NFTs and the Metaverse: How Can It Impact My Marketing & PR Strategy?

So, we’ve all heard the word. 

Metaverse.

But, what is the Metaverse? 

Let’s dive straight in and discover what it is, and how you can get your brand ready for the changes that are coming.

The Metaverse is essentially the bridge - a way to connect our digital reality to our physical reality. Welcome to the Phygital era! (Yes this is a word now!). Broadly speaking the technologies that make up the Metaverse can include virtual reality (a fully virtual place), and augmented reality (a space that fuses both virtual and physical reality). Metaverse is not a ‘new’ technology independent from others. It signifies more of the changes coming in the way we interact with the online world and the opportunities within it.

It also translates to a fully digital economy. 

Many consumers and companies used social media, ZOOM, played video games, sent iMessages and Whatsapps, and used other tools to connect with others, essentially creating their own micro-communities. Many different types of virtual meeting spaces exist, such as VR chats, with companies using Slack or Monday.com to keep their employees organized and even Clubhouse users creating their own groups where people can become members. Everyone has experienced a part of the metaverse because it is an amalgamation of multiple forms of technology into one place.

Think of this as a digital revolution, much like the birth of social media in 2007.

Mark Zuckerberg describes the metaverse as a virtual reality construct intended to supplant, and eventually, replace the internet. Merging virtual living with real-life, giving people the opportunity to create endless new playgrounds. 

Why do brands need to be aware of meta? Why should they care?

With the Metaverse still in its very early stages, some say that it’s not essential to care just yet. However, getting ahead of the game never hurt anyone…. On the contrary! Technology today moves fast. Much like that of the crypto world getting involved during the early stages makes everything easier in the long run, plus recent reports predict the metaverse market will grow to over $1,544 billion in less than ten years. There will come a time when being part of the metaverse will no longer be a choice, but a necessity. 

Who your business serves may depend on how much energy you need to put into it in the current climate. Harris Poll data shows that while more than 50% of Americans don’t understand the Metaverse, 70% of Gen Z and Millennials are interested in interacting in these digital realms.

Now is a great time for all brands to pay attention to consumer behaviors. Business opportunities and trends follow the needs of the buyer, so take some time to research where your ideal client is and if Metaverse is something they may be looking into.

What is NFT?

An NFT, also known as a non-fungible token, is a digital or virtual asset in the form of images, video, or gaming items. When something is “Non-fungible,” it simply means it is unique and cannot be replaced with something else, much like physical artwork. These assets come with certificates that show proof of ownership and are influencing the growth of the metaverse, and in turn influencing the way we do business. NFT is essentially the currency of the Metaverse. 

NFTs only have one official owner, and the transaction and contract are secured and recorded on the Ethereum blockchain. So for brands, this is your invitation to begin considering the world of crypto as a part of your business. Buying an NFT is quite simple, but at first, it can seem quite intimidating. Think of NFT as ‘virtual or digital art’ that only you own. Once you purchase it, it’s yours and contracted to you. According to Reuters, NFTs (non-fungible tokens) made $2.5 billion in sales in 2021, increasing from $13.7 million dollars in the first quarter of 2020.

Essentially, your dollars become cryptocurrency, which then can be used to buy NFTs across various marketplaces.

How does the Metaverse connect with NFT and crypto?

NFTs are bought and sold using cryptocurrency such as Bitcoin. 

This new world is fast-paced, and changing rapidly. It requires marketers and brands to be on the ball and connected. This is a place where content creators rule, meaning if content creation has not been at the forefront of your brand, it’s time to make it so, or to hire someone who knows what they are doing.

How can I bring my brand into this new digital era?

In this new reality, anything is possible. Selling digital versions of products in virtual reality is becoming a new revenue opportunity. Anything can be made digitalized. Whether you are a product-based business or service-based, the online world has a place for you - when you know what to do and how to utilize it.

• Take online shopping to a new reality

For product-based business, direct-to-avatar (D2A) means you can show off your products online using a digital avatar, your customers will also have their own avatar in which to try on/sample products. From this point, they can then purchase items online to be shipped to them in reality. It’s taking online shopping to a whole new level. You can also design and create your products online, reducing costs and lessening supply chain hold-ups.

You may be wondering how this can all work for you? Let’s take a look at Nike as an example. Nike brought metaverse thinking into its retail operations with the purchase of RTFKT, a virtual sneaker company. This will enable Nike to produce samples without the expense of manufacturing physical samples of the sneaker. 

This can be done in multiple industries. Let’s say you sell furniture, art, or home decor. Sellers and potential buyers can view, sample, and purchase items all within the metaverse. Meaning they won’t need to go to a showroom, or even a store, to purchase and discover items for the home.

Mars House is the first completely digital house that was recently sold as a digital file or NFT. This digital house sold for $500,000, and if desired the concept can then be built in reality by a glass furniture maker in Italy. This digital world really is expanding our ability to get even more creative. 

Andres Reisinger, a virtual furniture designer,  auctioned off pieces in less than 10 minutes for a total of $450,000. The “impossible” seats and tables in the collection can be used to build games and animations from scratch or placed in any 3D virtual space.

• Physical Walk-Through

For service-based businesses such as interior designers, imagine instead of merely showing your clients your design ideas, you can take them on a physical “walk through” of their new home. Showing them the finished product to explore in a virtual reality world.

• Gamification

You can also use metaverse to leverage gamification. Imagine as part of the customer purchasing journey for a condo or apartment, there could be scavenger hunts, murder mystery events, or even fashion shows! The potential ideas are endless. 

• Increase brand loyalty 

Brands can also use this world to improve brand loyalty. It increases the potential to develop a cult identity and generate sustained demand. An example could be developing a private label or membership, only available through one specific retailer. This then creates intense loyalty between manufacturers and clients. Later the metaverse brand could then be sold and created in the physical space.

Brands can use the metaverse to create virtual shopping experiences too. During the pandemic, the demand for online experiences increased tenfold, so brands have been capitalizing on this already outside of the metaspace. Imagine sampling furniture products, trying it out in your home, experimenting with colors, placement, and design - all in the same place. Shopping could become far more entertaining and exciting, also more easeful!

How is the world of PR adapting to this new world?

With the use of personal avatars, media relations and interactions online will feel more immersive and personal. The bonds you make online can be carried out into your physical realm. 

A recent article from PR Daily mentioned, “One of the core foundations of public relations is understanding the psychographics, demographics, and geographics of the target audiences clients want to reach. As more brands and internet users start to enter the virtual world, PR pros will have more data on the type of consumers who are interested in their client’s products or services.”

Metaverse aims to change the way we communicate, it aims to help us create deeper bonds with people online, by making a virtual world that carries many of the qualities of the physical one. Whilst it may seem and feel a bit confusing, this new digital world allows us to create bigger visual brand representation and immersive experiences for people beyond social media and websites/email lists.

Communication is critical for any brand launch. Using storytelling through online community participation, promotion, writing email marketing, social media content, blog posts, FAQs, and even website copy, are all professional communication strategies that can be involved both in the Metaverse and outside of it. 

PR is more than just media relations. Pitching to media outlets and press releases is an important part of any NFT drop or Metaverse venture. 

The main strategies that PR pros can begin to take advantage of include virtual product placement as previously mentioned, virtual brand partnerships, and increasing storytelling capacity through product or service descriptions.  PR pros will be able to create virtual stories for NFTs and the other digital features that brands choose to create for virtual communities.

The best way for brands to increase engagement is to connect with people in all realms, both digital and physical. The more consumers create their own digital avatars, the more brands need to create virtual products for them to consume. 

Now is the time to get on board. Spend time educating yourself and looking into ideas on how NFTs and metaverse-like platforms will work for your business and target audience. Don’t be afraid to experiment and ask for feedback often. Look at what other companies are doing, and let your creativity flow in this new world. 

And ask for help as often as you need. This is a great time to seek support from someone who knows what they are doing.

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