Surging interest in the metaverse is compelling brands across diverse industries to establish a virtual foothold and engage with audiences in unprecedented ways.
This strategic pivot is well-founded, especially when considering projections from Gartner, which forecasts that by 2026, nearly a quarter of the global population will dedicate at least a daily hour to the metaverse for activities like work, shopping, education, and social interaction.
For companies, metaverse branding represents more than just a trend; it's a multifaceted opportunity to deepen customer relationships, explore innovative marketing channels, and unlock significant new revenue streams.
According to Rajpal Rekhi, managing director at RA Commonwealth, a consultancy specializing in metaverse branding, the value a company derives from this space hinges on its core values and strategic objectives. In an interview with CryptoSlate, Rekhi emphasized that for brands centered on customer value, the metaverse offers boundless potential.
Rekhi said:
“The metaverse is a perfect opportunity to not only create an avenue for connection, but it can also be a place where they can contribute their knowledge, build modern customer experiences, and develop new ways to interact with their audiences.”
However, just as in traditional digital and physical marketplaces, establishing a presence in the metaverse does not automatically guarantee success.
Rekhi cautions that brands might achieve fleeting success in the metaverse for the wrong reasons, such as a mere novelty factor. Without a well-defined strategy and a clear underlying purpose, such initial traction is unlikely to be sustainable.
Rekhi said:
“The longevity of success comes down to whether or not they thought about what they are going to do in terms of progressing this great opportunity they have.”
In Rekhi's view, the brands most likely to thrive are those that have deeply considered their brand identity, the characters they will create, the world they are designing, and the core purpose behind their virtual initiatives. These thoughtful brands are positioned to outperform those chasing short-term gains.
Rekhi elaborated:
“If they [the brands] can create something that’s quite creative, something that actually speaks out to the customers, something that is quite engaging, and that there is some sort of purpose to it and there’s some sort of repeat value to it, and it gives customers a reason to go back to it,”
those brands are likely to be more successful than others.
Likewise, it's clear that some companies are inherently better positioned to benefit from a metaverse presence than others, making it clear that metaverse branding is not a one-size-fits-all solution.
This is because, even within the digital realm, certain brands achieve greater online success due to the intrinsic nature of their products and services.
“I would always say that certain businesses would definitely benefit from the metaverse, but other businesses, they might not because their audience might not be looking for those experiences.”
Rekhi said. He concluded that if a company's customer base is not digitally savvy and the brand cannot offer tangible added value through a metaverse presence, then venturing into the virtual world “makes no sense.”
For a firm like RA Commonwealth, building a metaverse presence involves crafting compelling characters, narratives, environments, music, and other assets. A crucial part of the process is determining how these disparate elements can be woven together to create a cohesive utility and the type of immersive experience they can offer customers.
Jaasir Calif, co-founder and chief traffic officer at RA Commonwealth, told CryptoSlate that this involves delving into the depth of the company's long-term vision for the brand. He added:
“The key for us is to build out a utility-based metaverse which isn’t limited to an online portal and transcends into other aspects of the business and brand. This way the metaverse and brand become intertwined, which opens a whole new opportunity to create immersive experiences.”
Calif noted that this approach ensures the brand's core values and creative objectives remain at the forefront of all strategic decisions related to the metaverse's development.
However, translating a brand's long-term metaverse vision into actionable milestones presents its own set of challenges, Rekhi added. Furthermore, brands often struggle with effectively communicating their metaverse offerings to customers without generating confusion.
Marketers must carefully consider how to promote a new, creative product across various touchpoints to a customer base already familiar with their established services.
Rekhi added:
“Keeping things clear yet creative is one of the huge challenges for any marketer. We have the challenge of identifying and properly segmenting audience pools to ensure that the right people are hit with the right material.”
While building a brand in the metaverse is demanding, a strategic and well-executed approach can yield significant returns in the long run. Brands can generate revenue through the sale of non-fungible tokens (NFTs) or by offering unique digital utilities. Powerhouses like Gucci, Louis Vuitton, and Coca-Cola are already experimenting with the metaverse to boost sales and enhance brand awareness.
Rekhi said:
“There’s a lot of opportunities for revenue to be generated for a business as long as they’ve clearly thought about the reasons as to why they’re doing it and what they’re trying to achieve, and what connection they’re trying to build.”
Effective branding in the metaverse requires significant investment in talent and development. Yet, the potential return on investment makes the venture into the metaverse a logical next step, provided that a company's customers are actively seeking digital experiences and the brand can successfully meet those elevated expectations.
