In this work, we investigate facial anonymization techniques in 360{\deg} videos and assess their influence on the perceived realism, anonymization effect, and presence of participants. In comparison to traditional footage, 360{\deg} videos can convey engaging, immersive experiences that accurately represent the atmosphere of real-world locations. As the entire environment is captured simultaneously, it is necessary to anonymize the faces of bystanders in recordings of public spaces. Since this alters the video content, the perceived realism and immersion could be reduced. To understand these effects, we compare non-anonymized and anonymized 360{\deg} videos using blurring, black boxes, and face-swapping shown either on a regular screen or in a head-mounted display (HMD). Our results indicate significant differences in the perception of the anonymization techniques. We find that face-swapping is most realistic and least disruptive, however, participants raised concerns regarding the effectiveness of the anonymization. Furthermore, we observe that presence is affected by facial anonymization in HMD condition. Overall, the results underscore the need for facial anonymization techniques that balance both photo-realism and a sense of privacy.
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