Mumbai: The pandemic made digital engagement very mainstream. Nowadays, people are up for exploring the variety of tech innovations available in the virtual space. During the pandemic, they switched from offline engagement to online engagement, whether in the field of shopping, eating, gaming, lifestyle, etc. This switch resulted in wide online social traffic, especially in the immersive gaming experiences through the use of augmented reality (AR) and virtual reality (VR).
With 4.8 billion active internet users worldwide, the online social sphere is growing to accommodate new kinds of communication, engagement, and entertainment for a tech-savvy generation. A recent concept that has come alive in the online social sphere is metaverse. It is backed by a fully working virtual economy, much based on cryptocurrencies and digital items and assets such as nonfungible tokens (NFTs).
Metaverse, the internet's evolution, is emerging as a potential tech innovation in the spheres of marketing and social connection. It encapsulates a set of immersive virtual experiences where people can exist and engage with each other on virtual platforms. It builds rich user engaging virtual spaces using augmented reality (AR), virtual reality (VR), blockchain, and digital media principles. Merging the virtual, physical and augmented reality in real-time, metaverse allows interaction in a virtual 3D environment through avatars.
The worldwide metaverse market is worth $63.83 billion in 2021 and is expected to be worth $1,527.55 billion by 2029. It implies growth at a CAGR (compound annual growth rate) of 47.6 per cent between 2022-2029. Prodigious companies are eagerly investing in the metaverse market. Therefore the marketing and advertising companies have found their newly developed fondness for the metaverse. And true enough, the newly developed concept projects ample opportunities for tech-savvy entrepreneurs and brands to advertise themselves through it.
Metaverse creating value in advertisement wold
Marketing space has continuously evolved in time from radio to television to the internet and now metaverse. The early days of social media saw a rise of social marketing agencies likewise for metaverse, these agencies will have to, urgently, explore virtual and metaverse practices lest new metaverse dedicated companies prop up to better engage customers.
Marketers constantly seek out customers, whether in person or online, therefore, the expansion of metaverse will undoubtedly be one of the primary future playgrounds for the digital advertising sector. Experiments through influencer marketing are also being undertaken in the metaverse for engaging customers in metacommunities. Virtual reality will revolutionise business and marketing attitudes by serving as a medium for invention, discovery, identification, expression, connection, and socialisation.
Some companies have already taken a lead. Big brands like Google, Facebook, Microsoft, Puma, Gucci, Nike, etc are making their way into the metaverse. For e.g Nike’s Nikeland, a virtual universe that offers sports venues, digital showrooms where people can dress their avatars, etc. Or M.A.C cosmetics that provide virtual make-up facilities or Fortnite, which introduced in-game concerts for its players. These moves will strengthen their digital foundation more.
Some apparent benefits make it clear why the companies must explore the metaverse to create value in the advertisement world. Metaverse is believed to have a high engagement rate. Tech-savvy gen-z and millennials who engage in it are the future customers. They spend their significant time on the internet. Companies and brands must step into the world of metaverse to advertise and capture this expansive lot of audience. Furthermore, because it is a novel concept in the market, it is less expensive than standard advertising modes. Therefore, the first-mover advantage will have a cost-benefit for the businesses.
The data-driven interaction is another benefit. The data collected in the virtual 3D environment will come from real people that are operating as avatars. This data can be analysed and used to forecast or make business scaling strategies both for the online and offline market. Not only tech companies and business industries, but even government entities are keen on investing in the multiverse. Several innovative advertising methods have been explored so far. Use of non-fungible tokens, collectibles, cryptocurrencies, in-game activities, and virtual billboards are some to name.
Direct to avatar sales values at $54 billion and innovative entrepreneurs are already envisaging the ways for new income streams. From real estate purchases to online AR / VR-based offices to gaming, all is happening in the metaverse. Silicon Valley sees it as the next generation of the internet. Facebook has made a significant investment in its growth. Snapchat has incorporated augmented reality components into its services. Thus, it is bound to become a parallel reality because technological innovation is here to stay.
Data privacy, security and copyright issues are challenges that will prevail for now, but that must not prevent companies from exploring. Smart advertisers will succeed in any reality if they focus on matching their needs with the needs of their customers to produce useful experiences.
The author is Wing Communications CEO and founder Shiva Bhavani
