Metaverse, Marketing, and Advertising
Everybody is talking about the metaverse, and we don’t blame them. Not only are metaverses taking over the gaming world, but they’re also penetrating everyday life with companies like Microsoft, Meta, and others investing billions of dollars into the practice. What are metaverses? What does it mean for advertisers? Let’s delve into this growing niche!
What’s a Metaverse?
While the boundaries of metaverses are still being found, a metaverse is generally a virtual world in which people are represented by digital avatars. The most basic forms of metaverses we have currently exist in Fortnite and Roblox. If you’ve been ignoring these platforms because you thought they were simply video games, think again.
Traditional games end when you remove the disc or close the application, but Fortnite and Roblox are different in that they continue existing even when players aren’t logged in. If you were to create an avatar, you can play games, socialize with others, and buy customized wearables for your character. When you log out, the world still exists without your presence.
In these early days, experts are referring to Fortnite and Roblox as primitive metaverses because they lack some of the features that metaverses will eventually have. For instance, true metaverses will allow users to carry their wearables and other items across from one world to another. Currently, this isn’t possible because items owned on one game don’t transfer.
Every day, the metaverse niche seems to grow a little bigger. Investments from Meta, Microsoft, and other huge tech companies are fueling this growth. According to one source, Meta (a company that changed its name alongside its strategy to show its intent!) is investing $10 billion into this niche. Meanwhile, Microsoft is working on its own concept (as well as Google and Apple).
Though it might be hard to imagine now, we could soon have a world where everything revolves around metaverses. People will interact with the different platforms using VR/AR technology alongside other advanced devices. If companies stick to the true definition of the word, users will carry the same avatar between all the different platforms.
What does this mean for users? They can buy wearable items on one platform and wear them across the many metaverses. However, it also has a security and privacy function when designed property. With one avatar, the personal and sensitive information of the user is better protected. If users want to give companies access to their information, they just allow them into their profile rather than sending their details to different places around the internet.
Growth of the Metaverse for Advertisers
What can we expect from the metaverse in the coming months? Although Meta is investing billions of dollars into the practice and others are following suit, the company believes that the payoff will be gradual. This differs from the expectations of other executives, and this creates an interesting environment where anything can happen.
Regardless of the speed of implementation, it’s clear that advertisers need to get ahead of the curve, and this means putting a plan into action very quickly. The world of advertising is about the art of meeting people where they gather; not only is this online in 2022, but it will soon be the various metaverses popping up around the internet. Even though Roblox and Fortnite are the early stages of metaverses, companies are advertising in the universes, hosting events, creating virtual products for users to buy and wear, and so much more. Therefore, advertising opportunities are continually growing.
Depending on the nature of your business, you might decide to design wearables that people can purchase for their in-game avatar. The benefit of this marketing technique is that you generate awareness while also earning income. While you might not get thousands for a pair of shoes (like Gucci), it’s still worth your attention this year.
While some are designing wearables, others are buying ad space in these virtual universes. Meanwhile, others are sponsoring events — more concerts are taking place in these virtual worlds (including sets by Lil Nas X, Twenty One Pilots, Ava Max, David Guetta, Zara Larsson, and more).
All in all, advertisers have opportunities to explore non-fungible tokens (NFTs), ad spaces, smart contracts, virtual stores (through AR), Web3 experiences, and more this year. If you thought that you were in for a simple year of social media advertising and YouTube videos, you’ll need to diverge your strategy once again if you don’t want to get left behind.
Naturally, new niches as large as this don’t come without their challenges. This year, we expect brands to battle with three problems:
- Lack of standardization
- Risk of inauthentic connections
If you’re to enjoy life with Web3, you may need to reconsider your approach because sticking with the same old strategies might cause problems. Web3 is pushing for decentralization and an end to the monopoly that big tech companies have had over the data of consumers. With no centralized body taking control, advertisers have a wonderful opportunity to connect with the people who keep their business going. You can build genuine connections with leads and customers without worrying about data.
If you’re feeling overwhelmed by this changing world, the first step is to work out the best tech services and partners to work with in the coming months. With the right partners, you’ll realize that you aren’t alone. Next, you need to focus on consumers and the people most important to your brand. Regardless of what happens in the marketing world, a lack of consumers means a lack of income. When revenue stops coming in, the business switches to survival mode as you have nothing to reinvest.
A Shift of Focus for Advertisers
Go to any job listings website and you’ll see that advertising companies and large corporations are looking for metaverse experts — the number of which is small compared to the number of businesses setting up divisions. Additionally, marketing agencies are building entertainment and gaming departments to accommodate the transition to the metaverse.
If you run a digital marketing agency, look on the websites of your competitors because you’re likely to see them recruiting metaverse experts. We recommend sitting down with all important stakeholders and considering the future of your business. Whether a company or a marketing agency, consider how you will approach this incoming wave because those who navigate it most effectively will reap the rewards.
Investors are putting their money into companies that help marketers to adopt VR as well as marketing agencies that want to invest in these developing fields. With Facebook constantly reducing the barriers for crypto advertisers, these companies will also snap up ad agencies like there’s no tomorrow to generate awareness.
As you can see, the metaverse is the defining factor of spending for advertisers, it is making deals, it’s taking control of the recruitment and expansion processes, and it has grabbed the imagination of users. Naturally, no marketing trend is ever worthwhile if people haven’t bought into its foundations. There’s no denying that communities all over the world are buying into the metaverse (literally, as they spend lots of money kitting out their avatars with the latest wearables and collectibles).
We know that reading about Web3 and metaverses can induce anxiety for advertisers who are just happy to have the worst of the pandemic behind them. Wanting nothing more than a simple year, it’s tough when everybody is talking about the biggest change in the state of the World Wide Web for at least two decades.
When it comes to metaverses, Roblox and Fortnite are examples of how they are always active, exist in real-time, offer individual agency to users, and encourage brands to get involved in the experience. While they don’t offer players a chance to take items between metaverses, it seems that this is only a matter of time.
As an advertiser, one of the most important things to note is that traditional advertising methods won’t disappear. Therefore, we don’t recommend pulling your budget from successful ad campaigns to fund this project. For one thing, the metaverse currently has a target market of between 12 and 36. If your audience isn’t in this age group, you’ll still need ‘older’ marketing techniques to reach them effectively.
If your target market sits between these ages, some believe this is now the most effective way to engage the audience. However, you will only do so if you create genuinely valuable experiences for users. People like that metaverses exist in real-time, so it’s your job to connect with people in a way that still considers real-world experiences.
Offer immersive experiences, provide collectibles for your audience, engage with existing audiences using influencers known to the audience rather than barging your way into their experience, and keep experimenting. Over time, make a note of what works as well as what doesn’t. Soon enough, you’ll be well on the way to success with your Web3 and metaverse strategies!