Building a holistic Metaverse marketing strategy and beyond

“Experience and empathy are essential components of human-centred design and value creation. This is one of the reasons companies have started hiring Metaverse-focused executives and partnering extensively: to focus and accelerate the efforts they’re ramping up.” Brian Solis, Salesforce global innovation evangelist [1]

Despite challenges, the future of Metaverse marketing lies in omnichannel strategies, potentially revolutionising customer experience and brand visibility in a multi-trillion-dollar digital ecosystem.

Why it matters

Metaverse marketing, potentially a $4-5 trillion opportunity, is poised to reshape customer experiences and brand strategies, demanding marketers’ attention. Its societal impact could be profound, revolutionising sectors like hospitality, tourism, and supply chain while promoting diversity and inclusion, and necessitating robust ethical frameworks.

Overview

From this article, you will learn:

• The size and scope of the Metaverse’s transformative potential.
• The four principal stages of a holistic Metaverse marketing strategy
• Timeline of the Mataverse’s evolution.
• Practical steps CEOs can take.
• The negative impact of unrealistic expectations and excessive hype.
• Future directions for academic and practical exploration.

Introduction

The allure of the Metaverse, fusing trends such as AI, immersive reality, advanced connectivity, and Web3, has seized the imagination of consumers, enterprises, and technological pioneers. Envisioned as a realm where the lines between physical reality and virtual existence are blurred, the Metaverse constitutes a thriving marketplace that, according to McKinsey’s estimates, could reach the size of Japan’s economy - $4 to $5 trillion - within a decade [2]. An alignment of various forces, ranging from the Metaverse’s broad appeal across demographics to the proclivity of consumers to invest in Metaverse assets, and the readiness of corporations to contribute to the necessary infrastructure, underpins this anticipated exponential growth.

Nevertheless, despite the seductive promise of this emerging frontier, it is not without its challenges. The transformative digital socialisation trends accelerated over the last decade, primarily due to the prolific use of social media and smartphones, and further catalysed by the COVID-19 pandemic, point towards a direction of acceptance and integration of such digital realities in everyday life [3]. Brands have quickly capitalised on these shifts, augmenting their digital and offline touchpoints to furnish seamless, omnichannel experiences [4]. Yet, the actualisation of the Metaverse vision lies in the hands of tech giants like Meta and Microsoft, who are actively propelling its evolution.

The forthcoming version of the Metaverse will likely transcend its gaming-centric origins to accommodate workrooms, meetings, social venues, and live events. The envisioned Metaverse, therefore, holds the potential to emerge as a parallel digital ecosystem where reality is transplanted and mirrored. It is worth noting that although the Metaverse’s multidimensional experience is still nascent, some initiatives like Roblox are experiencing success due to the platform’s flexibility and growing interest from brands [3].

Despite this surge of interest, the Metaverse’s future remains uncertain, fuelled by a dearth of comprehensive research in this fast-evolving field and unresolved technical difficulties. However, the emerging academic and industry discourse is beginning to illuminate potential strategic marketing routes for companies contemplating their place in the Metaverse’s landscape. An integral part of this discourse is the exploration of strategic multichannel and omnichannel routes underpinned by an evolving understanding of the Metaverse platform’s trajectory, which promises to revolutionise the consumer experience [3].

Omnichannel and multichannel marketing strategies have the unique ability to integrate customer experiences across diverse channels. Multichannel marketing, while offering convenience with multiple online and offline touchpoints, falls short in managing customer data and cross-pricing across channels, limiting interaction and integration [5].

Omnichannel marketing presents an evolution towards enhancing customer engagement via fully integrated and synchronised touchpoints, aiming for a seamless user experience throughout the buying process [6]. Additionally, this approach demands consistent pricing strategies and full data integration to optimise user experiences [7]. However, despite its benefits, omnichannel marketing presents significant challenges due to the complexity of contemporary customer journeys. Therefore, firms must consistently maintain accurate information, deliver seamless customer experiences, and understand what motivates and engages consumers [8]. The varying preferences of diverse customer segments and the unique features of virtual worlds add another layer of complexity to this strategy.

Thus, to maximise the effectiveness of omnichannel marketing, businesses need to understand customer behaviour across channels, ensure brand consistency, and optimise multichannel systems, structures, and strategies throughout the customer journey [3]. Marketers can enhance customer loyalty and experience and drive business objectives by applying a customer-centric and omnichannel approach in the Metaverse. Despite some challenges and many remaining questions, such a strategic Metaverse marketing approach is likely the only viable future.

Therefore, this article will explore the stages of formulating such an omnichannel strategy, its implications for marketers and CEOs, and finally, look at the remaining questions and future research areas.

The four principal stages of a holistic Metaverse marketing strategy

Context

The structure of the Metaverse platforms significantly affects user experience, particularly the operating system and user perceptions of the virtual reality (VR) software. Two possible future states of the VR world emerge: the ‘omniverse’ and the ‘multiverse’. The omniverse describes a fully immersive social world, a mirror of reality that users enter and navigate as soon as users put on a VR headset. The multiverse, akin to the current VR state, consists of isolated applications on the platform requiring individual activation [3].

Today’s VR is mainly isolated, standalone gaming applications, providing a one-way, escapist experience. The envisioned future Metaverse, however, is an integrated and interoperable virtual environment where users can interact with various aspects of virtual life – like a parallel universe. This presents a shift from VR’s current escapist appeal to a more immersive, realistic experience [3].

Consequently, a debate emerges about whether this integration would eliminate VR’s escapism, transforming it into a mere reflection of real life. However, some maintain that the ability to navigate the virtual world and engage in non-work, non-social activities could maintain an element of escapism. Despite such divergent opinions, there’s a consensus that the Metaverse will soon become fully integrated into daily life, functioning as a critical marketing channel for companies and brands. It’s anticipated to be as ubiquitous and necessary as smartphones and the Internet in the near future [3].

We can elaborate our conceptual understanding by adding one additional dimension of differentiation: a multichannel versus omnichannel approach. This can help us form a two by two matrix of the evolutionary stages of integrated Metaverse marketing (Fig. 1) and explore these phases sequentially in the following sections.?

Phase 1: Multiverse-multichannel

The present state of the Metaverse, an ecosystem in which various VR applications operate independently, is akin to a multichannel setup or “multiverse”. This phase is currently a prevalent model where businesses manage their content across multiple channels. Experts argue that companies should take advantage of this phase to transition towards an omnichannel approach in preparation for the eventual development of the VR platforms into an integrated parallel world [3].

Due to the Metaverse’s ongoing development, the current multichannel setup does not overly disadvantage companies. However, accelerating their transition into the omnichannel stage will likely help them realise latent potential more quickly. Professionals in the field generally concur on the Metaverse’s slow evolution, primarily perceived as a gaming platform yet to deliver a fully immersive and realistic experience. This perception, combined with the fragmented nature of the VR platforms, mirrors that of mobile phones with apps isolated rather than integrated, impeding the Metaverse’s development [3].

“The current VR worlds are like a la carte menus! Nothing is yet integrated for a full social experience”. Senior Marketing Director, 12 years of experience [3]

Encouragingly, while the VR gaming experience encourages digital escapism, some recent attempts by tech giants like Meta and Microsoft to integrate workplaces and meetings into the Metaverse have started to blur the boundary between virtual and real. This integration could catalyse the evolution towards an omniverse— a fully integrated world not solely limited to gaming.

Phase 2: Multiverse-omnichannel

The Multiverse-omnichannel stage refers to companies successfully leveraging omnichannel marketing strategies while navigating the still fragmented Metaverse. This advanced integration gives businesses a strategic advantage in preparing for the future of marketing, keeping them competitive.

Companies employing an omnichannel approach stand to gain considerably as they penetrate the Metaverse, requiring merely to assimilate this new platform into their existing ecosystems. In the era of the Creators economy, adapting and evolving businesses to fit this innovative space becomes essential to market relevance [3].

However, businesses must be cautious of overemphasising the developing Metaverse, treating it as a dominant standalone channel. This could lead them to neglect other marketing channels, regressing to a multichannel approach singularly fixated on the Metaverse. Such a move could compromise their channel-based competitive edge and alienate a substantial segment of the populace.

“A potential risk here would be for companies to perceive the Metaverse as a standalone main channel that would supersede all other channels and they go back to a multichannel approach. Brands have to be extremely careful on how they integrate their presence into the Metaverse.” Founder of a VR company, 12 years of experience [3]

Moreover, if the Metaverse evolves into an omniverse stage, integrating with other channels, these Metaverse-centric companies could be disadvantaged concerning virtual user experiences. The Metaverse’s fundamental component is integration with other environments – a factor companies must remember when allocating their marketing budgets to prevent an unbalanced or, worse, exclusive focus on the virtual world.

Phase 3: Omniverse-multichannel

Companies must be cautious with this Omniverse-multichannel state. Brands should swiftly evolve towards an omnichannel approach, recognising the imminent integration of the Metaverse into our real world. Stagnation in a multichannel stage, as the Metaverse matures, exposes brands to the risk of being overlooked, with customers favouring brands offering relevant touchpoints [3].

The impending Metaverse demands a harmonious fusion of brands’ existing online and offline channels. Such a blend will compel brands to reflect their activities consistently across all platforms or risk presenting an inauthentic experience to the consumer. Hence, brands must create a cohesive consumer experience spanning all channels, including the virtual one.

“If you have a fully integrated social experience on the Metaverse and the brand is acting as this is a separate channel that can be operated in silo-like other current channels, then it’s a death wish!” Head of Interactive, 22 years of experience [3]

Investment in this integrated presence becomes pivotal, especially as competitors integrate stores, content, and marketing activities across multiple channels. Brands that treat the Metaverse as an isolated channel, no different from their existing channels, will likely fragment the consumer experience and drive customers towards competitor brands [3]. Analogous to a modern brand lacking a web presence that directs users to other social media platforms, such disconnected experiences could lead to consumers failing to find the brand’s presence on all channels.

Phase 4: Omniverse-omnichannel

And finally, in the most mature and complete Omniverse-omnichannel phase, brands thoroughly integrate virtual, digital, and physical channels. This concept paves the way for a future where brands exist in the Metaverse, consumers can interact with them virtually before purchasing in physical stores, and companies can utilise the Metaverse to extend their reach. While the Metaverse will still have its limitations, it will also offer a unique alternate world where current activities can be performed virtually, signalling a shift for the next generation [3].

This advancement in technology offers limitless opportunities for companies. They can establish virtual stores to showcase their brand and products, rent virtual advertising spaces, and track viewer data. This will expand their reach and promote enhanced two-way communication with their customers.

“You will be able to go to work in the Metaverse, then see your doctor, then maybe go to a lounge and hang with friends and have a drink (the drink will be in your real hands). The Metaverse will be your alternative world where everything you do now can happen virtually.” Online consumer comment [3]

The Metaverse’s potential extends to virtual reality merging companies worldwide into a single accessible platform. It will also allow users to engage and co-create with brands, even providing land ownership and trading opportunities within the Metaverse. While the Metaverse concept might seem like a new veneer on existing virtual worlds, its unique feature is its ability to enable users to own and trade assets outside individual environments, thus leading to novel opportunities and interactions [3].

Implications

So what this all means for Metaverse marketers is that they must adopt an integrative and participative approach. The aim should be to deliver a satisfying shopping experience for users, ensuring the brand value experienced in the real world matches the virtual [9].

An omnichannel approach will enhance brand image. By allowing customers to interact with and experience products virtually, firms could cultivate greater purchasing intent and bolster brand awareness and equity [10]. Crucially, this hinges on seamless integration across all channels and meeting customers’ expectations to transcend reality’s boundaries.

These insights study hold considerable weight for platform owners and brands aiming to establish a presence in the Metaverse. The advent of more cost-effective, high-performance VR headsets and Meta’s commitment to heavy Metaverse investment, announced in 2021, has escalated corporate interest in VR as a tool for customer engagement [3]. The ability of VR to immerse consumers in virtual environments and simulate purchase and consumption processes is increasingly recognised [11]. Moreover, screen-based virtual worlds are predicted to progress in tandem with the Metaverse, attracting significant investments from globally prominent brands and strategically engaging the profitable Gen Z demographic.

Consequently, four potential brand evolution paths emerge, dependent on Metaverse development and a company’s channel strategies (Fig. 2):

1. The ideal path involves progression from a multichannel to an omnichannel approach in step with the Metaverse’s evolution from multi- to omniverse.
2. The recovery path applies to companies remaining at the multichannel stage as the Metaverse transforms into an omniverse. A steep investment increase towards an omnichannel approach is recommended here.
3. The laggard path is a high-risk scenario for companies persisting with a multichannel approach without adjustment.
4. The deflection path describes a potential pitfall for omnichannel companies that become overly focused on the Metaverse, neglecting other channels and regressing to a multichannel strategy.

Ultimately, the value of these conceptual paths is to make Metaverse marketers more aware of what they are doing. This will increase the likelihood of succeeding.?

Timeline and practical steps

When?

The future of Metaverse marketing lies in the intersection of technology and consumer demand, presenting a captivating and unchartered landscape. For example, the comparison drawn to the potential of AI and autonomous vehicles highlights a noteworthy parallel. These technologies faced periods of high speculation, wherein their promised impact took longer to materialise than initially anticipated [12]. The so-called “hype cycle,” a graphical representation of the maturity and adoption of technologies and applications, helps us understand this. Legitimately, there is a genuine concern that the Metaverse might follow the same trajectory.

Looking at the current state of affairs, we can see that the Metaverse stands years away from its crucial tipping point. This timeline, however, should not deter proactive preparation for its potential advent. As Brian Solis from Salesforce emphasised, transformative technological shifts, akin to Web1, social media, and mobile, are rarely instantaneous [1]. They are an amalgamation of gradual technological advancements, shifting consumer needs, and repeated rounds of trial and error. This view is especially pertinent concerning the obstacles the Metaverse faces.

“While promising, it’s important to remember we are still in the early days of the Metaverse. And as these new applications start to take shape, note that the Metaverse or a 3D web won’t immediately replace the internet as we know it today. It will coexist, much like Web 1.0 and social media (Web 2.0) and the mobile-app economy do today.” Brian Solis, Salesforce global innovation evangelist [1]

The infrastructure required to support the Metaverse at a large scale is still under development. Key technological pillars, such as 5G networks, edge computing, advanced hardware, and sophisticated software, must reach peak performance to drive the Metaverse’s successful adoption. The current core audience of the Metaverse is primarily gamers and tech-savvy individuals. To push the Metaverse into mainstream use, we need the participation of a wider demographic. Initial surveys indicate a high level of interest, marking a promising start in this direction [12].

Another key point to consider is the prevalent use of cryptocurrency for transactions in the Metaverse. Despite its popularity, cryptocurrency’s shortcomings in terms of reliability and security remain significant concerns that need addressing to enhance user confidence [13].

Furthermore, the current Metaverse ecosystem is fragmented. Multiple versions of the Metaverse, such as Roblox and the Sandbox, operate in isolation with no interconnectedness. The journey towards an integrated or a true Metaverse is far from completion. This fragmentation inhibits the overall user experience and could potentially delay the adoption of the Metaverse on a broader scale [14].

However, these hurdles should not deter us from recognising the Metaverse’s potential. Its advent marks a new chapter in digital interaction and marketing, and its future remains a promising prospect full of opportunities. It is a domain waiting to be developed and explored.

Practical steps for CEOs

The current economic climate may seem counterintuitive for investment in the Metaverse. Still, both research and experience compellingly argue that downturns often present ripe opportunities for companies to seize dominant positions in the next cycle. Unsurprisingly, 71% of the largest global consumer firms have already begun to lay foundations in this burgeoning digital realm [12]. Crucially, those left lagging behind risk being caught off guard and unprepared for the seismic shift the Metaverse is expected to induce across various sectors.

The Metaverse’s potential to transform businesses and organisations is, admittedly, sector-dependent. Industries most at risk of disruption include banking, manufacturing, media, professional services, retail, and telecommunications. The onus falls heavily on the CEOs of companies within these sectors to take bold and assertive action. However, every CEO, regardless of sector, should be taking three essential steps to secure their place on this digital bandwagon and prepare for the impending take-off of the Metaverse [12].

1. Firstly, CEOs need to start with the ‘why’. They must comprehensively understand the Metaverse’s role within their existing business model and identify the aspects that excite their customers. Instead of morphing their core objectives to fit the Metaverse, CEOs should strive to integrate virtual worlds into their growth and innovation strategies organically.
2. Secondly, CEOs should get practical and find the ‘what’. Seeking external inspiration is beneficial, but they must pinpoint and prioritise practical use cases that align with their company’s strategic vision. They should approach these endeavours with the same weight and seriousness they would for any other project, not just as a fad or novelty. Recognising these efforts as crucial to the company’s future will be instrumental in dispelling organisational scepticism.
3. Finally, the CEOs must champion the cause and illustrate the ‘how’. As vision setters, CEOs can choose leaders for each use case, ensuring the initiatives are deeply ingrained within the company’s functional agenda. As seen with L’Oréal’s appointment of a chief Metaverse officer [15], a dedicated individual can champion these efforts company-wide, often under the direct report of the CEO.

The operating model should also be considered alongside the team setup required for this journey. Many companies might find collaborating with specialist providers for hardware, software, and Metaverse-related development services such as VR design and game engines beneficial [12]. Through continuous testing, learning, and asking the right questions, CEOs can bridge the gap between expectations and results, paving the way for their companies’ successful transition into the Metaverse era.

“I think overall this is a real opportunity to be curious, ask questions, test drive, and experiment, all with the best of intentions. The more questions we ask, the more curious we are, the less judgmental we are, the more empathetic we can become, the greater the connection to value creation and delivery will be.” Brian Solis, Salesforce global innovation evangelist [1]

In conclusion, with strategic planning and effective leadership, CEOs can harness the Metaverse’s potential and drive their companies towards a promising virtual future.

But what will this promising virtual future look like?

The future of marketing in the Metaverse

The negative impact of unrealistic expectations

Realistic expectations should temper the enthusiasm for the Metaverse. It’s essential to note that we’re only in the early stages of its development, and the hype may exceed what the current technology can deliver, reminiscent of the dot-com bubble of the late ’90s. Instead of responding to present market expectations, the focus should be on building infrastructure and processes to prevent a similar “Metaverse bubble” [16].

A myriad of challenges could undermine the success of Metaverse-related projects. Cybersecurity and data breaches are growing concerns, with potential for espionage, user data collection, and difficulties recognising and reacting to risks like phishing scams, malware infiltrations and compromised accounts [16].

The practical applicability of the Metaverse in everyday life also raises questions. By 2040, for the majority of the world’s population, the Metaverse is unlikely to be fully integrated into daily life [17]. Current immersive environments lack interconnection, but the need to connect them is not pressing [18], and potential applications of extended reality (XR) may not provide significant benefits to motivate widespread adoption.

Moreover, many people may find complete immersion in virtual reality unattractive due to cost, hardware, unreliable connectivity, and a preference for real-world engagement. Essentially, social aspects of human nature may not be adequately catered to in the Metaverse [16].

Additionally, potential social issues, including increased surveillance, loss of autonomy, digital divide and discrimination, cyberbullying, public safety threats, proliferation of misinformation, and risk of addiction, could further deter engagement with virtual spaces. Finally, until the Metaverse addresses contemporary challenges such as inflation and climate change, its adoption rate may remain low due to a lack of market demand [16].

With this disclaimer of sorts, we can now look into the future of Marketing in the Metavers.

Future directions

Technology advancements are opening new avenues for marketing in the Metaverse, marking an exhilarating yet challenging phase in marketing history. With an increasingly digital business environment, understanding the implications for various aspects of marketing is paramount [16]:

• The interaction between the Metaverse and the customer experience is a crucial area of interest. In the Metaverse, customers will be able to engage with brands like in real life. However, the lack of physical interaction could potentially hinder the creation of meaningful connections and personalised experiences. In traditional retail environments, face-to-face communication aids the formation of emotional bonds and boosts customer satisfaction. Nevertheless, virtual environments may curtail opportunities for personalisation, potentially resulting in a less fulfilling customer experience. While the Metaverse could offer unique, immersive experiences compensating for the lack of human touch, further examination is necessary to gauge the full impact on customer experience.
• Still, the Metaverse will likely revolutionise marketing communication. It will allow brands to connect with consumers in virtual environments, prompting advertisers to rethink communication strategies. Considerations must include effectively utilising 3D graphics, VR environments, and other immersive features to engage consumers. Traditional marketing channels such as print and television might lose some efficacy. The potential for personalised targeting must be balanced with privacy and consent concerns.
• The Metaverse might contribute positively to consumer happiness and well-being. Providing an avenue for escapism may allow users to disconnect from daily life and engage in joyful activities. The opportunity to form virtual communities could foster social connection and belonging. However, the Metaverse’s impact on happiness and well-being may be influenced by factors such as the experiences on offer and individual motivations and preferences.
• Cost-efficiency is another intriguing aspect of the Metaverse. By allowing companies to interact with consumers virtually, the Metaverse could diminish the necessity for costly physical storefronts and their associated expenses. Moreover, it might lower transportation and logistical costs, with the capability to deliver virtual products and services directly. However, the efficiency will depend on business nature and the costs of maintaining a presence in the Metaverse. Businesses should evaluate potential trade-offs, including the potential loss of in-person interactions and its effect on customer experience.
• The Metaverse could also significantly affect diversity, equity, and inclusion. It may offer a safe space for individuals, particularly those from the LGBT community, who may face discrimination. Yet, the Metaverse’s impact on these aspects could be influenced by the content and nature of the experiences and the individuals forming these communities.
• The Metaverse might generate value for bottom-of-the-pyramid customers by providing access to various products and services unavailable in their physical communities. Low-cost or free experiences could provide these customers with education, entertainment, and social connection. Additionally, the Metaverse might enable these individuals to partake in the global economy through virtual entrepreneurship, potentially fostering economic empowerment and upward mobility. Nevertheless, the influence of the Metaverse on these customers may be contingent on the availability and affordability of internet access and the individual’s digital literacy.
• Luxury brands can harness the Metaverse’s immersive and interactive capabilities to create personalised customer experiences, maintaining their distinctiveness, desirability, and exclusivity. For example, by showcasing products in virtual reality environments or hosting exclusive events, luxury brands can heighten their customers’ shopping experiences.
• In addition, the Metaverse has the potential to revolutionise the hospitality and tourism marketing sectors, although this requires more research. Possibilities include improving customer experiences with virtual reality tours, creating new business models and revenue streams, and assessing its impact on traditional marketing channels.
• Sustainable development goals (SDGs) could also benefit from the Metaverse’s capabilities. It could be a tool for promoting global sustainability, either through education programmes or immersive experiences that raise awareness about social and environmental issues. Notwithstanding, the environmental impact of the Metaverse should be scrutinised, including its potential to reduce the carbon footprint of industries.
• The Metaverse can significantly improve supply chain and logistics, offering a platform for real-time tracking of shipments, improving decision-making through virtual collaboration, and offering risk-free environments for testing and optimising strategies.
• Despite these advantages, there are potential downsides, particularly in marketing. The Metaverse could be used to manipulate or deceive consumers by creating realistic virtual environments that are difficult to distinguish from reality. Targeted marketing and personalisation in the Metaverse raise privacy and consent concerns.
• Given these potential pitfalls, there’s a critical need for an ethical framework for metaverse practices. It should protect consumers and promote responsible business activities. Consumers should be cognisant of the potential risks, and businesses must be transparent about their practices, prioritising honesty, respect for privacy, and consumer protection.

In conclusion, while the Metaverse offers uniquely beneficial transformative opportunities across sectors and functions, careful ethical considerations must underpin its utilisation to safeguard consumer interests and promote sustainable practices.

Conclusion

Projected to be worth $4 to $5 trillion in a decade, the Metaverse, combining AI, immersive reality, advanced connectivity, and Web3, offers a new frontier for marketing. Brands must understand customer behaviour, maintain consistency, and optimise across channels as it expands beyond gaming to replicate real-world workspaces and social venues.

Future Metaverse marketing hinges on differentiating between multichannel and omnichannel approaches, evolving from a fragmented multiverse to an integrated omniverse. This final stage promises boundless opportunities for increased brand visibility and engagement.

Despite its current fragmented state and ongoing infrastructure development, 71% of large consumer firms are investing in the Metaverse, seeing it as an opportunity. Its impact will vary across sectors, with some facing significant disruption.

Ultimately, while offering possibilities for various industries, an ethical framework is essential to address potential manipulation, privacy, and consent issues.

Summary

• The Metaverse, amalgamating AI, immersive reality, advanced connectivity, and Web3, is anticipated to mirror Japan’s economy, potentially worth $4 to $5 trillion in a decade. Its appeal across demographics and the readiness of corporations to develop infrastructure fortify this growth.?
• The transition to digital socialisation, intensified by the COVID-19 pandemic, is paving the way for omnichannel experiences in the Metaverse. This virtual world, expected to extend beyond gaming to encompass workspaces and social venues, mirrors reality in a parallel digital ecosystem.?
• Although the future is uncertain due to limited research and technical challenges, omnichannel marketing strategies are considered crucial for brands to ensure seamless, integrated customer experiences.
• Companies must understand customer behaviour, maintain brand consistency, and optimise systems across channels to drive business objectives. Despite challenges, a customer-focused, omnichannel Metaverse marketing approach is likely the most viable future, demanding further research to formulate effective strategies.
• The Metaverse’s marketing evolution can be conceptualised using two dimensions of differentiation – a multichannel versus omnichannel approach and the VR world’s transformation from a multiverse to an omniverse.
• In the initial multiverse-multichannel phase, VR applications operate independently, with companies managing content across multiple channels. However, accelerating the transition to an omnichannel approach could unlock potential faster, especially with tech giants integrating workspaces into the Metaverse, blurring virtual and reality.
• In the multiverse-omnichannel stage, companies leveraging omnichannel strategies in the still-fragmented Metaverse gain a competitive edge. Still, overemphasising the Metaverse and neglecting other marketing channels risks alienating customers and compromising competitive advantages.
• The omniverse-multichannel state is a precarious stage. As the Metaverse matures, brands must swiftly evolve towards an omnichannel approach to stay relevant. Brands treating the Metaverse as an isolated channel risk fragmenting the customer experience and losing clientele to competitors.
• In the final omniverse-omnichannel phase, brands seamlessly integrate virtual, digital, and physical channels, presenting boundless opportunities for increased brand visibility and customer engagement. However, companies should aim to match their real-world brand value in the virtual, ensuring a satisfying shopping experience.
• Four potential brand evolution paths emerge – ideal, recovery, laggard, and deflection – based on Metaverse development and a company’s channel strategies. Recognising these paths will help marketers maximise their success in the evolving Metaverse.
• Metaverse marketing’s future lies in the convergence of technology and consumer demand. Although the required infrastructure is still in development and the Metaverse ecosystem is currently fragmented, its potential for revolutionising digital interaction and marketing is promising.?
• To facilitate mainstream adoption, diverse demographic engagement, enhanced cryptocurrency security and a more integrated Metaverse are needed. Despite economic challenges, 71% of large consumer firms already invest in the Metaverse, recognising it as an opportunity rather than a risk.?
• The expected impact of the Metaverse is sector-dependent, with industries like banking, manufacturing, and retail potentially facing significant disruption. Consequently, CEOs must understand the Metaverse’s relevance to their business, identify practical use cases, and champion its adoption within their organisations.
• The Metaverse, while representing a potential new frontier in marketing, is fraught with challenges. Overhype and cybersecurity concerns, coupled with the improbability of full integration into daily life by 2040, temper the enthusiasm.?
• Yet, it could revolutionise customer experience, marketing communication, consumer happiness, and cost-efficiency, promote diversity and inclusion, and offer opportunities to underserved customers.?
• It also presents possibilities for luxury branding, hospitality, tourism, sustainable development, and supply chain management. However, an ethical framework is necessary to address potential manipulation, privacy, and consent issues.?

References

[1]??????McKinsey, ‘Exploring the business promise of the metaverse’, 2022. https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/building-the-next-big-experiences (accessed Jun. 13, 2023).

[2]??????McKinsey, ‘Value creation?in the metaverse’, McKinsey & Company, Jun. 2022. Accessed: Dec. 10, 2022. [Online]. Available: https://www.mckinsey.com/~/media/mckinsey/business%20functions/marketing%20and%20sales/our%20insights/value%20creation%20in%20the%20metaverse/Value-creation-in-the-metaverse.pdf

[3]??????Z. Ramadan, ‘Marketing in the metaverse era: toward an integrative channel approach’, Virtual Reality, Mar. 2023, doi: 10.1007/s10055-023-00783-2.

[4]??????M. Petkov, ‘Unlocking the potential of the Metaverse for branding | LinkedIn’, 2023. https://www.dhirubhai.net/pulse/unlocking-potential-metaverse-branding-martin-petkov/ (accessed Jun. 11, 2023).

[5]??????N. Beck and D. Rygl, ‘Categorisation of multiple channel retailing in Multi-, Cross-, and Omni‐Channel Retailing for retailers and retailing’, Journal of retailing and consumer services, vol. 27, pp. 170–178, 2015.

[6]??????O. S. Itani, S. M. C. Loureiro, and Z. Ramadan, ‘Engaging with omnichannel brands: the role of consumer empowerment’, International Journal of Retail & Distribution Management, no. ahead-of-print, 2022.

[7]??????M. Hajdas, J. Radomska, and S. C. Silva, ‘The omni-channel approach: a utopia for companies?’, Journal of Retailing and Consumer Services, vol. 65, p. 102131, 2022.

[8]??????K. N. Lemon and P. C. Verhoef, ‘Understanding customer experience throughout the customer journey’, Journal of marketing, vol. 80, no. 6, pp. 69–96, 2016.

[9]??????E. Gadalla, K. Keeling, and I. Abosag, ‘Metaverse-retail service quality: A future framework for retail service quality in the 3D internet’, Journal of Marketing Management, vol. 29, no. 13–14, pp. 1493–1517, 2013.

[10]????A. M. Kaplan and M. Haenlein, ‘Consumer use and business potential of virtual worlds: The case of “second life”’, The International Journal on Media Management, vol. 11, no. 3–4, pp. 93–101, 2009.

[11]????M. F. Farah, Z. B. Ramadan, and D. H. Harb, ‘The examination of virtual reality at the intersection of consumer experience, shopping journey and physical retailing’, Journal of Retailing and Consumer Services, vol. 48, pp. 136–143, 2019.

[12]????H. Hatami, E. Hazan, H. Khan, and K. Rants, ‘A CEO’s guide to the Metaverse and new use cases | McKinsey’, 2023. https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/a-ceos-guide-to-the-metaverse (accessed Jun. 13, 2023).

[13]????T. Conlon, S. Corbet, and Y. Hu, ‘The Collapse of FTX: The End of Cryptocurrency’s Age of Innocence’. Rochester, NY, Dec. 14, 2022. doi: 10.2139/ssrn.4283333.

[14]????à. Corretgé, ‘What is metaverse interoperability, and why is it important? | LinkedIn’, Sep. 05, 2022. https://www.dhirubhai.net/pulse/what-metaverse-interoperability-why-important-%C3%A0lex-corretg%C3%A9/ (accessed Jan. 27, 2023).

[15]????L’Oreal, ‘Meet Camille Kroely, L’Oréal Chief Metaverse Officer’, 2020. https://www.loreal.com/en/videos/beauty-science-and-technology/meet-camille-kroely-l-oreal-global-head-of-digital-services--open-innovation/ (accessed Jun. 13, 2023).

[16]????I. Cheah and A. S. Shimul, ‘Marketing in the metaverse: Moving forward – What’s next?’, Journal of Global Scholars of Marketing Science, vol. 33, no. 1, pp. 1–10, Jan. 2023, doi: 10.1080/21639159.2022.2163908.

[17]????J. Anderson and L. Rainie, ‘The Metaverse in 2040’, Pew Research Center, Elon University, Jun. 2022. Accessed: Jan. 23, 2023. [Online]. Available: https://www.elon.edu/u/imagining/surveys/xiv-2022/future-of-metaverse-web3-2040/

[18]????A. Kayyali, ‘Why Most Projects in the Metaverse Will Fail’, Inside Telecom, Nov. 04, 2022. https://insidetelecom.com/why-most-projects-in-the-metaverse-will-fail/ (accessed Jun. 13, 2023).

?