What is the metaverse?
Virtual space where you can access with an avatar. In it you can play, or interact with other people or avatars. In this virtual space you can access through any computer screen, cell phone or virtual reality glasses.
Why is the metaverse attracting so much attention right now? Like any emerging technology, there are more opportunities to make money in its initial state. This obviously attracts people.
The most obvious way to make money in the metaverse is through the purchase of virtual land, which you can customize. Then you can advertise your company, displaying collections of NTFs, and you can even rent that same plot of land. There are even companies that are dedicated to the marketing of virtual properties, such as real estate in the digital world, for example https://metaverse.properties/.
The analogy we could make is whether these virtual spaces will end up being like the current domains in the 90s www.xyz.com. Don’t forget that there have been domain purchases for very significant amounts of money.
That being said, we would like to highlight the 3 metaverse projects with the highest market capitalization as of today:
It is a virtual open world, based on the Ethereum blockchain, that allows its users to build, play, own and monetize their virtual gaming experiences and ideas. https://www.sandbox.game/en/
It was created in 2018 by the US video game development company, Pixowl, building on the idea of two video games with the same name that they designed years earlier: The Sandbox (2011) and The Sandbox Evolution.
Interestingly, both games were successful and, together, generated 40 million downloads on iOS and Android gaming platforms. As a result, its creators decided to take the The Sandbox’ metaverse to a whole another level: blockchain technology.
It is a virtual reality platform supported by Ethereum. In this virtual world users can buy plots of land then they can walk around, build on them and monetize them. There is no limit to what users can do. It is the first digital platform that is completely owned by its users. https://decentraland.org/
It allows users, i.e. bloktopians, to earn passive income through renting out the NFT spaces they own for advertising, ownership of real estate, games to win, building networks, etc. https://www.bloktopia.com/
Beyond the fever that exists today for cryptocurrencies (which we will not go into) it is interesting to see how brands are getting into the metaverse. Some tangible examples already are brands buying digital parcels and advertising their products and services. Below we give you some examples:
Examples of advertising in the metaverse
The brand has taken its first steps in the metaverse. The Oregon-based company has applied to register different virtual models this week that indicate its intention to sell virtual sneakers and apparel under the Nike brand. According to the U.S. Patent and Trademark Office, Nike filed applications on Oct. 27 for “Nike,” the brand’s famous “Just Do It” slogan, and its swoosh logo. The following day, two more applications were filed, for the “Air Jordan” and “Jumpman” logos. In total, seven different applications were submitted. This is the first step to seeing avatars wearing their branded apparel, all instrumented through NFTs. This scenario describes what would be the mecca of applying blockchain technology through NFTs with marketing and gamification. This is not the brand’s first raid into the virtual world. In May 2019, Jordan Brand partnered with Fortnite, where characters wore Nike-branded sneakers.
Adidas has announced its partnership with Sandbox (a metaverse supported by the ethereum network), in addition to partnering with Coinbase. Unfortunately, details are still unclear. Adidas has not disclosed why it has decided to make these key partnerships. Nevertheless, the crypto community on Twitter has immediately speculated about possible NFTs associated with the brand.
Gucci Garden Experience is a small metaverse created through the Roblox project, in which you can embark on a virtual tour through a random series of themed rooms, each of which takes its cue from Gucci’s advertising campaigns, design history and muses.
People like to collect things, and the metaverse is another space to showcase this interest. You can make the same experience available in the metaverse by offering assets or limited edition items that people can only collect in the metaverse.
For example, the Gucci Garden experience in Roblox offers The Collector’s Room. This allows people to collect limited Gucci items in the metaverse. Gucci, from its initial sales of collectible items, collected 286,000,000 Robux from the game, a virtual token that can only be used for Roblox games.
NASCAR will launch a long-year plan to showcase its brand to young gamers on the popular Roblox platform. To start, NASCAR is launching a digital car in the platform’s Jailbreak game and is selling apparel for player avatars. Players will also be able to design their own NASCAR uniforms as part of a fan contest, with the game’s developers acting as influencers to promote it on social media.
Jack Myers, founder of MediaVillage projects that video game advertising investments will grow from $1.9 billion in 2016 to $2.3 billion in 2020. According to SuperData, there is now a larger audience for video games than the combined audiences of HBO, Netflix, ESPN and Hulu.
But this conversation isn’t about putting your brand in a video game. It’s about thinking differently. Advertising has evolved since the days of billboards and commercials. Brands are constantly evolving to deliver less noise and more value.
Consumers are willing to trade their time and attention for meaningful things and experiences. In a Metaverse where anything is possible, brands will have to shift the conversation from “what is” to “what could be”.
In the end it will all depend on where the consumer’s attention is. The metaverses and projects that offer the best user experience and entertainment will be the winners and will end up being rewarded by the brands.
That’s all, if you want your brand to start having a presence in the metaverse, do not hesitate to schedule a call with us so we can advise you on the best way to maximize your visibility.