We are excited to bring back Transform 2022 in person on July 19 and virtually from July 20 to August 3. Join AI and data leaders for insightful talks and exciting networking opportunities. Learn more
Can you imagine visiting a shopping center, meeting friends or having tea in a coffee shop in virtual reality? Well, that future is fast becoming a reality. The notion of shared, interoperable and persistent virtual worlds that make up the metaverse they have taken the (real) world by storm. Among the tech titans like Facebook and Microsoft that support the concept for large investors buying virtual landnow it is estimated that the metaverse becomes a $1 Trillion Revenue Market in advertising, digital events and hardware.
Perhaps it’s no surprise that we’ve seen an influx of brands like Burberry, Coca-Cola, Gucci, Louis Vuitton, and Selfridges struggling to enter the metaverse with their own digital offerings, usually in the form of non-fungible tokens (NFT). NFTs represent unique digital assets that convey holders’ verifiable ownership of digital or physical items, a notion that correlates closely with metaverse ideals and Web3.
Brands are starting to wake up to the potential NFT technology maintains, allowing them to take their advertising to new levels and launch exciting new promotional campaigns. At the same time, adopting NFT is opening up a new generation and demographic while continuing to serve existing customers.
Coca-Cola, already a hugely popular franchise in the meat space, wants to remain relevant in this new digital frontier. Teaming up with Tafi, an avatar creator from Decentraland, the soft drink maker produced its first NFT collectibles to celebrate International Friendship Day last year. A reimagining of the iconic vintage Coca-Cola vending machine, the NFT box of friendship contained a Coca-Cola bubble jacket, usable in Decentraland, a friendship card, and a sound visualizer to capture the sound of open a bottle of Coca-Cola. . The campaign not only brought new eyes to the beverage brand, but also raised money for Special Olympics through the NFT auction.
Retailer Macy’s has also been dabbling in digital collectibles and, like Coca-Cola, put a charitable spin on it. To celebrate the 95th anniversary of the brand’s famous Thanksgiving Day parade, macy’s gave away 9,500 balloon NFT works of art from the parade’s nine-decade legacy. Macy’s also set aside 10 ultra rare NFTs for a special auction where 100% of the proceeds went to the Make-A-Wish Foundation. Additionally, leveraging the inherent programmability of NFTs, the digital collectibles were coded to perpetually donate 10% of every aftermarket NFT sale to Make-A-Wish.
Whether it’s accessing NFT airdrops or exclusive collections, like the one with the McLaren Racing NFTsCampaigns are much easier and cheaper in the metaverse than through traditional avenues. Producing virtual clothing, for example, is much more affordable than doing it in the real world, as it eliminates the need to spend on physical supplies or labor and equipment. COVID-19 has also highlighted the issues that arise with supply chain complications; however, with digital offerings, brands can avoid distribution issues.
Not only that, but NFT give a present Campaigns can be designed to instill the feeling that consumers are getting something for free while helping to build positive associations with a given brand. This is particularly true when those gifts are tied to a tangible asset, such as equipping avatars with wearable devices, access to events, or discounts.
move away from the norm
In-game advertising is another area where brands can take advantage of the metaverse and virtual game worlds. From stadium ads in a sports game to real-world ads playing on virtual billboards. The sky is no longer the limit for advertisers. Brand ads can go beyond your typical static to a cool new aesthetic, allowing for additional features such as mini-games with NFT rewards for following specific steps.
Product placement in virtual reality games has been a huge success, as illustrated by the popularity of Pokémon Go, which used the game’s creatures to attract more people to a specific place.
With the ability to create immersive ad experiences, brands are designing their own micro metaverses. We see this with players like the NBA’s Cleveland Cavaliers, who launched a new digital NFT experience for fans. Dubbed “My Cav Locker,” the experience allows fans to collect NFTs only on-site when attending home games, including digital jerseys and varsity jackets. The experience represented a unique way to introduce fans to NFTs and digital collectibles while gamifying their real-world experiences.
By bridging the physical and digital worlds, NFTs and the metaverse are changing the way we view the advertising industry. With much interest and appeal within the industry, the promises for brands using this technology remain untold. The metaverse will undoubtedly have an impact on all industries, but those who take the plunge now will be better positioned as the space matures.
Tom Mizzone is the CEO of Sweet.
Data decision makers
Welcome to the VentureBeat community!
DataDecisionMakers is where experts, including data techies, can share data-related insights and innovation.
If you want to read about cutting-edge ideas and up-to-date information, best practices, and the future of data and data technology, join us at DataDecisionMakers.
you might even consider contributing an article yours!