Although the metaverse (still) does not exist, the marketing industry is already preparing for it

In the shortlist for the word of the year according to Collins Dictionary, the term metaverse has also appeared – a term that denotes a 3D virtual universe, coined by science fiction writer Neal Stephenson back in 1992. Although British lexicographers chose the abbreviation NFT (non-fungible token) as the word of 2021, there is no doubt that the metaverse (or, if you prefer, metaverzum) has moved from the pages of Stephenson’s novel and discussions among passionate sci-fi enthusiasts into mainstream narrative. Since Mark Zuckerberg renamed his tech giant to Meta and announced massive investments in building a virtual universe (as if this stinky, existing one doesn’t need any repairs), the metaverse has become a destination where everyone wants to be. In addition to technology and gaming companies and brands from the entertainment industry announcing their conquest of the virtual universe, marketers are preparing the ground for investing marketing budgets in these yet unknown virtual expanses. But what will advertising in the metaverse actually look like? Will advertisements interrupt interactions? Will virtual metropolises be plastered with posters? Or will our avatars perhaps meet Ronald McDonald on their virtual adventure? If judging by CNBC’s writing, the answer is: all of the above.

New Front

As described by that media outlet, if marketing predictions and investor hopes come true, during an ordinary visit to the metaverse, you could encounter NFL star Colin Kaepernick. Of course, not in a flesh-and-blood version, but his digital counterpart. If you wish to exchange a few words with him, you will be able to do so thanks to Nike, of which Kaepernick is an ambassador. Thus, this potential interaction with his avatar will serve as an advertisement for Nike, or a way for the brand to tell its story and values. No matter how surreal this scenario may sound, it is worth recalling how much technology has changed the advertising industry so far. In the first wave of marketing, companies advertised in newspapers and on large billboards (billboards), then added sound to visuals by advertising on the radio. In the 1950s, television revolutionized the industry with the birth of the 30-second spot, and by the late 1990s, the internet began a new era of marketing. Each of these phases drastically changed the way brands communicate with audiences, and this new migration into the digital world, this erasure of boundaries between the real and the virtual, is expected to be as revolutionary as the invention of television.

That this is the case is confirmed by the billions of dollars that large companies plan to invest in the development of new technologies. In addition to Mark Zuckerberg deciding to develop the virtual universe with his Meta and turn the internet into something tangible, a place where users get the impression that it is real, comprehensive, and alive, gaming companies like Epic Games and Roblox have also decided to roll up their sleeves and help him (and profit) in building the metaverse. The aforementioned Nike recently announced that it is developing patents for selling products in the metaverse and has formed a partnership with one of the strongest gaming brands – Roblox. Disney CEO Bob Chapek recently announced at a presentation of the company’s business results and strategy that they intend to become the happiest place in the metaverse and are working on connecting the physical and digital worlds, telling stories without borders in their part of the metaverse.

Three Phases of Development

Although the world, usually users, has not yet seen even an ‘m’ of the metaverse, advertisers are already devising ways to reach consumer avatars. It is expected, writes CNBC, that in the first phase of the metaverse, marketing will mainly be reduced to a digital variant of outdoor advertising. In other words, the environment of the metaverse will be decorated with posters just as some brands currently advertise in games like ‘Tiki-taka Soccer’ or ‘FIFA Mobile’. In addition to being able to rent media space as in the real world, brands will also be able to collaborate with influencers. If this 3D virtual universe truly comes to life, there is no reason to doubt that existing influencers will have a huge following on this new medium. However, unlike Instagram or Facebook, in the metaverse, they will be able to realize more concrete interactions in partnership with brands: holding, for example, virtual sales, socializing with fans, and so on.

Furthermore, it is predicted that brands will continue the newly discovered practice of product placement in the virtual environment. The pandemic and the rise in popularity of gaming have already prompted many brands to experiment with virtual fitting applications for advertising their cosmetic products and clothing, launching ‘virtual fashion’ in which they are already dressing digital avatars. Just in the last year, major players like Nike, Adidas, Balenciaga, Gucci, and Levi’s have launched virtual collections in partnership with gaming brands. In May of this year, Gucci introduced a handbag to Roblox players that is even more expensive than the real one, while Nike created Nikeworld, its ‘hyped’ virtual subsidiary for them. The development of such products and, of course, the companies’ profits will also be aided by the penetration of NFTs.

Namely, this virtual currency (or ‘certificate’ of ownership of virtual or real assets) will allow users to spend money in various worlds. After advertisers accept these first steps (outdoor ads, virtual products), they will be able to move on to the next phase of advertising – the scenario with Colin Kaepernick. This advertising, claims CNBC, will fully lead to a new era. Namely, this phase is much more interactive as it requires brands to offer users an experience, something worth their time (and money). Thus, the metaverse is, by definition, a place where users will retreat from the real world, their escapism. Precisely for this reason, if advertisers want their ads to be effective, they should not resemble those from the world they are escaping from. But what is the purpose of this escape, and should brands be the ones to comfort them and provide refuge, is a topic that urgently needs to be addressed by the profession. First and foremost – psychologists.

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