When asked about monetarization, founders of metaverse startups often suggest that their metaverses can be used as a new marketing channel for brands and corporations. They propose that not only do they have the potential to revolutionize gaming and social interaction, their companies can also build interactive and engaging experiences in the metaverse to help brands and corporations market their products and services.
Although the metaverse is supposed to offer an immersive experience, its current low traffic present a challenge to becoming a viable marketing channel. It would require more efforts from customers to access the metaverse than, say, Google search, YouTube ads, or even train station billboards. The latter marketing channels are effective because they are embedded into people’s lives — people commute to work, search for stuff and watch hour-long shows on the internet, day in and day out. Online search marketing is even better because ads are targeted to consumers who are actively searching for specific products or services, making the conversion into purchases more likely.
The far end of the spectrum are high-touch, high-value marketing channels that require interpersonal trust and relationships. Private banking clients often build personal relationship with their bankers through exclusive events such as the Wimbleton and private school PTAs. In turn, clients entrust their bankers to manage their multi-deca-million investment portfolios for long periods time.
Unlike watching YouTube, which is part of many people’s daily routines, the metaverse is far from that level of ubiquity. Even as we are having significant advances in AR/VR technologies, computing power and network speed, consumers’ habits of living in the physical world and using their phones while commuting will not change easily.
Until a seismic cultural shift happens, customers always take more effort to see the marketing in the metaverse than traditional channels. A prerequisite for marketing to make sense on the metaverse is to have engaging and entertaining experiences that will motivate customers to stay on the platform and interact with its content. Once spending significant time on the metaverse becomes a sticky habit, as the Tiktok app or online games are today, monetizing the metaverse via brand marketing will become a real possibility.
When it gets there, the metaverse may offer a unique opportunity for brands to engage with their audience in a more immersive and interactive way, which may not be possible through other channels. In this sense, the metaverse offers a different kind of marketing experience that could complement other digital marketing efforts, rather than replace them.
How will this happen? Imagine a future where people live part of their daily lives in the metaverse. As people, or their virtual avatars, interact with each other virtually, build virtual homes, and start virtual businesses, they may form deep and meaningful connections with each other, just like in real life today.
As you and your virtual friend have played the popular VR game together for years, your camaraderie has been built through countless hours of shared victories and defeats in the virtual world, and it’s a bond that feels just as tangible as any friendship in the physical realm.
“You know, I’ve been thinking,” your friend says suddenly, her voice taking on a serious tone. “I think I’ve found a good investment opportunity.” You raise an eyebrow, intrigued. “What kind of opportunity?” you ask. “Have you heard about the new virtual health program?” your friend asks, her voice taking on a note of excitement. “I think it could be a game changer.”
You ponder the proposition for a moment, your mind racing with possibilities. “I’m interested,” you say finally. “But why me?” Your friend chuckles. “Because I trust you,” she says simply. “We’ve been through a lot together in the metaverse, and I know you’re someone I can count on.” You smile, feeling a sense of pride in the trust your friend has placed in you. “Alright,” you say with a nod. “Let’s do this.”
That’s when the metaverse will become a high-touch, high-value marketing channel for brands and corporations.
