If you ended up on this article thinking what all the fuss about Metaverse is all about — I feel you.
After Mark Zuckerberg announced that “Facebook Inc.” is becoming “Meta” in late 2021, the internet broke. One of the most touted Internet leaders of our time had just declared that Metaverse is the future.
So, while the seeds of Metaverse were sown a while ago, thus began the actual saga of its infamy. The first industry to dive right into it was, unsurprisingly, the gaming industry. But what followed was a wave of different businesses announcing their Metaverse debuts.
And just like that, the estimated market size of Metaverse is $800 billion in 2024.
With that in mind, let us take a deeper look at Metaverse, and how it will influence the digital marketing scene.
So, what is Metaverse?
Let’s be honest — we saw this coming, just not this soon.
We have known for long that with the strides that technology is making, we would soon be looking at a completely virtual world. The kind of world that was created in movies like “The Matrix”.
Metaverse is a digital universe being created with help of emerging technologies, virtual reality, augmented reality, and artificial intelligence. This universe will include everything that you can think of — gaming, education, entertainment, business, and more.
The advent of the metaverse is likely to have immense implications. You can attend a concert by that singer you have wanted to see live for a very long time while sitting in your living room. While many will strike it off as yet another way to escape from reality, businesses are already thinking of innovative ways to leverage it.
And when we talk about businesses in this age, digital marketing needs to be at the forefront of our discussion. Let us look at a few ways Metaverse will impact and change the digital marketing landscape as we know it.
Impact of Metaverse on Digital Marketing
Metaverse has implications for a lot of different kinds of industries. But the ones operating in the digital arena undoubtedly have a lot to gain right away. Now, let’s understand the impact of metaverse on digital marketing.
Rise of Virtual Marketplaces
Aren’t we all sick of shopping the same old way?
Now, even the most unique online shopping experiences fail to amuse us the way they did before. With that, brands recognize the need to evolve and create new experiences around shopping.
With Metaverse, the concept of virtual marketplaces is expected to take off like never before. Wondering how this could possibly work?
Well, if you have played popular video games like Fortnite and bought any item within the game like the Batman zero wing glider, you have already come in touch with a virtual marketplace. In fact, more than 65% of Gen Z shoppers have purchased a virtual item in a video game.
In fact, Balenciaga partnered with a studio to launch a game called Afterworld: The Age of Tomorrow, where the brand showcased a futuristic clothing line that players could shop from. The game even featured a gig by the popular rapper, Travis Scott, thus adding a layer of entertainment to it.
Interactive Brand Experiences
Who likes to see those static pop-up ads anymore? Yes, they may be “tailored to your preferences”, and social media usage. It even engages us to a certain extent, but we constantly seek unique experiences from brands.
Brands are actively looking for innovative ways to create rich and interactive experiences that will engage customers. Enter Metaverse.
Your presence and engagement in the Metaverse mean you will not simply be looking at or watching advertisements. You will be experiencing ad campaigns and testing products as you would within an actual physical store.
And yes, for the data-driven brands, Metaverse is a godsend because marketers would be able to get tons of data about customer preferences and engagement based on the products that they interact with.
Non-Fungible Tokens (NFTs) are in
A few weeks ago, when the legendary rapper Eminem suddenly changed his Instagram display picture to that of an eccentric bored-looking ape, some were confused. This confusion turned to shock when people came to know that this artwork was worth $462,000 (nearly 123 Ether).
Indeed, the cryptocurrency industry ties in perfectly with the Metaverse. From crypto paper trading apps to NFTs, crypto has come a long way in establishing itself as a credible digital asset. The cryptocurrency exchange OkCoin is an international marketplace with some of the lowest fees.
So, if you found yourself wondering earlier about how transactions in Metaverse might look, assess the way NFTs work. Non-Fungible Tokens are records of ownership associated with specific digital assets such as painting, artwork, signature, or other similar works.
Many of us know very little about NFTs except that they are all the rage right now. But in the context of Metaverse, NFTs and Blockchain are important currencies for entry. Once you do enter it, Metaverse promises to be a fruitful environment for brands and tech juggernauts who want to experience a new virtual universe.
Also, brands have a distinct advantage if they decide to get into it right now. Since the concept of Metaverse is so new, the cost of running ad campaigns is actually quite low. So, businesses can expect a considerable first-mover advantage.
Evolution of User-Generated Content (UGC)
Brands today struggle with the process, and costs associated with generating enormous volumes of content. Even with all those powerful mechanisms, brands are in constant need of user-generated content which will make them more credible.
User-generated content is, however, known to be the lifeblood of Metaverse. It allows users to create innovative content on the platform and allows them to interact and engage with each other. So brands have to focus on having the right products and selling them effectively.
In this journey, brands can use UGC to guide the users’ buying decisions while they are exploring their respective metaverses.
If you think Metaverse is already ruling hearts, know that it is just getting started. Brands should strive to enter the market as soon as possible so that they can benefit from this new digital boom. Your digital marketing strategies will definitely get impacted, but for the better. You will have more creative freedom, and the ability to leverage innovative strategies on the Metaverse.
Virginia Andrus is an independent Digital Marketing Consultant with 6+ years of marketing experience. Virginia is a chef by heart. In her free time, she is either writing marketing copies for brands and agencies or experimenting with new recipes at her home. Connect with her on Twitter: @andrus_virginia.