In 21st-century business, success is measured by access to valuable data and making the smart use of it. On that measure, just a few companies have a better position than Facebook.
Engagement and massive adoption for platforms like Instagram and its namesake social media network have given Facebook an edge. Data and its distribution turned the company into one of the century’s biggest prosperities so far. Facebook has an incredible advantage in user base and data access. Social Media has a leading position in the digital advertising market. Only Google’s Alphabet is ahead of it in terms of overall digital-ad market share.
By gathering information from its Oculus virtual reality (VR) headsets, the company is looking to bolster its position in the Data Age. It makes a lot of sense in light of VR’s significant potential to turn Oculus devices into data sources. This move is a trend because historically, software-focused companies are pursuing hardware initiatives to collect valuable information.
СEO Mark Zuckerberg believes in the virtual reality potential. He thinks that VC might succeed in mobile as the next computing revolutionary platform. In 2014 Facebook purchased VR company Oculus as reports say to be about $3 billion. VR unit initially operates mostly separate from the parent organization. It will likely see tighter integration.
Oculus said recently that its devices would share the information with Facebook. Oculus also announced the debut of new social connectivity Facebook. For the VR unit, it is a change in policy. Many people were anticipating this. The company’s digital advertising platform employs user data. The user data will also use it to inform the development of social VR apps on Facebook.
Facebook and Oculus
Its years away from mass adoption for VR, but it may never happen at all. Nevertheless, Facebook has a big incentive to lay the groundwork for a first position in the space. The way the world experiences social media can change with the help of VR. It will reshape the digital advertising landscape in the process and revolutionizing fields like gaming and e-commerce.
Oculus VR hardware line of Facebook made progress with adoption after getting off to a bit low start. The total ownership of the headset brand likely remains below 5 million units. Considering that early adopters for VR are most likely to be more engaged than average tech customers, that’s not an insignificant indicator. Nevertheless, to the company’s global user base of roughly 2 billion people, it’s a small indicator.
Move which investors should welcome is serving up tailored advertising based on Oculus owners’ engagement data. Soon there are signs that Facebook will launch more of its own VR-focused experiences.
Using engagement data to help shape the company’s next software moves within VR space is an up-and-coming prospect. A considerable advantage will be using High-quality user data to develop the company’s upcoming VR project. It is a better position to outperform its competitors.
The primary motive in Facebook’s decision to make a big push into VR Oculus was never to revenue from virtual-reality hardware sales.