Metaverse Marketing Rationale Rests on Branding, Engagement

December 20, 2022

This article is included in these additional categories:

Brand Metrics | Brand-Related | Business of Marketing | Customer Engagement | Customer-Centric | Innovation

One in 5 US ad buyers is currently investing in metaverse advertising and/or marketing, according to a report from the IAB. With another more than one-third (36%) considering doing so, only a minority (44%) have no interest in this emerging form of marketing.

The results are broadly in line with other surveys on the topic. A recent piece of research found that close to one-third of B2C marketers in the US who are professionally aware of the metaverse say that they are using the metaverse as part of their current marketing program. A separate study of B2B marketers revealed that one-fifth were using the metaverse for their brand experiences.

So why invest in metaverse advertising/marketing? The IAB asked ad buyers who are currently investing or are considering investing why they might do so. The leading reason, as cited by 52% of respondents, is to build brand awareness/recognition, while close to half (46%) cited a boost in brand perception as a reason. Sandwiched in between those brand-related reasons is an interest in a new way of engaging existing customers, as cited by almost half (48%) of respondents.

This is supported by other research on B2C marketers, who, when presented with a list of challenges, were most likely to say they believe metaverse experiences can help them address brand awareness/visibility and customer engagement/loyalty.

Meanwhile, among the 44% of respondents who are not invested in metaverse advertising/marketing and aren’t considering doing so, the top reason for not investing is that metaverse advertising is simply too nascent (41%). Other reasons cited included metaverse advertising not being a good fit for the audience (37%), not being a good fit for the brand (35%), and a lack of room in the budget (35%).

All told, about one-quarter (26%) of ad buyers surveyed expect to increase their focus on Web3 (including metaverse, NFTs, etc.) in 2023, more than double the share (12%) that will focus less on this. The remainder will either maintain their level of focus on Web3 (26%) or don’t see this as applicable (36%).

About the Data: The results are based on a survey of 223 buy-side ad investment decision-makers, primarily at brands and agencies.

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