How should brands measure ROI in the metaverse?

How should brands measure ROI in the metaverse?

The pandemic has caused an increase in online gaming, shopping and social media, further blending our digital and physical realities. The gravitation towards online media and content consumption has led many brands to rethink their digital footprint and inspired technologists to innovate in the space.

From Balenciaga’s digital fashion line at Fortnite to Samsung’s flagship space at Decentraland, we’re seeing brands begin to harness the power of the metaverse to deliver immersive brand experiences to their consumers.

However, virtual experiences may not be suitable for all brands at this time. While the Metaverse may be on everyone’s lips with marketers, consumers aren’t convinced yet.

“Brands need to start by understanding their target audience,” says Conrad Tallariti, regional vice president of sales at DoubleVerify. Asia-Pacific Campaign. “Understanding whether their target audience includes early adopters of metaverse platforms is key to understanding whether brands should invest in marketing on these channels.”

For example, if a brand’s target audience includes younger adults, particularly those with an interest in games, creative outlets, emerging technologies, or new investment opportunities, it is safe to assume that they will likely spend some of their time exploring these virtual worlds. If so, the metaverse represents a unique opportunity to cultivate a lasting engagement with these consumers.”

Agreeing with Tallariti is Bharat Khatri, digital director for APAC at Omnicom Media Group. He says brands need to be authentic, focus on culture and what they want to embed. They can then begin their metaverse journey by combining and taking full advantage of the games. Indeed, gaming as a concept and vertical is already mature and offers brands a truly immersive experience.

“We’ve seen Nike partner with Roblox, create Nike Land or Wendy’s in Horizon World. There were two things that were pretty common in those activations. First, brands realized they wanted to connect, engage and empower this audience of the Gen Z and millennials when interacting within this metaverse environment, Horizon or Roblox.The second is that brands have used organic and paid media to educate users.
Bharat Khatri, Omnicom Multimedia Group

Khatri adds that part of that education is connecting with the community of influencers who are already talking about things like the metaverse, games, and NFTs. Additionally, they can help the brand educate people about the opportunities the brand offers through loyalty programs or activations. Additionally, the brand can use paid push to educate people on aspects of Web3.

Measuring Success in the Metaverse

According Bloombergthe metaverse will capture $800 billion in market share by 2024 by harnessing the intersection of e-commerce, social commerce, gaming, web3, the creator economy and new digital communities.

However, since we are still in the early days of the Metaverse, there is still a significant upfront development cost to create unique experiences in a virtual world. For this reason, brands will want to create success metrics to measure their impact on their audience.

The good news, says Natrian Maxwell, managing director of emerging markets for games, audio, digital signage, retail media and social media at The Trade Desk, is that most gaming environments are integrated with third-party data. partners who help tie these efforts to measuring KPIs they already track on other channels.

Examples of this can be watch time, viewability, brand recognition and brand impact. Brands need to decide which success metrics matter most for a particular campaign and work backwards when designing content to maximize those efforts.

Horizon Worlds by Meta

“There are many ways for brands to achieve a purchasable outcome in the metaverse, such as in-game purchases. Depending on the brand, players can purchase unique skins, merchandise, or other add-ons to differentiate their gaming experience,” says Maxwell.

“Brands can create real-world products that become the connective tissue between the physical and digital worlds in which gamers can purchase physical goods tied to their virtual experiences.”

He adds that another area that is gaining popularity is branded NFTs or digital collectibles. Brands have created unique limited collectibles in the form of NFTs that accompany a physical good and can be showcased in the virtual environment.

Getting ROI in the Metaverse

Zoe Chen, director of strategy for APAC at Virtue, explains that the return on investment for brands in the metaverse ultimately depends on the bottom line. For example, when a brand joins Web3 and wants to auction NFTs for sale on certain days, the end result is the same as any event or campaign.

In this case, the brand can measure ROI based on the number of people who sign up to be on the waitlist, time spent on the website, views, engagement, and ultimately, Sales. Brands will have to work backwards to know the outcome.

“On the other hand, a brand like Coca-Cola has created an experience in Fortnite where people can play, collect, and discover hidden treasures, pixel collections, and mini-games on Coca‑Cola Zero Sugar Byte Pixel Point. Island,” she said. .

“The brand will see how many people have scanned the QR code or the dwell time in the virtual world. You can measure anything digital, like the actions taken by their avatars, how much time they spend in the virtual world and s “they come if they’re using the same account. This opens up more metrics in addition to measuring paid media engagement, clicks, and views.”

Coca-Cola in Fortnite

Although there are many definitions of metaverse, the most common is that Web3 is the undercurrent and metaverse is the experiential layer. As technology evolves, we will get more and more openness from the experiential layer.

This means that brands should no longer discuss the metaverse as mixed reality, virtual and real-life types of crossover experiences. Instead, they should focus on a long-term strategy to build customer loyalty, create lifetime value, and get the most out of their investment in the metaverse.

“Brands that discover how they can play creatively in the metaverse will build strong muscle memory in their marketers,” says Stan Lim, Chief Creative Officer, Singapore Creative Group at Dentsu International.

“The next time a new layer of experience opens up, whether I’m ferrying people to Mars on a spacecraft or we’re creating a virtual environment inside a spacecraft; it doesn’t matter. importance because you will learn that whatever we do is the means to reconnect to ROI and work with creative technologies to convey the experience quite well.”

This story first appeared on Campaign Asia-Pacific.

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