Role of Two-Dimensional (2D) and Virtual Reality (VR) in Effectiveness of In-Game Advertising

In-game advertising technology is shifting from two-dimensional to virtual reality graphics. This study aims at examining how a digital game that is either played in a two-dimensional (2D) or head-mounted-display (HMD) virtual reality (VR) graphics is perceived and experienced by the players. More specifically the study illustrates the effect of 2D technology vs. HMD VR technology on players’ feeling of presence and brand recall. Results indicate that subjects who played HMD VR game reported higher level of presence than 2D game players. However, HMD VR players showed lower rates of brand recall than 2D players. This study provides insights for academicians as well as marketing practitioners from the perspectives of attention and elaboration considering 2D and HMD VR technology as important elements for designing effective games in the context of in-game advertising.