Opinion
Are you ready for the
Metaverse? Jonathan looks at how brands can adopt the Metaverse into their strategic planning moving forward, being at the forefront of change and shaping it through experience.
T
he Metaverse, or Web 3.0, is coming (or is already here dependent on who you listen to). But what is it? And why should brands be paying attention? Web 1.0 (1990-2005) was essentially an online encyclopaedia limited to little more than reading and writing functionality. Web 2.0 (2005-2020) added dynamism whereby users could interact seamlessly with content on a completely different scale, giving rise to a world dominated by video, gaming and social media content. Web 3.0 however will function much more as a new digital economy, allowing users and brands to own currency, content, NFTs, online real estate, you name it, via blockchain. The concern is however, as much as this appears a democratic approach to building the Metaverse, the reality is that at least initially it will be formed by major corporations with the budgets to match their ambitions. Facebook’s ownership structure has recently rebranded to Meta, Disney has outlined that the Metaverse lies at the heart of its future investment strategy, and Epic Games has announced a $1 billion fund to build its own vision of the Metaverse. The good news is that, to make their visions of the future successful, they will need to create something that benefits and engages users, which brands can then capitalise on. Perhaps one of the best early examples of Web 3.0 in action is Decentraland, a popular cryptopowered virtual world which is already creating waves through the sale of virtual real estate. One investment group recently acquired a plot for $2.43m within what is becoming the “fashion district” within Decentraland. The plan is to rent out this real estate to brands looking to house their virtual outlets for users to engage with and purchase digital (and eventually physical) items how long until toy retail follows? Other purchases have also prioritised virtual venues which can be used to host music concerts with the potential to engage more fans than could ever hope to be hosted in a physical space; Justin Bieber being
the latest in a long line of world famous artists to take to the Metaverse for live performances. These will arguably be some of the most practical applications within the Metaverse for marketers moving forward, but what should you being doing right now your brands? Outside of the burgeoning field of Crypto based digital worlds, gaming has been and will continue to be the gateway to the Metaverse for the majority of both users and advertisers. In practice however, early attempts at Metaverse advertising amount to little more than ingame advertising. Gaming platforms should be considered as a fundamental part of any effective advertising strategy alongside the likes of YouTube, social media and linear TV. After all there are over 2b active gamers worldwide, so placing seamless advertising (such as in game billboards) can enhance brand awareness. This is particularly important for children’s brands given that according to TGI data, 40% of Gen Z play mobile games, rising to 64% for Gen Alpha (based on Giraffe Insights Little Voices Survey, Children aged 6-12). The key to benefitting short term within the Metaverse is understanding how it can best meet your objectives, whilst not getting caught up in the hype unnecessarily and investing over the odds on something that does not deliver. Take these two examples. Nikeland, built in Roblox, offers players the opportunity to interact with gaming content designed specifically for the type and demographic of player Nike wants to engage with, whilst offering opportunities to build brand awareness and encourage physical purchase by styling your avatar with Nike products. On the other hand, John Lewis recently partnered with ITV to build an online shop within Fortnite. This shop was located in a purpose-built area of Fortnite to replicate the I’m a Celebrity… set. Whilst Fortnite is of course a global phenomenon with broad appeal to all age groups (and certainly skews older than Roblox), it still remains a stronghold for youth audiences.
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Jonathan Chambers Director of AV Investment, Generation Media. Tel: 0207 307 7906 Jonathan.Chambers@generationmedia.co.uk Although John Lewis and ITV were surely using it as a platform to appeal to a younger demographic, this messaging was likely largely missed by their core audiences. The budgets required to build areas such as Nikeland are beyond most toy brands, but there are plenty of cost-efficient ways to enter the Metaverse. Do remember that, for now at least, these activations will remain little more than branded areas within pre-existing games. The future of the Metaverse will be much more enriching for brands as big businesses increase their investment in the infrastructure required to build their visions. Instead of being restricted to the sandbox experiences of the present, imagine instead children entering a virtual world which is procedurally generated based on their preferences and previous interactions. These worlds will not only be populated by fellow users, but also unique AI companions built on how the child chooses to interact with this world. Imagine then, that improvements in technology make 3D printing a mass consumer possibility, meaning these unique characters can be manufactured at home, thus changing the licensing and distribution market forever. Now this may seem a little farfetched to some (or not farfetched enough for others), but those adopting the Metaverse into their strategic planning moving forward will not only be at the forefront of these changes, but also able to shape them through experimentation with what resonates best with audiences. To find out how we can make in game advertising and the Metaverse work for your brand, now and tomorrow, get in touch today (or come find us in the Metaverse…).
