MARKETING IN THE METAVERSE OF MADNESS: HOW BRANDS ARE WAKING UP TO WEB3

With chatbots like ChatGPT and generative programs like Stable Diffusion bringing the seemingly endless possibilities of artificial intelligence to the forefront of the world’s collective consciousness, it’d be easy to forget that, just last year, we were all wrestling with another nebulous technological leap: the metaverse.

Like in the case of its cousin, the NFT, there has been as much scepticism as there has been excitement, as much resistance as there has been early adoption. At this point, many have pointed towards the fact that matters of the metaverse have been taking up less proverbial column inches in the first half of 2023 as a sign of an early nosedive. The amount of money being invested in it, however, suggests otherwise. According to PitchBook, $120 billion has been invested globally in metaverse companies and products in 2023 so far - over double the overall investments in the whole of 2022.?

Ultimately, the reality of the metaverse (irony intended) is that it's still very much in its infancy. If the metaverse is where we will build the future, then right now, it’s pretty much a desert. Take one of the biggest names to emerge from the metaverse madness, Decentraland. At its peak, Decentraland's virtual plots were selling for millions, with one plot reaching a staggering $5 million in late 2021. A year on, Decentraland’s daily active users were reported to have reached as little as 38 at its lowest point this year. They dispute that, claiming that the average is closer to 8,000, while also admitting that their tracking isn’t the most accurate - but even 8,000 is a nominal figure compared to online games such as Fortnite which attracts 30 million daily users alone. In fact, both Decenteraland and Fortnite have hosted virtual concerts, with the latter’s being considerably better attended and received than the former’s.

So what does this mean for the metaverse? What now for the likes of Decentraland, which in early 2022 was valued at $1.2 billion?

Regardless of its still rather primitive state, some of the world’s biggest brands have moved early to secure their piece of the pie and it's up to marketers to watch closely, because there’s an argument to be made that it’s the participants are just as key as the creators to the meteverse’s evolution moving forwards. Sticking to Decentraland, the likes of Adidas have spent $1.5 million to secure a giant plot, with plans afoot to create a virtual store where users can buy and sell NFTs, as well as host events and experiences. Elsewhere, $2 million has been spent by Samsung to create a virtual showroom through which users can learn about products and services.

Even the biggest names in fashion are getting in on the action, with Prada set to create a space for a virtual store and fashion runway, while Gucci has done likewise on rival metaverse platform, The Sandbox. The iconic Italian fashion house created a virtual replica of its flagship store in Florence, attracting an incredible 19 million users in its first week. Nike enjoyed its own venture into The Sandbox, attracting 6 million visitors in the first week of its virtual store. Not content with its residency in Decentraland, Adidas also plans to expand its metaverse footprint into Roblox, where the sportswear giant intends to create a virtual stadium for esports tournaments, as well as virtual concerts.

In general, it's the world of fashion that seems to have found its fit, with the likes of Dolce & Gabbana, DKNY and Tommy Hilfiger, sashaying to the forefront of Decentraland’s annual Metaverse Fashion Week, which completed its second edition in March this year. But even a brand as wholesome as Chipotle has been able to leverage the liberty of the metaverse. In 2021, the Mexican grill restaurant chain rolled out its Halloween campaign, BOOrito, in Roblox, allowing users to play games and compete in challenges for the chance to win a free burrito. Seems simple, almost too simple, but not only did it attract 6 million unique participants, in-store sales surpassed that of previous Halloween campaigns.?

What this shows us is that, despite having a long way to go before reaching the idealist state the world was sold on last year, the metaverse can bring together two stalwarts of modern marketing: the digital and the experiential. This marriage can give birth to endless possibilities for any and every brand, whether fashion or FMCGs.?

Imagine a fresh produce specialist like Dole or Fresh Del Monte inviting users to tour a virtual farm to learn more about their products and their processes. Or a wine brand creating a vineyard tour experience. How about a virtual bank that invites users to engage with products and services, rather than waiting on hold over the phone, or queuing up at a branch? As we speak, there are international venture capital firms creating whole metaverse infrastructures through which startups can pitch and become part of an entrepreneurial community, a move that is just as much an exercise in marketing and branding, as it is an exercise in infrastructural development.?

So far, much of what we’ve seen on metaverse platforms is a case of taking the offline and putting it online - but that’s just the tip of the virtual iceberg. The real evolutionary leap for brands in the metaverse will be creating completely unique online experiences that aren’t tethered to the real world, that are born conceived and constructed from the wonders of Web3. Now, this may sound like the kind of pseudo-philosophical claptrap you might see as a slogan in the trailer of a B-rate sci-fi movie, but brands and marketers only need to look to game developers, who have been creating worlds, experiences and subsequently die-hard followings, in much more measured and complex ways. It’s they who offer a path, an indication of the untold opportunities virtual world building can open. It’s up to marketers to find ways to innovate and create, to adapt and adopt.

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