When we Google the word Metaverse, approx 51 million results appear, and among them, many headlines on investments worth millions of dollars also pop up. However, next to all that, when we Google it, the term’s description still comes as ‘the Metaverse is a hypothetical iteration of the Internet’. That’s right, the algorithm is correct and the Metaverse still doesn’t exist, yet, beyond some rudimentary versions in games. Yet, the mystical world of the Metaverse is still managing to attract giants like Google itself to bet big on it. Let’s break down what this virtual world really means to this real world. 

First coined in the year 1922, the buzzword, Metaverse in simple words includes any digital experience on the internet that is persistent, immersive, three-dimensional (3D), and virtual assets that happened to gain momentum during the online-everything shift of the pandemic. The immersive environment of the Metaverse offers rich user-engaging virtual spaces using augmented reality (AR), virtual reality (VR), blockchain, and digital media principles. In short, these new technologies are hinting at what the Internet will become next. 

Backed by a fully working virtual economy, much based on cryptocurrencies and digital items and assets such as non-fungible tokens (NFTs), Metaverse is emerging as a potential tech innovation in the spheres of marketing and social connection. From founders, and investors to futurists and executives, all are trying to stake their claim in the Metaverse, crediting its potential for social connection, experimentation, entertainment, and, crucially, profit. 

Owing to its worldwide market that is poised to be worth $1,527.55 billion by 2029, and its growth prospect slowly dawning on the general public, big companies are eager to invest in the Metaverse market and advertising companies aren’t leaving behind. Today, tech-savvy gen-Z and Millennials are spending their significant time on the Internet, hence positioning themselves as the potential target audience for the advertisers. So for advertisers, the opportunity of targeting Metaverse users with branded materials and sales strategies is pretty evident and since it is a novel concept in the market, it is less expensive than other standard advertising modes as well. Hence, organizations that are grasping their advantage at the earliest will have a cost-benefit for the businesses. 

A Giant Leap For Advertising Kind

When it comes to advertising in the Metaverse, the advertisers will need a new approach that prioritizes creativity, a considerable shift in strategy, and the user experience above all else. As a creative industry, this implies that marketers will not only have to focus on providing better, broader, and more sophisticated branded experiences, but they will also need to find ways to find the right audiences based on the content and their mindset. 

Some business giants have already tested the waters and are thriving in it, such as Google, Facebook, Microsoft, Puma, Gucci, Nike, etc. With Nikeland, Nike has created a virtual universe that offers sports venues, digital showrooms where people can dress their avatars, etc, Or Vans released a Virtual Skatepark in Roblox, where players could try new tricks and earn points to redeem in the virtual store to custom make their Metaverse avatar. Or Fortnite, which introduced in-game concerts for its players. With skyrocketing engagement, Metaverse platforms are shaping 21st-century consumer behavior and strengthening their digital foundation. 

Like any other channel, Metaverse also provides multiple marketing tools that will lend advertising marketers nicely to richer, more immersive narrative experiences. Such as, experiments through Influencer Marketing are also being undertaken in the Metaverse for engaging customers in metacommunities. It has been estimated that as much as $15 million will be spent annually on Influencer Marketing out of which some are expected to be spent on virtual influencers. Another is the rise of the direct-to-avatar (D2A) economy, where brands sell digital products targeted at enhancing users’ avatars whose market value is projected to surpass $74.4 billion by 2025. 

In addition to these, another benefit that Metaverse offers is the data-driven interaction. The data collected in the virtual 3D environment can be analyzed and used to forecast or make business scaling strategies both for the online and offline market. Not only tech companies and business industries, but even government entities are also keen to invest in the multiverse. 

With the growing inclination towards ‘everything virtual’, several innovative advertising methods have been explored so far. Such as through virtual worlds, immersive experiences, in-game activities, and virtual billboards brands are experimenting to reach new generations of consumers. This evolution of the Internet is set to revolutionize business and marketing attitudes by serving as a medium for invention, discovery, identification, expression, connection, and socialization. 

As for now, we are still very much in the early stages of the Metaverse, but that will likely not be the case for long. In certain Metaverse realms, advertising brands are already gaining huge momentum and the emerging interest is a cue for brands to reach further. With the onset of bidding big in advertising, marketers can use the Metaverse to flex their creative muscles in a lucrative new space as now more than ever it is evident that Metaverse real estate is surging and the time to take a giant leap is right now.