How the Metaverse Will Challenge Short-Termism in Marketing
Cover Image - Source: Gucci Town on Roblox
Even though we are just halfway through 2022, it cannot be wrong to say the metaverse is the buzzword of the year. It is projected that the global market size will be growing by 47.2% in the next 5 years. “Should I get into the metaverse” becomes one of the top questions that marketers are asking.
However, after years of learning the best practices in driving sales via performance marketing, the same short-term thinking will not fly in the new virtual worlds.
Currently, a lot of the brands are jumping into it purely because they can be the first. The first NFT in banking. The first property developer in the metaverse. This illusion of innovation will soon fade away. Before you think that you need to add metaverse as a channel to your next campaign, here are a few things to consider.
Your audience may not be there, yet
According to consulting company Metaversed, there are 138 virtual worlds currently. Some of the virtual world players like Roblox and Fortnite have huge followings (but they are not classified as metaverse as they are not running on the blockchain). If you want to engage with teens and tweens, it can be an amazing opportunity as most of their audience is under 18.
While metaverse leaders like Sandbox and Decentraland are accumulating users, their DAU is only around 1,000. Getting on the metaverse is about building for the future, not now.
Think experiences not ad
Each virtual world has its own ecosystem. Each offers its unique experience. How can you create something that’s authentic? One aspect to consider is to extend your brand storytelling into the virtual world. Unilever’s oral care brand Closeup recently launched the first NFT marriage certificate that allows the couple to officiate their union at Decentraland. As a brand that champions closeness and celebrates all kinds of relationships, it allows couples that might not be able to get married in the real world to have that experience in the metaverse. It would be interesting to see how the brand can refresh and build on the experience in the future.
Another long-term strategy is to build the foundation for the future experience of your brand. Warner Music announced its partnership with Sandbox earlier this year to create its first music-themed world, WMG LAND, that will feature concerts and musical experiences from WMG's leading roster of artists. Brands should think about how the metaverse can enrich brand interactions in the future.
Enable your audience with utility
Image Source: Crypto Baristas
The trading volume of NFT slows down since the beginning of the year. And Bill Gates recently said NFT is 100% based on the greater fool theory. As the fad of collecting NFT dies down, brands should think more about how they can enable their audience with real-world benefits beyond pixelated art. For example, the well-known Bored Ape Yacht Club NFT is now more than just an image but become an access pass for exclusive events. Crypto Baristas is a new NFT project that will fund a new coffee shop in NYC and link with future coffee discounts. The non-fungible nature of NFT will give a new shape to identity and privileges. What will your NFT give access to?
Image Source: Crypto Baristas
Building knowledge and capabilities to experiment with Web3
Beyond the metaverse, brands should look at how Web3 will impact the company as well as the future of marketing in the longer term. While it is something that constantly evolving, experimentation is key. The world of Web3 is complex and diverse. It will take time to learn how each virtual world works or how blockchain technology can give greater transparency to your brand.
Campaign thinking won’t work in the metaverse. Time to put on your long-term thinking hat once again.