Marketing in the Metaverse: using Web3 and tokens

Introduction

The blockchain apparently has not much to do with the core technologies used to build the Metaverse. However, behind the scenes, the Metaverse and the Web3 come together to build innovative applications. These applications can be disruptive in the next years.

What is the Metaverse

The term metaverse has been popular for months now, but what is it? It’s a digital universe where people can experience a life parallel to their existence in the real world.

It could be a space where people, through their avatars spend their free time, join videogames, work, develop relationships and do whatever else usually happens in real life.

The metaverse enables people to have virtual identities, presence, including peer-to-peer interactions, carry out transactions, use or produce user-generated content. Users can create they own world by building virtual spaces like houses, offices, etc.

The social networks of the future will be Metaverse-based allowing then new forms of interaction among users.

The Metaverse relies on some key technologies: Virtual Reality, Augmented Reality, Mixed Reality, 3D graphic engines, AI, etc.

What is the Web3

Web3 is the new variant of the Web which incorporates concepts such as decentralization, ownership, trust, native payments, resistance to censorship and it relies on blockchain technologies. Web3 allows then to build token-based economies within the application or service.

In the vision of the creators, the Web3 content does not belong to the giant internet players, like in Web 2.0, but it rather belongs to the users, the one who has generated it.

Metaverse and Web3

The metaverse can also be a space to do business, not only because you could open the offices of a company and then carry out commercial activities, but also because you can buy, sell and rent all the resources that exist. For example, real estate.

The metaverse includes a fully functioning virtual economy. It is often built on cryptocurrency and digital goods and assets, including nonfungible tokens (NFTs). Here is where the Metaverse and Web3 come together.

The integration of the Metaverse with Web3 allows enhanced marketing possibilities based on the use of tokens. Basically all what you can do using tokens in order to create communities, reward customers, create loyalty programs using the blockchain can be done even more effectively in the Metaverse. In a graphic, immersive enviroment some complexities of Web3 can be easily hidden and make it easy to use for everybody.

Marketing in the Metaverse

As the Metaverse-based platforms will host billions of users, like social networks today do, they will be a place ideal for carrying out also marketing activities.

Consumers tend to see brands in the metaverse as innovative. So just being part of the Metaverse is a powerful marketing action.

However, consumers have high expectations and look for exciting and engaging experiences.

In their marketing strategy for the Metaverse, companies need to determine the ideal balance between native advertising, immersive experiences such as  games, virtual stores, events, and sponsorships, and real-world activations to complement the metaverse.

Physical-to-virtual and virtual-to-physical transactions allow to integrate the Metaverse with real world experiences. In the omnichannel strategy, the Metaverse is yet another channel to be integrated in a coherent and effective way. Not only on the retail side but also at marketing level. 

Just to give an idea of the impact of marketing initiatives in the Metaverse, last year Gucci drew 19.9 million visitors in two weeks when it launched a metaverse version of its real-world Gucci Garden on Roblox. 

Marketing in the Metaverse using Tokens

Enterprises across the world are experimenting with token technology to engage their customers. The technology associated with the non-fungible token (NFT) enables faster innovation. It enhances the appeal of customer experiences, and helps companies reimagine how to market and sell goods, services and digital assets. 

The adoption of NFTs by brands and retailers is rapidly increasing in popularity. The reason is the ability to trace usage and apply smart processes that respond to their ownership and use.

Tokens enable entrepreneurs to create a system of incentives at global scale using the Metaverse as platforms. Hence, tokens are a powerful tool to support marketing strategies in the Metaverse.

Tokens could give exclusive benefits to customers and fans with token access. E.g. you might get access to a special discord channel or you might have initial access to a special event. Getting access to exclusive content via tokens is a key element. In fact, it creates customer engagement through a feeling of exclusivity that customer like.

For instance, a car manufacturer could give away tokens to people who want to be the first to see the look of a new model. Or to join premiere presentations, or register to a virtual or physical test drive. The same may happen for a fashion brand.

Players can win these tokens by playing a game in the Metaverse or by buying a company product. Either in the Metaverse or in a physical shop.

The use then of NFTs as a digital representation of physical products of the company opens up new business opportunities to sell digital products in addition to physical ones. It then creates the possibility for users to sell the purchased item both in the Metaverse and outside of it.

There is actually a huge number of use cases for engaging or rewarding customers and building customer loyalty.

Conclusions

The metaverse already gives companies significant opportunities for brand building and marketing. The current technological limits and modest level of mainstream adoption are not an obstacles for experimenting, learning, and finding success with marketing in the metaverse.

Although there is still some skepticism about the metaverse and the promise may take some time to realize, companies should start exploring what the metaverse and Web3 can offer. It is the right time to be open to experiments in this key field that can soon turn into a game changer.