HomeWhy Are Brands Investing in the Metaverse?

Why Are Brands Investing in the Metaverse?

Brands are hurrying to establish a presence in the Metaverse. What are the benefits of such a move? Why is is worth the investment?

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Mark
Updated: January 16, 2023

As we’ve mentioned in previous articles, brands, and retailers are the first to make a presence in the Metaverse. These entities anticipate a surge in consumer activity once the technology is fully adopted and operational.

These brands are businesses and businessmen that don’t make decisions lightly. What motivations could these retailers and companies have for investing in the Metaverse? More importantly, what benefits could they reap from such a move? Let’s look at the advantages companies can enjoy from having a solid presence in the Metaverse.

The Multiverse Will Be a Big Market Before You Know It

The first benefit of getting into the Metaverse this early is leverage. The Pew Research Center predicts that about 500 million individuals worldwide will be hooked up to the virtual space by 2040. In other words, the nascent technology will most likely be fully available and functional within the next 18 years.

If you’re an entrepreneur, you should see the immense advantage you can enjoy if you’ve positioned your brand early in the Metaverse. Startup costs will be relatively minimal, especially when it comes to virtual real estate. The prices in this particular market rise and fall the way they do in the real world, driven by the law of supply and demand.

If you’ve waited too long to establish yourself in the Metaverse, your business will hastily scramble to build your presence along with many other latecomers. Because supply and demand dictate prices,  you’ll be paying more for virtual real estate than the early birds settled for.

Nikeland in Roblox

You Can Give Your Customers an Enhanced Brand Experience

The Internet has significantly improved brand experience. Through online chat and other similar communication channels, your target market enjoys more personalized service than before the World Wide Web. On the other hand, the Metaverse gives you the opportunity to go beyond that.

The Metaverse employs both virtual and augmented reality to make a more immersive customer experience possible for all brands. VR lets businesses interact with consumers in the digital world through avatars and virtual shops. These interactions take place in 3D and real time, two attributes that will boost customer awareness and retention.

Through the Metaverse, garnering data on consumer behavior and preferences is made easier. Artificial intelligence can work in the background to collect raw data that analysts can collate when necessary. This information, in turn, can effectively improve marketing and brand awareness campaigns.

The Metaverse Will Decentralize Marketing

Another revolutionary attribute of the Metaverse is decentralization. This is already evident when virtual lot brokers accepted only cryptocurrency as payment for parcels of land in the digital world. There are various merits to this feature in the context of marketing.

First, let’s compare traditional marketing with advertising in the Metaverse. YouTube, Facebook, and Twitter brought improvements to traditional marketing. However, they’re still traditional in the sense that they are platform-based. Platform-based advertising suffers from regulation. In other words, a central body limits how brands and advertisers can plan, create and publish their content in the system.

In Metaverse marketing, marketers can be more creative in their approach. Take Samsung, for example – the South Korean tech giant bought an acre of land in Decentraland and built Samsung 837X.

Since then, Samsung has used the platform to give consumers a virtual tour of their US headquarters and sell digital products like non-fungible tokens (NFTs). Samsung also used the virtual property to launch the S22!

Samsung in the MEtaverse

Metaverse Turns Advertising into a Game

Nothing makes an experience more worthwhile for a consumer than incentives. People are more likely to interact with a brand’s marketing campaign when there’s a promise of a reward at the end. That’s why sales and promotional events like competitions and raffles work so well in traditional advertising. Consumers will jump at any chance to win something free from a brand!

With its roots in online gaming, the Metaverse give marketers the perfect venue to gamify their target market’s experience. Walmart is an excellent example. The retail giant recently launched two experiences on Roblox. Both programs allow their consumers AND Roblox players to win exclusive virtual prizes with which they can customise their avatars.

Another brand worth emulating in the Metaverse is Gucci. Like Walmart, Gucci has a space on the Roblox Metaverse called the “Gucci Garden.”

The Garden gives visitors a unique experience that lets them transform their “mannequins” by visiting the many sections of the property. Each section changes the mannequin in a specific manner, which means users can personalise their appearances by playing around with their visiting sequence.

The Metaverse Lets Brands Earn Money from Digital Products

As mentioned above, Samsung uses its Metaverse commercial property to offer NFTs to their visitors aside from giving virtual tours and organizing digital launches. Any tech-savvy entrepreneur knows that these tokens represent a good source of revenue outside their usual operations.

NFTs are very popular among marketers and content creators nowadays. For a small amount paid in cryptocurrency, you can create and market a unique digital product that can earn you more than 10 times your initial investment. NFTs are basically collectibles that exist only in the digital realm. Like physical collectibles, their rarity enables them to fetch unbelievably high prices!

Aside from NFTs, brands can also create in-game products. The best example, in this case, would be Gucci’s Dionysus purse. Gucci made a virtual version of the Dionysus and sold it as an accessory on Roblox. The bag fetched a price of $4,115 on its first appearance, which is more than $700 than the price tag attached to the real thing!

Conclusion

The Metaverse is poised to become the next big event since the Internet, or so the analysts say. For instance, there are predictions that virtual fashion – purchasing accessories for avatars – may grow to $400 billion in value by 2025!

While the Metaverse is still confined to selling virtual products and NFTs, it is without a doubt that it’s going to offer more experiences that connect with the real world. This is an opportunity that brands and entrepreneurs should not miss. There’s a huge market waiting to be tapped as soon as the technology becomes more available to the consumer.

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