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Facebook says it will begin testing ads on Oculus headsets, starting with the shooter game Blaston, and won't use data stored on devices to target ads

but I think one factor is that the Quest 2 is an excellent consumer product with no real peer on the horizon save the rumbles from Apple, and Apple will be fine. What competition would a regulator even be protecting? https://www.platformer.news/ ... Kontra / @counternotions : “Facebook also said [ads inside Oculus VR headsets] could provide new ways for software developers to generate revenue.” (Democratizing virtuality...looks like VR could be useful for something, finally.) https://www.cnbc.com/... Rich Wilson / @rwilson_design : https://www.theverge.com/... I love how Facebook says ads will “become available” like anyone is looking forward to that trash. “Leprosy will become available in our village this summer.” Paul O'Brien / @paulobrien : Fair, because the Quest is free and games are cheap! Oh, no, wait... https://twitter.com/... Daniel Bower / @danielbower : More on FBs VR acquisitions. The point about talent being locked away in the FB campus waiting for options to vest is a good one. https://www.platformer.news/ ... https://twitter.com/... @platformer : For all followers today: - Is Facebook cornering the VR market? - A recent shopping spree is giving some folks Instagram-in-2012 vibes - Good tweet about cargo shorts https://www.platformer.news/ ... Marty Swant / @martyswant : Facebook has finally begun testing VR ads in Oculus headsets. For years, marketers have talked about the potential for high engagement rates & accurate measurement that could come from VR ads. But will people put up with messages if they can't look away? https://about.fb.com/... Geoffrey / @t3hero_ : Oh look, the reason people jumped ship on Oculus years ago. https://twitter.com/... Giygo / @giygaimpact : imagine paying 500 bucks for a vr headset and getting a grubhub ad implanted in to your brain 10 seconds after using it https://twitter.com/... Scott C. Lemon / @humancell : Advertising in your VR headset that you already paid for? And can you opt-out? This is why I would never buy one from Facebook or any other ad-based company. | Facebook to begin testing ads inside Oculus virtual reality headsets https://ow.ly/... Subrahmanyam Kvj / @sub8u : You can escape reality. But you can't escape ads. That's the reality. https://www.cnbc.com/... https://twitter.com/... Joe Ab / @joabyjojo : Ahh cool Oculus is inserting ads into games you've already paid for. https://www.oculus.com/... https://twitter.com/... Kavya Pearlman / @kavyapearlman : They also “have no plans to build a facial recognition database” These statements are as hollow as their so called “responsible innovation principles” that deliberately ignore to “protect identity of minorities(humans)” Blabber blabber blabber... #ActionsSpeakLouderThanWords https://twitter.com/... @qtpop : This is what I imagined ads to look like. This is ok with me. My only worry is them being clickable while interacting with the game world and in something like blaston. Accidental clicks and browsers opening are no go. https://twitter.com/... Boz / @boztank : You can manage what ads you want to see and we're including controls to hide specific ads or hide ads from an advertiser completely. Ads in VR will be different from ads elsewhere and this is a space that will take time and people's feedback to get right https://www.oculus.com/... Casey Newton / @caseynewton : This month, Facebook bought the Fortnite of VR and the Roblox of VR. Will we look back on these as Instagram-in-2012 purchases? Inspired by an @alexeheath observation, I dug in 👉 https://www.platformer.news/ ... https://twitter.com/... Glytch / @glytchtech : Aaaand that's why I sold my Quest when they got acquired. Yay delayed gratification https://twitter.com/... @uncooldana : Facebook is allowing in-app ads on Oculus devices, changing their previous policy because when they do it it's different. Also, they're going to use your Facebook data to target you. https://arstechnica.com/... Justin Hendrix / @justinhendrix : @ceciliakang This is why @rushkoff says VR is... boring. James O'Malley / @psythor : What The Matrix didn't show us is the enforced 2 minutes spent trapped inside the Gazprom branded content pre-roll zone before we're allowed to play the Kung-Fu program. https://twitter.com/... Kent Bye VoicesOfVR / @kentbye : New post on Facebook VR ads. Notice & consent model is broken for tracking appropriate flows of data. Oculus says in a blog post they “have no plans to use movement data to target ads”, but yet nothing in their privacy policy prevents them from doing so. https://www.oculus.com/... https://twitter.com/... https://twitter.com/... Eric For President / @ericpresidentvr : Concerning. It needs to be in writing. Going backwards is near impossible, we have to get this right early on https://twitter.com/... Lance Ulanoff / @lanceulanoff : Virtual reality ads—360 commerce. Yay. https://www.cnbc.com/... Aaron Levie / @levie : This is definitely what VR was missing for mass adoption. https://twitter.com/... Joe Ortiz / @leojtravis10 : Glad I'm not even interested in getting into VR. You all get what you expected from FB. https://twitter.com/... Cix / @cixliv : I told everyone @FBRealityLabs would put ads in the headset, they were already planning it Meanwhile @thedextriarchy reported in January @boztank lying “we're not really focused on business model” We are all getting slowly boiled in a pot by Facebook https://www.theverge.com/... @thelinuxexp : Gross. Seriously, super gross. https://twitter.com/... Daniel / @danieltg85 : Welp, there goes my hopes of getting a Quest 2... https://twitter.com/... Sean Hollister / @starfire2258 : It was inevitable, and you all called it years ago https://www.theverge.com/... Matt Weinberger / @gamoid : Hell yes ads in my eyeballs grim meathook future let's go. https://twitter.com/... Brad Carr / @bcarr : Well, I guess I can't recommend the Oculus Quest 2 anymore. https://twitter.com/... Drew Olanoff / @yoda : this is why facebook bought oculus https://techcrunch.com/... Drew Olanoff / @yoda : surprised it took this long. not gonna be pretty. https://about.fb.com/... @ceciliakang : Facebook is first and foremost a wildly successful Advertising Company. So yeah, expect a lot more of this on every FB product: https://about.fb.com/... Ernie Smith / @shortformernie : TFW pop-up ads consume your whole sense of self https://twitter.com/... Steve Kovach / @stevekovach : Everything Facebook does, including making hardware, is just an avenue to open up more advertising inventory. https://twitter.com/... Steve Kovach / @stevekovach : Facebook is going to start showing you ads literally centimeters from your eyeballs in VR https://www.cnbc.com/... Shira Ovide / @shiraovide : Just casually mentioning that 97% of Facebook's revenue comes from advertising and it really doesn't know how to generate money any other way. (See also: WhatsApp is still not a real business with money and stuff.) https://about.fb.com/... Thanks: @sal19 See also Mediagazer

CNBC Salvador Rodriguez

Context & Ripple Effects

Facebook had already tested augmented-reality ads in News Feed and was building Oculus through game-studio deals and exclusive VR content. Extending advertising into a paid VR game therefore connects its established ad business to an ecosystem it had been funding with content.

The Blaston pilot also made developer acceptance the limiting factor: Resolution Games later withdrew from the test, showing that an ad format's availability does not ensure that VR publishers will adopt it.

First-order effects

  • Facebook gains a live Oculus advertising test while committing not to use data stored on headsets for ad targeting.
  • Resolution Games and Blaston become the initial test case for Facebook's proposed developer-revenue model, before the developer reverses course.

Second-order effects

  • The withdrawal puts pressure on Facebook to persuade paid-game developers that ad revenue offsets the risk of disrupting their customer relationship.
  • Oculus developers face a clearer monetization choice between paid experiences supported by platform content investment and ad-supported experiences tied to Facebook's ad system.

Third-order effects

  • If developers continue to resist ads in paid VR titles, Facebook's ability to turn Oculus into an advertising surface will depend on publisher consent rather than headset distribution alone.
  • VR platform competition may increasingly center on who can finance software through exclusives, direct payments, or advertising without alienating developers and players.

The trend: VR platforms are testing whether advertising can become a developer-revenue layer alongside paid content and platform-funded exclusives.

Discussion

  • Complex Tara C. Mahadevan on x
    Mark Zuckerberg Believes Art and Media Can be Replaced by Virtual and Augmented Reality
  • @jbergounhoux Julien Bergounhoux on x
    @CaseyNewton @alexeheath It's gonna be hard to blame Facebook for “taking over” VR if they've single-handedly made it succeed while everyone else was laughing at them for trying. It was kinda the case with Instagram too, but this is 100x.
  • @tweepsmap @tweepsmap on x
    Will #BannerBlindness now keep us from completing our quests? https://www.theverge.com/... #facebook #socialmedia
  • @alexcartaz @alexcartaz on x
    @CaseyNewton @alexeheath You can't really have the fortnite and roblox of VR bc VR doesn't have any scale to speak of and won't until it becomes exceedingly affordable. So my answer is no. Insta acq wouldn't have been the legend it is if the app had like 30k users. Product clones…
  • @reckless Nilay Patel on x
    @CaseyNewton Honestly I think the biggest failing is that most people don't know the Quest 2 is as good as it is!
  • @konrad_it @konrad_it on x
    Oculus needs to take another approach at headset ventilation if the aim is to have fitness-oriented hardware. This is how I have to use mine during long sessions. Ordered the VR Cover replacement pad just to test https://twitter.com/... https://twitter.com/...
  • @reckless Nilay Patel on x
    Smart from @CaseyNewton — but I think one factor is that the Quest 2 is an excellent consumer product with no real peer on the horizon save the rumbles from Apple, and Apple will be fine. What competition would a regulator even be protecting? https://www.platformer.news/ ...
  • @counternotions Kontra on x
    “Facebook also said [ads inside Oculus VR headsets] could provide new ways for software developers to generate revenue.” (Democratizing virtuality...looks like VR could be useful for something, finally.) https://www.cnbc.com/...
  • @rwilson_design Rich Wilson on x
    https://www.theverge.com/... I love how Facebook says ads will “become available” like anyone is looking forward to that trash. “Leprosy will become available in our village this summer.”
  • @paulobrien Paul O'Brien on x
    Fair, because the Quest is free and games are cheap! Oh, no, wait... https://twitter.com/...
  • @danielbower Daniel Bower on x
    More on FBs VR acquisitions. The point about talent being locked away in the FB campus waiting for options to vest is a good one. https://www.platformer.news/ ... https://twitter.com/...
  • @platformer @platformer on x
    For all followers today: - Is Facebook cornering the VR market? - A recent shopping spree is giving some folks Instagram-in-2012 vibes - Good tweet about cargo shorts https://www.platformer.news/ ...
  • @martyswant Marty Swant on x
    Facebook has finally begun testing VR ads in Oculus headsets. For years, marketers have talked about the potential for high engagement rates & accurate measurement that could come from VR ads. But will people put up with messages if they can't look away? https://about.fb.com/...
  • @t3hero_ Geoffrey on x
    Oh look, the reason people jumped ship on Oculus years ago. https://twitter.com/...
  • @giygaimpact Giygo on x
    imagine paying 500 bucks for a vr headset and getting a grubhub ad implanted in to your brain 10 seconds after using it https://twitter.com/...
  • @humancell Scott C. Lemon on x
    Advertising in your VR headset that you already paid for? And can you opt-out? This is why I would never buy one from Facebook or any other ad-based company. | Facebook to begin testing ads inside Oculus virtual reality headsets https://ow.ly/...
  • @sub8u Subrahmanyam Kvj on x
    You can escape reality. But you can't escape ads. That's the reality. https://www.cnbc.com/... https://twitter.com/...
  • @joabyjojo Joe Ab on x
    Ahh cool Oculus is inserting ads into games you've already paid for. https://www.oculus.com/... https://twitter.com/...
  • @kavyapearlman Kavya Pearlman on x
    They also “have no plans to build a facial recognition database” These statements are as hollow as their so called “responsible innovation principles” that deliberately ignore to “protect identity of minorities(humans)” Blabber blabber blabber... #ActionsSpeakLouderThanWords http…
  • @qtpop @qtpop on x
    This is what I imagined ads to look like. This is ok with me. My only worry is them being clickable while interacting with the game world and in something like blaston. Accidental clicks and browsers opening are no go. https://twitter.com/...
  • @boztank Boz on x
    You can manage what ads you want to see and we're including controls to hide specific ads or hide ads from an advertiser completely. Ads in VR will be different from ads elsewhere and this is a space that will take time and people's feedback to get right https://www.oculus.com/..…
  • @caseynewton Casey Newton on x
    This month, Facebook bought the Fortnite of VR and the Roblox of VR. Will we look back on these as Instagram-in-2012 purchases? Inspired by an @alexeheath observation, I dug in 👉 https://www.platformer.news/ ... https://twitter.com/...
  • @glytchtech Glytch on x
    Aaaand that's why I sold my Quest when they got acquired. Yay delayed gratification https://twitter.com/...
  • @uncooldana @uncooldana on x
    Facebook is allowing in-app ads on Oculus devices, changing their previous policy because when they do it it's different. Also, they're going to use your Facebook data to target you. https://arstechnica.com/...
  • @justinhendrix Justin Hendrix on x
    @ceciliakang This is why @rushkoff says VR is... boring.
  • @psythor James O'Malley on x
    What The Matrix didn't show us is the enforced 2 minutes spent trapped inside the Gazprom branded content pre-roll zone before we're allowed to play the Kung-Fu program. https://twitter.com/...
  • @kentbye Kent Bye VoicesOfVR on x
    New post on Facebook VR ads. Notice & consent model is broken for tracking appropriate flows of data. Oculus says in a blog post they “have no plans to use movement data to target ads”, but yet nothing in their privacy policy prevents them from doing so. https://www.oculus.com/..…
  • @ericpresidentvr Eric For President on x
    Concerning. It needs to be in writing. Going backwards is near impossible, we have to get this right early on https://twitter.com/...
  • @lanceulanoff Lance Ulanoff on x
    Virtual reality ads—360 commerce. Yay. https://www.cnbc.com/...
  • @levie Aaron Levie on x
    This is definitely what VR was missing for mass adoption. https://twitter.com/...
  • @leojtravis10 Joe Ortiz on x
    Glad I'm not even interested in getting into VR. You all get what you expected from FB. https://twitter.com/...
  • @cixliv Cix on x
    I told everyone @FBRealityLabs would put ads in the headset, they were already planning it Meanwhile @thedextriarchy reported in January @boztank lying “we're not really focused on business model” We are all getting slowly boiled in a pot by Facebook https://www.theverge.com/...
  • @thelinuxexp @thelinuxexp on x
    Gross. Seriously, super gross. https://twitter.com/...
  • @danieltg85 Daniel on x
    Welp, there goes my hopes of getting a Quest 2... https://twitter.com/...
  • @starfire2258 Sean Hollister on x
    It was inevitable, and you all called it years ago https://www.theverge.com/...
  • @gamoid Matt Weinberger on x
    Hell yes ads in my eyeballs grim meathook future let's go. https://twitter.com/...
  • @bcarr Brad Carr on x
    Well, I guess I can't recommend the Oculus Quest 2 anymore. https://twitter.com/...
  • @yoda Drew Olanoff on x
    this is why facebook bought oculus https://techcrunch.com/...
  • @yoda Drew Olanoff on x
    surprised it took this long. not gonna be pretty. https://about.fb.com/...
  • @ceciliakang @ceciliakang on x
    Facebook is first and foremost a wildly successful Advertising Company. So yeah, expect a lot more of this on every FB product: https://about.fb.com/...
  • @shortformernie Ernie Smith on x
    TFW pop-up ads consume your whole sense of self https://twitter.com/...
  • @stevekovach Steve Kovach on x
    Everything Facebook does, including making hardware, is just an avenue to open up more advertising inventory. https://twitter.com/...
  • @stevekovach Steve Kovach on x
    Facebook is going to start showing you ads literally centimeters from your eyeballs in VR https://www.cnbc.com/...
  • @shiraovide Shira Ovide on x
    Just casually mentioning that 97% of Facebook's revenue comes from advertising and it really doesn't know how to generate money any other way. (See also: WhatsApp is still not a real business with money and stuff.) https://about.fb.com/...