Facebook’s new plan to create a digital world called the Metaverse has been making headlines. But, what is it? And, how does it work? In this blog post, we’ll take a closer look at Facebook’s plans and how they will affect advertisers and marketers.
After all, the augmented reality market size is expected to reach a mind-blowing $340.16 billion by 2028! This type of technology and experiences are going to become the norm across different channels and platforms.
Being prepared for them and the Metaverse will help you become an early adopter and drive massive growth.
Let me explain…
What is the Metaverse?
The Metaverse is a virtual world where people will be able to carry out everyday activities. Facebook has been working on creating the platform for some time now, and you’ll start seeing results in 2022 according to the man himself, Mark Zuckerberg. Here’s a video that explains more.
The thing is, metaverses are nothing new. Augmented reality and virtual worlds have been created by countless businesses. For example, the furniture brand IKEA has their mobile Place app that let’s you see how products would look like in real life.
Much better than spending an entire day to build a desk only to find out it looks ugly in your office, right? 😅
One of the original metaverses was online game called Second Life. It allowed people to own in-game property, have jobs, earn income, advertise, and practically everything you could do in the real world. Facebook’s virtual world will be like that on steroids!
How Does It Work?
Facebook wants users of their site to have complete control over how they appear in the digital space. They’re planning on using avatars as a way to give them that freedom while still keeping users engaged with each other online. You can choose what your avatar looks like and who sees it, no more embarrassing party photos popping up everywhere!
You’ll be able to attend live events, play games, walk around, and interact with almost every aspect of the virtual world just like you would do in-person.
In addition, advertisers will have access to detailed information about user’s preferences so they can reach them through marketing campaigns accordingly. More about that in a moment!
What can you do in the Metaverse?
Facebook plans to allow users to carry our endless activities in the Metaverse. Some of these include:
- Socializing with friends.
- Shopping for and purchasing items online in virtual stores.
- Watching movies and TV shows in a theater or on the couch at home, etc.
- Attending concerts, networking events, and conferences.
The possibilities are endless. This will revolutionize how we interact with others and brands online. The Metaverse is also the perfect place to host live events such as concerts, sports games, expos, conventions. Essentially any real life event that would normally require tickets when it’s happening offline. Users can attend from anywhere in the world without having to physically be there.
How will Metaverse advertising work?
Metaverse ads will be immersive and interactive. And, frankly, they might be one of the most disruptive and unique advertising formats that we’ll see for years to come.
One way we may be able to advertise in the Metaverse is with a virtual object, such as an item for sale or a branded banner ad that has animation and sound effects. If you’re promoting an event like we discussed earlier, your brand mascot could be able to greets users when they enter a venue.
Ads can also take over entire walls of buildings, floors of shopping malls, etc., just like billboards do now offline. This makes them impossible to miss which means higher click-through rates than traditional display advertising on desktop computers because users are actively engaged rather than passively consuming content while scrolling their feed in-between selfies and cat videos.
This will be, of course, a brand new advertising channel and model that will change rapidly. Brands will adopt it, updates will happen to the platform, and new strategies will emerge. It’s all about getting it on it early to maximize the return on investment.
Opportunities in the Metaverse for advertisers
Next, let’s get into the nitty-gritty of what we believe will be the real opportunity for Metaverse advertising.
Adopt augmented and virtual reality before competitors
If you’re a marketer, this is the time to get on board with augmented and virtual reality. These are technologies that have been getting developed for several years and hold serious potential for driving growth. If you master these technologies, leveraging the Metaverse to acquire customers will be a walk in the park.
What I also what you think about is that 58% of consumers are amazed by watching content in virtual reality. I predict that good advertisements in the Metaverse will have extremely impressive engagement and conversion rates.
Become familiar with virtual reality and augmented reality. Look up examples and brainstorm how your brand could implement it. Snoop on competitors that are doing the same. Keep up to date on Facebook’s process on the Metaverse to stay one step ahead.
Create a community that people can be a part of
In order to get people engaged, you need to create a community that they can be a part of. We all know how powerful social media has been in building communities and if brands want Metaverse to drive sales, they will have to connect with the right audience.
Zucks himself said that it could take 5–10 years to see all of the key features of the Metaverse fully fleshed out. So, it’s up to all our imaginations to think of what it will look like in the long term.
However, we do know a few things. It’s going to be a digital reality in which we can work, play, and stay connected with friends and family. We’ll be able to completely live in the virtual world.
Just like you would create a Facebook group to keep in touch with customers and prospects, we may be able to create a similar sense of community but with augmented reality.
Virtual changing rooms
Are you a fashion brand? If so, you’re in luck! One way you may be able to leverage the Metaverse is to allow customers to try on different outfits and see how they look before purchasing them. Not only is this a wicked advancement in technology, but it will also greatly add to the customer experience, increase sales, and decreases refunds/returns.
Check out Gucci’s virtual reality experience that let’s you see what shoes look like on your feet before buying them! No more going to the store and trying on shoes.
Hold virtual conferences and events
We’ll be able to create branded experiences like concerts where fans can purchase merch from their seats without leaving the concert (and avoiding long lines). Networking events, conferences, and similar will also most likely be a part of the Metaverse seeing as the corporate version is the first to get rolled out.
A cool and related example is hologram technology that’s being developed that allows you to be in front of a greenscreen but project yourself somewhere else! Watch this TikTok to see what I mean.
You know how when you’re driving down the road and you use a big billboard with a business advertising on it? Yeah, that’ll be a thing in the Metaverse. In fact, digital marketing expert Jason Velliquette commented on this, saying, “So in the same way that we have billboards on the side of the road or [out of] home signage, brands will still be able to buy these types of placements within a Metaverse environment or a 3D environment.”
You’ll be able to place digital billboards in high-traffic or specific areas (just like you would with a physical billboard) to drive awareness and sales for your business.
Non-fungible tokens (NFTs) will play a role
It’s not a stretch to say that NFTs will become a part of Facebook’s Metaverse. To put it simply, non-fungible tokens allow you to own a digital asset. For example, if you play Fortnite and buy items or characters, you own it in the game but not real life. NFTs are normally in the form of digital art but you get my point.
With that in mind, you could offer items and collectibles related to your brand that people can use and show off in the virtual world. This encourages them to make purchases and become ambassadors for your brand, just like someone rocking a Nike t-shirt or Rebook sneakers in real life.
Final thoughts on Metaverse advertising
The Metaverse is just around the corner and brands that are ready to take advantage of it could change their business forever. Think of it like when Google Ads was just first released. Ads were dirt cheap and people made millions. This is another gold rush. Don’t miss out on it.
Familiarize yourself with augmented reality and brainstorm strategies you can use as it rolls out. If you need world-class media buyers to manage your paid ad campaigns, apply to become a Profitable Ads client.