MEDIA SHARING. EVOLVED.

The Business of Immersive VideoBEST PRACTICES FOR THE SALES AND MARKETING OF 360º/VR

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TABLE OF CONTENTS

About this eBook ......................................................... 02

Introduction ................................................................. 03

Financial Facts ............................................................. 04

And What About the Users? ........................................ 05

MarketingPosition ....................................................................... 07

Website / Google ........................................................ 08

Director Talent / Word of Mouth .................................. 10

Preferred Partner / Networking .................................... 12

Original Content / Platforms ........................................ 13

SalesProduction Company Role Expansion .......................... 15

Is the Project Right for VR? .......................................... 17

Firsthand is Best / Proof of Concept ............................ 18

Prove ROI .................................................................... 20

Showreel ..................................................................... 21

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About this eBookIf you produce and distribute 360º/VR Video and find useful information on sales and marketing best practices scarce, this eBook is for you. We’ve conducted hours of in-depth interviews and combed over numerous VR resources to provide you with a succinct, fact-packed, up-to-date guide designed to help you gain a competitive edge when it comes to winning new jobs with brands and agencies.

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INTRODUCTION

In the world of 360º/VR Video, freshly-imagined, cutting-edge technology and new, ever-changing ways to package, share and distribute this amazing and rapidly growing medium can pose a challenge. This is an exciting time to get in on the action because with so many rules yet to be defined, it’s still possible to blaze your own trail when it comes to discovering how to fit immersive video into your business plan… and how market and sell it.

Creative companies across the globe are scrambling to improve hardware, define best practices and understand how VR Video fits into consumer experiences, so it’s a good idea to work quickly because brand excitement and interest is growing and adoption numbers are climbing to impressive heights. And the forecasted outlook? Well, that’s massive as well, so the time is now to make 360º/VR Video part of your offering.

“”“There are very few CMO’s that have not already made VR production or at least

VR exploration a part of their media plan. Having full immersion with your audience

and giving people a sense of presence and an experience and palpable memory in an

uninterrupted medium is highly coveted and immensely valuable.”

Patrick Milling-Smith President, Here Be Dragons

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FIRST, LET’S LOOK AT THE FINANCIAL FACTS:

FACT I: Selling is believing.VR is predicted to have its first billion-dollar year in 2016, with upwards of $700 million in hardware sales and $300 million from content.

Source: http://www2.deloitte.com/global/en/pages/technology-media-and-telecommunications/articles/tmt-pred16-media-virtual-reality-billion-dollar-niche.html#

FACT II: VR Market values are steep.Market for Virtual Reality technology is valued at $1.37 billion in 2015 and is projected to reach $3.90 million by 2022, at a CAGR of 57.84%.

Source: http://www.prnewswire.com/news-releases/augmented-reality-and-virtual-reality-market-by-device-type-component-vertical-and-geography---global-forecast-to-2022-300280608.html

FACT III: VR is a wise investment.As of Jan 2016, there have been $3.5 billion in 225 VR/AR venture capital investments in two years.

Source: http://www.goldmansachs.com/our-thinking/pages/technology-driving-innovation-folder/virtual-and-augmented-reality/report.pdf

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AND WHAT ABOUT USERS?

FACT I: Active Users are growing …fast.The number of active VR users is forecasted to reach a staggering 171 million by 2018.

Source: http://touchstoneresearch.com/infographic-virtual-reality-stats/

FACT II: Earned Actions are UP… and rising.In a study from Google and Columbia Sportswear, the 360 ad drove 41% more earned actions than the standard ad of the same video.

Source: https://www.thinkwithgoogle.com/articles/360-video-advertising.html

FACT III: Search is soaring.Global search interest for Virtual Reality on Google has grown nearly 4X in the last year.

Source: https://www.thinkwithgoogle.com/articles/virtual-reality-advertising.html

53% of consumers are more likely to purchase from a brand that sponsors a VR experience.

Source: http://www.greenlightinsights.com/reports/2016-consumers-report/

71% of consumers agree that brands who sponsor a VR experience are more forward-thinking and modern.

Source: http://www.greenlightinsights.com/reports/2016-consumers-report/

53%

71%

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“”“I think there is a lot of excitement around VR right now. Many of my filmmaking

colleagues would argue that it’s just a gimmick, like 3D, but anyone who has a true 360º/VR experience with a nice headset is always blown away by the medium’s

ability to transport you to another world. VR, in my mind, is a completely new way of storytelling. Like watching a play vs. going to the movies.”

Tim KempleCo-founder, Camp4 Collective

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MarketingPOSITIONING

Pace is key.For smaller production companies, since it’s impossible to be everything to every potential client, it’s best to focus and become an expert on a single, specific type of VR Video production, be it narratives, branded content, film, etc. Once you determine your niche, stick to it and position your company as an expert. For larger companies with larger teams, plentiful resources and bigger budgets, it’s best to begin with your chosen niche and scale slowly, as your business and growing expertise dictates.

“”“The variety of VR that content people

are pitching and creating is stunning. It’s touching every topic you can imagine. At

MPC, we’re looking at film, brands, music, social and cause-based projects, all of which have their own messaging and positioning. VR really opens the doors for our creative and production teams to attack any type of work, which is something we’re really

enjoying about the space. It’s also attracting all kinds of talent from other areas who

want to be involved in the first pieces being created for this platform, such as directors,

actors, musicians and craftspeople.”

Tim DillonExecutive Producer VR, MPC

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WEBSITE

Demand > SupplyGreat news! Demand for VR studios today is greater than the current supply, so make it simple for visitors to get in touch by pushing that Contact page and form front and forward.

In addition, clearly and finitely describe the VR services offered, who your target market is and most of all, display examples of your VR work.

GOOGLE

The front line of lead generation.Since the current pickings for 360º/VR production studios are slim, Google search can make a massive impact on lead generation efforts. Leverage Keyword Planner in Google Adwords to discover keywords that receive the most relevant searches (example: VR production company vs. Virtual Reality production company) and pepper your website content generously with them to increase your search ranking.

“”“Like any other lead generation system, our website serves as the number one source of leads for us. A well-built company website is one of the most powerful tools for VR

production companies right now. If you have a quality layout that tells a comprehensive

story of the work you do, what you stand for, and some example of the work and services

you provide, you will get calls.”

Max BolotovDirector of Account Management, Koncept VR

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“”“Composing in a 360º environment is completely different from a 16x9 rectangle. You

essentially have to forget everything you know about traditional film and use that freed up space to learn new VR techniques. This is one of the most important things

that needs to happen for individuals going from work in film to Virtual Reality production.”

Max BolotovDirector of Account Management, Koncept VR

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DIRECTOR TALENT

Create …differently.When it comes to directing 360º/VR Video, it’s crucial to take a fresh, alternative approach to traditional storytelling, set design, direction and techniques. Production companies are seeking directors that truly understand the innate differences between VR and traditional video and how viewers experience VR.

WORD OF MOUTH

Keep ‘em talking.Offer a great client experience and get more work – it’s that simple.

Anyone in marketing will tell you that there’s nothing like positive word-of-mouth to get you where you want to go. Same goes for VR. Due to the small number of VR providers out there, referrals are currently holding strong at the top of the list of lead generators for production companies. It’s an old-school scenario of friends asking friends and colleagues asking colleagues.

“”“Relationships, a proven track record in VR, a demo that is close to what they might be looking to do and a pricing strategy that

makes sense. A nascent technology requires finding a passionate CMO willing to take a chance on a relationship built on trust and that your ideas will prove fruitful to them

over time.”

Casey SappFounder, VRTÜL

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“”“The technology is advancing so fast that VR production and experience is

obtainable for nearly any brand. If a brand is not yet thinking about doing VR or 360 video, it’s time they start seeking out opportunities as a part of their

marketing strategies.”

Tim RyanFounder & Director, TAR Productions

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PREFERRED PARTNER

Be their go-to.Since VR is new to many, a bit of extra hand-holding helps build a stronger, more trusting relationship with clients. Take time to really help them understand how to build a VR campaign, make yourself readily available throughout project collaboration, communicate progress regularly and provide great/quality end work = make yourself a preferred partner.

NETWORKING

Meet. Greet. Make an impression.In these early days of VR, it’s crucial to position your company as an expert/influencer in the industry. Networking provides opportunities to showcase your expertise and work to potential clients, collaborators and others looking to create a VR experience.

» Attend events and trade shows.

» Educate people on VR at events.

» Promote and showcase work wherever possible.

“”“VR at the moment, is at the top of its hype

curve, which means there’s still a lot of proactive discovery across digital channels

by brands seeking inspiration through examples and case studies, shortlisting

possible partners to bring into tender, or simply to invite into brief. So being visible

across traditional digital platforms, heard at trade and industry events, and erudite and useful in the press, is essential for any VR

production company.”

Christian BurneBusiness Director, Visualise

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ORIGINAL CONTENT

Create. Innovate. Inspire. Win.The VR world is your oyster when it comes to creating original content that garners PR and helps make your studio a top contender. Since many production studios are short on production rights, uploading video to their own YouTube, Facebook or other platform is a no-no, making it tough for clients to search and preview great work, so originality has many upsides aside from publishing to promo and added experience.

PLATFORMS

Go where the eyes are.Typically, brands and agencies will scour VR platforms like Jaunt and Littlstar that curate VR experiences to find work that fits their needs, so uploading your work there is essential. In addition, it’s also a good idea to upload content to YouTube and Facebook to widen your reach, with the understanding that competition is stiff due to the abundance of varied types of content (links, images, videos, 360º/VR) on each. Put simply, via content monsters like Facebook and YouTube, it’s harder to hone in on and speak to people who are looking specifically for VR.

“”“VR studios are going to need to be more

generous and proactive with their own work and adopt a more strategic posture in the way they lead their client partners. As the industry matures on every level, project portfolios will inevitably become client

portfolios, which is a fundamentally different way of working and running a business.”

Christian BurneBusiness Director, Visualise

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“”“It depends on the brand, but I think eyes are wide open to the opportunity, both in terms of creating talked-about content as well as finding some genuinely new ground to pioneer – the opportunity for which, doesn’t come along every day. I think we’re

seeing an adoption into 360º Video as an entry point, which makes it easier to justify the ROI in social media. From there we’ll see adoption in the newer VR platforms,

especially as the headset market grows, with mobile leading the way.”

Tim DillonExecutive Producer VR, MPC

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SalesPRODUCTION COMPANY ROLE EXPANSION

A little background.For traditional video, it’s most common for agencies to develop campaigns and production companies to execute. Today, VR production companies are working with brands and agencies on crafting campaigns from inception. As opposed to simply filming, production also plays a starring role during the ideation and creative process.

Change is good.Truth be known, most brands and agencies are not up to speed on the value of VR or how to create it, so currently the onus falls heavily on the production side, where the magic happens.

Be the expert.What happens if their production company of choice doesn’t specialize in VR? Outsourced collaboration with one that does – i.e. YOU. So there’s one more reason to become an expert in VR.

Though each project is unique and requires varying levels of involvement, right now, production studios are the experts in VR. From storytelling to what works and doesn’t – it’s their call when it comes to advising both clients and agencies on the optimal execution for their ideas vs. goals.

“We work directly with brands and also collaborate with agencies and other production companies that are entering the VR space; it really depends on the project. We’re looking to minimize the spread or dilution that can happen on

these projects. We have seen what can happen when you have too many parties on one project or lack of the technical focus needed to zero in on what’s really important in VR - creating the moments of presence is unique to the medium.”

Tim DillonExecutive Producer VR, MPC

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“”“There is definitely a difference between what some brands have been creating and

what they should be creating. A great deal of the work being made seems to fall short of the first question one should ask oneself before making anything in VR; Why 360º/VR? Why does this story benefit from full immersion? Simple questions about giving an experience and story a reason to live in this medium. Brands need to put

their equity into creating a compelling and engaging experience. Focus on story and originality and the rewards from your consumer will be exponential.”

Patrick Milling-Smith President, Here Be Dragons

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IS THE PROJECT RIGHT FOR VR?

Don’t force it.VR is a complete departure from traditional storytelling so in order to be successful, it’s imperative that the video/campaign/message fit the medium. If the verdict is that VR may not be the right fit don’t get gimmicky - adjust or simply abandon VR and opt for the traditional video route. “”

“If you look at VR as a different way to tell stories, craft your narrative to play to the strengths of the medium and VS shooting the SOS that you would just with different

cameras, then you are doing something innovative and new.”

Tim KempleCo-founder, Camp4 Collective

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FIRSTHAND IS BEST

Experiencing is believing.Selling VR to someone who does not understand the experience has its challenges, especially given the preconceived notion that VR is gimmicky and the need for a headset a hindrance to the overall experience. To make the most of first impressions, it’s important to focus on offering an impactful, in-person demo experience that wows the client, to up the odds of to buy-in.

PROOF OF CONCEPT

Show ‘em what you’ve got.Since VR is a large investment, it’s important to be precise about what can be accomplished. First deliver something tangible, then once a client sees positive results, they are more likely to go all in.

“”“Some brands are reluctant to make the leap into VR right away, so we address

this by developing some workflow options outside of strictly building a contract around

a production budget. One option is to have the clients pay for a creative budget only. This option involves a lot of dialogue

about different VR ideas, brainstorming and how to get to a compelling story that’s right for their brand. We have also built a small “proof of concept” (i.e. a very short

video) option for X amount of money. In this scenario, the client walks away with a small

scale example of what we can do, giving them the chance to showcase it to their

industry or audience to test the reaction. We have found these two options to be very effective in demonstrating the power of VR for those that may be more apprehensive.”

Max BolotovDirector of Account Management, Koncept VR

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“”“It’s about aligning the needs of the brand with the unique benefits and

characteristics of VR. It’s frustrating to see a piece of content into which you could place any brand within a sector - the experiences must be bespoke. The temptation

is of course, to push the creative envelope from the tech’s perspective, but if it doesn’t deliver a relevant, comfortable and consistent narrative for the brand, then

it’s largely a pointless exercise.”

Christian BurneBusiness Director, Visualise

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PROVE ROI

Positive returns = positive rewards.With the massive budgets that accompany VR, clients will expect to be crystal clear on their return. Since money talks, it helps to provide in-depth case studies that show how VR has been successful in the past and convey satisfied client results and feedback.

“”“If a CMO is familiar with VR, the best way to get buy-in is to build a trusting relationship and sell the value of your

project. This is actually easier than you’d think, as most CMOs will be focused on an

ROI and VR as a platform has incredible ROI potential because the experience and

connection among users is like nothing we’ve ever seen before.”

Tim RyanFounder & Director, TAR Productions

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SHOWREEL

Craft carefully.Currently VR sales best practices dictate that firsthand demos and experiences sell best while navigating the steep VR learning curve, but the showreel remains important as well. Lucky for creators, Simian offers the first end-to-end 360º/VR solution for uploading and sending reels on any device.

Pay attention.When presenting firsthand, it’s important to take note of what garners the most interest and what works and doesn’t, so as the industry evolves and showreels take their rightful place at the top of the list of preferred pitch options, your reels will be spot-on and offer the best returns.

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“”“The most successful ones seem to be the narratives like an Art of Patron, a movie

trailer, or something in the extreme sports category like visiting a volcano or NASCAR. 360º is perfect for brands like GoPro and Red Bull and I expect them to be doubling down even further in the future. Fundraising and social issues are also

finding a special place, which I’m excited about. This is where companies like Within (Vrse) got their reputation. We recently created VR lessons plans for

Google Expeditions on a research ship in Bermuda and I’m excited about what the future holds in the education space, although it will continue to be a few

years behind ‘Brand VR’.”

Casey SappFounder, VRTÜL

SIMIAN. YOUR VR PRESENTATION SOLUTION.

Welcome to Total 360º/VR SupportIn this eBook, we’ve covered the current top tips for sales and marketing VR. But what about options for sharing and presenting VR work with clients and teams? When it comes to seamlessly collaborating, pitching, sharing and presenting VR, cumbersome uploading and downloading have been the norm and the ability to native play VR on all devices, scarce…. until now.

In May 2016, media sharing innovator Simian introduced the first of its kind, end-to-end workflow solution designed to help both business and creative teams to effortlessly manage, pitch and privately share their 360º/VR Video assets. Learn more about it here.

Prefer to give the Simian Total 360º/VR Solution a spin for yourself?

GET STARTED TODAY FOR FREE!