Opt-in advertisements are proving to be popular in virtual reality

In virtual reality apps, opt-in video ads work much better than pre-roll ads, according to a report by VR ad network Immersv.

Emeryville-based Immersv said that opt-in video ads convert at a 37 percent higher rate than pre-roll video ads, according to its own data.

For the month of August, 2016, ads that were integrated as fully opt-in for users saw a conversion rate of total gazes of 27.1 percent. By contrast, ads that were integrated as a pre-roll for users drove a conversion rate of 19.8 percent. While both are significantly stronger than comparable rates on mobile, opt-in drove a 37 percent lift in conversions over pre-roll.

“Our VR ad placements are driving remarkable engagement for our clients and partners, but it looks like we’re seeing an outsized effect on monetization based on ad placement. As the market matures, I expect to see clearer swimming lanes for VR ad placement, primarily based on content developers’ balance between monetization and content type,” said Mihir Shah, CEO of Immersv, in a statement. “We’re also helping our advertisers create high-quality VR ads, so we’ll continue to apply what we learn to create the best experience for users, publishers, and advertisers.”

However, pre-roll ads still present a viable monetization solution for VR app developers, as they were viewed by a more significant portion of users. VR opt-in placements were viewed by an average of 10.2 percent of daily active users (DAU), while pre-roll units were viewed by 87.8 percent of DAU — which reveals a significant difference in effective monetization for VR content developers.

“There is amazing innovation in VR, and Immersv is uncovering interesting data on early ad-based monetization,” said Eugene Chung, founder and CEO of Penrose Studios, a maker of VR apps, in a statement. “We’re excited to see what’s next.”

Immersv also found that Samsung devices continue to dominate usage within the Immersv VR network. In August, 74 percent of devices were Samsung, followed by 4.6 percent from LG. Everyone else made up the remaining 21.4 percent. And 36.1 percent of all devices on the network were either a Galaxy S6 or S7. Five other Samsung models rounded out the top seven devices types.

And while 24 percent of active users originated in the U.S., the market remains global. The top five countries represented in the Immersv network, in order, were the U.S., U.K., South Korea, Indonesia, and Israel.