Even if you don’t know anything about the Metaverse, odds are that you have heard about it. Everyone is talking about the Metaverse and its potential, but what does this really mean? And how can you benefit from it?
With the recent news announced by Mark Zuckerberg in October 2021 stating that Facebook is switching its name to Meta and venturing towards the Metaverse, this event has sparked major interest in the technology and the infinite possibilities the space offers. Meta is the leading social media platform with products like Facebook, Instagram, and WhatsApp all of which operate on a revenue model that is based on advertisements and digital marketing.
This raises an important question, what might be some marketing opportunities that the Metaverse has to offer and why is it so important for Meta to be the first mover and leader in the space?
Understanding the Metaverse
To start it is mandatory to understand what is the Metaverse at its core and how are different companies exploring it. Metaverse is a virtual world that can be accessed through any device (i.e. Mobile Phone, Computer, or specific Virtual Reality headsets like Oculus a company that was acquired by Facebook in March 2014 for $2 billion).
There are different existing Metaverses operating on the blockchain such as The Sandbox and Decentraland. Some companies opt to build directly on these Metaverses while others can even build their own. By entering the Metaverse. The companies can explore different possibilities from creating a headquarters where all the customers can visit and engage in various activities (e.g. shopping, networking, gaming) to something as simple as launching treasure hunts and rewarding people that engage in this activity further spreading their brand awareness.
When it comes to the Metaverse your imagination is your limitation and we are seeing consistent innovations from different companies, recently Adidas decided to enter the Metaverse by building on The Sandbox which is one of the biggest Metaverses on the Ethereum blockchain. This is a step towards adopting new technology and exploring fresh horizons.
Marketing in the Metaverse: What are the opportunities?
Across all companies in the world, marketing is the most important element of any business. Since the inception of the internet and the World Wide Web, we have seen that companies that failed to pivot and establish a digital footprint struggled to stay in business. The reason is that they missed a big opportunity to capture market share through online marketing, however, other companies that explored this technology like Amazon strived and became one of the biggest companies in the world dominating the eCommerce & IT Services industry.
With the inception of new technologies, there is no doubt that some companies will flourish while others will be left behind. Web3 and specifically the Metaverse holds a lot of possibilities that can be explored, a number of companies are trying to find their way and build with very few succeeding to create something impactful like Addidas and Nike.
The Metaverse offers some unique marketing opportunities such as
Branded NFTs & Loyalty Programs
By creating NFTs that are close to the brand and offering loyal customers opportunities to purchase these NFTs which hold unique utilities, brands can create an ecosystem around these NFTs and integrate them into the Metaverse allowing the end-users to explore new experiences.
Example – Addidas “Into the Metaverse” NFTs allow holders to project this collectible into the Metaverse and act as a digital painting that reflects brand loyalty. Moreover, these NFTs grant holders access to exclusive Adidas merchandise that is distributed free of cost like the Yellow Tracksuit & Shoe collection.
A unique way of sharing an experience with the customers can be through events that are hosted by the brands on the Metaverse. These can range from small treasure hunts to major concerts promoting the brand and allowing customers to experience something unique.
Example – Nike launched on Roblox their Nikeland Metaverse allowing people to enter and experience different activities like games, events, treasure hunts, and more. This is a use-case that is available for everyone giving the brand a wider global reach.
Promotions & Advertising
By building on existing Metaverses like The Sandbox & Decentraland, brands can create their own buildings, banners, billboards, and more to showcase different advertisements and offers to the existing user base of said Metaverses. This is a use case that a lot of small businesses are exploring by buying virtual land on The Sandbox & Decentraland and advertising their offerings.
Example – Snoop Dogg embedded his brand on The Sandbox by claiming multiple virtual lands and created Snoopverse a place where he can promote his brand and gather people to play virtual concerts.
Innovations bring forward risks & opportunities, you need to explore the market and understand that it’s never too early or too late to learn and experience new things. In a previous article where we talk about brand activation and companies that are on Web2 venturing into Web3, we highlight a key point which is that a company can explore new horizons without impacting their existing business model and ways of working. This eliminates the risks and focuses on the upside gain that can be generated for any business operating globally.