Is there a need for brand promotion in the metaverse?
Following the hype that accompanied the development of the metaverse concept, brands have begun to consider the feasibility of having a presence in virtual reality. As innovative products such as AI emerge, there are more issues for professionals to consider. These include increased security and privacy requirements that are transforming the evolution of promotion in the metaverse.
Virtual reality platforms present high risks in the storage and transmission of personal data. This has led to a slowdown in the industry, which may seem like the end of an era to some sceptics. However, many experts believe that the current lull in the industry is more likely to serve as a powerful catalyst for its transformation. In addition, many brands are increasing their presence in the metaverse to attract young consumers in particular. This approach is showing promising results in attracting new users to their communities.
Perspectives of brand promotion in the metaverse
The decreasing attention to metaverses is mainly due to the growing demand for AI solutions. Many companies are closing their virtual reality divisions and focusing on artificial intelligence. A prime example is the Meta Platforms division, which was considered the most prominent advocate of metaverses. Now, even they are paying more attention to artificial intelligence.
Nevertheless, brands continue to actively pursue marketing strategies in the metaverses. According to Deloitte’s trends report, only 10% of business leaders surveyed consider virtual space an irrelevant advertising tool. Companies are increasingly working with developers to create NFTs and integrate their services and products. Large companies are increasing their investment in metaverses, including Pepsi. They are implementing new marketing approaches that help attract consumers while keeping their data secure.
Running an advertising campaign in a metaverse is different from running it in other digital channels. Among the characteristics of virtual advertising, experts highlight:
- Strict requirements for user privacy and safety. Regulators ensure that brands do not use covert advertising aimed at children. This makes it difficult to attract young consumers.
- Not all marketing activities yield quick results. It is essential to gain the trust of community members and create the conditions for their participation. Only then can we expect a return on investment.
- Reach in metaverses declines as users quickly lose interest. This is where a company needs to be able to keep the consumer’s attention and turn them into buyers of the brand in virtual and real space.
- Gaming platforms, where the metaverses are in use by a large number of people, have been of particular interest. Roblox, for example, has more than 200 million monthly active users of all ages.
It is difficult to predict where metaverses will be in a few years’ time. However, they remain an effective advertising tool for young consumers. In turn, brands need to develop a strategy based on data protection rules.
