For some businesses, email and online marketing may not suffice to sell digital products. Your users won’t get a memorable experience with standard marketing strategies. Wait, what about metaverse marketing?
Metaverse marketing is a new way to generate significant profits for brands. This market could reach $ 800 billion by 2024. A recent report from The Small Business Blog confirms that Facebook spent $10 billion on metaverse technology. Sony also invested $200 million.
What is metaverse advertising? Why are so many large brands investing in it? This guide will explain what the metaverse is and how you can use it. It also outlines some of the risks involved. Let’s get started!
What is the Metaverse?
A metaverse allows users to interact with the universe in 3D virtual reality. The metaverse is a combination of virtual reality (VR), and Augmented Reality (AR). It offers an immersive experience for users. To access the metaverse, these users must wear VR and AG headsets. Your brand can be accessed online by consumers who can learn more about you and make purchases digitally of your products/services.
The metaverse is a way to bring your business to consumers in a most compelling way, as Covid has made it difficult for them not to go out. Imagine a virtual world in which users can interact, play, and enjoy your products through technology.
Five Metaverse Components You Need to Know.
1. Mixed Reality.
Mixed reality is a combination of VR and AR. Why does the metaverse require both AR and VR? AR and VR are two different characters that complement one another to make the metaverse possible.
VR is a virtual reality. Users must wear special headsets to enter it. Computers create the universe, which can be viewed in different ways, depending on how it is used. VR is based on a predetermined fictional reality. To access VR worlds, users may need gloves or sensors. MindCraft VR and McDonald’s Happy Goggles in Sweden are two examples of VR.
AR, on the other hand, focuses on real-world settings and requires only a smartphone. AR improves the way users interact with the physical world. AG is a different kind of VR that creates a completely fictional world. Instead, it allows you to fully immerse yourself in the real world and amplifies what you see. Examples of AG include Snapchat lenses, Pokemon Go, and the IKEA Studio App.
The metaverse’s VR/AR collaboration is a mix of AR and VR. This mixed reality enriches the physical world while captivating users in a virtual universe. AG ensures that real-life elements don’t disappear in the metaverse. Virtual reality (VR) allows users to enter a virtual reality.
2. Artificial Intelligence.
It’s not surprising that artificial intelligence (AI), is needed to understand the workings of VR and AR in the metaverse. This component also covers machine learning techniques. AI is essential for the metaverse. AI algorithms combined with machine learning enable systems to analyze how users interact in the metaverse and to use that data to improve the user experience.
AI is usually applied to non-playable characters in the metaverse. These characters are system-designed and can be used by users. AI allows NPCs to have more real-life conversations with users and interact with them more humanely. This is thanks to historical data. This makes the metaverse seem more real and captivating.
3. Internet of Things.
The Internet of Things (IoT), if you have ever wondered how the metaverse receives correspondence from the physical world, is the answer. IoT is the main reason that users can access the metaverse via technology devices.
This component also collects data in the real world and feeds it into the metaverse, creating a more real experience. IoT allows elements in the metaverse, such as weather conditions in the physical universe to be affected by it.
AI and IoT can work together. AI can use IoT data to fine-tune the metaverse and create real-time simulations or interactions.
4. 3D Construction.
Without this component, how can a 3D virtual universe exist? Most likely, you’ve seen 3D construction demonstrations before. Consider virtual home tours that real estate agents used when Covid was first released. These virtual tours are just one example of hundreds of 3D construction applications.
The metaverse feels and looks like the real world through 3D construction. Every aspect of the metaverse can be represented in 3D models. This includes buildings, objects, people, and real-life places. These models are then built by experts. Computers process the data to create replicas. These replicas are used by experts to create elements of the metaverse.
5. Cryptocurrency, Blockchain.
Your products must be purchased by users. They also need to be able to purchase your services using a payment method. This is where blockchain and cryptocurrency come into play.
Certain companies offer users unique cryptocurrencies. Decentraland, a metaverse, is one example. As non-fungible tokens, players can purchase land parameters. To do this, they will use the metaverse’s cryptocurrency. How can users feel confident in the fact that they own what they purchase? Blockchain technology gives users ownership over what they purchase in the metaverse. Below is an image that shows the achievements of Decentraland’s cryptocurrency MANA over the past five years.
Five Best Practices in Meta-Marketing
1. Create Your Own Branded NFT
A branded NFT is a great way to increase brand awareness. Statista confirms that there is a lot of interest among audiences across all age groups in NFTs by brands such as Nike, Adidas, and Taco Bell. This speaks volumes about how important NFTs can be for world-class brands.
To create NFTs, you don’t need to be a technical expert. You can find a lot of information online about how to create an NFT. This tactic allows your users to take something from your brand and metaverse. It’s a smart idea to create unique NFTs that you can pair with product launches, as Nike did with the “CryptoKicks”.
Before you create an NFT, consider who your audience might find valuable.
2. Metaverse Marketing: Claim Ownership of Virtual Real Estate
Virtual real estate is the equivalent of physical real estate, as it is 2022. You can rent your real estate out to other businesses or hold events. If this is in line with your offerings, and your consumer needs, you can also sell this real estate.
Axie Infinity is a virtual gaming world that proves just how lucrative digital reality can be in 2022. Nine parcels of land were sold by the AxieInfinity team for an astonishing $2.3 Million. You heard it right.
Your business can make very little money from virtual real property. This all depends on the services you offer and how your metaverse functions.
3. Gamify, Gamify, Gamify! .
To create a metaverse, you don’t need to be a game company. Gamification is a must for your user experience. You must motivate users to engage in your metaverse. Gamification is an excellent way to do this.
Incentivize users to win points by creating a series of mini-games. You could reward them with virtual products, building material, or unlocking reward levels that promise a grand prize at their highest tier.
4. Avatars can be made from digital products.
As gamification for the metaverse, we just talked about digital products being awarded to avatars. You can also sell unique products. VogueBusiness has confirmed that more than 90% of users want to personalize their avatars.
This strategy has been used by many well-known brands and they have made a lot of money. Gucci sold a virtual bag on Roblox for $4115 and Digital Couture sold a dress (also digitally) for $9500.
Although your brand may not be as loved as Digital Couture or Gucci, these impressive figures show how willing customers are to spend money on digital products.
5. Native advertising is important.
Although you should not include any aggressive or intrusive advertising in your metaverses, it is a good idea to incorporate it. This can be done through billboards and banners as well as using your logos on buildings. You can be creative with the way you advertise your brand organically. This will not only keep your brand visible to your users but also personalize your metaverse.
5 Metaverse Examples
1. Nike.
We have mentioned Nike’s metaverse marketing strategies a few times because we think it’s important to mention them. Nike created their metaverse-NikeLand via Roblox. This metaverse allowed Nike supporters all over the globe to create avatars and play sports games to earn rewards.
Nike purchased RTFKT Studios, an online collectibles company, to strengthen their position in the metaverse. Nike was able to offer virtual sneakers as digital products through RTFKT. These sneakers are NFTs and can only be found in the digital realm. This global sports brand saw a rise in profits of $12.2 million.
We also talked about CryptoKicks. These digital sneakers were used by Nike as NFTs. Every time a customer bought a pair from their product launch, they also received one of these NFTs.
2. Coca-Cola.
Coca-Cola teamed up with Tafi to create a series of virtual products that were their first NFTs. To celebrate International Friendship Day, the company created a series of virtual products and sold them on the Decentraland platform’s “Friendship Box”. Coca-Cola’s “Friendship Box” included a Friendship Card and a Bubble Jacket. It also included a sound visualizer.
Decentraland users loved it, and the winning bid was $575,883. This is a great example of metaverse marketing, even though Coca-Cola does not have a brand metaverse.
3. Facebook Metaverse
Mark Zuckerberg was inspired by the commotion in the metaverse and NFTs to transform Facebook into a “meta-company”. Facebook would be a virtual world that allows users to interact, socialize, learn, and work online. Facebook will now be called Meta to show its dedication.
The Facebook Metaverse includes virtual workrooms and virtual reality-oriented games for digital professionals as well as Spark, a platform that allows digital creatives to share their ideas. A pair of smart glasses and a headset have been launched by Facebook (partnered with RayBans).
4. Balenciaga.
Fortnite and Balenciaga Who would have thought? The luxurious fashion brand released four Fortnite skins, an accessory pickaxe, accessories, and a backpack. A Balaceiaga Hub was also created in Fortnite, which includes a virtual shop and a virtual store. This digital store allowed gamers to buy cosmetics, while Balenciaga also offered physical clothing.
Balenciaga, just like Nike, offers NFTs as well as physical products. This is what’s interesting. They did this for more than just their products. Balenciaga displayed an animated billboard in Fortnite and had the billboard placed in Tokyo, New York, and London.
5. Decentralization
Decentraland is a browser-based 3D platform that uses the Ethereum blockchain. You can purchase NFTs, land, and digital products such as accessories, clothing, and shoes. Decentraland offers mini-games to keep its users entertained and make money. These users can sell and buy digital property as well as virtual products.
It gets better. The first-ever metaverse wedding was held in Decentraland. Even though this platform is still very young, users around the world waited eagerly to see a metaverse marriage. They were right, and they are not to blame! Brands like Nike and Balenciaga are well-known for their grip on the metaverse. But Decentraland is miles ahead of them!
5 Common Metaverse Challenges.
1. Security and personal data
Many internet users are skeptical about brands such as Facebook’s data security and protection. This concern is valid for the metaverse. People must be able to identify their virtual and physical personal information to avoid being submerged in the metaverse. There is reason to be concerned as the metaverse expands faster than its security infrastructure.
You must create reliable safety procedures data if your brand is to enter the metaverse. Particularly since jeopardizing the data of your customers can damage brand reputation. Businesses can do only so much. The current infrastructure of the metaverse determines how data can be secured.
2. Digital Payments and Crypto.
While crypto is a well-known technology, many people aren’t comfortable with digital currencies. Users can’t see what they have, which is the most important issue. A lot of people are concerned about crypto’s security and authenticity.
Brands need to ensure that any crypto they trade in is authentic and safe in the metaverse. This may not be easy for everyone, but it will ensure that your users’ funds are safe. This step will give you confidence in your offerings in the metaverse.
3. The Law of the Metaverse
The metaverse is virtual so it is impossible to integrate physical laws and jurisdictions. The metaverse is home to millions of people. Cybercrime, cyberbullying, and other similar crimes are all common in the metaverse. This concept exposes a danger to its users.
Establish ground rules for your community. Reward positive actions, and make it possible to report illegal or dangerous behavior.
4. Insufficient Physical Time
Gambling is a good example of what we mean. Gambling can cause people to lose track of their physical time. This can be a positive thing for businesses as people might spend more time in the metaverse. However, it is not ideal for ethical reasons.
Your users should be engaged in the metaverse, and buy your products. It’s important to take care of your users.
5. Secure Ownership
Blockchain attempts to create ownership of digital products and land in the metaverse. However, this may not be sufficient in the long term. This is something that businesses that invest in metaverse marketing should be aware of. To verify digital possession ownership, you should keep up with the evolution of the metaverse.
Conclusion.
Metaverse marketing allows you to create an immersive experience that will appeal to potential customers. Digital products and NFTs can be sold by businesses at exorbitant rates while increasing brand awareness. Metaverse marketing presents many challenges. Before you create a metaverse, think about these things for your brand.
Multi-millionaire brands such as Nike, Balenciaga, and Facebook have all jumped aboard the metaverse marketing train. Because of the huge opportunity for profit in metaverse marketing, this is why. Brands can also immerse customers in their offerings.
