Strengthening Business with Interactive Platforms: Understanding How the Metaverse Will Change Marketing
Table of Contents
Understanding the Growth of Immersive Branding
‘Metaverse Marketing’ is a new trend in the innovative field of immersive technologies. It uses a digital universe made up of linked virtual worlds, known as the metaverse, to completely transform the way we do traditional advertising. This change is driven by rapid progress in Augmented Reality (AR), Virtual Reality (VR), Blockchain, and unique digital assets called Non-Fungible Tokens (NFTs).
Here are the most common ways of doing marketing in the Metaverse:
- Creating immersive and interactive ads, like virtual showrooms, pop-up stores, or product experiences enabled by Virtual Reality (VR).
- Organizing virtual events such as conferences, concerts, and exhibitions to draw in audiences from around the world.
- Launching unique marketing campaigns that offer exclusive digital collectibles and rewards that users can’t resist.
- Running marketing campaigns across multiple platforms, both in the physical and virtual worlds, to engage with the community effectively and sustainably.
- Providing personalized marketing experiences that lead to higher sales and customer satisfaction.
- Adapting in real-time to the digital metaverse based on user interactions and feedback, resulting in more relevant and attractive campaigns.
Changes and Trends in the Market
The main feature of Metaverse advertising is the immersive experience, which creates engaging and interesting journeys for customers. This allows marketers to collaborate effectively by connecting with brands in virtual world platforms like Roblox and Fortnite. Importantly, marketing in the Metaverse lets the audience interact with products virtually.
Using the Metaverse for marketing and advertising also helps companies meet the vibrant needs of Gen Z and Millennial customers. One key aspect that sets Metaverse Marketing apart is Decentralization. Unlike traditional social media platforms like Facebook, where companies and individuals use a platform owned by another company, the Metaverse allows organizers to create their own world and environment.
Figure 1: Increasing Marketing Potential with Gaming, Supported by 3D Virtual Environments
[Source: Bloomberg Intelligence, Newzoo, IDC]
Moreover, the Metaverse creates immersive methods for people to communicate, leading to new strategies for Public Relations (PR) to gain an advantage. As a result, PR firms could use the Metaverse to engage with brands in various creative ways, creating immersive experiences for brands and hosting VR events.
According to Statista, the market size for advertising in the Metaverse is expected to grow at a strong Compound Annual Growth Rate (CAGR) of 24.75%, reaching a projected market volume of US$7.2 billion by 2030:
Select Success Stories
The heartening case studies outlined below further explicates as to how the Metaverse will transform marketing:
|METAVERSE MARKETING APPLICATIONS
|The unique Metaverse platform “Nikeland” lets users make their own avatars, play games, and buy virtual Nike products.
|The NFT collection gives users access to exclusive experiences in the Metaverse, like virtual concerts and interactions with celebrities.
|The “Gucci Garden Virtual Tour”, “The Vault” virtual space at The Sandbox, and the future project “10KTF Gucci Grail” are virtual stores in the Metaverse where users can browse and buy products using cryptocurrency.
|There’s a digital car experience on Roblox with Metaverse, which includes advertising initiatives for sustainability.
|Marketing operations are expanding by partnering with established NFT collections, successfully connecting with the NFT community.
|NFTs are being sold for use as profile pictures and physical equivalents, allowing users to place orders and potentially redeem physical items that are delivered directly.
|A partnership with Fortnite allows for a robust preview of the 296 GTB product and builds a passionate community of car enthusiasts with Metaverse.
|A collaboration with the avatar-focused social network Zepeto offers NFT wearables at affordable prices, creating interactive shopping experiences.
|The Metaverse store in Decentraland has entertained over 120,000 customers who enjoyed immersive experiences and created their own adventures.
|Mahindra in the Metaverse
|Leveraging virtual showrooms and interactive experiences, Mahindra engages customers in an immersive, digitally innovative environment.
Table: Real-world Examples of Companies Utilizing Metaverse Branding
In 2021, Walmart showcased their idea of a Metaverse store. This store would help people use Virtual Reality (VR) to order physical Walmart products that would then be delivered to their real homes. Recently, Disney has been said to be developing a Metaverse system. This system would allow visitors to Disney Theme Parks to use an app to interact with Augmented Reality (AR) characters on their phones.
Expert Insights and Best Practices
Griffin LaFleur, a Senior Marketing Operations Manager at Swing Education and a B2B marketing consultant, suggests that with the rise of Web 3.0, Metaverse marketing is ready to reach new heights, offering more immersive experiences for customers. However, brands need to be careful when exploring the Metaverse to ensure smooth integration and avoid distancing users from their brand. Morgan Stanley predicts that luxury NFTs could become a $56 billion market by 2030.
Dr. Louis B. Rosenberg, a pioneer in AR, VR, and Artificial Intelligence, believes that marketing in the Metaverse should be natural, personal, and intuitive. It should move away from flat media like text, images, and video, and towards immersive media that brings realistic and intuitive journeys into a user’s environment. As a result, advertising could involve Virtual Product Placements (VPPs) and Virtual Spokespeople (VSPs)
Although brands have the freedom to choose their preferred virtual locations, it’s crucial to find the right balance between simply promoting their products and offering truly immersive experiences that blend seamlessly with the Metaverse and enhance real-world activities.