Advertising in the Metaverse: how to make successful campaigns?

The metaverse is a collective, shared and persistent virtual universe. The word itself does not refer to a specific type of technology, but to a change in the way humans interact with it on a social, economic and cultural level. . This concept employs technologies such as the virtual reality (RV), augmented reality (RA), mixed reality (RM) and extended reality (RE), allowing users to interact in an immersive way in a digital environment. three-dimensional.

If you want to know more about the origin of this concept, its evolution, types of metaverse and most popular platforms you can read our previous article. Now, if you got this far, it is because in addition to knowing the basic concepts you want to go a little further and learn how you can start advertising within this incredible universe.

 

Possibilities of Digital Advertising in the Metaverse

Metaverse’s interactive experiences offer an innovative space for Digital Advertising. If you read our previous Performance Trend about Programmatic Advertising we told you that this is one of the ways you can access to advertise in the metaverse. Next, we will see the possibilities:

 

• Immersive experiences: advertisers can create immersive brand experiences that allow users to interact with products and services in a three-dimensional environment. For example, a sports race where users can try on new models of apparel or footwear in a digital environment.

Roblox: Nike creates ‘Nikeland’, a space where users can try on branded apparel

 

• Virtual events: Brands can organize virtual events, such as concerts, fashion shows or product launches, where users can participate from anywhere in the world. One example is Gucci, which created its own world at Roblox where users could test items items and witness shows virtual shows.

 

 

• Native advertising: advertising in the metaverse can be integrated naturally and less intrusively into the digital environment, similar to product integration in video games. This is an eexample of advertising in NBA 2k.

 

 

• Customization: advertising campaigns in the metaverse can be highly personalized, based on users’ behavior and preferences in real time. For example, a virtual clothing store could recommend specific outfits based on the user’s style preferences and past interactions.
• Collaborations and sponsorships: companies can partner with content creators and game developers to integrate brands into virtual experiences and events. For example, a brand like Red Bull could sponsor an extreme sports event in the metaverse increasing brand visibility in an immersive experience.

• Virtual products: brands can sell digital products, such as avatar clothing or virtual accessories. One example is the case of Balenciaga, which launched a digital fashion collection in Fortnite, allowing players to dress their avatars in high fashion clothing.

 

 

Advantages and challenges

Advantages

Advertising in the metaverse offers several significant benefits for advertisers:

• Major engagment: immersive and interactive experiences significantly increase user engagement with the brand. For example, a virtual game where users can interact with real products can generate greater brand recall, trust and loyalty.
• Global reach: the metaverse allows advertisers to reach a global audience without geographic restrictions, which is ideal for product launches and events seeking massive and diversified participation.
• Advanced data and analysis: the ability to collect real-time data on user interactions enables precise optimization of advertising campaigns. Brands can adjust their strategies on the fly, based on detailed analysis of user behavior.
• Innovation and creativity: the metaverse allows advertisers to experiment with innovative forms of storytelling and promotion. For example, a fashion brand can organize an interactive virtual fashion show, offering a unique experience for its users.
• Virtual economies: advertisers can benefit from virtual economies by selling digital products and participating in virtual marketplaces, generating new sources of revenue.

Challenges

Despite the great opportunities, advertising in the metaverse presents several challenges:

• Privacy and security: the massive collection of user data raises concerns about privacy and security. Brands must ensure the protection of personal information and comply with privacy regulations as any data breach at a virtual event can seriously damage consumer confidence.
• Interoperability: the lack of common standards across different platforms in the metaverse can make it difficult to create cohesive ad campaigns. For example, a campaign designed for Decentraland might not work in The Sandbox, forcing brands to adapt their content for multiple platforms.
• Accessibility: access to the metaverse may be limited by the cost and availability of suitable hardware, such as virtual reality goggles. This can restrict the audience that brands can reach, excluding those without the resources to purchase the necessary equipment.
• Regulation: advertising in the metaverse is still not widely regulated, which can lead to legal and ethical challenges. The lack of clear rules can result in misleading or invasive advertising practices, affecting brand perception.
• Learning curve: Both advertisers and users must adapt to new technologies and virtual environments. Brands need to invest in training and development to create effective campaigns in the metaverse.

Tools for Advertising in the Metaverse

We learned about the most popular platforms and the multiple ways in which brands can make their presence felt on them. Now, we will look at the tools that allow advertising in the metaverse.

Virtual and augmented reality devices:

 

• Oculus RiftDeveloped by Oculus VR (owned by Meta), this virtual reality device allows users to immerse themselves in interactive virtual environments. It is ideal for creating immersive brand experiences, where users can interact with products or services in a whole new way.

• HTC Vive: manufactured by HTC in collaboration with Valve, delivers high-quality virtual experience with motion tracking capabilities. Advertisers can use HTC Vive to develop interactive campaigns and advertising games that attract and retain audience attention.
• Microsoft HoloLensThis augmented reality device allows users to see and interact with holograms in the real world. It is useful for campaigns that It is useful for campaigns that seek to integrate virtual elements with the physical environment, such as 3D product demonstrations or interactive exhibits.

Game engines:

• Unreal EngineUnreal Engine, developed by Epic Games, is a game engine widely used to create advanced graphics, visual effects and realistic virtual environments. Advertisers can use Unreal Engine to develop visually stunning and highly detailed experiences, such as virtual product tours or online events.

 

• UnityUnity: Another popular game engine that allows developers to create interactive 2D, 3D, virtual reality and augmented reality experiences efficiently. Unity is known for its flexibility and ease of use, making it an ideal choice for creating applications and advertising games accessible on multiple platforms.

Advanced analytics:

• Google AnalyticsGoogle Analytics: Although not specifically designed for the metaverse, it can be adapted to collect data on user behavior in virtual experiences. Advertisers can use Google Analytics to measure the effectiveness of their campaigns and gain valuable insights into user interaction.
• Tailored Analysis PlatformsThere are specialized tools such as Spatial Analytics or Agora Analytics, which can be integrated into virtual and augmented reality environments to collect and analyze user interaction data. These tools provide metaverse-specific metrics such as dwell time, interaction with virtual objects and user navigation paths.

Virtual social networks:

• VRChatVRChat: a platform where users can socialize in customized virtual environments, which is also used for events and advertising. Brands can create virtual spaces within VRChat to interact directly with their audience through events, product demonstrations and interactive activities.

 

• Second LifeSecond Life: Although older, it is still relevant as a platform for social interaction, content creation and advertising within its virtual universe. Second Life allows brands to establish a virtual presence, make digital product sales and organize promotional events within their virtual world.

Comparison with Other Digital Advertising Media

The choice between the metaverse and other digital media depends on the specific goals of the specific objectives of the advertising campaign, the available budget and the target audience.

While the metaverse offers unique opportunities for creativity and audience engagement, it also presents challenges that should be carefully considered before implementation.

• Social networks and search engines: while these media are more accessible and generally have lower upfront costs compared to the metaverse, they may not offer the same level of interaction and personalization.
• Interaction and personalization: while the metaverse excels in interaction and personalization, social networks and search engines often focus on segmentation and data-driven optimization.
• User experience: the metaverse provides an immersive, multi-sensory user experience, whereas conventional platforms rely more on visual and textual communication.

 

KPIs to measure results in the Metaverse

To effectively evaluate the performance of our advertising campaigns in the metaverse, we will use a series of specific KPIs that we will see below:

• Interaction timeMeasures the average duration that users spend interacting with advertising in the metaverse. A longer interaction time indicates a higher level of engagement and attention from users, which is crucial to evaluate the effectiveness of the campaign in capturing the audience’s attention.
• Engagement rateThe proportion of users actively interacting with the advertisement in relation to the total number of views. This metric provides a clear view of the effectiveness of the campaign in attracting and retaining the attention of the target audience in the immersive environment of the metaverse.
• ConversionsConversions: evaluates the number of specific actions performed by users as a direct result of the advertising campaign in the metaverse. Conversions may include product purchases, virtual event registrations, application downloads, among other desired actions. It is essential to measure the direct impact of advertising in generating tangible results.
• Return on investment (ROI)Calculates the ratio between the revenue generated by the advertising campaign and the costs associated with its implementation. It is essential to determine the financial efficiency of advertising investment in this new digital channel, helping advertisers to justify and optimize their spending.
• User satisfactionIn addition to quantitative metrics, user satisfaction in the metaverse is evaluated through qualitative and quantitative measures. This includes satisfaction surveys, feedback analysis and user opinions on the advertising experience. High user satisfaction not only indicates a good reception of the campaign, but can also influence brand perception and long-term customer loyalty.

 

Metaverse Advertising Success Stories

We are coming to the end of our journey through the metaverse (for now) and we believe that the best way to finish understanding everything we mentioned is with concrete examples of brands that implemented innovative strategies.

As we know, the path is not linear and, especially when it comes to innovation, it is key to implement, learn and optimize in order to achieve successful results.

Nike on Roblox

In its first steps into the metaverse, Nike adopted an initial “explore and learn” strategy. initial “explore and learn” strategy to evaluate this new channel as an opportunity to interact with customers and generate additional digital revenue. However, there came a time when Nike needed to shift its focus to a more integrated strategy that would effectively support its business objectives, especially in advertising in this emerging environment. Nike’s digital team faced the challenge of understanding how each initiative in the metaverse could influence revenue growth and strengthen Nike’s position as a leading innovator in this space. As a result, Nike obtained several metaverse-related patents and made careful decisions about when to invest in metaverse platforms and assets, given the uncertainty in the Web3 during a bear market.

The metaverse became a crucial part of Nike’s brand management strategy, optimizing advertising to take full advantage of new digital opportunities. With the creation of Nikeland in Robloxwas able to offer unique and memorable brand experiences, such as interactive sports challenges and product customization. This initiative not only strengthened Nike’s association with innovation, performance and an active lifestyle, but also allowed the brand to explore co-creation with users. Consumers could design their own versions of products within the metaverse, increasing engagement and strengthening the emotional connection to the brand.

Ultimately, the metaverse established itself as a powerful medium for Nike to weave authentic narratives, connecting deeply with its audience and building strong relationships that transcend the boundaries of the virtual world. Nikeland’s success in Roblox demonstrated Nike’s ability to innovate and adapt to new digital platforms, strengthening its position as a leader at the intersection of technology and sports.

 

 

Coca-Cola in Decentraland

Coca-Cola, one of the world’s most recognized brands, has used the metaverse to launch exclusive interactive experiences in Decentraland. In its “Coca-Cola Friendship Day” event, the brand created a virtual space where users could participate in themed games and activities, win collectible NFTs and explore a virtual museum that showcased the brand’s history and its most iconic advertising campaigns. This strategy allowed Coca-Cola to not only attract fans of the brand, but also capture the attention of the NFT and metaverse enthusiast community.

The success of this campaign is due to the combination of nostalgia and modernity, using the metaverse to offer an immersive and exclusive experience that reinforces the emotional connection with the brand. The use of Decentraland allowed Coca-Cola to interact with a global audience in an innovative way, highlighting its commitment to innovation and adaptation to emerging trends. This campaign demonstrated how traditional brands can use the metaverse to reinvent themselves and stay relevant in an ever-evolving digital world.

 

Coachella in Fortnite

The collaboration between Coachella and Fortnite was undoubtedly a highlight in the fusion of cultural events and digital platforms. In 2022, Coachella brought its iconic music experience to the metaverse through Fortnite, one of the world’s most popular video games. This partnership sought not only to promote the festival, but also to offer an interactive and immersive experience to Fortnite users, expanding its reach and connecting with a younger, digitally native global audience.

The strategy focused on creating exclusive in-game events that included introducing Coachella-themed outfits and props for player avatars and hosting virtual concerts with festival artists. These concerts were designed to replicate the characteristic Coachella atmosphere, with its stunning scenery and effects. In addition, game areas and activities related to the festival were enabled, allowing users to explore and participate in a digital version of Coachella within the Fortnite world.

This initiative not only amplified Coachella’s visibility, but also provided players with a unique way to experience the festival from anywhere in the world. The collaboration with Fortnite demonstrated how traditional brands and events can innovate and adapt to new digital platforms, creating synergies that enrich both the physical and virtual universe.

 

 

 

Conclusion and opinion of the team

We hope that after reading this article you have discovered a new universe for advertising and that it generates as much enthusiasm as it does for us. It is certain that from here on a world of possibilities opens up for brands and their way of interacting with their audiences, much more personalized and immersive. Innovating with this type of advertising will not only be a competitive advantage for your brand, but will soon become a necessity to stay ahead in an increasingly digital and innovative world.