Market Insights Advertising & Media AR & VR

VR Advertising - NAFTA

NAFTA

The VR Advertising market in NAFTA is projected to witness a significant surge in revenue, with an estimated value of US$53.4m by 2024.
This projection takes into account the annual growth rate (CAGR 2024-2028) of 1.36%, which is expected to propel the market to reach a substantial volume of US$56.4m by 2028.
In 2024, in the United States is anticipated to dominate the market, generating the majority of the revenue, with a projected market volume of US$47.4m.
The use of VR advertising in the NAFTA region is on the rise, with companies leveraging immersive experiences to engage consumers and drive brand awareness.

Market

Region

Region comparison

Currency

Analyst Opinion

The VR Advertising market in NAFTA is experiencing significant growth and development due to several factors.

Customer preferences: Customers in the VR Advertising market in NAFTA are increasingly seeking immersive and interactive experiences. VR technology allows advertisers to create engaging and memorable campaigns that capture the attention of consumers. With the ability to transport users to virtual environments, VR advertising offers a unique and novel way to deliver brand messages. Additionally, customers appreciate the personalized and targeted nature of VR advertising, as it allows for customized experiences based on individual preferences and interests.

Trends in the market: One major trend in the VR Advertising market in NAFTA is the adoption of VR technology by various industries. Companies across sectors such as automotive, retail, entertainment, and real estate are leveraging VR advertising to showcase their products and services in a more engaging and interactive manner. For example, automotive companies are using VR to provide virtual test drives, while real estate developers are offering virtual property tours. This trend is driving the growth of the VR Advertising market in NAFTA as more businesses recognize the value of incorporating VR into their marketing strategies. Another trend in the market is the increasing availability and affordability of VR devices. As the technology becomes more accessible, a larger number of consumers are able to experience VR content. This has created a growing audience for VR advertising, leading to increased demand from advertisers. Furthermore, advancements in VR hardware and software are enhancing the quality and realism of VR experiences, further driving the adoption of VR advertising.

Local special circumstances: The VR Advertising market in NAFTA is also influenced by local special circumstances. In the United States, for example, the presence of tech giants such as Facebook (Oculus) and Google (Daydream) has contributed to the growth of the VR Advertising market. These companies have invested heavily in VR technology and are actively promoting VR as a marketing platform. In Canada, the government has been supportive of the VR industry, providing incentives and funding for VR startups and initiatives. This has created a favorable environment for the development of the VR Advertising market in the country.

Underlying macroeconomic factors: The growth of the VR Advertising market in NAFTA is also influenced by underlying macroeconomic factors. The region has a strong and stable economy, which provides a conducive environment for businesses to invest in VR advertising. Additionally, the high level of technological innovation in the region, particularly in the United States, drives the adoption of VR technology and fuels the growth of the VR Advertising market. Furthermore, the increasing consumer spending power in the region allows for greater investment in VR advertising campaigns. In conclusion, the VR Advertising market in NAFTA is experiencing significant growth and development due to customer preferences for immersive and interactive experiences, the adoption of VR technology by various industries, the increasing availability and affordability of VR devices, local special circumstances such as the presence of tech giants and government support, and underlying macroeconomic factors such as a strong economy and high level of technological innovation.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on VR advertising revenue, which includes advertising that is integrated into the virtual world within video games and videos.

Modeling approach / market size:

The market size is determined through a top-down approach. We use annual financial reports of the market-leading companies and industry associations, as well as third-party studies and reports to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as consumer spending, internet penetration, 4G coverage, and historical developments.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are level of digitalization, adoption of technology, GDP per capita, and internet penetration.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).