The future of advertising may be in the metaverse, with 59% of marketers reporting it is the most successful channel on which they advertise, according to new research from Qualtrics.
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.
Faced with budget cuts, marketers are re-evaluating how and where their dollars are spent to ensure they keep up with consumers. Although 96% of marketers agree it is important for their brand to be on all channels – including the metaverse – 90% 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% of marketers shared that their top priority was to drive growth, yet 29% of marketers also shared that their greatest challenge was improving customer loyalty.
“During times of uncertainty, marketers and CMOs need data to back their decisions,” said Michel Feaster, Qualtrics Chief Product Office of Research. “It’s clear 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 drive impactful results on every channel, including the metaverse.”
Marketers that have adopted the metaverse are ahead of the curve compared 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 (YouTube, Facebook/meta, Twitter, TikTok) outranked the metaverse. However, more than half of consumers (62%) 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%) report it as the top channel on which they advertise.
More key takeaways from the study:
- 97% 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%) and consumers aged 26-41 (59%)
- The top platforms consumers pay the most attention to advertisements on are: YouTube (58%), Facebook/meta (43%), TV (36%), Instagram (30%), and Metaverse (19%)
- 62% of consumers are likely to purchase a product through the metaverse
