There is one word in the world of marketing right now with the power to evoke strong emotions.
Whether you sit in the “bring it, I am ready to embrace this new generation of tech,” or “I will just bury my head in this pile of newspapers and book a quarter page while I am at it” camp, the metaverse is here, and it is ready to shake up our notion of creativity and targeted advertising.
Fear not, it is not as daunting as it may first appear.
What makes a metaverse a metaverse?
Influencer Marketing Hub does a great job breaking down the components: “a metaverse is always active, exists in real time, players have individual agency, it’s a self-contained and fully functioning universe and contains user-generated content.”
In summary, if you have dabbled with virtual reality (VR) or augmented reality (AR) you are already existing in the metaverse – which, according to XRToday, is expected to sign on a billion users and eventually earn over £1 trillion in revenues in the next ten years.
According to Influencer Marketing Hub, it is estimated that approximately 85 million users experienced AR or VR at least once a month in 2021 and whilst the gaming industry was the first to truly grasp and take advantage of the potential there is huge potential for early adopters from other sectors too.
For brands looking to target and engage Millennials and Gen-Z, the metaverse is a virtual playground like no other.
Take Vans. The Wall Street Journal reports that the skateboarding brand launched a virtual skatepark in Roblox that lets players try new tricks, and can earn points to redeem in the virtual store to customize their avatar.
Vans executive team says the online metaverse is the best place to build brand awareness among their core demographic of 13 to 35- year olds. The brand reveals their online park has seen upwards of 48 millions visitors to date.
In May 2021, Gucci opened the Gucci Garden on Roblox, a virtual experience to complement a real-world installation called the Gucci Garden Archetypes, which took place in Florence, Italy. Vogue Business revealed that people could, “mingle with others exploring the space and can buy digital pieces created in collaboration with Roblox creator Rook Vanguard.” These two collaborations are two great examples of how brands can be much more creative in the digital space than in the real world. According to Forbes, new non-gaming metaverses are starting to appear more regularly. Virtual conventions are now taking place in the metaverse. Attendees can go to a bunch of booths without leaving their office or home. The size of the audience grows exponentially when you move the experience online. Think about car shows and the potential reach if they moved to the metaverse. Put on some virtual reality glasses and “sit” in a car to experience and see it from the inside out.
Of course, as with any new technology there are pitfalls to be aware of. XR Today has reported that in the early years of the metaverse advertisers may struggle with:
Blurred branding boundaries – Since the metaverse is decentralised, companies may not be able to exert control over ad spots. You may find an influencer sporting items from two competing companies simultaneously.
Replicating products in the real world – Prospective customers can engage in hypercustomisation in VR. But when brands fail to deliver a similar experience in the real world, product engagement could actually fall.
Content overwhelm – Constant video popups, indistinguishable sponsored content, and repetitive ads are all too common in the digital world. Inside the metaverse, they take on an even more intrusive dimension and could cause sensory overload.
Data privacy and ethical issues – In the metaverse, brands can see a version of your identity in the form of a 3D avatar. But does the avatar denote explicit consent? Can advertisers, therefore, target ads based on someone’s appearance in VR? These issues are yet to be ironed out.
Because marketing in the metaverse is so new, the prices are still quite low to run a campaign. If you are a brand or business with an open mind and your target audience spends time on a metaverse, now is the time to give it a go.
Keep in mind traditional metrics don’t apply in the metaverse, yet at least. Engagement is the most effective KPI as it stands and brands need to get creative in order to truly tap into the affinity interests of their target audience.