Marketing in the Metaverse: Virtual Influencers, NFTs, and Immersive Ads
The metaverse can be understood as an expansive, collective 3D digital universe where physical and virtual realities converge. It’s more than a tech trend, it’s the next evolution of how people connect, shop, and experience brands. According to a recent McKinsey report, investments in metaverse-related ventures surpassed $120 billion in 2023, signalling that global industries are taking this shift seriously.
For marketers, this new frontier presents both an opportunity and a challenge: to create experiences that go beyond screens and enter fully immersive worlds. From virtual storefronts and digital collectibles to AI-powered avatars, metaverse marketing is redefining how brands engage audiences. We will be looking at how brands are using a 3D branded experience with NFTs and virtual avatars to create deeper emotional connections and reshape the future of digital commerce.
Branded Experiences in 3D Worlds
a. Concept Overview
In the past couple of years, brands have begun to construct their own spaces within virtual worlds rather than relying solely on traditional ads. Within environments like Roblox, Fortnite, and Decentraland, they are building 3D spaces where individuals can engage with the built space in a more physical sense by moving through it, exploring the space, and participating in the storyline. The targeted outcome is not to sell directly. The primary intention is to build a moment that communicates values within an invite so it feels more real, human, and memorable.
Instead of watching a 30-second video, scrolling a post on their feed, users are now playing a game, attending an event, or engaging in shopping inside of a brand’s digital world. This new way of doing things provides users with a sense of presence and participation that has previously been largely absent in online advertising and marketing.
b. Brand Examples
Nike’s “Nikeland” was an instant success on Roblox, where the branded digital playground welcomed more than 26 million guests. Players were able to try on virtual sneakers, visit launch parties, engage in sports challenges, and earn rewards, all within a branded digital space.
Gucci Garden was an entirely different placed-based experience and was much less about the social aspect and much more about the art of fashion iconography. Visitors moved through dreamy, museum-like spaces that emphasized Gucci’s design history.
Coca-Cola created “Pixel Point” on Fortnite, turning its brand space into an interactive island filled with color, music, and mini-games inspired by all things Pepsi!
c. Marketing Takeaways
- The most successful metaverse experiences focus on engagement and narrative, not just visuals and aesthetics.
- Success is not judged strictly by clicks or reach, but how long people stay and engage with the experience.
- When brands provide people with something of value, like exclusive rewards, custom items, or early access, the connection seems more personal and meaningful.
Source: https://www.businessinsider.com/nike-acquires-rtfkt-as-it-accelerates-metaverse-play-2021-12
AR/VR Commerce and NFTs
a. The Shift Toward Digital Ownership
Not long ago, owning something digital didn’t really mean much. Today, that’s changed. With NFTs, or Non-Fungible Tokens, people can actually prove ownership of a digital item, a piece of art, a fashion drop, even a pair of sneakers. Each token sits on a blockchain, acting like a certificate that says, this is yours. It’s a simple idea that’s now shaping how buying and selling work inside the metaverse.
At the same time, AR and VR are quietly transforming retail. Instead of scrolling through flat product photos, people can now see how a jacket fits on their avatar or how a chair looks in their living room before buying it. The line between physical and digital shopping keeps fading, and brands are leaning into it because it feels more personal and less like a transaction.
b. Case Studies
Dolce & Gabbana’s “Collezione Genesi” sold for about $6 million, one of the earliest luxury NFT collections that tied craftsmanship to digital identity.
Nike and RTFKT teamed up to launch virtual sneakers that players’ avatars could actually wear. It’s the clearest sign yet that “phygital”, part physical, part digital, is becoming the new normal.
IKEA’s Place app is a perfect AR example. You can place a virtual armchair in your real-life room and rotate it to see if it fits, all before parting with a single rupee.
c. Key Takeaways
- NFTs and AR shopping create a feeling of trueness and credibility in the experience of digital commerce.
- The value in NFTs arises from utility and exclusivity which defines and drives their experience and not hype.
- Brands that package digital collectibles, or NFTs, with perks of loyalty programs or small game-like incentives inspire ongoing engagement – evolution of customers to participant.
Virtual Influencers and Identity Marketing
a. Defining and What It Means
Virtual influencers are not a concept reserved for the future; it is a clear phenomenon happening in our social feeds today. These virtual influencers are computer-generated characters that have been designed and animated by a creative team to perform and act like real people online. They work with brands, display all aspects of their lifestyles, and interact with their followers in an authentic way like any influencer. One well-known influencer is Lil Miquela, who has over 3 million Instagram followers and has worked with top fashion and tech companies and makes real money.
b. Context for India
The trend of virtual influencers found its way to India in its own context led by Kyra, India’s first virtual influencer, she has over 250 thousand followers and has worked with big brands already. Kyra’s photos, outfits, and captions are contrived and beautifully demonstrated, however, the choice of audience engagement with these characters show that they are open to digital personalities which translate creativity, technology, and storytelling.
c. Marketing benefits
Virtual influencers offer marketers structure and stability. They don’t grow tired, they don’t age and they don’t create PR challenges. Campaigns can be implemented anytime and anywhere. Most importantly, Gen Z audiences, who appreciate the mixture of digital identity and portfolios for creative expression, have a healthy relationship with this playful reality mixture.
d. Caution points
On the flip side, there should always be trust. Viewers should have insight into when an influencer is not real. If brands blur that line, it typically backfires quickly. In addition, there are ethical concerns about deepfakes, manipulations, and emotional transparency. Thus, authenticity that we have discussed throughout this course is important, even when the face isn’t a person.
Opportunities, Challenges, & Future Outlook
a. Opportunities
People are beginning to embrace marketing in the metaverse, as the environment is nascent, but the prospects are immense. According to estimates by Bloomberg Intelligence, the metaverse economy could reach close to $800 billion by 2030 and fueled by the increasing demand for engaging and entertaining experiences. The good news isn’t just for big brands; it allows smaller creators to enter as well. With lower-cost design AI software and virtual world platforms, there are more opportunities for anyone to build a branded digital experience or launch a brand in the metaverse. There is a lot more parity and possibilities than there have been in years in the marketing landscape.
b. Challenges
Still, not everything is a walk in the park! The metaverse is notably fractured by fragmentation in platforms, like Roblox, Decentraland, and the Horizon Worlds, where each is its ecosystem without common standards for movement, currency, or identity. The issues surrounding data privacy, consent, and even user fatigue add to the rationale that many marketers are giving pause! Also, because of the uncertainty of creative production costs and return on investment (ROI) models, some brands will continue to think twice about fully investing in the metaverse.
c. Future Prospects
As AI, blockchain, and XR technologies are increasingly combined, immersive marketing enters our everyday digital lives. Responsible experimentation will be the right approach for branding at this moment, along with early innovation, all while remaining rooted in ethics and transparency.
Source: https://about.bgov.com/
Conclusion
The future of marketing in the metaverse is based on three pillars; 3D immersive brand experiences, digital ownership backed by NFTs, and the emergence of virtual influencers creating new online identities. These are collectively reshaping connections to products and culture within virtual environments. Brands that begin to approach this frontier with sincere ethical intent at this early juncture will have the opportunity to curate the future of these three pillars. It is not just a marketing channel; it is a new way of existing overall in the digital meta world.
At this stage of the metaverse race, will your brand simply show up or genuinely exist?
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