In 2012, the gaming industry turned over $70 billion in revenue. In 2021, that number rose to over $180 billion. The meteoric rise of the industry has been attributed to the growth of mobile gaming. Smartphones were a new technology that the gaming industry wasted no time adapting into their model. “The metaverse” is the next platform being adapted by the gaming industry and will affect other industries in a way that has never been seen before. It will change the way companies advertise and interact with consumers forever. In fact, that transition is already well underway.
“The metaverse” is a term that means a virtual-reality space that allows users to interact with a computer-generated environment and other users. Think The Matrix, except everyone inside it is there by choice. Today, we’ll look at what that means for the future of marketing and what companies are already doing to get ahead of the curve.
Interactive Marketing in the Metaverse
People will want to express themselves in the metaverse as they spend time in it. It is structured for social interaction and with that comes the need for individual identity. eVenture capitalist Matthew Ball wrote a series of essays in which he explains the benefits of marketing in the metaverse. This opens the door for many B2C companies to get their products virtually rendered to give users a chance to try out new looks and products in the metaverse.
Consumer brands like Nike and Balenciaga have already taken to virtual spaces to promote and profit from user desire for a unique identity in VR(Virtual Reality). Roblox is a game that allows players to build their own worlds for other players to explore and enjoy. Nike took a chance by partnering with Roblox and creating “Nikeland,” a virtual model of the real-world Nike headquarters in which users have free reign to explore and play as they please, all while donning whichever Nike apparel they choose.
Balenciaga went as far as building their own game with Epic Games (Fortnite). The game starts in a 3D Balenciaga store with new fashion trends and seasonal styles being unlocked as the player progresses through the game. Using the metaverse to reel in new consumers and build excitement for existing customers, Balenciaga has taken as big of a first step into this new world as anyone could.
Nike, Balenciaga, and other companies getting an early start in the metaverse are getting valuable marketing data as well. They can measure the amount of time a player interacts with certain products or sections of their levels and use this to determine what else the player may be interested in. All without asking for players to opt-in or out of cookies.
The metaverse is full of untapped potential for advertising. With virtually unlimited space for adapted traditional marketing, like billboards and video spots, almost any company can get in on the action. As more and more users take to VR to get away from the real world, the opportunity for virtual purchases grows as well.
Virtual Ad Conversion
As the metaverse grows, so does the potential to benefit from virtual ads within the virtual world. With virtual properties becoming high-valued, like NFTs, companies interested in getting in on the metaverse need to build fully virtual advertising strategies to convert in the metaverse itself.
With video games, in-game purchases can lead to massive real-world profits. The virtual products being purchased don’t translate to real-world use. They never leave the game, but gamers value these products due to the amount of time they spend within the game. The metaverse will function the same way. Companies can offer virtual versions of popular products for purchase and use only in the metaverse.
Marvel has already done this, releasing premium “skins” players can buy and play as their favorite heroes and villains in Fortnite. The metaverse can facilitate this model for virtually all B2C companies willing to make the leap to virtual spaces by offering virtual products to purchase that never leave the game to supplement their new virtual lives.
Companies stand to gain a lot from the metaverse, and soon enough, they will have to establish a virtual presence. VR is not going away. It will eventually make up a significant percentage of the video game industry’s $100 billion yearly revenue.
The time to get involved in this new media is now. Building strong relationships with millions of consumers already in the metaverse and gaining a crucial foothold in an ever-growing new world full of marketing potential early on will only lead to positive benefits for your company.
Before your company makes the leap to the metaverse, it’s important to maximize the potential of your real-world marketing content. Hire a Content Cucumber professional to help with all your content needs today!