marketing

10 rules for successful metaverse marketing

Post originally appeared in Martech. Written by Lisa Peyton.

It was a balmy evening in the summer of 2006. A friend of mine had taken me to the house and home studio of Draxtor Despres, an award-winning documentarian, who I was interested in interviewing for a piece I was writing. Immediately I was smitten with this bespectacled, headphone-wearing character who spent much time puttering around his home studio cooking up creative projects.

He gave us the grand tour, which included a cozy and scattered live/work area and what looked like a full-blown production studio. Despres had been making some remarkably interesting mixed media content, and I was eager to understand his creative process. Before I had the chance to get into any probing questions, he kindly explained it was well past his bedtime, and he had an early morning. I checked my watch, and it was only 7 p.m., and then, as if on cue, Despres was gone. He had logged off.

Yes, this was a virtual meeting, but I remember it as if it were yesterday. The oldest and arguably most successful virtual world or metaverse Second Life (SL) had been our first meeting place. The platform allowed me to meet and chat with someone who lived across the globe, in a different time zone, while feeling like he lived right down the street.

Despres and I — or Bernhard Draxas he is known outside of SL — met several times after that first fateful meeting. He was a regular content contributor to the publication I founded almost 15 years ago, SLentrepreneur, dedicated to “making money in the metaverse.” For years, I managed a global team of writers, photographers and editors, all within the virtual world of SL. I knew immediately that the platform offered something extraordinary. However, it would be over a decade later before anyone in my profession would start taking the metaverse seriously.

My SLENTRE.COM staff in early 2008 at our virtual office in Second Life. My avatar and editor-in-chief, Avarie Parker, is second from the right.

Despres has been heavily involved with virtual spaces for almost twenty years and has become my go-to for all things related to building and engaging virtual communities. Despres and I eventually met several times in person and became fast friends. I interviewed him while he was attending Augmented World Expo in San Jose, and we presented together at AWE Europe in Munich. It was a HUGE highlight of that trip to explore Despres’ home city of Munich together, IRL or “in real life.”

I recently asked him to share his knowledge with my XR students at the University of Oregon. What follows are the top ten insights from our lively discussion. You can view the entire interview on my Twitch channel and several other XR-themed expert interviews.

Ten rules of the road for metaverse marketing

1. Understand the true potential of the platform

The term metaverse has been around for a long time and only recently has been co-opted by companies claiming that they have built or are building a metaverse. A true metaverse does not exist. It is a purely aspirational concept that would allow for an open, connected and interoperable network of virtual environments dedicated to social interaction. The metaverse is meant to be like a 3D Internet, where you can digitally move from virtual environment to virtual environment.

Each environment could have a different set of rules, different “owners,” different citizens — similar to different countries if you like – with underlying infrastructure that allows for seamless travel between these virtual worlds. That infrastructure needs to be decentralized and ideally open-sourced so that nobody is left behind and one company doesn’t monopolize our digital universe. A recent Fast Company article discusses this concept and highlights OpenSim or OpenSimulator, an open-sourced network of virtual worlds created in 2007.  

2. Understand the technology and the terminology

It is essential to understand the technology and terminology of virtual platforms. Virtual worlds and the metaverse are different. I would argue that the metaverse is an open and interoperable network of virtual worlds or environments. A “virtual world” is a digital space where you can spend time together and do nothing – you don’t need to play a game, for example – and no headset is required. Accessible 3D virtual spaces that users can access on a tablet, smartphone or laptop offer the same immersion and interaction as headsets or VR-based virtual worlds.

The media uses the term metaverse as a synonym for all the offerings in a virtual space, and often the term is associated with headset-based experiences. Meta, Apple, Microsoft, and anyone else who claims they have built a metaverse, has instead created a privately held, virtual world. These companies, of course, want you and everyone else to believe that they own the metaverse, thereby monetizing the data of its users and potentially monopolizing revenue from the required software to access the space.

3. Get smart on the benefits of immersion

There has been much research on the benefits of using virtual spaces to connect with and engage users. Virtual spaces improve recall of information, provide a greater sense of embodiment and presence, allow for greater interaction and agency, and help limit distractions. There are many different types of immersion: Strategic, tactile, sensory, narrative, spatial and virtual environments can help marketers and comms professionals leverage them all, making their experiences more interactive and less passive.

4. Refer to your audience as residents or citizens instead of users

Using the term “resident,” or “citizen” for virtual world users indicates they have a stake within that community and moves them into an active role instead of a passive one. This tenant reminds me of the great work done by Jonah Sachs and what he terms “empowerment marketing.” One of the tactics of empowerment marketing — forget the consumer and call on the citizen — reminds us that inspired citizens make better brand evangelists than helpless consumers. You can read more about Sach’s empowerment marketing in this great series of articles featuring his work.

5. Understand the differences between consumption devices

Just like you need to become familiar with a new social media platform before launching a campaign on the platform, you need to understand how your audience is consuming the virtual world. Within the splintered virtual world ecosystem, different virtual communities and platforms are consumed through a variety of different devices like smartphones, tablets, PCs, Mac computers, tethered headset devices like the Rift, tetherless headset devices like the Oculus Quest, mixed media devices like Microsoft’s Hololens and mobile VR devices like Google Cardboard.

This is one of the reasons building an interoperable network of virtual worlds is so daunting. There currently is not a set standard method of consuming these immersive environments. Each virtual world has been built to support very specific hardware, so understanding these requirements is essential before diving in.

6. Speak their language

Become familiar with the thriving virtual environments that exist today. Each virtual world requires a different avatar, language, etiquette, etc. If you are building a marketing plan for a virtual space – you need to understand as much as you can about the residents. Some great questions to ask include: What are the demographics of residents? Why are they on the platform? What role or need does the platform play in the life of the resident? What is the unique language of the platform? What are the community norms, rules and regulations?

7. Location, location, location!

Any good marketer understands you need to GO TO your audience, and tapping into an already thriving and active community is much cheaper than building one from scratch. When choosing a location or platform for your virtual experience, a strategic approach is required. The platform you choose can mean the difference between success and failure and should depend on your overall marketing goals and objectives and your target audience. Factors to consider: Who is spending time on the platform, how are people spending their time on the platform, and what is the cost (money/time) to spend time on the platform?

8. Use the design thinking process

Approaching your virtual world or metaverse strategy from a design thinking perspective is essential to make sure you are solving a real problem for the user. Leverage the tenets of design thinking:

1) Empathize with your target audience.

2) Define the problem statement.

3) Ideate.

4) Prototype.

5) Test.

This allows brands to understand residents’ core concerns better and ensure they are using technology to provide solutions rather than just sizzle. Big brands can succeed in virtual spaces if they respect the residents and design for their needs, not focus solely on the brand objectives.

9. Prioritizing short-term economic gains sacrifices resident experience

Today’s economic climate forces companies of all sizes to continually prove value to investors, with a quick ROI becoming the focal point to succeed. Therefore, it is no wonder that technology companies use short-term tactics to get their user numbers UP at the cost of longer-term considerations for the residents/users. It IS possible to build a lucrative, online platform without selling user data and force-feeding advertising down users’ throats.

For example, SL has slowly but steadily grown over the last decade because it is a freemium or subscription-based model. They rent virtual space to their residents, and the resident can do with it what they want. This business model allows SL not to sell resident data to advertisers. Linden Lab, the creator of SL, also gets about a 9% transaction fee for all virtual goods sold by users on the platform. Philip Rosedale, the founder of SL and an outspoken leader in the virtual world space, positions SL as a place where you can have digital sovereignty. Isn’t that refreshing? Rosedale has rejoined Linden Lab’s board of directors in hopes of providing a viable alternative to Meta’s (Facebook’s) virtual environment, where they are purportedly planning to charge over 40% for transaction fees while at the same time making billions from offering user data to advertisers.

10. Join an active community of virtual world explorers and pioneers

Trying to become familiar with all the virtual environments can be daunting, if not downright impossible. It is much more enjoyable to explore these worlds with natives, who speak the language and can help you learn the customs quickly. Several great communities bring together professionals looking to expand their knowledge in this space. I am involved with the VRAR Association, Augmented World Expo, Despres SL Life Book Club, and I host my own XR Pub Crawl. You can read the highlights from my last XR Pub Crawl with Billie Goldman in this recent post or register to join me LIVE on my birthday, where we’ll explore the latest virtual spaces being used for marketing and communications.

If you’re looking to get additional training on marketing in the metaverse, read my post “Become a Metaverse Marketing Maven,” where I outline some great online resources to help you flex your metaverse muscle. Remember, as I always tell my communications students, with XR and immersive media, we are only limited by our imagination. Together we can build something that will inspire, engage and immerse our digital citizens and communities!  

Learn more from the XR Interview Series.

Highlights from VRARA Vancouver Branding for the Future (Sept Event)

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VRARA Vancouver's biggest chapter event to date, Branding For The Future, took place September 26th at Hootsuite HQ. We had a full house sell out of attendees for an informative night discussing how immersive technology will disrupt the ways brands, companies, and retailers connect with consumers. 

The night started with two keynote speeches to explore how Virtual Reality and Augmented Reality have already begun to change storytelling to consumers, and how immersive technology will continue to shape and enhance brand experiences. 

First speaker was Alan Smithson, CEO of MetaVRse. On his talk "VR/AR for Business 101", he said traditional human communication mediums, such as TV, Radio, Internet, Mobile will not be going away anytime soon with the introduction of VR/AR. Simply put, augmented reality is going to be the next medium. He shared several examples of use case of AR in consumer engagement, including IKEA Place app. Alan spoke about how AR Kit was released 3 months ago, but IKEA managed to get their entire catalogue out because they started working on the product two years ago.

He urges businesses to "start now, because in a couple of years when [AR] is a commonplace and all of the big brands and your competitors have started this, you don't want to be left behind when this takes off as a communication medium."

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The night was followed by second speaker, Mira Leung who is lead in ARCore at Google on "Engaging Audiences in VR/AR". She educated the audience on the technical foundation of immersive technology, and discussed engagement and visualization with AR. She says "the question will not be if but how and when VR/AR will be a significant portion of business process and customer experiences." She ended her speech on an encouraging note that what's next for VR/AR will rely on those in the audiences. Mira asked them to show the VR/AR industry what's possible, show what experiences and interactions they can create using their creativity and storytelling in combination with the technology.

Fireside chat was moderated by Nikolas Badminton, world-reknowned futurist speaker, author and researcher. The panelists were composed of industry thought leaders, including Chris Bedyk from Perspective Films, Daniel Japiassu from YDREAMS Global, and Graham Cunliffe from Finger Food, as well as the two speakers, Alan Smithson and Mira Leung. The fireside chat was a discussion about several topics. One of which was on quality of AR that is available today. Because the technology in its infancy, costs of delivering high quality VR/AR experiences is high. However the value and experience a consumer could get is often greater than having a high definition experience, especially if it is an experience that is unaccessible, such as BC Lions' dressing room.

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After the speaker and fireside chat, attendees enjoyed themselves to refreshments and delicious selection of food, sponsored by Foodee, to enjoy while networking. There were also a handful of innovative companies showcasing their technology, such as Blueprint Reality, Questupon, Perspective Films, BioInteractive Technologies, cognitiveVRradical.io, and LlamaZOO

Here's the event recap video by NovusTV:

 
 

Here are the full speaker talks:

 
 

We would like to thank everyone that attended our event. Special thanks to our amazing speakers, as well as sponsors who made this happen: Hootsuite, Tradable Bits, Voyer Law Corporation, Vancouver Startup Week, LNG Studios, BC Lions, Unbounce, Futurist Nikolas Badminton, Cambridge International House, Entax, Foodee, and

Written by Laura Ryu, Marketing and Communications Manager VRARA Vancouver

Transforming Digital & Marketing Agencies with VR and AR | Q&A Series #3 featuring Pound&Grain

This is the third feature in the series showcasing Vancouver digital and marketing agencies (non-traditional VR/AR companies) 

Our own Laura Ryu (Marketing and Communications Manager at VRARA Vancouver) sat down with Michelle Knight of Pound&Grain based in Vancouver. They've worked with a number of clients on their interactive digital and brand strategy including SAP, Arc'Teryx and Lululemon.

Tell us about your agency & what you've been working on.

At Pound & Grain we work hard to add value to the brand by creating something useful for the user. We found creating a VR experience is an all-round win. It’s a tool with immersive qualities that are unparalleled. We’ve used VR as a demo tool for SAP and to show off CFL’s new Adidas gear. We also love the odd passion project.

Tell us about a VR or AR campaign that you've enjoyed or were inspired by.

We are huge horror fans (sisters), but when it comes to VR storytelling we first fell in love with loVR. Who knew a data led love story could be so beautiful? It was the game changer for us, or as some would say our ‘Jesus moment.’ That being said, cowzVR is a pretty fun and an incredibly random experience.

We are starting to see competition build up in advertising, especially with big players such as Saatchi & Saatchi building on-site VR labs. What are your thoughts on competition and what do you think will set apart the strong agencies from the rest?

We’re in such an exciting time right now! For us, a VR experience should only be created if it makes sense for our client and the concept is VR first. Today, like any new platform, there are gimmicky experiences that don’t add as much value. The difference between the ‘strong’ and the ‘weak’ VR agencies will come down to content and of course context.

How do you think the structure of agencies and its landscape will change in the next 5 years given anticipated rapid growth in VR/AR technology?

There will be an AR team and a VR team and the two technologies will exist independently of each other, with the odd overlap during integrated campaigns. It will also become a more specialized and integrated role throughout the agency at a deeper level. We hope AR will become a tool people rely on to get from A-B, to cook, to shop etc. While VR will allow the user to escape into a new role – hopefully interacting at a greater level with the possible addition of haptic responses and more attention to sound.

What is currently your biggest challenge (or as the industry) in regards to integrating VR/AR?

Getting headsets onto faces is still a pill the smaller brands are battling to swallow.

We know that VR/AR will be disruptive in many different industries, how will this affect your company and clients?

VR will allow us to share our client’s emotional and intellectual being in a space of presence. AR will allow us to communicate and create ways that make brands more useful and integrate them into everyday life.

Why is it important for agencies to be onboard now and join the VR/AR Association?

VR is the coming together of many, many skills and mindsets. And we are all in a learning stage, we want to harness all failures and celebrate all successes together. This combined knowledge will allow us all to experiment and learn at a much greater pace.

What benefits do you see in being a member?

Collaboration and insight. We are part of two committees with professionals that are open to share and learn from each other. Being part of the VRARA means being part of an inclusive group of professionals playing with one of the most powerful storytelling tools that’s ever existed.

 
 

We'd like to thank Michelle Knight from Pound&Grain, please visit them at www.poundandgrain.com

Join the VRARA Marketing Committee and others, here

Transforming Digital & Marketing Agencies with VR and AR | Q&A Series #2 featuring Domain 7

This is the second feature in the series showcasing Vancouver digital and marketing agencies (non-traditional VR/AR companies) 

Our own Laura Ryu (Marketing and Communications Manager at VRARA Vancouver) sat down with Kevan Gilbert, Director of Engagement Strategy of Domain 7 based in Vancouver. They've worked with a number of clients on their interactive digital strategy including Microsoft, Telus and UBC.


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Tell us about your agency & what you've been working on.

Domain7! We've been working on using virtual reality as a way to inspire our partners to envision a more positive future. From in-studio demos to taking the technology to conferences, we see this as an opportunity to help people reduce their cynical barriers, and start dreaming together about the future we want to co-create. 

Tell us about a VR or AR campaign that you enjoyed or was inspired by. 

We're loving the demos coming from ARKit from Apple, including the portal-to-another-world demo: http://mobilesyrup.com/2017/06/30/new-video-of-apples-arkit-shows-off-interdimensional-portals/

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We are starting to see competition build up in advertising, especially with big players such as Saatchi & Saatchi building on-site VR labs. What are your thoughts on competition and what do you think will set apart the strong agencies from the rest? 

Rather than simply stealing attention or building on negative habits, the way our over-optimized 2D web has become, perhaps the work that will stand out in VR is work that answers this question well: "Does it help the human who is using it live the life they want to lead?" 

How do you think the structure of agencies and its landscape will change in the next 5 years given anticipated rapid growth in VR/AR technology?

I think it will remain important-as-ever to invest in healthy workplace cultures, since there will be more competition amongst agencies for smart technologists, designers, writers, creators, etc. How can we grow healthy workplaces that affirm human value even in this coming gold rush, where companies may become tempted to start taking shortcuts in hiring and culture.

 

What is currently your biggest challenge (or as the industry) in regards to integrating VR?

The chicken-and-egg-ness. What comes first: becoming an expert in the technology, or waiting for client demand? Since the technology doesn't have wide adoption in the user base, clients aren't necessarily asking for it. But in the meantime, they'll never ask if they don't see expertise and opportunity. 

We know that VR/AR will be disruptive in many different industries, how will this effect your company and your clients?

I'm curious to see how, in 10 years time, fully integrated VR/AR solutions have the opportunity to influence HOW we work, not necessarily what we work on. For instance, workspaces are very physical right now, because of the need for computer monitors, and the human desire for social proximity that has no other outlet. But if through VR/AR, the work isn't on your screen, how would we redesign the workplace? Similarly, if through VR/AR I can "feel" like I'm right beside my colleagues, even when I'm in my house, do we still need offices in the same way? And if a certain percent of the workforce can become not just "remote" workers, but "virtual" workers, how can this influence commuting, and thus, carbon emissions and air quality? (I'm not saying we'll all become hermits, but I do hope we ask ourselves more, "Why am I commuting, and is there another way?")

Why is it important for agencies to be onboard now and join the VR/AR Association?

To anticipate what's coming, to develop your imagination, and be part of a community of changemakers. 


 
 
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We'd like to thank Kevan from Domain 7, please visit them at www.domain7.com

Join the VRARA Marketing Committee and others, here