The future of advertising may be in the metaverse, with 59 percent of marketers reporting it is the most successful channel on which they advertise, according to new research from Qualtrics, a Provo-based customer experience management platform.
The metaverse is a simulated digital environment that mimics the real world using augmented reality and virtual reality to create spaces for users to interact. For many marketers, the metaverse presents an opportunity to connect with consumers in ways that have never been possible before.{mprestriction ids="1,3"}
Faced with budget cuts, marketers are re-evaluating how and where their dollars are spent to ensure they are keeping up with consumers, according to the research. Although 96 percent of marketers agree it is important for their brand to be on all channels — including the metaverse — 90 percent of them also agree there are too many channels on which to engage with consumers. This channel fragmentation has caused marketers to be unsure of where to focus their efforts, increasing their need to have up-to-date data to help them make the best decisions.
Conflicting responses from marketers indicate competing priorities, as 35 percent of marketers shared their top priority was to drive growth, yet 29 percent of marketers also shared their greatest challenge was to improve customer loyalty.
“During times of uncertainty, marketers and CMOs need data to back their decisions,” said Michel Feaster, Qualtrics’ chief product officer of research. “It’s clear that marketers are overwhelmed with the complexity of reaching and engaging with consumers. They need better tools to navigate the noise and show proof that their efforts are driving impactful results on every channel, including the metaverse.”
Marketers that have adopted the metaverse are ahead of the curve in comparison to consumers, though there is still some skepticism from both sides. Thirty-seven percent of marketers who don’t currently advertise on the metaverse cited the top reason was lack of validation proving metaverse advertising works. Additionally, most consumers spend more time on other channels. TV, podcast and social media (YouTube, Facebook/meta, Twitter, TikTok) outranked the metaverse. However, more than half of consumers (62 percent) say they are open to purchasing products on the metaverse.
For marketers who aren’t on the metaverse just yet, there may be more incentive to try it soon. Of those who are already advertising on the metaverse, over half (74 percent) report it as the top channel on which they advertise.
Other key takeaways from the study include:
• Ninety-seven percent of marketers say they will likely be advertising more on the metaverse five years from now.
• The demographic that spends the most time on the metaverse are males (63 percent) and consumers aged 26-41 (59 percent).
• The top platforms consumers pay the most attention to advertisements on are YouTube (58 percent), Facebook/meta (43 percent), TV (36 percent), Instagram (30 percent) and metaverse (19 percent).
Sixty-two percent of consumers are likely to purchase a product through the metaverse.
This study was fielded between May 9 and May 26 and respondents were selected from two surveys, including a marketing and consumer panel, and were considered eligible if they were familiar with the metaverse, lived in the United States, were at least 18 years of age and were employed full-time. The total number of respondents was 2,900 (868 marketers, 2,032 consumers).{/mprestriction}
