For now, the move is a test. In the next few weeks, Facebook
will run ads in Blaston, a futuristic shootout game from Resolution Games, and
programs from a couple other developers, according to a company blog post
Wednesday. Gaming companies will earn a portion of the revenue generated by the
advertising, a Facebook spokesperson said, but didn’t disclose their share.
Last month, Facebook said it would start testing
advertisements for Oculus content in the VR-gaming unit’s mobile app.
Advertising will help the social media giant return more of
its significant investment in hardware, as it keeps prices of virtual reality
headsets low to encourage faster consumer adoption. Within virtual reality,
which requires a headset that blocks out the real world, it’ll be easier to
guarantee someone sees an ad.
Facebook Chief Executive Mark Zuckerberg sees virtual and
augmented reality-powered devices as the next big platform for human
communication, after mobile phones, eventually replacing some in-person social
interactions. Facebook will soon face significant competition when Apple Inc.
releases a rival VR device. Both companies are also developing their own
augmented reality glasses.
Oculus leaders for years resisted putting Facebook branding
prominently on their products, fearing a backlash from gamers. But starting
last year, the parent company started requiring new users of Oculus headsets to
have Facebook accounts. The company has said it uses information about activity
on Oculus, such as which games and apps are used, to bolster its targeted
advertising business across its various products and platforms.
Oculus, the social network’s hardware division, announced
last year the release of Quest 2, an all-in-one virtual reality headset with a
faster processor for improved gaming and higher-resolution screens than its
predecessor. The entry-level model with 64 GB of storage costs $299, making it
more affordable than others. Zuckerberg, who regularly extols the future
prospects of virtual and augmented reality, said in April that he was pleased
with the sales.
Facebook’s “other” revenue category, which includes products
outside of advertising such as hardware sales, more than doubled to $732
million in the first quarter of 2021.