Role of Metaverse in Marketing
Name: Akshat Ajmera
Student ID: A0266852U
Module: MKT1705D
Professor: Ms. Regina Yeo
Essay Deadline: Wed 19 October 2022, 2359
Tuesday, 18 October 2022
A Digital Transformation
With the advent of technology, human civilization has taken unprecedented jumps in terms of
advancement. Modern society, as we know it today, is vastly a result of technological
developments in recent history. While the future of human civilization is uncertain, the only
constant in this paradigm is technological advancement.
One such potentially game-changing technology in business is the metaverse. “Metaverse is a
broad term. It generally refers to shared virtual world environments which people can access
via the internet” (Reuters, 2021). “According to crypto-economy expert Grayscale, the
metaverse may create up to $1 trillion in annual revenue” (Sciforma, 2022).
What does this mean for businesses?
Metaverse is yet another development that can potentially make or break businesses. While
value creation through the metaverse, as a result of the generation of new income streams and
strengthening of the existing ones, can be in the trillions, its impact would depend on the
foresight and judgment of the business.
More specifically, the business world can employ the metaverse to create a multidimensional, highly engaging, and digitally optimized virtual marketplace and transform not
only its market offering but also the consumer experience altogether.
In the context of marketing, the metaverse can prove to be ground-breaking by providing new
marketing channels and creating truly digital brand identities in unique ways. Companies will
be able to create a virtual reality marketing platform of their own, which traditional
marketing cannot achieve, and push their marketing objectives in the digital world thereby.
For instance, Nike launched its metaverse platform Nikeland in November 2021. “Seven
million people have visited Nikeland, the sportswear giant’s metaverse offering, five months
after it opened” (Iddenden, 2022). Another such metaverse platform is Hyundai Motor’s
metaverse space on Roblox, called Hyundai Mobility Adventure. It aims at showcasing the
future of the automobile industry and advanced mobility products, thus building a community
around its products (Hyundai Motor Vitalizes Future Mobility in Roblox Metaverse Space,
Hyundai Mobility Adventure, n.d.).
In the context of such developments, it is imperative that marketers act as early adopters of
the metaverse, and appeal to the ever-changing and growing market with a focus on
capitalizing on the intricacies of the metaverse and rationalizing the risk involved.
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Metaverse Marketing Strategy
1. Boosting Connectivity: The harmonious functioning of human civilization is reliant on
social interaction, shared emotions, and a sense of belongingness. Consequently, the
need for connectivity is of paramount importance to consumers. The Metaverse
provides an opportunity to encompass exactly that. In this context, unprecedented
connectivity can serve as the factor differentiating metaverse from customary
marketing methods. According to research conducted by McKinsey & Company,
almost 60% of surveyed consumers are excited to adopt the use of metaverse in their
day-to-day activities, with 44% of the participants believing connectivity with people
is the main motivator. Brands can leverage this fact through the wide adoption of
virtual techniques to promote social activities like festivals, concerts, parties, sports,
shopping, gaming, etc. and create a unique brand image (“Value Creation in the
Metaverse,” 29).
2. Enhancing Consumer Experience: The metaverse offers a platform for marketing
tools and creating a personalized consumer experience that cannot be done through
traditional methods, for instance, virtual stores and interactive interest groups. Prudent
businesses should focus on taking advantage of this benefit and set apart their market
offering from the competition by maximizing consumer benefit, satisfaction, and
pleasure. “Fast food restaurant chain Wendy’s has also been exploring the
opportunities of the metaverse, capitalizing on the huge popularity of Fortnite to
release its own branded game called “Food Fight.” The brand streamed the online
game on Twitch and quickly reached more than 250,000 views” (Dias, 2022).
3. Exploring Various Use Cases: Metaverse, by its very nature, opens up channels of
new marketing methods and practical applications. While they could prove to be
beneficial, the Metaverse involves a lot of risks as well. Businesses should adopt the
Kaizen Philosophy, testing various strategies and learning from mistakes, thereby
modifying their market offering and optimizing marketing efforts. There are countless
examples of companies already engaging in new ways of metaverse marketing.
Adidas’ metaverse strategy, launched in December 2021, comprised the Bored Ache
Yacht Club, membership of which conveyed exclusivity and provided benefits like
exclusive access to products and events. This helped in building hype for its products
and harvesting a community around its metaverse platform. (McDowell & Chitrakorn,
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2021). Coca-Cola’s special digital collectibles drop, capturing a theme of connection
and unity, is another potent example of building a metaverse community and
rewarding loyal fans with perks and rewards like exclusive experiences, gaming
events, and early access to limited edition products. (Coca-Cola Marks First
Anniversary in the Metaverse With Collectibles Drop on International Friendship
Day, 2022).
4. Integrating Metaverse Marketing with Traditional Marketing: The optimal mindset
behind a metaverse marketing strategy should not be to view it as a substitute for realworld marketing. Instead, metaverse marketing should be treated as a complement to
the existing marketing efforts and henceforth create a truly seamless and omnichannel
customer experience. For example, augmented and virtual reality could be utilized to
let shoppers explore, review, and try out products before actually making a purchase.
Moreover, the metaverse can be treated as a testing ground to release new products
first virtually, and if successful, then in the real world (Chaudhary, 2022). Online
luxury goods reseller SFLMaven, opened its store in Decentraland, a platform for
buying and selling digital assets. Through this initiative, it attempts to create a link
between its metaverse offerings and eBay listings as well as encourage its eBay
customers to engage in metaverse shopping by providing special perks (Silberstein,
2022).
5. Personalizing Marketing: Marketing in the metaverse has limitless potential to apply
the complex technologies of machine learning and artificial intelligence. Businesses
can employ these technologies which can help to recognize trends and patterns in
consumer behavior and hence personalize marketing efforts to cater to a particular
consumer, improving the efficiency of marketing. For example, artificial intelligence
is being used to create accurate avatars of humans, create 3-D digital chatbots as well
as use natural language processing algorithms to bridge language barriers, and overall
create a more inclusive and engaging experience for all (Editorial Staff, 2022).
Key Business Takeaways
While the Metaverse is still a concept in development and is full of risks, it will be a
prudent strategy for businesses to start exploring the avenues of possibilities with
preemptive acceptance of possible failures, otherwise, such businesses might be left
behind in the technological development of society. As history has shown throughout,
only those that embrace change and adapt to new conditions, prosper.
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References
Chaudhary, J. (2022, September 19). Marketing Strategies To Break Into The Metaverse.
Forbes. Retrieved October 18, 2022, from
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Coca-Cola Marks First Anniversary in the Metaverse with Collectibles Drop on International
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Iddenden, G. (2022, August 30). Nike records nearly 7 million visitors to its metaverse store.
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