Web3 is touted to have the potential to change the way systems work globally. And the world of marketing and advertising is and will not be privy to it. Much like how marketing took the form of digital marketing, it will now have to embrace the possibility of becoming decentralized in nature and adapt to the technologies of Web3 and Metaverse.
While Metaverse and Web3 will take a few years to take their full form, advertisers and marketers need to be prepared and get going on it.
Why the need to adapt?
Brands such as Nike, Hyundai, Adidas, Gucci, Louis Vuitton, and Samsung have embraced the virtual world and made it work for them. Demand Sage shared that the majority of revenue earned by the Metaverse came from advertising and made USD 114.93 billion in 2021.
Thoughtworks, in April, announced the purchase of its digital land in Jump.trade’s RADDX Racing Metaverse to leverage innovative ways and broadcast their brand and message. In March, Maggi announced the launch of its NFTs on OneRare Foodverse for reaching out to their fans and foodies in an all-new avatar. Puma announced Black Station 2 as an experimental 3D spatial playground for users to explore the virtual experience offered and/or mint NFTs by connecting their wallets.
“Brands should consider Web3 and Metaverse advertising and marketing over traditional methods due to the unparalleled potential for immersive and interactive experiences. By embracing these innovative approaches, brands can enhance their brand awareness, foster customer loyalty, and drive meaningful connections with their target audience. More importantly they no longer are constrained by geography and can sell to/engage customers anywhere literally,” shares Piyush Gupta, CEO, VOSMOS, a Web3 and Metaverse-oriented marketing company,
The user base will expand
Long story short, the user base for Web3 and Metaverse platforms will keep on increasing. The key reason for it is the control over data and the increase in privacy and security. Metaverse is reported to currently have 400 million monthly users as of 2023 and is expected to reach 800 billion users by 2028.
Users are and will be drawn to the virtual and decentralized world because of features such as ownership and control of digital assets, data and identity, transparency and trust, and enhanced privacy and security.
“With this strategy, brands may capitalize on the expanding trend of digital innovation while forging closer ties with their target market and staying ahead of the competition,” shares Hiren Shah, Founder & Chairman, Vertoz.
Why marketers and advertisers should tap into it
User engagement, direct communication, data ownership, and tokenization are the main reason why marketers and advertisers should tap into Web3 and Metaverse.
- Tokenization- Tokenization lies at the centre of Web3 as a concept. With cryptocurrency and NFTs, brands can create an incentive system for users upon engaging with the brand content. The users can be rewarded with tokens which in turn can be utilized with the brand.
- User engagement– Web3 will bring transparency to the table for the two parties. The relationships on this platform will be built on direct communication and trust. Marketers and advertisers will be able to learn the likes and dislikes of their target audience and how they engage with a brand publically.
- No middleman involved– The concept of tokenization and smart contracts will help remove intermediaries and middlemen from the process. Marketers and advertisers will be able to directly incentivize users to engage with them without any platform or ad networks coming in between. When it comes to marketers and advertisers, and influencers, the two can strike a deal with the need of any intermediaries, such as talent agencies or influencer marketing platforms.
- Data ownership- Users will have more control over their data and will have more privacy and security. The data can be monetized by the user at will. A possible aspect of Web3 can be focused on enforcing data confidentiality and integrity on each transaction by having the owner of the wallet ‘sign it’. This concept can see advertisers and companies seeking permission from the user to access and use their data and have the user be compensated accordingly.
When should a brand think of using Metaverse and Web3?
“Firstly, understanding their target audience’s presence and engagement within these platforms is crucial. Secondly, brands should ensure their messaging and experiences align with their core values and resonate with the audience in the virtual space. Lastly, brands need to evaluate their technological readiness and capacity to provide immersive experiences,” shares Shah.
“There needs to be clarity on why the brand is getting into metaverse and what the short and long-term goals are. For example many brands are not there for sales but to reinforce and deliver a more immersive brand experience to their consumers. Second is ensuring readiness in terms of scalability and accessibility, in order to deliver a consistent and effective experience to a diverse and global audience, before taking the plunge. Half-hearted attempts simply backfire and do more harm than good. Last, look at aspects like security since web3/metaverse needs to be seamlessly integrated into the company’s existing systems/channels and that poses a potential threat if not well protected,” adds Gupta on being asked the question.