Metaverse ROI: Is It Possible?

The potential for businesses within the metaverse is vast, allowing companies to tap into a global audience and offer immersive brand experiences that can create new avenues for marketing, engagement, and monetization. As the metaverse continues to evolve, it grows ripe with opportunities for innovation and innovation.

Corporate presence in the metaverse

In the metaverse, brands, and organizations can create immersive 3D spaces where creativity knows no bounds. Here are some ways brands use the 3D internet:

Virtual stores

Companies are snapping up virtual real estate to create experiential hubs and stores, dropping exclusive virtual collectibles and digital merchandise. These 3D digital environments create a space for consumers to connect with brands, raise brand awareness, explore merchandise, and make purchases. This uptick in brands establishing a presence also coincides with rising demand, with 30% of consumers saying brands should open virtual stores, per a Hubspot report in 2022.

By launching its virtual world called "Nikeland" on Roblox, Nike offered an immersive experience where users can dress their avatars in Nike products, participate in sports-themed games, and engage with the brand in a dynamic, virtual environment. This initiative markets Nike's products in new ways and deepens customer engagement through interactive digital experiences.

Collaborations

Brands are diving into the metaverse by collaborating with virtual platforms and creators, leveraging these innovative spaces to engage with new, tech-savvy audiences in immersive and interactive ways, like hosting virtual events or creating exclusive digital content. 

Luxury fashion brand Balenciaga partnered with Epic Games' Fortnite to create a unique crossover experience. They launched a collection of Balenciaga outfits within Fortnite, allowing players to purchase and dress their characters in high-fashion digital apparel. This collaboration was a marketing tool to introduce Balenciaga to a younger, digitally-savvy audience. 

Another popular metaverse collaboration is NASCAR’s partnership with Badimo, the developers of the Roblox game called ‘Jailbreak,’ to add a NASCAR braided vehicle to the game for a 10-day activation.

Engagement through games and experiences

Marketers have long used games and competitions to engage consumers, and the metaverse offers the perfect playground for brands to amplify their gamification strategies to drive customer engagement.

Coca-Cola ventured into the 3D internet to celebrate International Friendship Day by creating a virtual experience on Decentraland. They launched a "Coca-Cola Friendship Box" NFT (non-fungible token), which included digital wearables and a virtual rooftop party in Decentraland where attendees could enjoy music, games, and social interactions with others in a festive, branded environment.

Similarly, the Gucci Vault concept store on The Sandbox allows players to compete to earn vault boxes that open entry to raffles for digital cash and collectibles, driving up user engagement.

Potential returns of corporate metaverse experiences:

• Reach new audiences and revitalize brand perceptions: In today's fragmented media landscape, many brands struggle to connect with specific demographics, particularly younger generations. The metaverse, with platforms dominated by younger users, presents a unique opportunity for these brands. For example, Roblox Games, a massive user-created gaming platform, has over 42.1 million daily active users, of which two-thirds are under 16. By authentically integrating into the metaverse, brands can capture the attention of these younger audiences and alter their brand's perception among this valuable group.

  
  

• New revenue streams: The 3D internet opens up novel revenue streams from virtual goods and digital real estate to NFTs and beyond. These range from direct sales to partnerships and in-world advertising, offering brands diverse ways to monetize their digital ventures. Phygital sales in the metaverse merge physical and digital experiences that provide customers value in the virtual world and tangible products in the real world. This innovative approach transforms how consumers engage with brands, blending online and offline shopping into a seamless, futuristic experience. 

  
  

• Improved customer satisfaction: Interactive and immersive brand experiences help create positive customer interactions. A KPMG survey revealed that 45% of technology, media, and telecommunication executives said the metaverse resulted in high customer satisfaction with company products and services.

Successful case studies

Adidas

Adidas, the sports apparel brand, has historically positioned itself as an influencer in athletics, streetwear, music, and pop culture. Aligning with their strategic position, the brand wanted to engage communities on 3D platforms, particularly with their landmark 'Into the Metaverse' NFT drop in late 2021. This initiative was launched in collaboration with renowned NFT entities like Gmoney, Punks Comic, and Bored Ape Yacht Club, marking Adidas's bold entry into the web3 space. The NFT drop allowed buyers to join an exclusive fan club, giving them access to merch drops and a chance to decide the brand’s future product lines and experiences. Adidas’s NFT community members also got access to digital and physical merchandise and activations.

This NFT drop was not just a bold statement but a commercial success. Adidas sold 30,000 NFTs, generating over $23 million in revenue. This venture effectively bridged the gap between digital and physical worlds, offering buyers virtual and real-world experiences. It underscored Adidas's commitment to innovation, blending its legacy in fashion and sports with cutting-edge technology.

French Army’s Decentraland

Built by Landvault, the French Army's recruitment campaign in Decentraland, "Become a Soldier for a Day," targeted a young, tech-savvy demographic, offering an immersive military experience with challenges and simulations. This virtual initiative, set on a dedicated parcel in Decentraland, featured obstacle courses, strategy games, and career insights, effectively engaging participants and educating them about military skills and values. Successful completion of each stage unlocked exclusive wearables, and top performers even received a special camouflage suit for their avatars.

The campaign marked 45,000 unique sessions, with over 600 wearables being redeemed and peak dwell time reaching 15 minutes, highlighting the engagement levels of the experience. The activation marked a successful venture into digital recruitment, resonating with a demographic usually hard to reach. 

Bloomingdale's

Bloomingdale's celebrated its 150th anniversary by launching a 3D virtual store on its e-commerce website, marking a significant foray into the metaverse for direct-to-consumer (D2C) commerce. The virtual store showcased exclusive products from luxury brands like Stella McCartney, Valentino, and Salvatore Ferragamo that customers could view in 360-degree formats. Customers could also engage with games and interactive experiences as a part of the activation. The strategy allowed Bloomingdale’s to maintain control over its brand aesthetic, which is crucial for luxury retailers, significantly enhanced customer engagement and showcased creativity. By blending the immersive experience of the 3D internet with the familiarity of traditional e-commerce, Bloomingdale's set a pioneering example in the retail sector, demonstrating the potential of metaverse commerce to revolutionize customer interaction and brand loyalty. The move comes as the brand believes the metaverse provides a platform to break free from the limitation of accessibility of physical spaces and also creates a way to stay engaged with multi-generational consumers whose shopping habits are evolving.

Predicting future metaverse trends to generate ROI

• Increased corporate investments: Companies are becoming more strategic in using the metaverse to unlock value, moving away from the initial experiential tone. More corporations across diverse sectors will establish a presence in the metaverse, leveraging virtual marketing, sales, and remote workspaces. McKinsey & Company predicts that over 15% of corporate revenue will come from the metaverse in the next five years. This expansion will likely drive significant investment in virtual real estate, digital infrastructure, and immersive customer experiences in the 3D internet.

  
  

• Growth and sophistication of augmented reality (AR) and virtual reality (VR): Anticipated global investment in VR/AR, key technologies underpinning the metaverse, is projected to surge from $12 billion in 2020 to a staggering $72.8 billion by 2024, according to the International Data Corporation (IDC). Consequently, industry frontrunners in the gaming, retail, and healthcare sectors are strategizing to become pivotal contributors in this evolving digital landscape and use immersive technology for better customer and employee interactions. AR and VR technologies are set to become more sophisticated and accessible by focusing on affordable models that are also light and simple to use, offering more immersive and seamless metaverse experiences to a larger group of users. As investments in AR and VR hardware and software escalate, it will enhance user engagement and open new content creation and consumption avenues.

  
  

• Integration of artificial intelligence (AI): Metaverse platforms are witnessing significant integration of AI, a technology that can enhance virtual experiences through natural language processing (NLP) and computer vision. Advanced AI algorithms can help create intelligent, dynamic, highly realistic, and customized spaces, amplifying opportunities for companies, consumers, and investors. Industrial enterprises will be encouraged to digitalize physical world activities through digital twins with better tools to design, optimize, and manufacture products. A notable example of AI in the metaverse enhancing operations is in the healthcare industry, where VR and AI are used for training and realistic patient-doctor interactions.