The buzz surrounding the metaverse cooled down over the back end of 2022. However, interest in using the space as an advertising channel is still going strong.
According to a Newzoo report which highlighted the metaverse, these experiences are being used even more frequently for advertising. In 2021 the metaverse reached new heights with the hype that was being generated around it. Covid-19 also played a part as people were in lockdown, unable to go out and see friends or family. Instead many people, especially kids and teens, would instead meet their friends in online spaces.
Titles such as Rec Room have seen success with its VR capabilities, and outside of VR the likes of Roblox, Minecraft and Fortnite are leading the way for social games. Over a few short years, these titles have transformed into platforms where players can come together for a shared experience.
Advertising potential within the metaverse
Fast Forward to today and metaverse titles are still seeing popularity, albeit with some of that initial hype fading away as life has begun to return to some essence of normality. One area that is capitalising on use of the metaverse is advertising. Brands are always looking for new ways to attract customers and these social spaces are a prime advertising platform.
Mihai Vicol, a metaverse expert from Newzoo commented that “Traditional media channels like television and, more recently, social media have been the go-to destinations for advertisers. But these channels lack the gamified, interactive element that virtual worlds provide. Until now, advertising could not stimulate meaningful interaction between consumers and brands—consumers could merely watch. However, as social platforms like Roblox or Fortnite drew younger generations’ attention. Brands were forced to follow and engage with this novel entertainment medium.”
Roblox is one title that has announced it will be allowing immersive advertisements into its platform this year. A business update in November showed that Roblox was seeing a decline in earnings from its daily users. Therefore, a new avenue of in-game advertisements is a beneficial partnership for both parties. We are already seeing brands dive into the metaverse with partnerships that bring their products to virtual spaces. Nike has a collection of wearable assets and SWEAR recently announced an NFT collection that will bring its footwear to Life Beyond.
As this new year gets underway, we can expect to see more brand names popping up in our metaverse titles throughout 2023.