SEG3 Post Event Thoughts: A New Playground for Brand Experiences

Recently I had the pleasure of attending SEG3 London, an event that seemed to focus on brand experiences in platforms like Roblox and Fortnite. The event was a whirlwind of discussions about why brands are diving headfirst into these virtual worlds, often driven by a fear of missing out. But should they be so eager? I needed to get this out of my head as I wanted to explore why brands are venturing into these platforms and whether it’s the right move, especially in the luxury sector.

Why Brands Should Join Roblox and Fortnite

Both Roblox and Fortnite were the main talking points to the event and boast massive, engaged audiences. Roblox has around 78 million active users who spend an average of 2.4 hours daily on the platform. Fortnite, on the other hand, has about 236 million monthly active users, with 60% of them being aged 18-24. These platforms offer gamified, virtual environments where users are highly engaged, making them prime real estate for brands looking to connect with younger audiences.

The Luxury Brand Dilemma: Lamborghini in Roblox?

One of the hot topics at SEG3 was whether luxury brands, like Lamborghini, should target the predominantly young user base of these platforms. Roblox's average user age is around 11, with 25% of users being under 9 years old. This raises ethical questions about marketing high-end, aspirational products to such a young audience.

Luxury brands thrive on aspiration and exclusivity. Advertising a Lamborghini on a platform primarily used by children could dilute this aspirational value. It’s akin to promoting luxury cars on a children's TV network—unusual and arguably inappropriate. The key question is: Do luxury brands need to target this age group, and what benefits do they gain?

Benefits and Ethical Considerations

While reaching younger audiences can build early brand loyalty, it’s essential for luxury brands to balance this with ethical considerations. Targeting children with high-end products can be seen as exploitative. Instead, luxury brands could focus on creating aspirational content that emphasizes brand values and heritage, indirectly fostering a future customer base without overtly marketing expensive products to children.

UGC 3D

My one significant concern with platforms like Roblox is the unregulated nature of user-generated content. These 3D worlds are vast and diverse, with much of the content created by users. While this fosters creativity and community, it also opens the door to potentially unsafe environments for children. Inappropriate content, cyberbullying, and exposure to unmoderated interactions are real risks. The lack of stringent regulation and oversight means that children can easily encounter harmful content, making it crucial for brands and parents to be vigilant about the digital spaces their children engage with

Alternative Strategies for Luxury Brands

Luxury brands can still leverage these platforms by focusing on collaborations that resonate with older audiences. For instance, hosting exclusive virtual events, creating limited-edition digital collectibles, or partnering with well-known influencers and creators within the platform can maintain the brand’s aspirational allure while engaging a broader demographic.

Sports teams and organizations can also benefit by creating interactive fan experiences, virtual merchandise stores, and immersive environments that enhance fan engagement without directly targeting children with high-end products. The exact reason we’ve built our new product ONIO.

Conclusion

Brands, including luxury ones, can find immense value in platforms like Roblox and Fortnite by creating engaging, aspirational experiences that resonate with users. However, it’s crucial to approach this with a balanced strategy that considers both the potential benefits and the ethical implications. By doing so, brands can build lasting connections with their future consumers in these vibrant, virtual worlds.

I would love to hear other people's thoughts about the topics at SEG3 so feel free to share your thoughts and experiences with brand activations in the metaverse.