Pros and Cons of Branding in Metaverse

young girl using VR goggles using for branding in metaverse

The fact that no guidelines or playbooks have been established makes branding in metaverse all the more interesting. The professionals haven’t figured them out yet, so newcomers stand a good chance of succeeding.

There will still be obstacles, though. In order to build a loyal customer following, modern brands must abandon conventional branding ideas and tried-and-true advertising tactics. It’s a completely different environment, filled with novel difficulties.

Successful branding in the metaverse zeros in on the platform’s most distinctive features, allowing users to completely immerse themselves in the experience. The goal of building a virtual 3D world is to make it easier for customers and products to interact with each other.

So what exactly are the stakes for marketers and brand strategists in the world of the metaverse? Let’s find out. 

Welcome to the Metaverse, the World of Endless Interpretations

The #1 utopian destination has already opened its gates, yet people still can’t find a way around experiencing it. The first problem that arises is understanding the concept itself.

Since so many people and businesses have their own ideas about “the metaverse,” it is hard to come up with a single definition.

Even before we start talking about the “non-fungibility of it all,” let’s understand this concept at its base level. We’re talking about a three-dimensional digital world, usually powered by virtual reality (VR), in which people can interact with each other and with the objects around them.

Similar to video games but on a far grander scale, it’s a place where your character, or “avatar,” may exist indefinitely, an environment where you can acquire personal possessions, and a place where you can legally claim ownership of virtual real estate.

It may sound utopian, but that shouldn’t surprise you, as the inspiration behind it comes from fictional novels. The metaverse’s origins date from Neal Stephenson’s novel Snow Crash, where humans interact with each other, as well as with computers, through their digital avatars.

Combining it with a little bit of Ernest Cline’s Ready Player One and its immersion into digital reality using virtual headsets, we now have a “brave new world” in which we can dip our minds (and money) in.

Yet, there isn’t just one metaverse, or the metaverse. Just like the internet began as a fairly democratic resource, this new “cyberspace” isn’t owned by a particular company.

Yes, Facebook has reinvented itself as Meta and started developing big plans for itself, but they are just one of many giants that decided to take upon the task of immersing humanity into digital realms.

That is why numerous companies with opposing interests are getting caught up in this cyberspace, and we have yet to see varied interpretations of it. As a result, many businesses will compete to create their own metaverses.

There is no way to provide a precise meaning to a word like “metaverse” in a context where things change so rapidly; instead, many new words will likely emerge as the idea develops. There is a lot of buzz and misinformation surrounding its growth at this point in time, but there is also a lot of enthusiasm and possibility.

And with so many technical possibilities come even double branding opportunities.

Branding In the World of Metaverse

Because this trend is only in its development phase, creating a concise brand strategy might be difficult at the moment. It is also determined by the scope and personality of your brand.  But, it’s possible that metaverse marketing will only serve as an additional marketing channel for the realization of your brand plan.

The truth is, there aren’t many metaverse-focused marketing agencies currently, but some are already starting to establish themselves as reliable in this field of work, such as branding services in Atlanta by Digital Silk.

Relying on agencies with previous experience seems like the best form of investment at the moment, as they will assist you in deciding on a medium, organizing your content for maximum engagement, and establishing a foothold in any form of cyberspace.

Who is it For? 

Before even entering the cyberspace market, deciding if you belong to it is key to successful advertising. So far, we’ve had a chance to see different things advertised in the metaverse, such as:

The possibilities are endless; there still isn’t a certain playbook to follow, but some things are for sure. The foundation of a successful metaverse brand is total immersion in the platform.  This implies that customers must interact with your product in order for you to make a profit.

Keep it immersive and engaging, and give people a reason to participate and talk about it. As long as your brand has something engaging and adaptable in the realms of cyberspace to offer, you can think about presenting it to the avatars.

Pros: Why Invest into Metaverse Branding

New Distribution Channel

Marketers benefit greatly from having many distribution points for their ads. It’s unlikely that sponsored content in the Metaverse will one day replace paid ads on social networks or in more traditional forms of media. The addition of even one more channel, however, may expand your customer base and establish your company as a market leader.

Additional Reach

Gen Z and other new audiences aren’t as interested in social media or traditional marketing methods as older generations used to be. That is why researching their online habits is key to understanding their needs.

Many Gen Z individuals spend hours playing online video games such as Roblox or Fortnite, and being present and visible inside “their” worlds is crucial for getting your brand acquainted with them.

Going 3D and Face-to-Face

Two-dimensionality refers to the fact that interactions on social media platforms like Facebook, Instagram, and Twitter can only take place between two people using separate screens.

Virtual face-to-face communication is made possible by a graphics-intensive and completely immersive virtual environment, and the latter also provides real-world applications for the digital material created or discovered there.

Fresh Possibilities and Ideas

As a result of technological advancements, businesses now have access to previously unavailable possibilities. It gives them a more complete way to promote their products and services by using similar marketing materials and ads, virtual shops, and highly interactive customer service.

This is similar to what social media has done for digital marketing and advertising. It also opens up fresh possibilities for team collaboration and communication.

More Room For Creativity and Collaboration

It’s possible to let your advertisers’ imaginations run wild with 3D virtual world advertisements. There are almost no limits to what you can do with 360-degree videos and interactive ads that are powered by artificial intelligence.

This is a great chance for marketers to think unconventionally. Advertisers will be able to provide clients with an experience they won’t soon forget by delivering ads they genuinely want to view.

Not to forget the greater scope of ideas that different collaborators can bring to the table. 3D environmentalists, animators, and other digitally acquainted professionals don’t think in two dimensions, so their input can greatly benefit your branding efforts.

Education Possibilities

Particular uses in education and learning are another benefit of the metaverse. Keep in mind that asynchronous classrooms and video conferencing online are examples of passive and indirect learning.

Remember Scholastic’s The Magic School Bus, where pupils were just one magic bus ride away from learning more about themselves and the world surrounding them? A fully immersive virtual environment, just like in the above-mentioned animated series, makes it possible to learn in a way that is both interactive and real.

Blockchain Suitability

All transactions in the metaverse are done through blockchain technology, a decentralized and safe finance application. We’re not talking dollars anymore, we’re talking cryptocurrencies, non-fungible tokens, digital assets and virtual estate ownership, etc.

Of course, blockchain technology isn’t perfect, but neither is any other system. Bitcoin is an attractive alternative to cash, gold, and bank wire transfers because of their relative impracticality, lack of security, and reliance on third parties.

The financial transactions recorded in a blockchain may be verified by anybody, but once they are written, they cannot be altered, and numerous versions can be stored in different locations to ensure that no data is ever lost.

Cons: Why Should You Hesitate

It Requires Access to Expensive Solutions

As much as we view the metaverse as a democratic environment, it is still a playground for individuals belonging to wealthier groups. It is a graphics-heavy environment that requires powerful machinery, including a fiber-based internet connection, mmWave 5G solutions, fifth-generation wireless network technology, and other next-generation tools.

Automatically, this excludes a whole bunch of people worldwide who don’t have access to or the financial resources for these solutions. Not to mention other devices such as virtual reality headsets, the cheapest and most reliable of which still cost around $299 each.

Faster-Paced Deadlines and Cost of Work

Contrary to standard video formats and static imagery used in current digital (as well as offline) landscapes, 3D content takes a lot more time, people, and resources to be executed successfully.

A cyberspace ad’s lifetime could be much more expensive and last shorter than a traditional billboard, an ad placed inside a magazine, or an ad distributed through TV or streaming services like YouTube.

Moreover, the production of this type of content requires not only a larger number of people within the creative teams but also the extension of deadlines that we are accustomed to with conventional digital formats.

Assuming you’ve already got users’ attention in the metaverse, keeping it requires constantly refreshing their experience with new material. There is a greater chance that creatives will experience burnout in such a fast-paced environment, and audiences will be less likely to engage with formats that fail to meet their needs.

The Market is Run By the Industry Giants

Major corporations like Disney and Nike have already spent millions promoting their products in the metaverse. As a result of the high level of innovation these companies will bring to the market, smaller brands will have a difficult time keeping up.

If you compare your paid marketing to that of brands that use groundbreaking visuals, augmented reality, or interactive ads, you may find yourself falling short. It’s also possible that your competitor’s paid advertising will appear alongside your own.

When you promote a product through paid social media channels, you can be sure that your audience won’t see other ads for the same product. Considering how decentralized the ideas of the metaverse are, it may pose some problems.

Ethical Questions

Concerns about privacy and security, cyberbullying, the spread of false information and propaganda, and different types of cybercrime are all problems with the internet that have not yet been solved. With each new technological advancement, these issues will become more severe.

New technologies, like targeted ads that interact with users’ avatars, will definitely start a lot of new ethical debates. Many of the societal divides that exist in modern society can be brought to light by hyper-realistic interactions. Play one of your branding moves wrong, and you can easily start a fire due to a sensitive public dispute.

Another negative aspect of branding in the metaverse is that it might lead to new norms and practices that could undermine social norms already in place in the actual world and have an impact on social interactions and relationships that have developed naturally.

This is why Meta has already developed digital literacy curriculums that provide students with information on how to safely navigate through cyberspace.


People already get too much stimulation from all the different kinds of information they are exposed to every day. Overstimulation is a clear barrier to wanting to spend time in a virtual environment in a setting that additionally excites all the senses.

The metaverse will be more engaging than anything we’ve previously seen in the media, at least temporarily. Living in such a lively environment comes with the risk of developing jadedness. If there is too much sponsored advertising in the metaverse, users may lose interest in it.

There is Still No Clear Rights or Wrongs

At first, there won’t be a lot of data accessible on the types of advertising efforts that succeed in cyberspace. The majority of marketers, however, do not have the time to spare on testing a variety of strategies to see which ones produce the best results.

Being an early user of paid promotion in the metaverse carries some risks, one of which is the possibility that your company will spend more money than it makes.

The Final Product Can Be Boring

We’ve seen a lot of blockchain gaming ventures, most of which are cryptocurrency-linked online games in which players stake claims on virtual land or items. The problem is that they put too much emphasis on the monetary value of their in-game stuff and not enough on the features that would attract new players.

Because the “Web 3” enthusiasts who create them typically lack any experience with game design, the resulting products fail to provide the kind of compelling user interactions that modern gamers have come to expect. There is a real chance that future metaverse projects will do the same, putting money ahead of user happiness and fun.

Walking around a virtual reality environment where your only options are to talk to other people and put on their clothes is a recipe for boredom. A compelling motivation for people to stay is essential.

The Takeaway

Before dipping your toes into these fresh waters, consider whether the metaverse project you’re interested in will provide you with the same sense of accomplishment as traditional ways of branding through proven methods and ways of communication people are familiar with.

Think about it: Will people lose interest after a few weeks and move on to other things that are more natural and enjoyable to them?

Right now, it is more efficient to put your money toward building your brand into something that can be measured right away and assure you a good ROI. Since the infrastructure of the metaverse is still in its early stages, it can be hard to figure out how much branding inside it is worth.

You might want to look into experimenting with the Internet if your audience has demonstrated an interest in cutting-edge activities and technologies.

Just keep a cautious attitude; in 2010, it would have been almost unimaginable to consider Bitcoin as your next currency, and look at how the tables have turned. Are you willing to turn your back on yet another opportunity? Branding in Metaverse is key to your successful launch.


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