
It’s not all doom and gloom, as many venture capital and even 3D modelling
and technology companies are investing large sums • Opportunities already exist within
into the industry with $3.6 billion raised in the last 12 the research industry from shopper
months (2017-2018)4. immersions to testing VR content for
broadcasting
At Ipsos, we’re exploring this technology to identify how
we can make research better, faster and even more • Multi-sensory testing is going to be
engaging for participants and clients. The aim is to get an integral part of VR and AR as the
closer to consumers’ real behaviour and emotion, and researcher aims to get closer to the
to seek out new levels of insight. ultimate consumer understanding

It’s only the beginning of our journey, but we know

from initial studies that ground-breaking opportunities
are on the horizon. The list of applications is already
diverse; from understanding audience usage and
engagement with the BBC5, Healthcare (VR surgeries),
ethnographic immersions, airport journeys, testing
automotive prototypes, through to to leading FMCG
brands integrating behavioural science principles to
validate subconscious consumer behaviours.

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 Virtual Reality:
Hype or the future?

The starting point:

How is it possible to have multiple realities?
As with any new technology, acronyms and jargon
abound – so too in the realm of VR, AR and MR (Mixed
Reality). This paper will first recap what we mean by
these various realities and cover the following:

• Applications for virtual, augmented and mixed

reality, complemented with our initial learnings

• What metrics we can capture and how they

can add value to traditional research

• The future, including its potential impact

Virtual Reality
Virtual Reality is an artificial, computer-generated
simulation or recreation of a real-life environment
or situation. It immerses the user by making them
feel like they are experiencing the simulated reality
first-hand, primarily by stimulating their vision and
hearing. Examples include flight simulators for fighter
pilot training, and the virtual experience of solitary
confinement that gives you a taster of what’s it like to
spend 23 hours a day in a prison cell, produced by The
Guardian. You can also experience VR with different Fully enclosed computer-generated simulation
types of devices such as HTC Vive and Google or recreation of a real-life environment
Cardboard which provide different levels of quality.

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Augmented Reality
Augmented Reality is a technology that layers
computer-generated enhancements atop a physical,
“real” environment, in order to make the experience
more meaningful through the ability to interact with
it. AR is mostly developed into apps and used on
mobile devices. You might have seen some ground-
breaking releases such as Google Glass, Pokemon
Go and Amikasa; the latter helps you style your
room and figure out your desired layout before you Computer-generated enhancements
ever buy a piece of furniture. atop a physical, “real” environment that
is central to the experience

Mixed Reality
Mixed Reality, sometimes referred to as hybrid
reality, is the amalgamation of real and virtual worlds
to produce new environments and visualizations
where physical and digital objects co-exist and
interact in real time. An example of this is Google’s
Tilt Brush which allows you to paint in 3D space
with virtual reality. Another example is the NFL (US
National Football League) and Microsoft HoloLens
creating an immersive experience for fans to watch The amalgamation of real and virtual
and interact with players, other fans and real-time worlds to where physical and digital
experiences. Magic Leap is now leading this space objects co-exist and interact in real time
with its new headset having launched in 2018.

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 Virtual Reality:
Hype or the future?

Market research applications for Virtual

and Augmented Reality: The story so far
In the following sections we will cover the different existing research methodologies. For example, AR
research applications for virtual and augmented can be used as another layer to bring a report/data
reality. We will highlight the key features, benefits, to life when engaging with stakeholders or creating
use cases, limitations and what is the future potential. a virtual environment to test product concepts, by
methods such as overlaying virtual elements onto
We should note that, in most cases, it’s not a
physical products in a test environment.
stand-alone technique, but can be used alongside

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Shopper Experiences: In-store behaviour
Immersing consumers into a full-scale virtual globally. This means it’s not limited by cultures or
supermarket, shopping centre or even high street geographic boundaries as it’s a technology that can be
enables us to test different scenarios in a scalable and adapted to anything (…within reason!) For example, our
flexible manner. With the development of a computer Italian colleagues developed a CGI shopper environment
generated (CGI) virtual supermarket or shopping aisle, for a global FMCG brand that the UK team are now
we can fully immerse consumers. They have the ability using to demonstrate to the London client team.
to move around and interact with the environment,
picking up products from the shelf as well testing
multi-sensory applications such as hearing and smell.
We can set them tasks like finding certain products,
or ask them if they noticed any Point of Sale materials
throughout their experience.

It can help efficiently answer questions like,

“How can we quickly and easily understand
consumer motivations whilst in-store?” or even
“How do people engage with different store-
layouts and shelving environments?”.

We know it can be easily scaled up from qualitative

to quantitative methods, quickly and efficiently.
For example, once you’ve created the CGI environment
and tested within a small group of participants, you
can then roll it out to be tested on a larger group.
In the future, researchers will be able to set up multi-
You just need the space (warehouse) and enough
sensory and weight testing to truly immerse the
hardware (VR headsets and PC’s) to carry it out.
consumer into a particular environment. We will also
On top of this, you can work in an almost real-time
be able to understand their neurological responses to
environment by changing stimulus quickly whilst the
different environments and stimuli as the technology
consumer is still immersed.
will provide more accurate eye tracking heatmaps and
Ipsos teams are already working with this technology EEG analysis.
in various countries and their approaches are shared

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 Virtual Reality:
Hype or the future?

Product Testing:
Pack and new concept evaluation
We instantly saw the benefits of using VR in concept In a recent project, we worked with a global FMCG
and product testing. We can use it to bring new or brand, across multiple European countries, to test
revised pack designs to life for evaluation in different multiple concepts and designs in VR quickly and
virtual environments and take clients’ CGI designs efficiently, negating the need for expensive physical
to test them with consumers before any physical prototypes and using easily accessible smartphones
prototypes are developed. You can also use AR to for devices. We generated heatmaps through the
overlay the digital prototypes on existing products integration of eye-tracking to build a clear picture of
within the aisle itself. We are seeing real benefits to where people gaze and dwell, indicating where their
being more agile with testing multiple prototypes brands should be placed in the future.
whilst in a real store environment.
Another example is our work in testing prototype
It can help to answer questions like “What elements cars (Car Clinics) in virtual environments against the
of the design draw consumers’ attention and traditional, physical environment. Results indicate
how do they react?”, “How can we optimise participants understand what is expected within the
the pack design and do this in real-time whilst virtual environment and still produce similar level of
in test phase?” or even “How can we tap into all insight and depth compared to traditional methods.
the senses with the product?” We can combine
The future of this technology will most likely allow
VR with eye tracking technology to explore whether
brands to streamline their product development
the concept or prototype can be located in different
supply chain as they will be able to create, modify
environments and whether it attracts attention.
and test their designs in CGI with different markets
A clear benefit of using this technology is its involved at the same time. Instead of (for example)
transferability to any country, any culture or even the UK making modifications and then sending to
socio-demographic - participants just need access China and waiting for them to feedback.
to a headset or smartphone. This approach also
allows consumers to re-design and annotate the
concepts to indicate how they would change or
improve them.

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Researchers will
be able to set up
multi-sensory and
weight testing
to truly immerse
the consumer
into a particular
environment.

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 Virtual Reality:
Hype or the future?

Content Evaluation:
VR media and advertising content
VR content is rapidly growing in application; from the skin of the VR experience to truly understand
games to TV shows, documentaries and films. how people experience VR, the content and how it
So it’s vital to test how well the content will resonate resonates with them.
with the audience. VR can help to answer questions
Ipsos’ VR out of home, pre-testing approach uses a
from “What kind of content is most attractive
controlled VR or 360 video environment to re-create
and relevant to a given audience?” to “How
how adverts are experienced in the cluttered real
can we quickly and efficiently test multiple ads
world. A pre-recorded route with digitally integrated
in a real-life environment?”.
billboards/ad displays shows a variety of ad concepts
We worked with the BBC to identify whether and can be further integrated with neuro and biometric
audiences actually know what people want out measures to understand the participant’s emotional
of VR entertainment experiences, as well as how reactions to the VR content or ads.
everyday people experience VR in their home? With
This enables us to:
the team from the broadcaster we got underneath
• Test ads in near real-life environments, which
would otherwise be impossible to simulate
in the real world. This could help you to find
out which ad locations might have the optimal
impact for your brand. E.g. run a 360 video of a
high-street with outdoor advertising spots and
get people to experience it with different ad
concepts each time.

• Achieve cost savings by developing virtual vs.

physical environments. Expensive prototypes
could therefore become a thing of the past. E.g.
participants are still able to interact with digital
concepts within a VR environment and it’s more
easily adaptable compared to real-life testing.

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 • You can easily and quickly change these
environments in a way that is not so easy
Storytelling: Bringing
when working with “the physical”.
insights to life
• Access a reality that only VR/AR can bring
We are continuously looking at how we can bring
i.e. nowhere else could you have an audience
reports, insights and data to life for clients. Making
literally walk with the dinosaurs.
it more digestible and actionable is critical. A new
• Bring immersive context to scale across multiple opportunity for research is to harness the power of
markets and even in people’s homes, efficiently and VR, 360 video and AR to get stakeholders closer to
at the same time. E.g. run the same study using the their results as well as the consumers or audience.
same environment in China and US.
A clear example is the use of AR triggered content.
One industry that has truly embraced the virtual This involves moving from a report, infographic, video,
reality industry is the adult entertainment industry. In physical object or image. to provide further content,
2016, Pornhub’s VR portal went from 30 videos and such as reports, images, videos or even surveys.
a handful of views a day to over 2,600 videos and
We’ve been working with AR technology for a while
more than 500,000 views a day in a space of two
now and have started to see how it enhances the
months6. They took advantage of this technology
experience when reporting back on our findings.
diversification and they’ve noticed that viewers want
It really does provide an interactive method for
to be immersed even more and use it to escape real-
more effective storytelling and offers an engaging
life situations and issues.
way to share results across an organisation.
From the work we’ve conducted with the BBC, it’s
clear that the future for VR content will need to focus
on resonating with audience and not just being a
‘novelty’ production. Content makers need to tap into
their audiences’ need states such as escaping, relaxing,
empathy and learning as the content needs to be
impactful and have a strong story. They want substance.

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 Virtual Reality:
Hype or the future?

Limitations: Being realistic

As with all new technology, there are still limitations • Disorientation. Moving in a world that feels
and teething problems, especially as we’re still in real without actually moving has been proven to
the early adoption part of the lifecycle. Although we cause nausea after extended use. Developers
expect improvements over time, it’s worth considering need to figure out solutions or accept limited
the following when working with this technology: usage at a time.

• It’s not real and as human beings we • AR can be socially distracting. When everyone
are climatised to physical, natural, real-life lives in their own version of reality, will they still
environments. be able to relate to one another? Pokémon Go
brought people together, but will every AR app?
»» If we define ‘real’ as what you can feel,
smell, taste and hear, then ‘real’ is simply • It’s a virtual environment or layer (AR) and
electrical signals interpreted by your brain. does not capture all the characteristics of ‘real-
You can use 360 video to capture the life’ situations. For example, the feeling of weight
real world and still immerse consumers is only starting to be introduced and still far from
into this environment. Computer becoming a mainstream addition.
generated VR is a ‘near reality’ experience
which will only become more ‘real’.

• The technology is still expensive, especially

truly immersive VR as it typically requires
a significant investment to create a VR
environment. Hardware like headsets need to
come down in price whilst improving its quality.

»» 360 video is a lot more cost effective and not

as intense on the senses, especially sight.

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What’s happening at the moment?
VR and AR technology has gained a lot of attention At the moment, VR is limited to a user’s visual and
over the past few years, despite it being around a lot auditory senses, but we will no doubt see it start to
longer. Google Cardboard and Pokemon Go started cater to all the other senses, providing the true ‘reality
the drive to mass awareness in consumer markets, factor’. It will be very difficult to break the barrier
but we’re still way off mass consumer adoption of VR. between the virtual and real world, but hardware and
Experts believe AR will see mass adoption before VR. software developers are already looking at how they
can provide a truly real, immersive experience.
VR is gaining most traction in the gaming and
entertainment industries, specifically for the adult
entertainment industry. As the technology becomes
cheaper and quality improves, this will likely broaden
its adoption into industries ranging from market
research to healthcare.

With 2.9 billion smartphone users in the world by the

year 20203, mobile VR and AR is starting to offer the
potential of more mass consumer adoption. With the
launch of the Apple X & XS iPhone and AR being a
standard system app, this will naturally drive the
adoption rate and usage. Meaning consumers will
become accustomed to this technology.

We will potentially see the more immersive hardware

and software companies, like HTC Vive, Oculus,
Amazon Alexa, Google Home and the full Internet of
Things becoming more cost effective and adaptable
to consumer homes. For example, you could walk into
one room and Alexa will ask if you want to play FIFA
(football computer game) and by responding ‘yes’ a
headset (VR/MR) will appear. This would probably be
without any controllers as sensors within the room
detect your hands and feet.

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 Virtual Reality:
Hype or the future?

Future future…
Sci-fi or sci-fact?
Over the coming years, you may hear the term ‘mixed market research industry. However, we are only at the
reality’ used more and more as VR and AR collide beginning of this virtual journey and who knows what
with each other. The term covers both, plus any future opportunities await us. At Ipsos we’re not fearing this
developments that may impact our approaches. uncertainty as we’re already testing out how other
It will most likely be more advanced than VR or AR data capture techniques like heart rate monitors and
when they stand alone, as we envisage mixed reality voice sentiment analysis can be integrated.
combining advanced forms of technology, such as
Through innovative partnerships in the industry,
multi-sensors, advanced optics and next generation
we are truly pushing the boundaries of consumer
computer power. We see mixed reality becoming
understanding. If the adult entertainment industry
one of the strongest contenders for mass adoption,
can embrace it…
especially within the research industry.

Leading on from this, is the potential rise of hyper

The Royal Shakespeare Company (RSC) have long
reality. This is where the technology is integrated
seen the potential for VR and AR within live theatre.
into part of the real world as they comfortably
Working in partnership with them, we captured
interact with each other. This will mostly be led
and uncovered the true emotional response of
by hardware that involves a head-mounted virtual
theatre-goers to the Titus Andronicus production,
retinal display which superimposes 3D, computer
using the mixed reality techniques described here7.
generated imagery over real world objects. Magic
Leap has been launched and is incorporating multiple Read more: https://www.ipsos.com/ipsos-
features, such as eye tracking, hand tracking, real- mori/en-uk/shakespearestill-shocks-even-
time meshing and number of other elements that virtual-reality
have not been used in Mixed Reality. It’s not going
to solve everything, and the current price tag is off
putting, but it’s a step in the right direction and we
are excited to see where we go from here.

To return to where we started, the forecasted VR

sales are not entirely in line with predictions… yet. You
could say it’s all still quite “niche”, especially for the

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References:
1
http://fortune.com/2017/02/19/virtual-reality-vr-sales/ 5
BBC Case study https://www.ipsos.com/ipsos-mori/en-uk/
virtual-reality-vr-whats-reality
https://venturebeat.com/2016/10/13/only-6-of-americans-
2

will-own-a-vr-headset-in-2016/ 6
https://www.forbes.com/sites/curtissilver/2017/05/11/
how-vr-porn-is-penetrating-our-minds-erecting-the-
3
https://www.statista.com/statistics/330695/number- future-of-virtual-reality/#2c97437b40d1
of-smartphone-users-worldwide/
7
https://www.ipsos.com/ipsos-mori/en-uk/shakespeare-
https://venturebeat.com/2018/04/03/ar-vr-startups-
4
still-shocks-even-virtual-reality
raise-record-3-6-billion-in-last-12-months-as-market-
transition-accelerates/

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 Virtual Reality:
Hype or the future?

Richard Garnham
Associate Director, Ipsos Innovation (UK)

Contributors:
• Robert Schueler (Netherlands)
• Rollo McIntyre (Global)
• Diana Livadic (Germany)

www.ipsos.com
@Ipsos

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