Will the Metaverse Change The Future of Digital Marketing?

The popularity of gaming within the Millennial and Gen Z audience groups is not a new trend, as a matter of fact, gamers span across generations. It could be argued that baby boomers were the first gamers, pinball machines which were the forerunner to extremely popular arcade video games like Asteroids, Space Invaders and PacMan, introduced in the early 1970’s and 80’s and often described as the ‘golden age’ of arcade games in popular culture (Northfield, 2018). Today 42 percent of boomers are still avid gamers, but video game engagement with the younger cohort groups has hit astonishing levels. In a recent generations report, 77 percent of millennials average over six hours per week gaming, with 81 percent of Gen Z gamers averaging over seven hours and twenty minutes (Weustink, 2021). But, the most interesting fact that has grabbed the attention of digital marketers and retailers is a recent report that shows 65 percent of Gen Z consumers have spent real money of virtual items such as specialized gear and character modifications that exist only in the virtual game (Dart, 2021). This means digital marketing strategists who want to tap into this new-found market cannot get into the gaming business fast enough.

Enter the new popularity of the “Metaverse”. And for the few of you who may not have already heard, Facebook CEO, Mark Zuckerberg recently renamed the company Facebook, to now be known as “Meta”, which is the Greek word for “beyond” to reflect the company’s commitment to the new Metaverse (Mileva, 2022) And even though it could be five to ten years before social virtual reality becomes mainstream, many digital marketing experts agree that brands need to get in the game early, to give them time to become fully emersed in the technology and clearly understand not only the medium, but this unique audience profile.

So how exactly will the Metaverse change digital marketing strategies? This new marketing platform will allow brands to interact with consumers in ways never before imagined, without geographical limitations or expensive marketing campaigns that take years to develop (Quin, 2021). Venture capitalist expert, Mathew Ball explains, that ultra-realistic games like Flight Simulator, Fortnight, Roblox and others can allow marketers to experiment with interactive advertising that creates a natural blended interaction that can change as players move through the game, creating a marketing experience that comes to life, not just as static product placement (Dart, 2021). Megabrands such as Nike, Gucci, Adidas and Hyundai are early-adopters who are already partnering with the biggest gaming developers to launch new automobiles of the future, fashion lines and retail experiences that create downloadable virtual goods for in-game avatars. And as users spend time with the brand in the Metaverse, marketers can gain real-time data regarding purchase behaviors and product or service preferences (Quin, 2021).

Marketing possibilities for brands in the Metaverse seem unlimited, and digital strategists need to get on board, but, like every new digital technology opportunity, it does come with a few possible complications. Data security, cyber-attacks, and privacy leaks are always a serious possibility, but even more serious legal threats such as copyright infringement, and intellectual property ownership such as non-fungible tokens, (NFT’s) which could create major challenges concerning rights management (Mileva, 2022). And while this exciting new marketing platform comes with both great possibilities and a few serious concerns, the reality is, the Metaverse could reshape the marketing world as we know it, the possibilities are endless, but we must address the challenges now before we get too far down the virtual road.

References

Dart, S. (2021). How The Metaverse Will Transform Digital Marketing. Ceros. https://www.ceros.com/inspire/originals/metaverse-digital-marketing/

Mileva, G. (2022). The State of The Metaverse 2022: Challenges and Opportunities. Influencer Marketing Hub. https://influencermarketinghub.com/state-of-the-metaverse/#:~:text=Potential%20issues%20that%20could%20arise,sense%20of%20time%20and%20space/

Northfield, R. (2018). Gaming’s Golden Age: The Top Ten Retro-Vintage Arcade Classics. E&T. https://eandt.theiet.org/content/articles/2018/07/gaming-s-golden-age-top-10-retro-vintage-arcade-classics/#:~:text=The%20late%201970s%20to%20mid,were%20highlights%20of%20this%20period/

Quin, A. (2021). What Is The Metaverse And How Will It Change The Online Experience? Forbes. https://www.forbes.com/sites/forbesagencycouncil/2021/12/21/what-is-the-metaverse-and-how-will-it-change-the-online-experience/?sh=7de0b702f32a

Weustink, J. 80 Percent of Gen Z And Millennial Consumers Play Games. NewZoo. https://newzoo.com/insights/articles/consumer-data-gen-z-millennials-baby-boomer-gen-x-engagement-games-esports-metaverse/