The Metaverse - An Altered State of Digital Marketing
In 2021, Facebook rebranded to ‘Meta’. Mark Zuckerberg stated that he intended to create a metaverse that would essentially become ‘the new internet’. Along with his statement, he announced that the metaverse would be his new focus moving forward.
In the digital marketing world it was then, only natural for us to begin speculating how marketing would look like in this new virtual world.
Even though the notion of a metaverse may still seem bizarre, more and more brands are identifying the possibilities that the metaverse presents. This being the opportunity to connect with audiences in ways that were never before possible, and could potentially offer exciting new and notable brand experiences.
According to a recent study conducted by Bloomberg, the worldwide metaverse revenue opportunity could potentially reach $800 billion by 2024, so it is easy to assume that the metaverse is here to stay and the technological possibilities seem endless.
From virtual concerts to memes about Zuckerberg’s avatar and NFTs, it seems the online space is abuzz with the notion of the metaverse. But you may still be wondering what exactly the metaverse is and how it could alter the digital marketing landscape.
In what follows is our attempt at Go Ninja to give you a rundown on what the metaverse is, separating truths from fiction and trying to decipher what the implications may be for digital marketing strategies of the future.
What Is the Metaverse?
Basically the metaverse is a collection of online worlds that exists within the online space, where users can meet, chat, play games and buy things. Users can immerse themselves within this world using augmented reality (AR) or virtual reality (VR). This ‘universe’ is accessed using VR goggles but today some metaverses already exist in video games like Fortnite, Roblox or Minecraft. Moreover, a metaverse can exist in AR spaces, where objects from the virtual world are projected into the real world through screens. In the metaverse, as a user, you can create an avatar that will allow you to move through this 3D world. In this space you will have the ability to interact with other users and the environment around you.
You may think that this concept is so ridiculous, that it must come from from a sci-fi movie, but it’s not new. The term was first coined in the world of science fiction when the metaverse premise was introduced to us from the pages of the 1992 cyberpunk novel, Snow Crash, written by Neal Stephenson. The hauntingly accurate novel describes the metaverse as a parallel online world, which can be accessed by users wearing VR headsets.
This sounds so farfetched it must be fiction. Well, some argue that it is has already begun and is about to become a reality. In an actual press release, from Facebook (now Meta) describes the metaverse as, “A set of virtual spaces where you can create and explore with other people who aren’t in the same physical space as you. You’ll be able to hang out with friends, work, play, learn, shop, create, and more.”
As mentioned, the most tangible examples are platforms such as Fortnite, Roblox and Minecraft. These use virtual reality to create increasingly sophisticated online worlds. You may not have heard about these platforms yet however, there is massive market potential that exists in these worlds. Roblox has an impressive number of active users - 202 million to be exact. And these statics were last published in April 2022. Moreover, McKinsey & Company estimate that corporations, private equity companies, and venture capitalists made $120 billion in metaverse-related investments during the first five months of this year. Starting to feel less than fiction yet?
The Metaverse Explained
Defining what the metaverse is, by separating fact from a sci-fi novel is harder than it may seem. This is largely due to the fact that companies like Facebook [Meta] and Microsoft are building their own versions, thus the interpretation is ever-changing.
Although there are loose definitions of the metaverse, there is a general consensus by the professionals in industry like, Venture Capitalist Matthew Bell, on key factors that determine something to be a metaverse. These include but are definitely subject to change:
The metaverse exists in real time and is “always on”.
The metaverse is powered by a fully functional virtual economy, often (but not always) built on cryptocurrency and digital goods and assets, including nonfungible tokens (NFTs).
The metaverse moves across the virtual and physical worlds, and exists on many different platforms.
The metaverse enables people to have virtual identities (avatars), presence, and “agency,” including the ability to interact, transact and create sharable content.
What Is Metaverse Marketing?
Within the marketing landscape, we as digital marketers must always be up to date with the latest technological advancements. Therefore, it is only natural that the concept of the metaverse has become a massive topic of conversation.
This seems to be a natural progression because perhaps the lines are starting to blur between the real and virtual worlds. The metaverse is set to become a place where people start to spend more and more of their time, experiencing brands and buying virtual products.
At the moment there are marketing trends that have started taking off within the metaverse. Creating virtual experiences to drive brand awareness, hosting virtual events that users all over the world can attend and offering consumers the ability to purchase goods within the platform.
Presently we are experiencing the first wave of consumer engagement within the metaverse. Lessons are already being learnt from companies that are experimenting with metaverse marketing and have been successful. It seems that current marketing strategies within the metaverse are akin to the current trend of creating authentic and compelling brand experiences in the physical world. The application of this in the metaverse is very different. As much as our approach for driving value online continues to evolve, the effective engagement of consumers within the metaverse will need its own way of evolving successfully.
Brands have started gearing their digital marketing strategies to be effective within the metaverse with the need to remain relevant to millennial’s and Gen Z’s. They are proving to be enthusiastic about consuming content within these virtual worlds. This may seem shocking but Gen Z consumers spend twice as much time socially interacting in the metaverse than they do in the real world. These users may be young but their purchasing power is going to increase over time.
Examples of Metaverse Marketing Strategies
As mentioned, there are a number of strategies that marketers are using to promote products and create brand awareness. In the following we will look briefly at 5 of these strategies:
Strategy 1: Gaming
Giant gaming metaverses like Fortnite allows marketers the opportunity to increase brand awareness in a way that is entertaining and somehow feels organic.
Some brands use virtual gaming worlds to parallel their real-life marketing strategies. For example, American food delivery company Deliveroo, participated in the online video game Animal Crossing by simulating its real-life services. In the game, Deliveroo dispatched virtual riders to make deliveries throughout the island. Players received their virtual food as well as a surprise promo code for real-life food orders. Within an hour after launch, Deliveroo’s in-game engagement jumped by more than 3 million user interactions.
This strategy has proven to be successful because it encourages users to interact with brands directly.
Strategy 2: Brand avatar experiences
A user’s avatar is highly customisable and some companies have capitalised on this by creating exclusive experiences for avatars.
For example fashion giant Gucci partnered with Genies. In the Genies virtual world users could see their avatar dancing in front of a wall of Gucci logos with the words “Feelin’ Gucci.” The company then pivoted its metaverse popularity to sell digital versions of its luxury clothing items on Roblox. It may seem bizarre to purchase something that can’t be physically touched. However, this strategy targets the Gen Z audience and drives revenue growth.
Strategy 3: Virtual influencers
Influencer marketing has become a massive trend, dominating platforms like, TikTok, YouTube, and Instagram. It’s no wonder that this strategy has infiltrated into the metaverse.
Brands that have successfully used virtual influencers include fashion company Hugo Boss, which hired an influencer to promote its branded hashtag #BeYourOwnBoss. Entertainment giant Disney plans to use this strategy, using the mass appeal of Minnie Mouse to promote its upcoming AR theme park.
Strategy 4: Live events
The metaverse seems to promote new ways of human connectedness. Performances, tournaments, and other events that take place in the metaverse can be viewed by millions of users. This, just like any real-life event allows brands the opportunity to market their brand, with the additional possibility of reaching far more people than ever before.
Strategy 5: NFTs
A non-fungible token is a unit of data, usually a photo, video, or audio. “Non-fungible” means it is unique. Like all cryptocurrencies, NFTs are stored on a blockchain, from which tokens can be sold and traded. Since the blockchain contains a finite number of NFTs, their value increases or decreases based on demand.
Luxury fashion brand Louis Vuitton used a simpler NFT marketing strategy and created a game where avatars collect clothing and fashion accessories to win NTFs. Any person loves a prize and so the strategy was a great success, with more than 2 million downloads.
The NFT metaverse marketing strategy, allows you to promote your brand as well as NFT assets concurrently. The more hype your brand gets, the more valuable your NFTs will become. The more valuable your NFTs are, the greater your brand awareness.
Final Thoughts
The digital marketing landscape is ever evolving and there is no doubt that the next phase or challenge will be for brands to adapt to what awaits within the mataverse. This does seem all very exciting but what if the consequences are more frightening than what it appears to be on the surface?
Do we want to exist in virtual worlds, where the only way we engage with content or another human being for that matter, is as an avatar? Are we pushing the boundaries a little too far, where AI, VR and AR are going to start normalising our existence? Will we even have a choice, the freedom to choose where and how we exist? It is beginning to seem that perhaps if we don’t follow the new norms we will inevitably be lost somewhere in the blurred lines of human consciousness.
At Go Ninja we’re here to expand your digital presence online, into the metaverse and beyond. Contact us for a free consultation.
