The brand conundrum - To metaverse or not to metaverse?

The Metaverse has been taking the tech world by storm but what is all the hype about? How is it going to help brands create visibility? Is it something brands should readily invest in already? Before I share my views on this, here’s a quick peek into the term to build perspective.

Prior to the dawn of Web 3.0, we had the most basic form of the ‘read-only web’ Internet called Web 1.0 and then came Web 2.0, which added the social interactivity aspect. Now with the powerful Web 3.0, the internet is suddenly a playground that offers limitless possibilities.

However, the advent of 3.0 also led to tech giants vying for control over data, and users expressed their concern over privacy and started advocating for decentralization of power. Blockchain technology is at the core of making decentralization a possibility through the utilization of cryptocurrencies and consensus algorithms.

The Metaverse is an extension of Web 3.0, and it is essentially a ‘phygital’ world where people can interact with each other and share seamless experiences virtually; from the comforts of the physical realm. Imagine transcending the barriers of the physical world and living out your daily life and engaging in activities, except in the virtual space.

Thanks to the power of AR/VR/AI, all of that is now possible. It is the next step in the evolution of technology and comes with the promise of extensive creative opportunities. Brands are already foraying into this realm by experimenting with AR filters and innovative campaigns. As recent developments show, many leading global and Indian beauty brands have incorporated AR into their social media campaigns with a fair amount of success.

The Metaverse may sound like a virtual reality game on paper, but it holds the potential to change the way we conduct business and create a disruption. With technology like this, brands stand to create unparalleled and innovative experiences, organize business events without the need to travel and engage with customers everywhere in real-time, regardless of the geographical location.

Whether people end up at these events remains a question to be answered for sure.

Similarly, for brands and marketers, the potential for innovation and experimentation within the Metaverse can offer them a chance to provide immersive experiences to consumers.

However, with a lot of engagement already present across 2.0 platforms, we need to be cognizant of how we can use existing means and combine them to offer consumers something niche and unparalleled. For instance, Diageo-owned Johnnie Walker recently created an NFT collection as part of a multi-experience campaign where they sold seven bottles from the rare Master of Flavor series and combined them with seven one-of-a-kind pieces of artwork. All of them sold out within three minutes!

This goes to show that there is success to be found down the road when exploring new avenues with strategy and forethought instead of going all in at once.

Having said that, while leveraging the power of the Metaverse may seem like an exciting new prospect for many, it is still in its nascent stage and investing top dollars in it without considering brand equity and value could prove to be an extremely risky move.

Many brands have been quick to jump on the bandwagon just to be one of the ‘first’ to mark their presence in the Metaverse, but that, in my opinion, is a folly. Businesses bank on the first-mover advantage to give themselves an edge over the competition. However, a change of this scale depends on several other factors like brand appeal, the rate at which the technology is evolving and the present-day market sentiment.

Being an early entrant grants some advantages, but it has just as much working against the brand if they do not have the financial resources, top-notch R&D capabilities or the means to survive in today's VUCA (Volatile, Uncertain, Complex, and Ambiguous) markets. Consumer acceptance also plays a huge role and people are sometimes not as quick to adapt to change. 

True, there are few exceptional works but that is not the norm. Unless you are a brand like Nike that not only has the marketing budgets to invest in innovation but also the attention and loyalty of millions of consumers, being foremost does not lend much credence to the company from a consumer perspective. Consumers are more focused on the right product or service backed by the value that businesses bring to the table rather than those touting the first-mover advantage. Understanding one’s customers, taking brand value proposition into consideration and standing true to brand purpose will always take precedence over blindly integrating into innovation. 

The Metaverse is like any other innovation we have known in the past, and as we stand, I believe it is too early to fully take the plunge. It reminds me of a time back in 1995 when people were talking about the demise of the internet, but the reality today couldn’t be further away from this notion. The Shiny Object Syndrome is something we all experience as brands that aspire to evolve and keep up with the times. However, it can often be detrimental to a brand’s positioning, core messaging and values if not approached correctly.

While some tech giants and brands around the globe may have the means to explore the Metaverse with confidence, closer home, the Indian tech market is still fairly young. It's surely going to be a few years before we are ready to fully invest in the Metaverse. Technology like 5G is just making an emergence in the Indian market so it wouldn't be a stretch to say that there is lower tech penetration and readiness compared to global counterparts. We need to be mindful of how and when we should offer such experiences to our consumers. For brands and marketers looking to foray into the space, here are some points to bear in mind.

Allow space for experimentation

Any brand worth its salt would know this to ring true - organizations should always be in a test-and-learn mode. The Metaverse is a playground for innovation and opportunity, but it is critical to test uncharted waters before making waves. Exploring an ecosystem in its infancy involves analysis and experimentation, and brands would be wise to invest a small portion of their money and resources into learning about immersive technology and its impact on the market before breaking the bank over it. This way, companies can build awareness of what works and what doesn’t and accordingly focus on strengthening USPs for the former.

Rethink Metrics

As paradigms shift, so does the need for a change in measurements. It’s only logical that new frontiers of innovation would also pave the way for new metrics. Immersive Meta landscapes are a brand-new ecosystem and marketing leaders should be cognizant of this and work towards creating relevant benchmarks that go beyond vanity metrics and cater to the customer experience.

The Power of Creative Storytelling

Incorporating the Metaverse in one’s marketing strategy will require brands to create strong, immersive storytelling that is both suited to the ecosystem and unique to the brand’s vision. Much of the success will largely rest upon the ability to create for the medium. A creative palette that expands multi-directionally in the Metaverse could hold the key to engaging with consumers across every stage of their journey – from awareness to engagement to acquisition. Focusing on engagement; especially for the younger demographic of digital natives, is essential to draw them in and for this, brands need to bank on inventive storytelling rooted in authenticity.

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In conclusion, a lot of the basics of media and marketing need to be evaluated when foraying into new frontiers. Given the uncertain future of the Metaverse, what brands need to focus on primarily, is drawing valuable insights from surrounding experiences, understanding if this is the right investment to accelerate brand purpose and how one would like to position themselves in the ecosystem to create genuine value for consumers. 

There is no doubt that it is an exciting new world full of possibilities, but the need of the hour beckons adopting a ‘Learn and embrace’ mindset than ‘We want to be the first’. In an evolving configuration of worlds and for the curious of heart, there is a lot to learn. The rest, as they say, is history.