Brands are using metaverse as a marketing tool for reaching and educating prospective customers

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Over the last few years, the marketing industry has been evolving continuously. There have been several factors responsible for the changes in the marketing landscape, a few of which includes accelerated digitalization, demand for privacy, and the arrival of the metaverse. The changing consumer expectations and behavior, have compelled brands and marketers to adopt innovative strategies to reach, attract, and educate prospective customers. For instance,

• In October 2022, McCain Foods, the firm behind the famous McCain fries, announced its foray into the metaverse sector through a partnership with Roblox and Bored & Hungry, an NFT-themed restaurant. Notably, the firm launched its newest product, Regen Fries, which is part of its SaveOurSoil campaign, an initiative that aims to educate consumers and younger audiences on the benefits of regenerative agriculture.
• In partnership with Roblox, McCain launched a free-to-play game that allows consumers to virtually grow potatoes using regenerative farming techniques. Furthermore, consumers also receive rewards for using regenerative practices. Notably, the launch of the metaverse game is part of the firm’s strategy to build a community and raise awareness among consumers for building a sustainable farming environment globally.

Notably, many retail brands are turning to metaverse to reach their prospective customers. For instance,

• In October 2022, Claire’s, the kid retail firm, announced its foray into the metaverse sector. Notably, the firm created a virtual destination, ShimmerVille, on the Roblox platform. Through ShimmerVille, the firm is looking to amplify the brand's reach among Gen Z and older members of the following Gen Alpha community.
• The firm has positioned ShimmerVille as more than a game. Visitors can earn digital currencies by playing games and completing retail jobs. These currencies can then be used for purchasing accessories for homes, avatars, and vehicles. The venture into the metaverse sector is part of the firm's strategy to reach its target audience.
• In October 2022, Coca-Cola also announced that the firm had built a metaverse marketing trove with TMELAND, a virtual music platform. Under the partnership, Coca-Cola opened a metaverse zone for its Fan Festival in China, which has garnered eight major brands and more than 300 customers along with several entertainers.
• The Fan Festival is accessible through WeChat Mini programs, wherein users can create avatars and explore the virtual world. Along with shopping, users can also play games and take pictures with celebrity avatars. Furthermore, the firm is also offering rewards to users to incentivize their participation. Notably, the launch is mainly targeting Gen Z users, among whom the metaverse has garnered increasing popularity.

The prominence of the metaverse is growing increasingly among brands and marketers around the world. According to TechInsight360’s Global Metaverse Survey, key companies in consumer focused sectors have started spending over 5% of their digital marketing budget on metaverse. Furthermore, 37% of marketers are planning to incorporate metaverse as a channel over the next eight quarters. Notably, the retail and the business services industries are the ones that see the metaverse as a strong channel to reach potential customers. 

From the marketers’ point of view, there is also great potential on the consumers' side, as the interest among consumers is expected to grow significantly over the next few years. Furthermore, the report revealed that 57% of the consumers that are involved in the metaverse are in the age group of 18 to 30.  This shows that the popularity of the metaverse is much more among Gen Z consumers compared to other age groups.

Amid this growing interest in metaverse among brands and consumers, digital marketing firms are also stepping into the metaverse world, to capitalize on the growing trend around the world. For instance,

• In October 2022, Deepsense Digital, an India-based digital marketing firm, announced that the firm had launched metaverse services for its clients. Through the launch of metaverse services, the firm aims to create technologically advanced experiences for its clients globally.

Over the next three to four years, TechInsight360 expects more digital marketing firms to foray into the metaverse sector, as the popularity of the digital world continues to grow among brands as well as consumers from the short to medium-term perspective. This will keep driving innovation in the sector, thereby supporting the growth of the industry over the next three to four years.