Media Analysis

Are you ready for the Metaverse?

The Metaverse is here, says Kate Moncur, associate director of Generation Media, and brands need to understand it and know what they should do to make the most of it

The Metaverse, or Web 3.0, is coming (or is already here, depending who you listen to). But what is it? And why should brands be paying attention?

The Web 3.0 will function much more as a new digital economy, allowing users and brands to own currency, content, NFTs [Non-Fungible Tokens], online real estate - you name it - via blockchain [a digitally distributed public ledger that exists across a network]. The concern is, however, that as much as this appears a democratic approach to building the Metaverse, the reality is that at least initially it will be formed by major corporations with the

budgets to match their ambitions. “ Gaming has

Facebook’s ownership structure has recently rebranded to Meta; Disney has outlined that the Metaverse lies at the heart of its future investment strategy, and Epic Games has announced a $1 billion fund to build its vision of the Metaverse. The good news is that to make their visions of the future successful, they will need to create something that benefits and engages users, which other brands can then capitalise on.

So, what should you be doing right now with your brands? Outside the growing field of Crypto-based digital worlds, gaming has been, and will continue to be, the gateway to the Metaverse for the majority of both users and advertisers. In practice however, early attempts at Metaverse advertising amount to little more than ingame advertising.

Gaming platforms should be considered as a fundamental part of any effective advertising strategy alongside the likes of YouTube, social media and linear TV. After all, there are more than two billion active gamers worldwide, and placing seamless advertising (such as in-game billboards) can enhance brand awareness. This is particularly important for children’s brands, given that according to TGI data, 40% of Gen Z play mobile games, rising to 64% for Gen Alpha (based on Giraffe

Insights’ Little Voices Survey of children aged six to 12). The key to benefitting short term within the Metaverse is understanding how it can best meet your objectives, while not getting caught up in the hype unnecessarily, and investing over the odds in something that does not. Look at what Nike has done, for example. been, and will continue to be, the gateway to the Metaverse for the majority of both users and advertisers “

Nikeland, built in online game Roblox, offers players the opportunity to interact with gaming content designed specifically for the type and demographic of player that Nike wants to engage with, while offering opportunities to build brand awareness and encourage physical purchase by styling your avatar with Nike products (see images).

The budgets required to build areas such as Nikeland are beyond most toy brands, but there are plenty of cost-efficient ways to enter the Metaverse. Partners within the gaming space such as Playwire and Venatus offer dynamic in-game billboards placed throughout popular Roblox games, at an extremely cost-efficient rate and with minimal entry costs.

There’s also the ability to run in-game contests, which are sponsored by your brand, tracking in-game achievements to reward gamers for their favourite pastime. Recently activated by Kellogg’s, users were served with in-game notifications and newsletters as well as the contest itself - all layered with Kellogg's branding.

The future of the Metaverse will be far more enriching for brands as big businesses increase their investment in the infrastructure required to build their visions. Instead of being restricted to the sandbox experiences of the present, imagine instead children entering a virtual world that is procedurally generated based on their preferences and previous interactions. These worlds will not only be populated by fellow users, but also unique AI companions built on how the child chooses to interact with this world.

To find out more about how we can support your brands within the Metaverse, please get in touch.