5 Metaverse Marketing Considerations for Brands – Multichannel Merchants | Region & Cash

A Metaverse Waterfall (Image credit: MatthewBall.vc)

Metaverse Marketing offers CMOs new retail channels in virtual worlds where consumers enjoy immersive experiences and brands build stronger relationships with shoppers. The practice is already underway as brands and publishers such as Prada, Nike, Ralph Lauren, Louis Vuitton, Tommy Hilfiger, Balenciaga, Burberry, Gucci, Vans, Zara and Forever 21 are using NFTs to attract attention and win loyal customers and viewers inspire.

Marketers are probably wondering what issues to consider as metaverse marketing becomes a budget item and a must for online and offline channels. Five things marketers should keep in mind when testing the metaverse: the balance between branding and performance; campaign purchase methods; the development of new metrics; what customer data will look like; and how to build safe experiences in this new frontier.

Here’s what marketers need to do to strategize for each of these dimensions of Metaverse advertising.

Balance branding, performance marketing

Metaverse marketing plays a role in both branding and performance campaigns. For the former, develop a virtual voice appropriate to the platforms you enter and authentic to user behavior in those environments. For example, a lot of early Metaverse marketing will happen in games. Creating a virtual storefront or tokens to be traded in a gaming environment is a prime opportunity, but should be approached with caution. Players will recognize a malicious attempt to co-opt attention without understanding the norms of the experience.

On the performance front, the key will be to organically tie metaverse marketing into the virtual purchase path. Advertisers need to work with publishers, be they virtual concert venues, game developers or sports leagues, to seamlessly integrate transactional capabilities into the customer journey.

When brands can create native virtual marketing experiences, they can merge the immersive dimension of brand marketing with the data-driven results of performance advertising while winning the hearts of consumers.

Advocate for optimal purchasing mechanisms for campaign media

Digital marketers are still determining how best to buy media in the Web2 environment. Many of the same considerations—for example, minimizing fraud, eliminating inefficiencies, reaching audiences, and securing impressions—will shape the Web3 media buying landscape.

Will agencies attempt to pre-purchase and run campaigns for guaranteed premium inventory, or will inventory be sold programmatically in real-time bid auctions? Adtech companies have an opportunity to rebuild in the metaverse. Brands and agencies will have the opportunity to make their case for what the tubes of this next generation of digital advertising should look like.

Discover and track helpful metrics

Marketers need to discuss how to measure success in a virtual environment. Part of developing a successful Metaverse measurement strategy will be building strategic partnerships with publishers to get a holistic view of campaign performance. But the other part will determine what marketing success looks like in a virtual environment and how progress can be quantified.

For example, will you consider a virtual store visit as a qualified lead and how will you track those visits? Is cost per video completed or video completion rate useful metrics? How do you balance the cost of viewing video in an immersive virtual environment versus interacting with a 2D YouTube ad?

Are responses weighted differently across channels across stores, e-commerce, mobile, apps, and the metaverse? Figuring out how to measure value across channels and environments will help marketers calibrate Metaverse ad spend.

Design metaverse data strategies with privacy in mind

Digital marketing has been subjected to a privacy billing. Web2 was built on loose privacy practices. Many companies have taken the right to siphon consumer data and share it with third parties with little transparency.

Web3 offers the possibility to get privacy right from the start. Marketers must set up systems to collect consumer data with full consent and transparency. They also need to find solutions to share data in the most privacy-secure way possible.

Metaverse marketers, creators, and publishers will use privacy-enhancing technologies to leverage data-driven insights and deepen their relationships with customers and audiences without compromising personally identifiable information (PII).

Create safe virtual experiences

Customers have become more attuned to what data brands collect, how they use it, and who they share it with. Brands suffer when customer trust is breached, but data breaches remain the norm, even at the world’s largest companies.

When you enter the Metaverse, put in place the right infrastructure to securely collect, store, and share data while minimizing the risk of security breaches and damage should security breaches arise. Brands also need to work with publishers and owners of Metaverse media to ensure virtual environments are safe, both for brand safety and customer well-being.

Many of the same considerations that continue to complicate digital Web2 marketing will also shape the next generation of multichannel marketing. But the most forward-thinking brands won’t just apply Web2 standards and practices to the metaverse. They will use this new era as an opportunity to reinvent underperforming processes, create more value and better serve customers regardless of the environment.

Matt Kilmartin is the CEO of Habu

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