How to Enter the Metaverse for Brands

Numerous individuals believe that the latest paradigm shift for the internet is already well underway: the metaverse, they assert, is on the verge of becoming a reality. When businesses invest in a space and the media proclaim a moment, it’s reasonable to pause and assess whether the reality matches the hype. However, if this is the “meta” moment – that is, if it provides something that people truly desire – it is reasonable to assume that a large number of businesses are considering what the metaverse is and whether they should participate. Even knowing where to begin can be daunting for brands considering how to navigate this new frontier.

The metaverse’s fundamental concept is straightforward. Simply put, the metaverse is any persistent, immersive, three-dimensional (3D), and virtual experience on the internet that does not take place in the physical world. Metaverse experiences enable us to play, work, connect, and purchase (and just to make things extra fun, the things we buy can be real or virtual). Additionally, using the term “the metaverse” as if it were a monolithic, connected, or even interoperable universe is possibly a misnomer, as it is not. Each entity that creates a virtual world does so with its own set of access, membership, monetization rights, and creative expression formats, which means that business and technical specifications vary significantly. The metaverse refers to the concept that encompasses these distinct worlds and experiences, as well as the recognition that we are entering a more substantial, immersive landscape than ever before.

A few businesses have already begun to shape the landscape, with entertainment and gaming companies leading the charge. Major console and PC gaming titles, such as Epic Games’ Fortnite, have normalized the act of playing and socializing with others in virtual environments. Newer gaming platforms, such as Roblox, enable users to create and play in immersive worlds that they have created and frequently monetized. Decentraland is a user-owned 3D virtual world that enables users to create virtual structures ranging from theme parks to galleries and charge users to visit them, all powered by Ethereum blockchain technology. Other companies, such as MetaVRse and Unity, are developing engines to power brand and gaming studios and to accelerate the development of augmented and virtual reality (AR) and virtual reality (VR) content.

However, the immersive environment of the metaverse is not limited to consumer-facing businesses. There are numerous business applications, ranging from training future surgeons to demonstrating products to retail employees. For example, Nvidia’s leadership believes that investing in metaverse simulations of manufacturing and logistics will reduce waste and accelerate the development of better business solutions. And Microsoft is positioning its cloud services as the metaverse’s fabric, leveraging its Mesh platform to gradually integrate avatars and immersive spaces into collaboration environments such as Teams. Many of these more creative virtual business experiences are likely to become even more relevant as companies connect with their people and customers in post-Covid hybrid or remote working environments.

For those companies still on the fence, it is critical for each brand to carve out a niche and balance the risk-reward equation. This requires an understanding of what is possible, and the companies that are leaning in quickly can serve as both inspiration and test cases. For instance, numerous brands are capitalizing on the metaverse’s gaming component through branded experiences that are essentially virtual and immersive sponsorships. While Nike is a well-established brand, it is leading the charge at the assertive end of the metaverse, as reported by CNBC, by filing patents for virtual goods and the possibility of developing virtual retail environments to sell those goods. They recently acquired RTFKT, a company that develops virtual sneakers and collectibles for the metaverse.

The commercial applications of the metaverse are heightened even further by the new behaviors centered on purchasing products and services directly from social experiences, colloquially referred to as “social commerce.” Social commerce is increasing its share of US e-commerce over time and is projected to reach $36 billion in 2021 alone, following China’s growth pattern.

As a result, the social media landscape is eager to capitalize on the point at which people connect and buy not only in a traditional internet context, but also in a 3D, immersive metaverse. Virtual showrooms, fashion shows, and dressing rooms now have the potential to transcend the realm of fringe experimentation and achieve widespread adoption. And people aren’t just selling physical goods – Sotheby’s recently announced the launch of its own metaverse gallery dedicated to curated virtual art, which will be housed in Decentraland. As capabilities scale, new business models for influencers, virtual goods – such as non-fungible tokens (NFTs), which are one-of-a-kind creations traded and secured on a blockchain – and commerce on physical goods purchased in virtual worlds will all gain prominence.

Brands should always be testing and learning, and the digital landscape, in particular, necessitates intellectual curiosity. The metaverse may be the next evolution of how humans connect, communicate, and transact on the internet – and sitting on the sidelines for an extended period of time is unlikely.

What brands can do immediately is as follows:

Choose your targets carefully.

Consider how much time your target audiences/customers spend in the metaverse and adjust your speed of attack accordingly – brands catering to younger demographics, for example, likely do not have the luxury of sitting out the metaverse for an extended period of time. Who are your target demographics, and what behaviors are currently trending among your current and prospective customers that indicate how quickly you can enter the metaverse?

Keep an eye on the competition.

Begin by discussing instances when peer companies perform actions in the metaverse – such as a showcase at a leadership meeting – to pique interest among the executive team. Much of the space can be intimidating, especially when concepts such as NFTs or blockchain are involved. Can you identify a champion for these issues who will bring relatable, concrete examples to each meeting?

Investigate applications.

As a business, determine whether the metaverse enables you to not only try new things, but also to accelerate your purpose or long-term goals, such as sustainability, which are well-suited to many metaverse applications. Almost every CMO has already made or will soon make a public commitment to ESGs related to sustainability, and they will soon be quantifiable. What can you pilot in the metaverse to evaluate more sustainable methods of customer service?

Prepare an entrance.

Solicit assistance from your agency team in developing a position on how and when your brand should appear in the metaverse. Because both holding companies and independent agencies are keen observers of mass media behaviors and emerging trends, this is an excellent opportunity to inquire about their observations across their client portfolio. What tests could they conduct to ensure that you can comfortably expose your brand to the metaverse?

Maintain your equilibrium.

If you are already in it, be prepared for the risk and reward inherent in all new spaces; manage accordingly, cognizant of the fact that it may be highly unpredictable and devoid of standards. The good news is that the recent pandemic has made all of us far more adaptable than we have ever been. To state the blatantly obvious, experiments will fail. Although Second Life failed to deliver on the metaverse’s promise years ago, the risk to the brands that participated was not significant or long-term. Therefore, if this is the appropriate time, it is critical to consider how to get there.

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Most importantly, those in brand marketing or leadership positions should consider how to unleash their creativity and storytelling abilities. If the creative palette broadens the metaverse’s dimensions, we should be excited to create experiences at any point in the customer journey, from acquisition to engagement, transaction, and customer support, that have the potential to be both spectacular and stickier than ever before. And, at some point, we’re likely to desire seamless transitions between real and virtual worlds. That, my friends, is the next frontier.

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