The 3 Biggest Challenges Marketing Faces in the Metaverse
The broad and almost limitless marketing potential afforded by the Metaverse should be taken seriously by executives and company owners. The following are the three most significant difficulties firms face when venturing into an unfamiliar area in the digital sphere.
Marketing in the Metaverse is comparable to building a website in the early days of the internet or erecting a dusty wooden sign in the Old West. It may be quite challenging to evaluate how much time and resources to spend on a highly experimental company that does not ensure financial success or the achievement of many other key performance metrics. Determining how much time and money to commit (KPIs) is challenging.
At the very least, this is the current common opinion, which urges individuals to show caution and discretion when dealing with something so new, unproven, and prohibitively opaque (at least to some).
The reality is that medium-and large-sized businesses interested in establishing a long-term relationship with the younger half of the millennial generation and Generation Z should not view marketing in the Metaverse as a hypothetical issue over which they should fret and dilly-dally.
Many of the brightest and most influential minds in technology wager that this is not a transitory fad or pandemic-driven event but rather the natural growth of the internet. This is shown by Facebook’s extensive rebranding and $10 billion investment in its Metaverse, among other massive and glaring signs. Therefore, leaders and company owners should take its almost limitless marketing prospects seriously. The following are a few of the most significant challenges that I think organizations will face when they enter the uncharted region of digital technology.
1. SELECTING THE METAVERSE IN WHICH TO EXECUTE MARKETING OPERATIONS
The first impediment is also the most apparent. Contrary to widespread belief, the Metaverse does not consist of a single place. Instead, it is an ecosystem of immersive virtual worlds competing to host users, events, play-to-earn games, and everything else that adds to the appeal of these platforms as exciting alternatives to and complements to actual reality. Roblox, Sandbox, and Decentraland are just a few of the significant players in the industry now. Before deciding where to concentrate their meta-marketing efforts, marketers should examine each platform and have a solid understanding of its demographics, land costs, growth possibilities, and monthly users.
For instance, Roblox is generally geared toward a younger audience. Thus, companies who opt to advertise on the platform should be aware that their efforts will primarily target preteens, adolescents, and young adults. In contrast, Decentraland is positioning itself to become a platform for adults interested in significant, one-of-a-kind events, such as the Metaverse Fashion Week it staged at the end of March.
Because the disparities between these platforms are expected to grow considerably more over time, companies will need to exercise much more prudence when choosing the sites of their virtual landing places.
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2. RECOGNIZING THE MANY KINDS OF ENGAGEMENT
Addressing and engaging with the Metaverse is undoubtedly the most challenging and significant challenge that companies and advertising agencies face today. The logic and mechanics of marketing in virtual worlds such as Decentralization Sandbox radically differ from those in the real world. The discrepancy between the two may be summarized as follows: users of the Metaverse want an authentic experience.
This is not the world of print advertisements, billboards, television commercials, or online banner ads. That era of marketing, which is still prevalent today, did not try to disguise its advertisements as anything other than overt attempts to attract your attention and gain your business. They did this because they felt it was the most efficient way to accomplish their goal.
In contrast, the sphere of marketing in the Metaverse is distinct. It is less important to provide one-dimensional product presentations and more essential to create imaginative, highly engaging, and immersive three-dimensional experiences. Consider the Gucci Garden as an efficient example.
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The Italian fashion brand hosted a two-week virtual area on the Roblox metaverse platform in May 2021. Roblox gamers were transformed into faceless, naked mannequins as soon as they entered the Gucci Garden. As the figures traversed each section of the exhibition space, which included themes such as courtyards, garden parties, subways, and other “levels” reminiscent of classic video games, they gradually took on the qualities of the surroundings in which they were situated.
Your temporary mannequin avatar will be dressed in brilliant colors and patterns that mirror the experience of traveling through Gucci’s odd and sometimes enthralling location. The trip also includes Robux-purchasable hidden things such as clothes and sunglasses.
Gucci Garden is an excellent example of how firms may provide metaverse users with a live, breathing event far more dynamic than conventional marketing strategies. Gucci Garden is a fantastic illustration of how firms may do this, even though it is not a stunning adventure with sparkling visuals and exhilarating action.
In terms of marketing, the Metaverse includes auctions, exhibitions, parties, and giving users and their avatars something never-before-seen that is both exciting and distinctive. Regardless of the industry you operate in, or the products you’re attempting to propel to the next level, generating such a concept will be challenging but ultimately rewarding.
3. ASSESSING THE PERFORMANCE LEVEL
Variables about the company’s economics (such as the net profit, revenue, and sales) coexist with those about the customer experience (such as customer retention and satisfaction). It is an understatement to claim that marketing in the Metaverse is unlikely to lend itself to many of these key performance indicators (KPIs) at this early stage in developing these infant platforms. Instead, firms and their leaders should place the utmost importance on one statistic: employee engagement. The more clients a firm can acquire and maintain interest in its goods or services via marketing, the more likely the endeavor will be successful.
Virtual worlds include Sandbox, Decentraland, and the impending Metaverse Juggernaut. At present, brand familiarity is sufficient for success in these virtual worlds, despite the likelihood that a key performance indicator (KPI) such as “clickthrough’s” to your Web2 website may become a crucial metric in the future. In a few years, when millions of users will congregate in Sandbox, Decentraland, and Meta’s planned Metaverse Juggernaut, the companies who have been nurturing engagement the most care will be in a prime position to provide a plethora of additional key performance metrics (KPIs).