Blink, and you miss another important update in the dynamic digital marketing landscape. The world as we know it is adapting to newer ways of existing and thriving in this landscape. In the middle of this whirlwind of change are technological advancements changing the way we live, work, and entertain ourselves.
Last year, the digital sphere saw an interesting curveball. Facebook rebranded itself as Meta, in an attempt to encapsulate its future vision of growing into a world within itself, where people could do more than just share pictures and connect. We’re talking about the future of the internet.
The metaverse already exists!
With this rebranding, brands across the world have sat up and taken notice of the opportunities available in this futuristic landscape. Different opinions and stances are being discussed after the rebranding. But this does not mean that the metaverse does not already exist in fragments across the vast internet. The term might have caught your attention only recently, but it has a long history. The intersection of AR, VR, and digital assets like cryptocurrency by itself becomes the metaverse. And this exists in the form of gaming avenues like Roblox and Epic Games, where people are meeting to play games, interact and leave a digital footprint by creating a version of themselves on the internet. It has existed for a long time and will continue to well into the next decade. The challenge lies in its fragmentation.
For now, the metaverse is a largely unbuilt and unexplored space. It is what we can call a “vision of a future” for conglomerates like Epic Games that are investing as much as $1 billion in this venture. It only makes sense when the projected economic impact of the metaverse is slated at $800 billion, with over 1/8th of the world predicted to be actively participating in the concept by 2030.
For now, the metaverse is a largely unbuilt and unexplored space. It is what we can call a “vision of a future” for conglomerates like Epic Games that are investing as much as $1 billion in this venture. It only makes sense when the projected economic impact of the metaverse is slated at $800 billion, with over 1/8th of the world predicted to be actively participating in the concept by 2030.
Brands are starting to make their mark in the metaverse
With over 200 million active users monthly, Roblox is a free multiplayer online platform that allows users to develop their own worlds and visit other worlds. It provides you with a virtual existence, with real-time interactions and games. This proved to be a great opportunity for Nike and Nikeland was created.
An immersive sports experience, Nikeland is a part of the world within Roblox. You can play games within this world and compete with others in sporting events like swimming or athletics. Roblox also partnered with Gucci to create a “Gucci Garden” for their 200th anniversary.
Nike’s competitor Adidas also created a virtual world in the Sandbox metaverse. They called it the “adiVerse” and have collaborated with many artists to create NFTs, all of which sold out almost instantly, at a whopping $22 million. Vans, another competitor in the same sector, built a virtual skate park for users to access, and it has already seen more than 48 million visitors.
Brands have gotten involved in the metaverse through digital art on the blockchain. Coca-Cola has about 4000 digital collectibles in the virtual space, with special nods to celebrations like “Friendship Day”. Their main vision was to connect with their audience virtually, through days that have meaning to them. You can purchase digital collectibles on the open blockchain and be the owner of a Coca-Cola original. Luxury high-end brands like Dolce & Gabbana too, are making their mark in the NFT space with a virtual collection titled “Collezione Genesi”, selling in auctions for as high as $5.65 million.
In India, companies like Tanishq recently launched their bridal jewellery collection, called the “Romance of Polki” on the metaverse. Virtually, potential customers could experience the collection in 3D form and experience them up close, in great detail.
Can the metaverse shift its current marketing strategies?
The influence of e-commerce on retail companies has been immense. In fact, it has changed the way we purchase and use things we both want and need. The metaverse’s future might look somewhat similar to this, but brands need to be aware of one thing: Virtual exists separately from the real world. Yes, your virtual avatar has access to the best shoes and experiences, but this does not translate to real-life wants and needs. You will still need shoes to walk in, theatres to watch movies in and art that you hang on your walls at home. So, in a nutshell, the metaverse cannot completely replace current marketing strategies. Rather, it can help complement it, and strengthen the bond every brand has with its audience.
To add on, there is still a tepid response from the majority of consumers. Most don’t understand how the metaverse works, and many still, do not want to engage. There is a lack of coherence in the core of its very existence. Where does one “log on” to the metaverse? Does one have any use for it if they are not interested in gaming or virtual reality experiences? Tech giants like Meta, Google and Microsoft are investing heavily in virtual spaces, with the hopes of changing this thought process and shifting the way people use the internet forever.
With the pandemic, everything shifted to online media. People spent most of their time interacting with others, worldwide, through social media platforms and in many cases, virtual reality platforms. One example is the way Tata Tea leveraged the metaverse, with a “Yugverse” for Holi. People could celebrate Holi virtually through their avatars, meet and interact with people, and even enjoy performances in that space. But the world is slowly getting back up on its feet, and offline experiences are more preferred now than ever. The joy of being able to step outdoors becomes more exciting than being in front of a computer and living life through pixels. The pandemic brought sharp focus to what we really desire at the core of it all: Social interaction.
So, while businesses have hopped onto the bandwagon of the metaverse by purchasing digital plots, and creating digital goods and experiences, people still prefer offline experiences. There are fundamental technological roadblocks before the metaverse can exist as a fully functional space. Moreover, there are barriers that need to be overcome from the customer’s perspective as well. New updates in the virtual world may attract customers’ curiosity initially, but the main challenge lies in making them stay. There needs to be ease of access to the required technology. Brands need to make sure that varied customer interests are satisfied in the space. These challenges need to be overcome before the “meta”morphosis can be complete.
The metaverse could be the future, but maybe, the future isn’t necessarily here yet.
From trunk calls to the metaverse: what does the future look like?
Without really paying attention, the human race has slowly gotten used to the advancements in the way we engage in non-human interactions. What started out as writing letters slowly changed to trunk calls. It went on to evolve further into phone calls and subsequently, video calls and zoom meetings. Social media became essential to keep in touch. So, further down the road, the metaverse could be the way we engage with each other, and virtual reality could be the next step. But throughout this journey, human beings have not let go of face-to-face interactions and real-life experiences.
Human beings are social creatures. We will always require offline interaction; may it be with each other or with brands. So, while the metaverse could take non-human interactions to the next level, brands cannot abandon other modes of interaction with their target audience. In my opinion, they can sit back, observe and then try to fit their marketing objectives into the space, instead of diving headfirst into unexplored territory. The main takeaway for brands is that the new virtual world is all set to exist in our lives but in tandem with what we already know and are familiar with.
The metaverse is slowly capturing our attention, and is here to stay, but maybe not in the way one might expect. Our hybrid reality will continue well into the future.
Views expressed are personal.
