Navigating the changes in the metaverse

By Candice Georgiadis, social media influencer and founder of Digital Day Inca social media and marketing agency in California.

Advertising has continued to evolve over the past few decades. With technological changes, the advertising media has moved from conventional forms to largely digital avenues. While advertisers are looking for ways to improve ad visibility and increase conversion, consumers are also looking for ways to move away from conventional systems.

Customers demand ownership of data and dictate a shift to transparent use of information. Web 3.0 and the Metaverse have emerged as a solution to the long-standing customer demand.

Exploring the Web 3.0 Revolution

In simple terms, Web 3.0 represents a shift towards individual sovereignty over the Internet. The shift has been largely driven by the growth of decentralized blockchain technology.

The main reason behind Web 3.0’s growth is rooted in the shortcomings of centralization. Repeated abuses of power by social media platforms and centralized authorities have motivated users to embrace decentralization.

Customers are increasingly using cryptocurrencies and decentralized tools in everyday applications because of the innovation in Decentralized Finance or DeFi. The transparent nature of blockchain networks has made them an obvious choice for customers looking to move away from mainstream applications.

The immutable nature of blockchain technology also makes it the ideal tool for businesses to track ad spend in real time. This would make media buying across the industry more transparent.

The current direction of the Web 3.0 industry is largely focused on surface projects such as non-replaceable tokens. Digital collectibles have become one of the fastest growing examples of Web 3.0. However, the technology promises much more to users than just digital art.

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Role of interoperability

An important phenomenon in the Web 3.0 concept is interoperability. While we have yet to see if the concept is sustainable in the long term, the first prototype of the Web 3.0 landscape is heavily based on shared experiences across platforms. Theoretically, users could carry their avatars and digital profiles across different websites and applications to have a unified experience.

If interoperability remains a viable concept, it will be interesting to see how advertising evolves to take advantage of a unified internet. Despite the decentralized nature of blockchains, businesses could have an unprecedented degree of freedom to interact with potential customers.

Value of Metaverse Real Estate

The largest Metaverse projects have shown aggressive growth since their launch. Platforms like Sandbox and Roblox have managed to grow exponentially in just a few months. The concept of virtual real estate has been largely validated by clients through investment activities. Businesses should consider Metaverse real estate as an important part of their advertising strategy.

In the near future, Metaverse traffic could be the single most important measure of campaign success for advertisers. To respond effectively to this phenomenon, it is important that industry stakeholders pay attention to growing Metaverse projects.

Cross-platform collaborations

Digital rights ownership is also beginning to change the way consumers interact with segments such as gaming, entertainment and fashion. Secondary markets like OpenSea have already gone mainstream as customers find ways to monetize and manage digital collectibles. The next step in this transformation is data.

With Web 3.0, customers can finally take control of their information and decide how it is used and shared on the new internet. In this landscape, new digital tools are emerging in the advertising industry.

Shifting digital resources

Aside from the medium, the tools used to create ads are also expected to evolve in the Metaverse. Here’s how:

• Virtual reality ads. Aside from the experimental attempts at advertising, VR has remained a largely secluded medium. That may change in the future. As users move away from text and video-based interactions, businesses need to focus more on virtual reality advertising.

• In-game ad modeling. The gamification of Metaverse has made it essential for advertisers to explore 3D-rendered ads in games. The play-to-earn economy represents an important part of the Metaverse. If companies want to develop their ad models to meet the demands of Metaverse, they need to find ways to work on in-game ads that don’t hinder the customer experience.

• User-driven advertisement. As with other segments in the DeFi industry, companies should view customers as a central part of the advertising experience. The transparent nature of blockchain technology requires a major shift towards ethical marketing by asking explicit consent from users before using data. Further use cases can also empower users by giving them a share of the ad revenue. Including customers in the growth of advertising is expected to be a monumental step towards the growth of ethical marketing. User-driven organic sharing allows companies to reach their audiences without relying on previous data collection models.

While we are still in the early stages of Web 3.0, we are already seeing a significant shift in the way companies approach advertising. Leading companies across industries have already embraced the emerging Metaverse as a lucrative avenue for marketing and engagement.

Despite differing opinions among internet residents, decentralization is clearly emerging as the future of the internet. Consensus-based platforms are leveraging blockchain technology to showcase exciting new capabilities such as NFTs and the VR Metaverse.

The VR-focused nature of the Metaverse could result in a major cultural shift in advertising. Businesses need to start thinking about new ways to engage with modern audiences. Like the approach Nike has taken with the launch of the Nike x RTFKT collection, companies need to expand their digital design philosophy to cater to the emerging market.

Based on the aggressive growth of Web 3.0 platforms and applications in a short period of time, further adoption is expected to accelerate in the near future. It will be interesting to see how advertisers come up with creative solutions to make the most of the opportunities in the Web 3.0 era.