How Record Labels can use Mixed Reality to enter the Metaverse

For those of us who don’t live web3 everyday the concept of the metaverse and crypto can be very daunting. Labels and artists who wish to bring audiences into this new digital ecosystem face two core challenges — education and onboarding.

Mixed Reality tech vs Web3

It’s important to make the distinction between Mixed Reality (“XR”) technology (Augmented Reality and Virtual Reality) and Web3 (crypto, NFTs, DeFi). The latter is where we run into the most confusion as audiences wrestle with wallets, tokens, and NFTs. But a metaverse activation does not NEED to include elements of web3, in fact quite the opposite. To make a user-friendly experience the initial onboard should focus on creating a new digital landscape through XR technology with the option of pursuing web3 elements at a later stage.

Fans can easily digest this. They are already familiar with XR marketing campaigns. Since 2017/2018 brands and musicians have been using augmented reality face filters, web experiences, and browser based worlds to reach their audiences and cut through the noise of traditional 2D media. Therefore using AR to create more metaversal environments is a natural progression for the average music fan.

The best metaverse activations will deliver an experience that fans cannot get elsewhere while considering the long term strategy rather than the one-off. On top of that, these experiences should be social. Allowing fans to gather together and see each other through profile pictures or avatars is key.

Some ideas:

A listening party — an unreleased single to be streamed live from a dedicated metaverse space. This is the evolution of Youtube Premiere. Pick a platform that offers fans the opportunity to explore and chat together.

An artist meet and greet — Host a dedicated hour long session between an artist and fans. The artist can be live inside of a mixed reality environment and voice chat with fans who have chosen to be part of it. Pick a platform with voice chat capability.

A performance — A shared event space where fans can watch an avatar or hologram based performance.

Incorporating Web3

Before considering how to add web3 into the activation we have found it’s best to agree on the desired outcome and incentive model. For example, you can either skew towards fan engagement, revenue generation, or a mix of both.

Fan Engagement

The easiest way to engage a fan is to make it about them. Over years of creating AR activations we’ve learned that experiences where you give fans something they can customize, interact with, or make their own are typically the most successful. For example, an instagram face filter or snapchat lens works best with face effects rather than world effects (e.g. front facing camera vs rear facing camera). Effects which include the fan’s face ultimately give the most re-shares and reach.

The web3 equivalent is to make the experience about the fan’s digital identity rather than their real self. This could mean avatars, wearables, proof of attendance tokens, or virtual collectibles. Travis Scott’s Fortnite concert, arguably the most successful metaverse activation to date, sold millions worth of in-game wearables (skins) because it gave the audience a chance to share and show off their participation. This is an edge case because it’s Travis Scott and Fortnite but the model can and should be replicated across other experiences.

Without spending hundreds of thousands on a Fortnite concert, labels and artists should look to partner with metaverse providers who can make the experience about the fan. Think about how unique avatars, customization options, or world building tools can be incorporated into the experience. This will make it much more likely to increase sharing and bring in a bigger audience.

Revenue Generation

If the goal is to sell NFTs or tokens it’s imperative to think realistically about target demographics. The average music fan skews young. They are 18–25 and roughly evenly split between male and female. The average crypto or web3 enthusiast skews older 25–35 and mostly male. It is far more likely that the web3 enthusiast will convert on a purchase rather than the regular music fan. Targeting a music fan with a crypto product will not work.

If your fan base skews older and you can see strong signs of web3 interest we would recommend creating a strategy where NFTs, collectibles, or tokens are available as part of the event but not required to gain access. This will open the door for web3 enthusiasts to purchase and potentially trade on the open market while also onboarding non-web3 users and educating them on the possibilities.

For example, you could look at a tiered NFT strategy. Create a collection of 10k NFTs which get distributed for free to all attendees. These can be sent out without a crypto wallet using platforms like Kred. On top of the free collection there are a group of 100 premium NFTs which can be purchased via crypto or fiat.

In conclusion, for labels wishing to enter the metaverse either via web3 or mixed reality it’s imperative to consider de-coupling the web3 and metaverse elements so you can engage the widest audience.

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