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Advertising In The Metaverse

  • 10 January 2023

We’ve been hearing about the metaverse, a three-dimensional space that is set to blur the boundaries between the virtual and real worlds, for some time now. Experts on the subject agree that the metaverse will create a host of new business opportunities for companies across almost every industry. But will advertising in the metaverse also be popular? And how will companies advertise in the metaverse? Read on to find out.

Why is advertising important?

Today, marketing content is present in almost every sphere of our lives. This is primarily influenced by the development of the Internet, the popularization of mobile devices, and the increasing number of companies offering their goods and services online. This high supply and demand make it increasingly challenging for businesses and products to stand out from the crowd. The chances of reaching new customers are significantly increased through advertising, without which it isn’t easy to achieve effective business management. It increases the number of sales, has a positive impact on brand recognition in the market, and builds customer loyalty and trust.

Metaverse advertising – what do we know about it?

To begin with, it’s worth explaining what the metaverse actually is. Simply put, the term refers to a three-dimensional digital world in which you can meet avatars of real people, i.e., their virtual characters.

Experts agree that the metaverse will create all sorts of new business opportunities. According to analysis published by Bloomberg, the metaverse market will reach nearly $800 billion by 2024. There is no doubt, therefore, that it will attract huge interest from brands, and it is already certain that advertising will be present in this space.

How can companies advertise in the metaverse?

Ads in the metaverse are already gaining popularity. One example is of beer manufacturer Miller Lite, which promoted its products in the metaverse during the Super Bowl. So why did this company choose to advertise in the metaverse? The answer is quite simple. A competing beer brand had exclusive rights to advertise its alcoholic products during the event as an NFL sponsor. The brand, however, did not have exclusivity in the metaverse.

For this reason, Miller Lite created a virtual bar inside Decentraland’s 3D world. Miller Lite’s beer commercial premiered on TV screens in the digital bar, and those in attendance loved it. This was confirmed by the time spent interacting with the ad, which averaged 20 minutes per user.

In another example, on Halloween 2021, restaurant chain Chipotle opened a store in Roblox as part of a promotion. The event resulted in the most extensive digital sales in the brand’s history. Tressie Lieberman, vice president of digital marketing and sales at Chipotle, believes the dynamic nature of the metaverse is a fantastic fit for the new marketing era.

Advertising in the metaverse – how does it work?

To fully realize the potential of the metaverse world, users need the help of the latest technology. This includes devices like VR goggles, lenses, and high-end computers. Through these technologies, users can connect to the three-dimensional space and take full advantage of its potential, interacting with companies and the advertisements they broadcast.

As it turns out, many world-renowned brands are already experimenting with XR (VR, AR, and MR) technologies. Many of them are also working on scalable solutions for their businesses that are tailored to the metaverse. This is because it allows users to cross multiple boundaries, making activities that most of us could never enjoy in the real world, such as flying into space, almost universally accessible.

In the metaverse, the same accessibility applies to all sorts of goods and services. We can be sure that the possibilities of Zuckerberg’s version of the three-dimensional space will also directly affect the advertising market. Meta has made no secret of the fact that it intends to monetize the metaverse, creating virtual stores to sell sponsored products. Tracking users’ body positions or facial expressions to send them the best possible marketing content is expected to help achieve the best possible results. This is because the metaverse world turns customers from passive observers into active participants in a three-dimensional reality. As a result, they can get to know a product better and test its capabilities before buying it. These benefits mean that advertising in the metaverse has huge potential and will no doubt form a big part of the new virtual world as it grows and develops.

Read also: How To Invest In The Metaverse

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