Exploring Metaverse Marketing in Depth

Technology is rapidly evolving and changing, leading to innovations that were once unimaginable. For many, one of these innovations is the metaverse — a unique, immersive virtual environment that is quickly taking over the internet. You may have first encountered it in sci-fi movies like Ready Player One or The Matrix series, but it is no longer a fictional concept.

With the ongoing rise of Virtual Reality (VR) and Augmented Reality (AR), the metaverse is becoming an integral part of the internet. It’s estimated that by 2021, around 85 million users experienced AR or VR at least once a month. While the metaverse may not entirely resemble the sci-fi visions, it continues to generate unimaginable value as a new computing platform.

Major media outlets seem to be fully embracing it. Forbes, for instance, has partnered with renowned tech futurist and metaverse strategist Cathy Hackl to launch a dedicated column. Additionally, there’s even a Metaverse ETF (NYSE: META), highlighting the growing importance of this new digital frontier.

Consumers are also beginning to take notice. A Google search for the term “metaverse” yields 677,000 results. Meanwhile, the #metaverse hashtag is widely used on Instagram, with over 60,000 posts, and it’s retweeted more than 500 times per hour on Twitter.

So, what does this mean for social media, public relations, and digital marketing? In this article, we’ll dive deep into this virtual world and explore its implications.

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Understanding the Metaverse

Today, the metaverse involves a shared virtual space where users are represented by digital avatars. These virtual worlds continuously evolve and expand based on the decisions and interactions of users within the space. In this sense, it mirrors the real world because it has no “end.” It’s an ever-expanding universe that grows as more users join.

The metaverse is not just a meticulously designed virtual theme park, nor is it a simple game for kids to pass the time, or an app you can casually download and “play” from an app store. The metaverse is a virtual universe that merges the physical and digital worlds into one cohesive experience.

If this concept seems a bit abstract, Matthew Ball has outlined the core characteristics of the metaverse:

- Always Active: The metaverse doesn’t pause or end when you leave. It continues indefinitely.
- Exists in Real-Time: The metaverse operates on a timeline that synchronizes with real-world time.
- Player Agency: Users have the freedom to engage in different activities simultaneously. One user could be standing still in a corner while others are interacting.
- Self-Sustaining and Fully Functioning Universe: The metaverse is a fully functioning universe where users can create, own, sell, and invest. Users can also gain recognition and rewards for their contributions within the metaverse.
- Cross-Platform Integration: Different platforms can work together within the metaverse. For example, you should be able to carry items from one video game to another.
- User-Generated Content: The metaverse is not just a space for users to hang out. Users can create content that other users can appreciate and engage with.

Marketing in the Metaverse

Digital marketers need to stay ahead of the curve with the latest technological developments, including understanding the metaverse and its full potential. Marketers should realize that the metaverse is not just a passing trend; it seems poised to stick around and is becoming the next big thing.

As the metaverse continues to expand, how should marketers adapt?

First, marketers need to recognize the value of targeting Millennials and Gen Z as key demographics. These generations are also avid users of certain metaverses, such as games like Roblox and technologies like VR. With that in mind, let’s explore how marketing can be conducted within the metaverse.

Parallel Metaverse Marketing in Real-World Campaigns

Create marketing experiences that either combine with or parallel what your brand is already doing in real life. For instance, in June, Stella Artois, a beer brand under Anheuser-Busch InBev, partnered with Zed Run to create a digital experience akin to the Kentucky Derby combined with a Tamagotchi-like element. They did this because Stella Artois is heavily involved in sponsoring sports events, particularly horse racing. Therefore, creating an online platform where users could trade, race, and breed non-fungible token (NFT) horses was a natural extension of their brand.

Immersive experiences are key.

You can offer virtual advertisements within the metaverse. For example, the video game ad tech company Bidstack has transitioned from placing ads on real-world billboards to placing them on virtual billboards within virtual worlds.

However, you can go beyond virtual billboards. Since the metaverse is inherently experiential and immersive, it’s best to leverage this by delivering the same level of immersion through your ads and marketing campaigns. Offer branded installations and activities that users can interact with, rather than just placing simple ads.

We’ve already seen pioneers provide immersive experiences, such as the Lil Nas X concert in Roblox, the Gucci Garden experience tour, and Warner Bros.’ virtual recreation of Washington Heights to promote *In the Heights*. Brands have recently discovered new revenue streams by partnering with the Roblox metaverse and others.

Offering Collectibles

People love to collect things, and virtual worlds offer another space for them to showcase their interests. You can provide the same experience in the metaverse by offering assets or limited-edition items that can only be collected in the virtual world.

For instance, the Gucci Garden experience on Roblox featured a collector’s room that allowed people to gather limited-edition Gucci items in the metaverse. Gucci earned 286,000,000 Robux from the initial sale of these collectibles.

Engaging with Existing Communities

Generally, people tend to resist advertisements. Therefore, when brands attempt to enter virtual worlds, it’s crucial not to show up and alienate those who are already there. Beyond that, you need these users to positively receive your presence, as they are the ones you’ll be marketing to.

Remember, you can’t simply enter a new platform without considering the new format. For example, in Roblox, brands gain more traction when they collaborate with members of the Roblox developer community to create items and experiences. Similarly, when O2 hosted a concert in Fortnite, they partnered with creators who were already experts on the Fortnite platform.

Think of this approach as influencer marketing. User-generated content is vital, so community members should be an integral part of the execution.

Keep Experimenting

This is an exciting time for marketers. While there are some guidelines to help shape strategies and tactics, the metaverse is still a relatively new platform, offering plenty of room for experimentation. Best practices have not yet been fully established, and paradigms are still being formed. This provides marketers with ample opportunity to try unique and experimental approaches.

Other Unique Metaverse Examples

Dimension Studio experimented with the metaverse for fashion brands and generated $6.5 million in revenue. They created a virtual production setup where users could step onto a platform, be scanned by 106 cameras, and then enter a virtual world to try on clothing and other items. Their most notable work includes the Afterworld game for Balenciaga’s Fall/Winter 2021 collection.

The open-world sandbox game Grand Theft Auto Vintroduced clothing options that resembled those of Hong Kong protesters. This allowed protesters to bring their real-world fight into the virtual world, joining many artists who use virtual spaces for political expression.

Home decor company Houzz allows consumers to create digital photo collections of furniture and home goods. Houzz earns revenue every time someone purchases an item through their service. In 2017, they added a 3D viewer that lets users see items in 3D directly through their camera, seamlessly integrating them into the user’s physical space.

Google Maps demonstrated the AR functionality of its walking directions feature. This feature provides precise visual indicators and arrows to make it easier for users to find their way. Users simply point their camera in the direction they need to go, and the AR feature guides them correctly.

The Future in the Metaverse

Many companies are now investing in virtual worlds. They are betting on these virtual spaces not just for entertainment, but for business and professional purposes as well.

For example, Facebook, the largest social media platform, envisions itself as a metaverse company in the future. Mark Zuckerberg is focused on building a social metaverse and has invested in Oculus, Facebook’s AR and VR technology. In August 2021, Zuckerberg introduced a work metaverse for Oculus, where people can work together, sit in conference rooms, and interact as if they were in an office. This is a timely development, given that more offices have shifted to work-from-home arrangements.

Overall, Silicon Valley sees the metaverse as the next generation of the internet, even more so than Facebook. Currently, many metaverse games are incorporating metaverse-like elements on their platforms. For instance, Fortnite and Animal Crossing allow in-game concerts.

Additionally, HTC is pushing to bring VR technology into the commercial space rather than just the consumer space. This indicates that VR technology is gradually moving beyond mere entertainment.

If all this doesn’t convince you, perhaps this will: People are buying real estate in the metaverse, particularly on Earth 2. This strongly suggests that this technology is here to stay.

Challenges in the Metaverse

The metaverse presents an exciting future for brands, but there are still challenges that need to be addressed along the way.

Firstly, while virtual worlds are gaining popularity, they still need to become more appealing and accessible. The technological requirements of virtual worlds pose a significant accessibility issue. Not everyone has the necessary equipment, such as high-end computers and VR headsets, to fully enjoy the virtual experience. This greatly limits the potential market for brands and hampers efforts to achieve mass marketing.

Brands also need to tread carefully when exploring the metaverse. Seamless integration is crucial to avoid alienating players. Since this technology is still relatively new, brands might struggle to find the right fit in the metaverse and could risk coming off as too intrusive in their messaging. It’s important to carefully plan your brand’s presence and ensure it feels natural and well-integrated within the metaverse.

Additionally, there are still many misconceptions about the metaverse. People often perceive it as merely a simple game for kids. Not everyone understands the value of the metaverse, so efforts to establish a brand presence on these platforms might risk being overlooked.

Data privacy and security remain significant challenges in the metaverse. The emergence of new technologies requires more advanced security measures. This necessitates the development of new methods for data privacy and protection in areas where they didn’t previously exist. For instance, personal verification may require users to provide more data, increasing the risk of privacy concerns.

Lastly, since virtual worlds are open and free to everyone, brands need to be careful in protecting their image. The more control users have in the virtual world, the higher the likelihood that your brand could appear next to questionable content. Your brand’s presence could also be subject to user manipulation or disrespect. This is why it’s crucial to craft marketing strategies that are seamless, cautious, and precise, ensuring that users are happy to share virtual spaces with your brand and engage with it there.

Ultimately, the metaverse offers a bright future for computing and the internet. More importantly, it provides ample room for innovation for marketers and advertisers. Despite these challenges, the opportunities for experimentation, delivering immersive experiences, and driving innovation continue to prevail.

FAQs

Q1,What does the metaverse mean?
The metaverse refers to a highly immersive virtual world where people can come together to play, work, and socialize.

Q2,Is Animal Crossing a metaverse?
In recent years, the term “metaverse” has become a popular trend. Facebook’s announcement to change its name to Meta reflects its broader goals in the AI space. The concept of the metaverse can also be applied to other products, such as Fortnite, Roblox, and even Animal Crossing.

Q3,What is the FB metaverse?
Facebook did not create the metaverse. The metaverse is a new concept for the internet, where people gather in virtual spaces to socialize, entertain, and work.

Q4,What is Facebook Metaverse?
Facebook’s Mark Zuckerberg has not disclosed much about the company’s plans to build a “virtual world.” However, we do know that Facebook’s virtual world will be composed of virtual reality headsets and augmented reality.