Ads in oculus headsets could improve the overall revenue of Facebook.
In May, Facebook announced that it would begin to test ads in Oculus mobile app. Its main goal was to provide developers a new approach to showcase their VR apps.
Small Test of In-Headset Ads
And recently, Facebook announced that it’s going to conduct a small test of in-headset ads. The test will start with Blaston from Resolution Games.
This is the first time that Facebook is running ads in its VR headsets. Although ads will first arrive in Blaston, the shooter game, they will soon show up in two Oculus apps in the next few weeks.
Oculus headset ads could be a game-changer for Facebook. Ads are vital for Facebook because this is where it gets most of its total revenue.
Currently, ads are shown primarily to users on Facebook and Instagram.
The ads showing up in Oculus VR headsets will adhere to the company’s advertising principles. It also means that users will have the same controls they have when they use Facebook ads.
In that case, users can hide specific ads or from specific advertisers. Users can also choose “Why am I seeing this ad?” When they tap or click on it, they will know more details about the ads they are seeing.
Facebook said that the ads won’t be based on the data stored on the users’ headsets, like images from their sensors or through a hand-tracking feature.
Bring More People into VR
“We’re also exploring new ways for developers to generate revenue—this is a key part of ensuring we’re creating a self-sustaining platform that can support a variety of business models that unlock new types of content and audiences. It also helps us continue to make innovative AR/VR hardware more accessible to more people.” – Facebook
This is just a test. Once it sees how it goes, it may provide more details on when the ads will be shown broadly across the Oculus Platform. Facebook will also look into the feedback from its community and developers.
Facebook reminds advertisers that ads will only be effective if they are relevant to the users and they are high-quality. The company wants advertisers to build their ads for people first.
Ads in VR headsets are in the early days. The company is also investing in unobtrusive ads as a way for developers to build businesses. However, they are not ready yet for testing. The company is still exploring new ad formats that are distinct to VR.
Even though it’s just an early test, the company is excited for this new opportunity for Facebook and developers. Ads in VR headsets can open up new revenue streams. It’s a critical step to make VR becoming mainstream, just like a smartphone.
Developers will get their share from ad revenues appearing in the headsets. However, it’s vague how much they will actually get. What’s definite here is that Facebook wants developers creating VR to have a chance to communicate with their fans.