During the 2020 season, the NBA implemented, for the first time, the use of virtual advertisements. Virtual advertisements are digitally superimposed ads directly on the court that are visible to anyone viewing the broadcasted version of a game. This study used eye-tracking and galvanic skin response (GSR) in conjunction with the limited capacity model of motivated mediated message processing (LC4MP; Lang, 2006a) to a) determine virtual advertising's effectiveness compared to traditional in-stadium advertising and to b) monitor the effect emotional arousal has on advertising recall and recognition. A sample of 176 fans of the Utah Jazz viewed one of four identical highlight reels of a basketball game that sought to manipulate emotional arousal by altering only the score and were then tested on advertising recall and recognition. Results revealed that virtual advertising receives more visual attention than traditional in-stadium advertisements yet are remembered poorer - indicating that while virtual advertisements are placed in a more central location they are likely still processed peripherally. The attempted manipulation of arousal failed and the results surrounding the LC4MP were insignificant. Implications for the LC4MP and recommendations for advertising practitioners are discussed.