By definition, metaverse is an infinite virtual universe that exists in conjunction with and beyond the physical universe. Mark Zuckerberg described it as the “embodied internet.”
We know, it sounds like a lot. The definition can be confusing or almost nonsensical to some. If you were skeptical about cryptocurrency or NFTs, metaverse takes it to a different level, quite literally.
Metaverse Marketing Outside Meta
Metaverse marketing has been around for some time. It existed before Meta (previously known as Facebook) announced it at the end of October last year. In early 2021, Epic Games announced a $1 Billion funding round to support their long-term vision for metaverse, generating a lot of buzz around it.
Most of us have been exposed to the metaverse through the news cycle, video games, television shows, or virtual fashion without even realising it. HBO’s Snow Crash was inspired by… The metaverse is also explored in Netflix’s TV show Black Mirror as well as Avatar, which is one of cinema’s highest-grossing movies ever.
The video game and music industries were among the first to embrace metaverse. In April 2021, rapper Travis Scott’s in-game Fortnight concert drew 27.7 million unique attendees, while Lil Nas X’s Roblox concert drew 33 million viewers.
The Gucci Garden on Roblox was conceived as a virtual counterpart to a real-world installation called the Gucci Garden Archetypes, which is taking place in Florence, Italy. It was developed in collaboration with the iconic luxury brand and is an excellent example of fashion’s metaverse invasion. Roblox allows players to interact with attendees and buy collectible digital items within the game. It may sound bizarre but a user spent $4000 on a digital Gucci bag which costs $800 in real life.
Even politicians couldn’t resist the metaverse’s allure. During the 2008 presidential campaign, former US President Barack Obama launched voter registration advertisements on the Xbox Live service.
Advertising in metaverse
Since Facebook’s rebranding to Meta and a sneak peek into their metaverse, which they define as the successor to mobile internet, you’ve probably seen a slew of Meta memes on the internet. This is perhaps the best time to rethink your business strategy and determine what it means for your brand.
A gold mine of potential
Meta calls its own metaverse ‘Horizon Worlds’, which is currently in the beta stage. While talking about its potential, Zuckerberg equated the existence of augmented reality (AR) headsets to smartphones in the future, while others spoke about AR headsets in the form of contact lenses or neuro-linked devices.
If brands want to avoid fading into metaverse’s boundless identity, parallel metaverse marketing operations are essential. This will complement real-life marketing efforts and help deliver unique, distinct, and immersive experiences to consumers.
Brands will have to choose between developing their own metaverse ecosystem the way Warner Bros., Hyundai, and Coca-cola have done in the past. They can also pay to advertise in someone else’s metaverse. Subway’s Football Manager 2019 in-game ad campaign did so by using in-game advertising platforms like Bidstack or In-video Ad Solution Agency ASMI to place curated ads for targeted audiences in real-time. Gucci is a prime example of how brands with proprietary tech or big bucks are going to be the early adopters of metaverse.
The potential of contextual advertising will be limitless, from concerts, conferences, classrooms, to cricket matches. While today’s sponsors are stamped on the walls and the ground, this type of advertising will have the sky as its limit. Brands will need to be mindful of the public aspect of the metaverse while designing a sound marketing plan, including unique positioning, ad placements, and brand identity.
Collaboration with creators is another market that shows promise in the metaverse. It was the hottest marketing trend in 2021. McDonald’s BTS Meal and Kanye’s billion-dollar Gap deal are top examples of its success. Partnering with creators in the metaverse can be a distinguishing aspect in cultivating a new generation of influencers and content creators.
Traditional metrics like ROAS (Return On Advertising Spend) and brand engagement can be difficult to follow in a 3D web model. However marketing efforts in the metaverse will be everlasting campaigns with continuous inputs. Brands that are a part of or create their own ecosystems might struggle to assess their return of investment (ROI) initially.
Challenges to overcome
The most significant challenge is the mystery around the metaverse’s form. Zuckerberg himself stated that “it may be some ways off.”
This is a critical challenge because it links to a myriad of additional complications. Interoperability between apps and ecosystems that allow avatars to travel from the Ganga Arti in Varanasi to Ariana Grande’s concert in Madison Square Garden is dependent on the success of Mark Zuckerberg’s Connect 2021 ambition.
Countries like the US boast of 85 million unique AR and virtual reality (VR) users in 2021. This highlights a glaring reality – developing countries like India lack the technology and infrastructure required to host such a platform on a large scale.
In comparison to the existing Internet, the metaverse poses a serious danger to privacy because people’s behavioural data will be recorded, exposing them to cyber-crime. Companies will be able to track everything, from movement, clothing, to facial expressions in the metaverse. This demands a broader and more sophisticated set of standards and protocols, which further implies that huge tech giants like Amazon, Google, and Facebook will have complete control of the deck.
Aside from security concerns, there’s also the matter of neglecting mental health for individual gains and profits. Imagine an ecosystem that connects deceased people with their loved ones. While the concept is novel and good-natured, it will ultimately be a business built on fragility and complex human emotions, similar to funeral homes.
When can we expect it?
As of 2022, the closest we have come to the metaverse is AR simulation through a headset, which is mostly used in the context of video games, defense training, and architecture. Maybe Snapchat’s spectacles from 2016 or Meta’s recently released smart glasses in collaboration with Ray-Ban come to your mind. However, these are smart glasses and shouldn’t be confused with headsets.
Can the model be replicated?
Surely.
But will it happen in the next 3-5 years?
Maybe.
Finally, the metaverse is a part of Web3, an undetermined online revolution in which everyone will participate. Mixed Reality (MR) will become the standard, and businesses will propel its adoption into the mainstream.
The adoption of parallel metaverse marketing efforts will be combined with in-life marketing campaigns to deliver an extraordinary and holistic experience, which will be synonymous with your brand. Now is the time to align your strategy with the future without letting hype cloud your judgment. According to Facebook, the metaverse will allow users to connect with individuals who are not physically present, which will open up trade not only in the B2C but also B2B and C2C contexts. If creative efforts are matched with a strong strategy and ongoing investment, MR advertising is capable of providing ROI.
Here’s where marketing and advertising agencies, small businesses, and the general population will benefit from the diverse and infinite opportunities provided by adoption. It will be a steep learning curve. But as a next-gen agency, we don’t think the complex understanding of the metaverse will be a long-term deterrent.
Discarding the metaverse’s potential as a passing trend would be a huge misstep and a lost opportunity in the long run. Small businesses have a chance to benefit from the metaverse’s public nature and be its first promoters, while big organisations have the technology and infrastructure to support and develop such ventures.