Technology is always changing and so is marketing. The evolution of the metaverse is a recent development in the world of technology, but it will have a huge impact on the human experience as we know it.
While digital marketing has seen many advancements over the past few decades, the metaverse is the one that has stunned many companies and marketers. How can they use the Metaverse to their advantage so that they don't get trapped in the Dark Ages?
In this post, I will introduce the metaverse. This will include a breakdown of what it means and a look at its current and future status. Then I'll introduce the various ways marketers can expect to use the metaverse in the years to come, as well as how they can get their foot in the door.
What is the metaverse?
The metaverse, as envisioned by Matthew Ball, a venture capitalist and writer, and later by Zuckerburg, is "an expansive network of real-time, persistent 3D worlds and simulations."
In a nutshell, the metaverse is a hypothetical current version of the Internet that supports online 3D virtual environments. This is done through personal computing (a current example is the online game Second Life), virtual reality headsets, and augmented reality headsets.
That's not to say that metaverse items don't currently exist. There are games like Roblox and Fortnite that form the foundation of what many consider to be the future of the metaverse. More specifically, virtual avatars that can interact with their virtual environment and other players. They can also purchase in-game goods, such as clothing and decorative accessories, to personalize the experience.
Metaverse and NFT: How are they related?
An NFT, or non-fungible token, is any digital thing that cannot be replaced because it has no tangible value. The most common forms of NFT today are digital art such as animations. However, within the metaverse, an NFT can become so much more.
According to Morgan Stanley, the multinational investment bank, NFTs have the potential to become a $56 billion market by 2030. How? All thanks to the demand that the metaverse will create.
With the rise of virtual avatars, the demand for virtual fashion will skyrocket. The need to personalize within the digital space is undeniable and fashion is one of the easiest ways to do it. Just look at the success of the markets found in Fortnite and Roblox, virtual games with an avatar.
How will the metaverse impact marketing?
If you haven't considered how the metaverse will impact marketing, then you're already behind. The metaverse is not an "if" but a "when". I mean, it's unavoidable. The metaverse will impact marketing in many ways, some of which you can start implementing now.
Virtual reality
Virtual reality is not new. In fact, it has been around in one variation or another for decades. Of course, it has improved by leaps and bounds in recent years, and will continue to do so for years to come.
From product development to selling existing products or services, virtual reality allows you to engage your customers. They can play an active role in all stages of the process. Who says "no" to free product research?
Furthermore, many customers will look for such opportunities instead of hiding from them as they do with online advertisements. The generations that are coming of age now and in the next 15 years, largely the Z and Alpha generations, will be more comfortable in these environments than any previous generation.
Augmented reality
Unlike virtual reality that takes over your vision, augmented reality just adds elements to it. Think of "smart glasses" or the popular mobile game Pokemon Go. These devices take note of their surrounding environment and then enhance it by adding images, animations, or data to it.
Where does marketing come in? From trying on a pair of glasses or a dress to trying out a new car, augmented reality takes the shopping experience to another level. In an augmented environment, your customers can interact with your products without leaving home. However, even in-store experiences will benefit from the metaverse. Since augmented reality is an overlay on the real-life environment, you can use it in stores to share detailed information, show additional features and use cases, etc. Think of it as a parallel marketing experience.
mark in the metaverse
As the metaverse grows, so will the branding and advertising opportunities. Including virtual message boards, billboards, merchandise, and even the virtual clothing worn by the avatars.
NFTs will also play an important role. With the ability to customize avatars and spaces like "homes" and storefronts, you can create branded virtual content for your customers. This allows you to break into merchandising spaces you don't currently work in, such as virtual apparel and digital art.
According to Futures Intelligence Group Metaverse Director Cathy Hackl, it's not as easy as going "straight into the avatar." In other words, getting on the scene isn't as simple as creating a virtual version of your merchandise. This is especially true for brands that don't sell clothing, art, or other things that are easy to digitize. However, the brands have. Just look at Chipotle and even Gucci.
Metaverse Events
In this post-COVID world, it's easy to imagine the continued need for virtual meeting spaces. From family reunions to non-profit concerts and galas, the metaverse has no limits on who you can meet and when.
A recent example of such an event was the Lil Nas X concert that took place within the virtual world of Roblox.
With events like this becoming more and more popular, especially with Generations Z and Alpha, metaverse events will not be just a tool you can use, but a necessity. As your target audience changes, so will your marketing efforts. This is just one example of how the metaverse will play a role.
You don't want to wait until these types of events become popular before jumping on the bandwagon. You should consider hosting your own virtual event, either through virtual reality or augmented reality, soon. There are even consulting agencies that can help you organize these types of events.
Metaverse in Marketing: Frequently Asked Questions
What is the Metaverse?
The Metaverse is a digital universe where users interact with computer-generated reality and with other users. It's a digital life, for all intents and purposes, including components like virtual reality and personal computing.
Why should marketers care about the metaverse?
Like a second life for users, the metaverse provides an opportunity for marketers to reach their audiences in a new dimension. The metaverse extends the digital footprint of customers to provide a whole new view of their actions and behaviors.
How could companies monetize the metaverse?
From opportunities to market branded digital products to offering virtual classes and pop-up events, companies can monetize the metaverse the same way they can monetize their real-world counterparts.
What companies are in the metaverse?
While we speak of the metaverse in its future state, there are companies that contribute to its existence both now and in the future. Only a few companies currently "in" the metaverse are Facebook (Meta), Niantic, Epic Games, and Apple.
How can my company prepare for the future of marketing in the metaverse?
The metaverse, in its simplest form, is a virtual community. With community is the need for connection. Companies can prepare for the future of marketing in the metaverse by taking steps to build that connection. For now, this includes opening new business stores on Instagram Shop and Facebook Shop and even creating AR ads.
Conclusion: metaverse for marketers
The metaverse as envisioned by the likes of Matthew Ball and Mark Zuckerberg is still years away. Digital marketers shouldn't sit on the sidelines waiting until that time comes. Instead, they should use these next few years to prepare for the opportunities that lie ahead.
There are ways marketers can get ahead of the curve, including investing in virtual reality and augmented reality advertising. There are also e-commerce platforms, like the Instagram Shop and Facebook Shop, that offer a glimpse into the future of the metaverse and what it has in store.