Is the Metaverse the new consumer playground where businesses need to invest marketing dollars, or is it just a clever ploy by Meta to sell more Oculus headsets? The answer is probably a little bit of both.
The Metaverse has existed for some time. (Remember Second Life? It’s still around and about 900,000 users strong.) But October’s announcement by Mark Zuckerberg that the company formerly known as Facebook was all-in on Meta and the Metaverse excited the bleeding edge sector around the future of virtual worlds.
Marketing is still an activity that requires we fish where the fish are. And despite the appearance of short-term hype versus long-term substance, the Metaverse is a place where some consumers continue to explore, play and even prefer to be.
The key word there is “some.” The Metaverse isn’t for everyone and is, thus, not for every business.
What, exactly, are we talking about?
Before we understand which businesses should care about the Metaverse, let’s first establish exactly what the Metaverse is. I break it down into two big buckets: virtual reality and reality, only virtual.
Virtual Reality is the part of the Metaverse that comprises completely fake experiences. These are typically computer-generated places where people are avatars, or cartoon versions of a person or character. You can be yourself, but you can also be someone else. (Or something else.) Think of the sci-fi adventure “Ready, Player One.”
Then there’s reality, only virtual. These are experiences you can have in real life, only translated to a virtual version. A few months ago, the Foo Fighters played a virtual concert on Facebook’s Horizon Venues. It was a 360-degree video experience of the actual band (not cartoon avatars) playing a show. At the time, you could still actually go to a Foo Fighters concert (RIP, Taylor Hawkins). So, it was a real experience presented virtually.
Then there’s AR, or augmented reality, where data and experiences are delivered virtually but over top of an actual experience. This can be simple, like snapping a QR code on a bar table to see the menu. Or it can be complex, like looking at the bar through your phone’s camera to see information about all the bourbons on the wall pop up on your screen.
Why your business should invest in the Metaverse.
So, why should your business care about the Metaverse? There are three primary reasons: Your audience is there, you can create a meaningful experience for them, or you want to be a first-mover.
Let’s face it: If you do anything in, for or with the gaming community, you need to be in the Metaverse. And if you think gamers are 17-year-olds in Mom’s basement, you haven’t been paying attention. The average age of a “gamer” is 35 — and 45 percent of them are women.
But it’s not just video game players who explore virtual worlds. If your customer base includes people who love technology, are curious about innovation or are simply seeking interesting new avenues for entertainment, they’re likely to be found.
But let’s be realistic, too. If you sell industrial parts for diesel engines, there’s a good chance some of your prospects are spending their spare time in virtual worlds, but they certainly aren’t there looking for a fuel injection pump.
When you do invest resources into the Metaverse, you need to do so with the intent of creating an experience for the audience you wish to reach. Slapping a billboard on a virtual road isn’t going to get you much. But if you can create a destination and a reason for virtual audiences to gather and either learn something or be entertained by what you do, you’re going to reap some benefits.
And then there’s the simple benefit of being first. Not many brands are investing significant time and attention into virtual worlds right now. There are reasons (more in a moment), but if you are a first-mover, you’ll score points with consumers who might otherwise consider your competitors if they are.
Why your business should not invest in the Metaverse.
All of that magic comes at a cost, and that is the primary reason a business may not want to dip a toe into the Metaverse. Virtual and augmented reality applications require a new level of computer programming. You’re not throwing up a web page — you’re building an immersive experience. That means, in most cases, you’ll need to invest some combination of significant time, team and money into the e¡ ort.
As with anything in marketing, if you can do it yourself, you’ll invest time but not money. If you need a developer, consultant or agency to build an immersive experience in a world like Decentraland, a popular virtual world, you’re likely looking at tens of thousands of dollars in costs.
Finally, if your marketing approach is focused on sales or conversions, the Metaverse is not likely a great place to play. Your intent should be to create engaging brand experiences here. Posting a “buy now” link is not engaging.
The final word on the Metaverse?
The honest answer to whether or not you should invest in the Metaverse is, “it depends.” Are you able and willing to invest resources to create experiences that will make your prospective customers think, “Wow! This company is really cool for doing this?” If so, then strap on your Oculus and get building.
If not, it’s probably smarter to wait and see. Wait to have a clearer understanding of whether your customers are there or not and what it is they do in the Metaverse. Wait until the point of entry for a brand doesn’t include the high cost of being a first-mover.
There is a middle ground, however. Remember there’s virtual reality and then reality, only virtual.
If you have an experiential brand, a physical location or invest in events, you could spend a modest amount of money on 360-degree videos of those experiences and simply upload them to YouTube. This likely makes you a first-mover, inserts your brand into the broad category of being “in the Metaverse,” and may just help fill a void for consumers who want the intermediary step of virtually experiencing real-life occasions rather than stepping into a fake world.
Jason Falls is the senior influence strategist at Cornett. He is the author of the new book “Winfluence — Reframing Influencer Marketing to Ignite Your Brand.” He also hosts “Winfluence — The Influence Marketing Podcast” and “Digging Deeper,” Cornett’s weekly marketing and creative interview show.