Virtually everywhere we look the borders between the physical and virtual worlds are sliding away into a baby digital realm called the metaverse. This layered, connected web of virtual reality will change the way we socialise, do business and connect with consumers.
For brands and marketers, there is no greater potential for incredible customer experiences and new marketing strategies than the metaverse.
In one report from McKinsey, the metaverse could make big impacts in business and personal lives. Metaverse investment hit $120 billion in 2022 and should bring in $5 trillion by 2030.
As of 2026, 25% of humanity will be logging at least one hour per day on the metaverse to work, shop, study, connect with friends and enjoy itself, Gartner reported.
So too is the metaverse. It will require you to learn it and its ecology if you want to stay on the cutting edge in this world that’s moving so fast.
But what is the metaverse and how can brands market themselves there?
The metaverse defined–well, sort of
As of now, there is no one-dimension metaverse. It is to some a virtual playground for friends. For others, it’s the new retail outlet for companies and customers.
A metaverse, in formally speaking, is a common of the same type, composed of networked virtual experiences shared between them, mediated by technologies. Think of an internet society where people not only play and party but also trade, organize virtual events, buy and sell digital goods such as real estate and artworks.
It’s helpful to picture a metaverse as the internet’s second iteration, originating as separate bulletin boards and free-floating websites that turned into sites in a shared digital universe. A metaverse, however, you don’t glance at, you’re there.
This is more information that should give you a good idea of what a metaverse is and isn’t.
Elements of the metaverse
- virtual and real worlds colliding, connected and connected.
- provides an immersive experience
- exists in real-time
- never ends, never goes out of date.
- interoperability and seamless connectivity
- made by wiki and “world building”.
- users are digital, real, and possessed of agency.
- buyers and sellers trade an actual universe that operates!
- powered by decentralized virtual economy.
Metaverse technology
Metaverses are multifaceted and they need technologies to work:
- augmented reality (AR)
- virtual reality (VR)
- artificial intelligence (AI)
- head-mounted displays (HMDs)
- AR cloud
- spatial computing
- IoT (Internet of Things)
- cryptocurrencies, such as non-fungible tokens (NFTs)
Examples of metaverses in action
The metaverse is in its infancy but a few platforms already provide signs of what it could be.
- Sandbox: An open-source gaming system where people can make and monetize their own virtual games.
- Decentraland: Another blockchain based VR world, where users can build and acquire land, host parties, and engage in a virtual economy.
- Roblox: A popular online gaming game with metaverse features like virtual concerts and item ownership.
- Horizon Worlds: Social VR platform from Meta to build and explore a world, play games and meet other users.
Marketing in the metaverse
Metaverse is the best place for marketers to transport their audience into 3D digital world through VR and AR. A brand in the metaverse could construct a world around a product or service, which users could discover, interact with and purchase from via their avatars.
Marketing in the metaverse isn’t marketing in the digital realm. One example would be a fashion house which had a fashion runway presentation in the metaverse wherein fans could view the brand of clothing. A realtor, for example, might even provide online property tours. These are not just advertisements but are ways for the customers to engage with brands in new and engaging ways.
And the metaverse holds as many marketing opportunities as virtual worlds do:
- Virtual product launches, fashion shows, educational classes, and more with branded immersions in metaverse space.
- Online shops/product displays where the users can check out products and purchase them in real time making online and offline shopping seamless.
- Hyper-targeted ads that serve highly relevant personalized ads and maximize campaign ROI.
- Community & Influencer Marketing to build brand loyalty and organic reach.
Why brands hesitate
For all its promise, most brands don’t think much about entering the metaverse. From huge investment in unknown technology to unclear monetisation, some of the problems concern.
The metaverse is a very new world, with too much not used and standardised to be fully able to provide robust marketing programs. In addition, there are virtual economies, but they are neither long term sustainable nor scalable so ROI isn’t very hard to calculate.
Privacy and security concerns surrounding users in these new digital spaces are a real concern. Further hesitation is caused by the lack of regulations and perhaps moral considerations for user actions in these virtual spaces.
10 things to know about brands and marketers
There is plenty to learn and so much to explore in the metaverse. The 10 most important takeaways for brands and marketers who are thinking of implementing the metaverse in their marketing:
- Learn about the metaverses and their technologies.
- Go small and play– start with pilots and trials campaigns so you get to know the metaverse, and how to go about it.
- Be a UX focused company by offering immersive experiences unique and useful to the users experience in virtual reality.
- Make your brand popular with existing metaverse creators, influencers, platforms and brands.
- Create brand experiences with virtual spaces based on your audience, where they can explore, engage and engage in brand-related activities.
- Put user privacy and data security first to earn audiences’ trust.
- Keep up to date with the technology, regulations, and the consumer to change your plans accordingly.
- Create authentic relationships with users by participating actively in metaverse groups, partnering with virtual influencers and organizing live events.
- Provide users with actual benefits in the metaverse, for example exclusive virtual products, presale to launches or gamified loyalty schemes.
- Use data analytics to map how users behave and what they’re looking for in the metaverse and always optimize your approach for maximum conversion and brand affinity.
Looking ahead
The metaverse is still a young beast but it has enormous promise for brands and marketers. Marketing is going to be immersive, interactive, and user-centric and the metaverse is set to deliver an experience that’s really going to shake up the brand and the consumer.
The metaverse offers a way to reach people meaningfully and humorously for the open-minded. If brands learn the idiosyncrasies of the metaverse, and start creating useful and interactive experiences for users, brand loyalty can be established and marketing’s own future can be formed.
