The Rise of Performance Marketing in the Metaverse

The metaverse is rapidly transitioning from a buzzword to a tangible marketing channel, and with this evolution comes a critical shift in focus: the rise of performance marketing. No longer are brands content with simply establishing a presence in virtual worlds for the sake of novelty or PR. They now demand measurable results, seeking a return on their metaverse investments. This post explores this significant shift, drawing upon insights from industry experts like Tom Von Simson from GEEIQ and examines the strategies and platforms driving this new era of performance-driven metaverse marketing.

The Maturation of Metaverse Marketing

Brands created virtual experiences and activations with the primary goal of capturing headlines and demonstrating innovation. However, as Tom highlighted, "We have now shifted into what we see as more like performance marketing…the budget for these activations are shifting from innovation budgets more towards marketing budgets." This shift signals a maturing market, one where brands are increasingly treating the metaverse as a legitimate marketing channel alongside traditional digital and offline avenues.

The Key to Performance in the Metaverse

With this focus on performance comes a demand for data and analytics. Brands need to understand the impact of their metaverse activations, measure their ROI, and optimize their strategies based on concrete evidence. This is where partnerships like the one between GEEIQ and Zepeto become crucial. As Tom explained, "The value that Zepeto sees in a GEEIQ partnership is understanding…that their data is actually really, really encouraging…brands can have visibility over that data to understand their performance." This data empowers brands to make informed decisions, track key metrics like engagement, sales, and brand awareness, and ultimately justify their metaverse investments.

Choosing the Right Virtual World for Your Goals

Choosing the right platform is crucial for achieving specific marketing objectives. Tom highlighted the key differences between platforms like Roblox and Zepeto: "Roblox is very, very social, it is still at its heart a gaming platform…Zepeto…is actually much more of an avatar identity platform." This distinction impacts the types of activations that resonate with each audience. Roblox, with its focus on gaming, lends itself to interactive experiences and microtransactions, while Zepeto, with its emphasis on avatar customization, provides a fertile ground for virtual fashion and digital goods.

Ownable Offerings and Authentic Engagement

Tom emphasized the importance of "identifying ways in which you can show up in a meaningful yet authentic way…bringing their identity to a platform." This could involve creating branded virtual items, developing interactive games, or hosting virtual events. The Walmart and Essence Cosmetics examples demonstrate the power of ownable offerings. Walmart extended its real-world retail experience into Roblox, while Essence Cosmetics provided free, branded UGC makeup looks, driving significant engagement and brand awareness.

The Future of Performance Marketing in the Metaverse

The future of performance marketing in the metaverse is bright, with several key trends poised to shape its evolution:

• Increased Integration with E-commerce: The integration of platforms like Shopify into virtual worlds is opening up new avenues for monetization, allowing brands to seamlessly connect their metaverse activations with their online stores.

• Focus on User-Generated Content (UGC): Empowering users to create and share branded content is a powerful way to drive organic growth and build community. The success of Essence Cosmetics' UGC makeup looks exemplifies this trend.

• Enhanced Data and Analytics: As platforms mature, we can expect more robust data and analytics tools, providing brands with even greater insights into their performance and enabling more sophisticated optimization strategies.

• Expansion Beyond Gaming: While gaming platforms currently dominate the metaverse landscape, we can anticipate the emergence of new virtual worlds catering to diverse interests and demographics, creating even more opportunities for targeted marketing.

• The Rise of Interoperability: The ability to seamlessly move virtual assets and identities between different metaverse platforms will unlock new possibilities for cross-platform campaigns and enhanced user experiences.

By embracing a performance-driven approach, leveraging data and analytics, and creating authentic and engaging experiences, brands can unlock the immense potential of the metaverse and achieve measurable results in this exciting new frontier.