Advertisers are scrambling to capitalise on the metaverse's growing popularity, whether it's through consumers exploring virtual worlds, gaming, or buying NFTs with cryptocurrency.
They're creating non-fungible tokens (NFTs), experimenting with smart contracts, and creating metaverse experiences.
In metaverse realms, however, they must handle the pitfalls of unpredictability, lack of standardisation, and inauthenticity.
The metaverse is predicted to attract a billion users and generate over $1 trillion in income during the next ten years.
For companies, marketers, and advertising, this is a huge opportunity. Grayscale, an investment fund and crypto firm, believes that the metaverse will offer new revenue streams through advertising, digital events, e-commerce, and hardware — with advertising having the lowest entry hurdles.
It's simple to imagine and modify current digital advertising technology for a VR world. Metaverse real estate might be viewed as digital ad spaces, and consumer data-based targeting systems are already in place.
The dynamics of user involvement and spatial layout in VR, on the other hand, are quite different. It will be a jungle out there when the metaverse manifests — here's why.
MARKETERS' GUIDE TO THE METAVERSE
The metaverse can be defined as a persistent, 3D, and virtual area where consumers can spend their time and be targeted with brand-related content and sales enablement strategies in the context of advertising and marketing.
Today's closest equivalent is social media, where users check in, communicate with their friends, family, and peer network – and are exposed to companies, advertising, sponsored content, and calls to conversion as a result of their interactions.
Social media has grown over time to include direct-to-customer storefronts where you can pay for things online and have them delivered to your home.
Similarly, the metaverse might contain 3D "stores" where you can not only browse commercials but actually try out things before making a purchase.
WHAT WILL ADVERTISING LOOK LIKE IN THE METAVERSE?
There are two perspectives on the advertising metaverse opportunity. To begin with, it's another channel in your marketing mix, similar to having a branded mobile app, Google banner advertisements, an analytics-enabled website, and a social media presence (both organic and sponsored).
The metaverse, too, will have its own distinct ad forms, complete with marketing attribution, allowing advertisers to track visits and invest wisely.
Second, the metaverse might be seen as a new storytelling medium. You can have immersive ad experiences that tell the brand story in addition to typical advertising that appear on Google, Facebook, LinkedIn, and other sites.
It's worth noting that this isn't a brand-new idea. Brands have been investing in complex 360-degree movies for specialised ad campaigns since the development and gradual general adoption of VR headsets.
Gucci's pre-fall 2017 campaign, for example, urged viewers to take part in a 60s-style soul scene dance choreography.
These are the two main methods in which advertising would function in the metaverse, although each has its own set of difficulties.
IN THE METAVERSE, 6 WAYS TO ADVERTISE YOUR BRAND
So you've got a hefty marketing budget and are considering venturing into the metaverse.
I understand, given that Travis Scott's Fortnite concert got over 12 million views.
But, in this early stage of the metaverse's evolution, what are your options?
While this is by no means an exhaustive list, it should serve as a starting point for you.
1. POSITIONING OF ADVERTISEMENTS
Think of billboards, signage, and posters on buses in the actual world, but in the metaverse. It's not difficult to imagine. Brands have long been promoted in videogame titles like NBA2K and Grand Theft Auto.
2. PRODUCT INSTALLATIONS
Brands can place their products in fit-for-audience experiences in the metaverse, similar to real-world product placements, as modelled by Garth Elgar below.
Hasbro, for example, collaborated with Roblox to bring Nerf guns to life in the virtual world.
3. PLACEMENTS WITH EXPERIENCE
In addition, Gucci collaborated with Roblox to create a Gucci-themed environment in its metaverse.
Players can explore the world, purchase in-game items with real money, and so on. In fact, one player spent $4,115 on a virtual Gucci handbag – of course, limited edition!
4. PLACEMENT OF EVENTS
The hip-hop sensation Travis Scott teamed up with Epic Games to put on a concert for Fortnite players. The below live concert attracted over 12 million viewers (about 600 sold-out Madison Square Gardens in one sitting).
5. ESTABLISH YOUR OWN METAVERSE
Rather than working with current metaverses, which may only get you in front of a specific type of audience, you might create your own metaverse to fit your specific goals.
For example, InSpace assists commercial real estate developers in marketing and selling their properties, which are frequently off-the-plan.
6. NFTS
Finally, brands are experimenting with digital products in the form of non-fungible tokens (NFTs), which may be purchased on crypto exchanges or in the metaverse. Nike, for example, is just getting started with virtual branded sneakers and apparel.