Ever wondered about what the internet in 2030 would be like?

From Facebook rebranding to 'Meta' and the rise in demand for NFTs, virtual events, and cryptocurrency, the metaverse is one of the trending topics on the internet in 2022. 

Did you know that the keyword “metaverse” had over 677k results on Google, more than 60k posts on Instagram, and 500+ tweets per hour on Twitter? That's right. The metaverse buzz has already taken the world by storm.
 

Technology is advancing and so does the integration of tech into business and marketing. Multi-billion dollar brands have already stepped up their game and focused on establishing their landmark in the metaverse. If you’re wondering what this metaverse is and why there’s so much hype around it, this blog is for you.

In this blog post, you will learn more about the metaverse and how you can pivot your marketing in the metaverse. 

Table of content 

1. What is The Metaverse? 
2. Key Characteristics of the Metaverse 
3. How does the Metaverse work? 
4. What can you do in the Metaverse? 
5. Why is Metaverse Important for Marketers? 
6. What is the impact of marketing in the Metaverse? 
7. Examples of how major brands are Marketing in the Metaverse
8. How to Plan Marketing in the Metaverse? 
9. FAQ  

What is The Metaverse? 

The term ‘Metaverse’ was coined by the American writer, Neal Stephenson in his sci-fi novel, Snow Crash (1992). The term ‘metaverse’ refers to ‘beyond’ (Meta) ‘Universe’ (Verse). The term meaning ‘beyond the universe’ represents the transition of the internet to a more wide, open space beyond imagination. Movies such as Ready Player One and The Matrix are representative of this actual concept of the metaverse.  

Based on the concepts of presence, immersion, and interactivity, the metaverse is a virtual online space or platform. A space where users create digital avatars to work, shop, communicate and do more. 

Contrary to the present version of the internet, we as users can experience an immersive social interaction. Much like a gaming experience but you can complete your real-life daily tasks on a virtual platform. To achieve this, metaverse utilizes a combination of virtual reality, augmented reality, and mixed reality technologies.  

For instance, imagine starting your day as your digital avatar with a virtual meeting in a virtual workroom. Later, you spend some time investing in digital assets such as digital art, and digital real estate in cryptocurrency. Finally, attend a virtual festival or play a virtual game to end the day. A sci-fi story of pure imagination can now be a reality within the metaverse. 

Key Characteristics of the Metaverse 

To understand the concept of the metaverse, Matthew Ball, former Amazon Director has listed a few key characteristics. Let's consider the characteristics in relation to Nike's metaverse NikeLand as an example. 

Nike's Nikeland is an online interactive game which allows users to customize their digital avatars, befriend other players and play games. But what makes Nikeland unique as a metaverse?

1. Persistent: Just like a brand website, Nikeland will always be accessible 24/7. However, a website may need maintenance while the metaverse will continue to remain active.   

2. Synchronous: Within the metaverse, users can interact in real-time. Therefore, users can be in sync and stay engaged irrespective of geographic barriers. 

3. User-generated content: Since Nike's metaverse is similar to a video game, users can create their own content. such as 3D content as avatars, buildings, stores..etc. 

4. Economy: Utility tokens such as non-fungible tokens (NFT) and cryptocurrency are accepted as part of the economy. This means that NFT tokens are introduced as a medium of presenting ownership of digital goods.

5. Interoperability: One of the cool features of the metaverse is that users can explore different metaverses with a single avatar. So if you purchased Nike digital accessories and apparel, you can access these in another metaverse as well. 

How does the Metaverse work? 

For anyone to be a part of the metaverse, all you need is your own digital avatar, access to a virtual platform, and a crypto wallet for digital transactions. 

At present, gaming platforms such as Roblox, Fortnite, and Minecraft are at the forefront of the metaverse. And Virtual reality devices such as Meta’s Oculus Quest 2, Sony Playstation VR, Valve Index allow access to the immersive virtual experience. 

Virtual reality (VR), Augmented Reality (AR), and Mixed Reality (MR) are the foundational technologies in the metaverse. As such, it is also expected that the Global AR, VR, and MR Market will reach $300 Billion by 2024. 

Read more about VR, AR, MR technologies.

What can you do in the Metaverse? 

In the metaverse, users are exposed to experience daily activities in a virtual mode and enjoy digital goods. From investment in virtual real estate to hosting meetings in virtual work space, metaverse expands to limitless possibilities to what users can do. 

For example, we can :

• Create personal digital avatars
• Gaming using VR
• Connect digital assets to our social profile
• Online shopping of digital goods
• Work within a virtual space
• Own non-fungible tokens
• Digital currency transactions
• Create digital assets for the digital marketplace 
• Buy/sell digital assets
• Attend virtual events and more. 

Mark Zuckerberg plays a significant role in the growth of the metaverse. He refers to the metaverse as the internet + where users are the center of everything and the metaverse becoming a part of our daily routine.

This raises the question of the impact of the metaverse in our daily lifestyle. With the metaverse, will we adapt to a new era of socialization and totally end our social behaviour?

If you're curious, read more about whether metaverse will end our ordinary social life here.

Why is the Metaverse Important for Marketers? 

Web 3.0 is here and Marketers need to foresee emerging trends, the industry direction and transition with it to succeed. And metaverse is a hot topic discussed in marketing by top marketers such as  Gary Vee, Eric Siu, etc. Further, Forbes also publishes weekly articles on the metaverse written by Cathy Hackl. 
 

According to Hackl,

“Brands will need to rethink their narratives in three dimensions and that marketers will need to embrace emerging technology at a faster speed. In the metaverse, everyone is a world builder, including brands.”

Hence, marketers must embrace emerging technologies and metaverse marketing strategies as we step into web 3.0. 
 

What is the impact of Marketing in the Metaverse? 

Since marketing, branding, and advertising are at an initial stage, brands who take on experimenting in the metaverse can reap benefits early. And it is all about creativity, and thinking out of the box to reach a young audience willing to convert, engage and return. 

01. Promote brand presence

One of the key impacts of marketing in the virtual space is the boost of brand visibility. Branding in the metaverse or meta branding can promote brand presence by creating rich, interactive, immersive content. Usual advertising will soon be less impactful. 

According to Forbes, Vans virtual skatepark on Roblox was able to build brand awareness with more than a 48million visitors since it launched.  That is why, virtual message boards, billboards, virtual fashion, NFTs..etc. are few marketing trends that receive peak interest from the young audience.   
 

02. Create a real-time, immersive experience

With the use of virtual reality, B2B marketing could be advanced to create immersive, real-time experiences. For example, the development of virtual B2B Marketing virtual platforms such as virtual reality real estate tours, and virtual reality manufacturing factory tours can strengthen the brand transparency and authority. 

03. Increase more engagement

In terms of B2C Marketing in the metaverse, more engagement could be experienced. Since virtual gaming platforms such as Epic Games’ Fortnite, Roblox generally has an active, engaging young generation, brands targeting to reach Gen Z and Millennials can benefit from interactive engagement. 
 

04. Expand the reach

Metaverse influencer marketing with virtual influencers is also becoming mainstream to reach larger audiences. At the same time, these virtual influencers can also bring more traffic, and brand visibility to your brand.  For example, Lil Miquela,  Rozy Oh, Shudu are a few top virtual influencers. 

Examples of how major brands are Marketing in the Metaverse

NFT

• In 2021, Coca Cola's first NFT collection launched on Friendship Day gained over $575,000 within 72 hours.

• Addidas launched a collaborative NFT campaign named ‘Into the Metaverse’ with Bored Ape Yacht Club,  NFT Campaign, PUNKS Comic and gmoney to sell digital wearables as NFTs.

• Nike collabed with one of the top NFT designers, RTFKT to launch ‘Nike Dunk Genesis Cryptokkicks’. A limited collection of 20,000 virtual NFT sneakers with rare skin which changes with digital vials. One of the rarest Cryptokicks have been sold for $449,000 (150 ether)

• Pringles launched CryptoCrisp, limited edition of Pringles digital flavor as NFT of bids skyrocketing from $2 per can of CryptoCrisp to $600.  

Video Games

• Nike partnership with Roblox to create the immersive Nike metaverse ‘Nikeland 'for its users to play games, interact and shop.

• Louis Vuitton's ‘Louis The Game’ includes user quests, the unveiling of the legacy of the fashion story and NFT art.

• Balenciaga introduced a video game for the fall collection.

Virtual Exhibitions

• Gucci partnered with Roblox to create a unique and exceptional virtual garden exhibition, ‘Gucci Garden’.

Virtual Stores  

• Balenciaga Virtual Store within Fortnite for users to purchase Balenciaga merchandise.

• Forever 21 metaverse allows users to create their own Forever 21 store and run them. Moreover, the latest physical products are also available as digital goods.

Virtual Theme Parks

• Vans x Roblox Theme park, 'Vans World' to shop for Vans products and practice skateboarding.

Digital Goods

• Gucci Dionysus bag which is a digital only asset in Roblox (not an NFT) was sold for $4,115

Virtual Events

• Zed Run by Stella Artois and Virtually Human Studio is a digital racing platform to experience 3D horse races, breed racing horses, create unique breeds and choose horse skins.

• Travis Scott performed to a live audience of 12 million viewers on Fortnite.

How to Plan Marketing in the Metaverse? 

Now that you have a basic understanding of the Metaverse, plan your Metaverse Marketing strategies for your brand. 

1. Awareness of metaverse platforms

To initiate marketing in the metaverse, brands need to be identify the ideal target audience and the virtual platforms which is convenient and reaches the target audience.   So, brands need to explore, the current metaverses in platforms such as Roblox, Fortnite, Decentraland, and SandBox. Through this, brands can identify the platform that is suitable and effective in marketing to the right audience. 

2. Connect with communities

The key to metaverse is research and connectivity. Discord and Twitter are ideal to be on track with the latest developments of the metaverse, NFT, web 3.0, and so on. 

Podcasts and Newsletters are also great for gaining knowledge. For example, Podcasts such as Welcome to the Metaverse, Marketing in the Metaverse, Web3 Breakdowns shares insight on the latest trends and how-tos.  Some of the newsletters to subscribe to are Time: Into the Metaverse, Marketing Brew, The immersive wire, and Inside XR. 
 

3. Go virtual 

Metaverse is limitless in offering opportunities to advertise, building a community, and raising brand reputation. Plan a long-term strategy with actionable goals to create your brand virtual metaverse. 

Roblox, AltSpace VR, or Facebook Horizon are ideal to host or attend an event in VR.

Consider hiring a Marketing Technology company, or a metaverse marketing agency. Let them help you build a metaverse for your brand or advertise in the metaverse. 

For example, virtual billboards, virtual events, virtual stores, virtual fashion, and product placement in VR games are some of the most popular tactics in metaverse marketing. Also, create an immersive experience that is parallel to the real-life services your brand offers.   
 

4. Create Digital Collectibles

Digital tokens such as NFTs are perfect for building a strong brand in the metaverse. In the first half of 2021, NFT reached $2.5B in sales. Initiating limited edition digital goods are perfect to evoke Fear of Missing Out (FOMO) which compels users to buy in an instant. They’re also an excellent source of generating more revenue for a brand. 
 

Coca-Cola's auction of its first NFT gaining over $575,000 and the  are a few examples of the dominance of Digital collectibles. 

The Future of the Metaverse

It is certain that the metaverse will be a revolution for the marketing, tech, entertainment, and business industries. According to Bloomberg predictions, the metaverse will be worth $800 billion by 2024. 

Not only that, NVIDIA is also developing metaverse-ready assets known as Omniverse. Further, from Disney's steps to create a metaverse theme park, Apple's initiation in creating a Head-Mounted System (HMD) virtual meetings apps to Microsoft's development of metaverse applications, Metaverse is becoming recurrent and more prominent in the future. 

So stay tuned!

FAQ

What is Web 3.0, Blockchain Technology, NFT?

Web 3.0 is also known as the Decentralized Web, is home to distributed ledger technology apps and services. The next generation of the internet, where the users control their online content, digital assets, and online identity. 

A blockchain is a form of Distributed Ledger Technology that is decentralized and utilized for storing a digital ledger of transactions in encrypted form. 

NFTs or also known as non-fungible tokens are digital assets with unique properties and value. Since they are unique tokens, they are not interchangeable. These are representations of user ownership of digital assets in the metaverse. 

What is the Facebook Metaverse?

One of the frequent questions is whether Facebook owns the metaverse. The answer to that is ‘no’ but they are one of the companies that aim to shape the metaverse. 

One of the frequent questions is whether Facebook owns the metaverse. The answer to that is ‘no’ but they are one of the companies that aim to shape the metaverse. 

Meta introduced Horizon Worlds- a digital world where people can play, explore, interact and communicate. Meta also has developed a VR device  Oculus Quest 2. They are also in the progress of developing sensory immersion devices. 

What is the Sandbox Metaverse?

Building your own world or creating an online game is great but what if you can build & monetize it by allowing other players to play? That’s right.

 Sandbox is that virtual space where users can buy/ sell land and assets. NFTs also play a role because most of the digital space is used to create NFT related stores, art galleries, etc.

Decentraland, Axie Infinity are some of the virtual reality real estate platforms for users to buy/ sell, monetize.