Metaverse: The next big thing? What the industry thinks
Is the metaverse here to stay? Or is the hype just a fabrication? What impact might it have on marketing? Is the metaverse even safe? There are many questions on the table. We asked the Swiss agency scene how it is positioning itself when it comes to the metaverse.
Swiss Advertisers Association SWA
Swiss Advertisers Association SWAWerbewoche.ch: Are Swiss companies in the starting blocks for the Metaverse or already on their way?
Roland Ehrler: The metaverse is a part of the new Web 3.0 and all companies worldwide have to deal with it. It's a long journey and it won't happen overnight. There are numerous dependencies, especially the developments of AR, VR, AI, NFTs, cryptocurrencies and more. Switzerland is probably less of a pioneer here and is therefore still in the starting blocks from my point of view. The trendsetters here tend to come from the US and are companies like Nike, Adidas, Coca Cola, Louis Vuitton or Hyundai. Most of us are still on Web 2.0 today, and that will remain the case for some time to come. At the same time, however, it is important to keep track of developments, whether in the gaming sector, e-sports, e-casinos or e-music. I am curious to see how quickly consumers will be ready to engage with these new worlds using VR/AR glasses or other access points. This will then also determine the pace at which brands and companies have to react and be ready for the metaverse.
How can SWA help its members along the way?
The SWA has been representing the interests of its members since 1950. Thus, it is part of this that we will also accompany the advertising companies on their journey into the metaverse. At the present time, this means initial information, webinars and an exchange of experiences. Later, for example, there could be new association services to the Metaverse. Just as we offer a free legal information service today, we may set up a "Web 3.0 consulting service" tomorrow. This is still completely open and will be examined in good time as part of our strategy development.
Metaverse: Hype or the next big thing?
For me, this is clearly "the next big thing". Especially because it marks the step into Web 3.0. The Metaverse means a new dimension of the Internet, which is still hard to imagine today and offers us all still undreamt-of possibilities. Mr. Spok, the engineer from the Starship Enterprise, would probably say about the Metaverse: "fascinating!".
Leading Swiss Agencies LSA
Werbewoche.ch: How do LSA agencies master the challenges of leading clients into the metaverse, where the target groups cavort?
Cathrine Purgly: LSA agencies are leading and excel at, among other things, leading the way, being a pioneer in the market, and constantly exploring new ways of communicating with their clients. Marketing in the metaverse is a great field of experimentation. The challenge is to gather experience together with customers and to assess the potential correctly as to whether and with what content a presence in the metaverse would make sense.
How can the LSA help its members along the way?
We recently launched the LSA Live Talk Digital Business Transformation. In it, we talk about new technologies and how they are finding their way into practice and what opportunities are opening up for the communications industry. The talk takes place regularly and is designed to give digitally-minded marketers insight into groundbreaking real-world cases from LSA agencies and their clients. In the next Live Talk of September 7, we talk about a use case in the Metaverse in which a Web2/Web3 approach was combined with gamification elements and lead generation.
Metaverse: Hype or the next big thing?
Many technologies are overestimated in the short term and underestimated in the long term. In this respect, the metaverse is probably both: The hype creates curiosity and by many people and companies from a wide range of industries dealing with it, relevant and effective use cases can subsequently emerge that shape and change the future.
Content and form
Werbewoche.ch: Content and Form has undergone a transformation over the last few years. Now a new unit has emerged with iundf Neo. What does Neo do?
Dominik Stibal: In fact, Inhalt und Form has evolved into a holistic and interdisciplinary agency group. To iundf agency group include: the creation&strategy unit Content and form, the media unit iandf Media, the marketing technology consultancy iundf Marketing Technology as well as the Metaverse/Web3 unit iandf Neo. iandf Neo plays on all the tools of Web 3.0. and does so according to the principles of Web 3.0: open, collaborative, agile, international, decentralized. iandf Neo is enthusiastic but realistic, always assesses opportunities as well as risks objectively - with focus on customer value. As a consultant, strategist and implementer of immersive brand experiences, development of products, tokenization and NFT concepts or Web 3.0 training modules. The crew of our Web 3 Unit iandf Neo has been actively involved in the blockchain environment since 2017, and has supported and implemented various international projects. iandf Neo has made "practice what you preach" its motto. Therefore iandf Neo focus on collaboration with international partners from the areas of product development, Web 3.0 development, VR/XR, DeFi and community building, and clearly stands out from other service providers thanks to its decentralized setup.
Is the metaverse another channel in the marketing mix or much more?
Definitely it is more! Because if you look at it as just another channel, you are and will remain trapped in the old way of thinking. Together with our customers, we therefore ask ourselves: How do I position my brand, product and services with the help of Web 3.0? For which of my applications and service does blockchain make sense? Are sustainable strategies possible in the area of tokenization? Where are the opportunities for my brand in the metaverse the greatest? And how do I actually deal with digital property?
Have companies already actively addressed the metaverse and are actively approaching iundf Neo, or does this require educational work?
Many companies are already working very intensively with the metaverse. Of course, we are experiencing this firsthand. Like everywhere, there are the fast movers who want to try out, test and learn quickly. We support these companies in strategy, planning and implementation. The majority of companies, however, is in the educational phase and here we actively help with inspiration roadshows and workshops so that the know-how comes quickly into the companies. This also includes our podcast Meta Matters which will go live in October. You can register now at: iundf.ch/metamatters
Kuble AG
Werbewoche.ch: Kuble has launched the Metaverse Academy. Why is this necessary and who does Kuble want to reach?
Gustavo Salami: We are convinced: You cannot learn the Metaverse, you have to experience it. That's why the Metaverse is both an unfamiliar learning object and a versatile learning tool in our courses. Our various courses, which we complete together with the VR headset in the Metaverse, address different target groups. The "Metaverse Ready" course, for example, lasts one day and is designed to make it easier to get started with the subject. The "Metaverse Strategist" course, on the other hand, includes six modules and 18 lessons, which allows for a strong immersion. There are other courses that focus, for example, on dialog marketing in the Metaverse or on Web3 or NFT. The goal is to jointly develop knowledge that the participants can then take back to their companies.
Matthew Ball writes that the Metaverse will change everything. Is that true?
In our understanding, the metaverse refers to virtual parallel worlds that make the Internet interactive and experienceable together with others. Whether it will change everything remains to be seen. What is clear is that we are at the beginning of a development comparable to the Internet of the early 1990s. There's no point in denying this development, because it's coming anyway. The sooner you are involved and understand what is emerging, the sooner you can help shape the development.
What opportunities / challenges does Kuble see for marketing?
Many technologies are overestimated in the short term and underestimated in the long term. In this respect, the metaverse is probably both: The hype creates curiosity and by many people and companies from a wide range of industries dealing with it, relevant and effective use cases can subsequently emerge that shape and change the future.
FS Parker
Werbewoche.ch: FS Parker conjured up Marc Walder as an avatar on the screen of Ringier's Anual Report. How fascinated is FS Parker by Web 3.0 and where does the agency see opportunities and challenges for the marketing and communications industry in relation to the metaverse?
Christoph Schmidt: We are fascinated by "creating worlds" and visualizing the visions of our customers; independent of the universe. We are intensively concerned with the question of what the metaverse or Web 3.0 means for our customers and with which strategies we can lead them there. It is as if a parallel world is just opening up, in which companies and brands are using a new communication playing field. In addition, it is important to learn how crossover promotions from the real to the virtual world can be used optimally. This has already begun with NFTs. At Ringier's Annual Report presentation, the focus was on the one hand on explaining to the audience what the metaverse and Web 3.0 are all about. On the other hand, it was also about concrete visualizations of visions: How might media communicate in ten to 20 years? What will apartment hunting via marketplaces look like in the future? These glimpses into the future create "wow moments" for viewers and motivate them to dive into these new worlds with curiosity.
Are FS Parker's customers rushing to show up in the metaverse or is it more the other way around, are you actively offering your expertise?
It's like with every new topic: everyone wants to be on board immediately so as not to miss the boat. In briefings, we often hear that it would be great if there was something in the metaverse in the final result. It's nice to hear that people are already thinking very digitally. We tend to be pragmatic here and show clients where the market stands today, or rather what is actually useful and achieves communication goals. Expectations are high. Then reality brings one or the other customer back down to earth. We are not a tech or programming company, but we communicate brands and create worlds. That's why we look into the future with clients, develop visions for brands, and apply resources where results are achieved. On the latter part of the journey into the metaverse, we bring tech partners on board.
How important do you think it is for companies to address the Web.3.0 issue?
It is naïve to believe that by 2022 we will already have the technically mature metaverse and Web 3.0 experience that Zuckerberg and Co. want to sell us. But we think it's enormously important to start asking the question "What could our business look like in the Metaverse?" right now. The answer is unique to each customer. Getting to grips with a topic, understanding the boundaries, asking questions and making the first "babysteps" with the new technologies seems more important to us for a company at this point in time than already having its own VR app and a complete Metaverse presence.
Dept
Werbewoche.ch: As a digital agency, Dept is in pole position when it comes to metaverse and Web3. Can you help companies find their way in this new territory?
Yann Wanner: Speed is everything, that's why we've launched Web3 and Metaverse Practices, which rapidly draws globally on hundreds of experts in blockchain, tokenomics, NFTs, Metaverse, CGI, AR/VR to solve our customers' challenges: visibility, lead gen, brand building and customer experience. Above all, we help companies connect with their customers, stakeholders - and even fans - on a more personal level. We believe that combining cutting-edge virtual technologies with proven storytelling methods achieves just that. Virtual worlds come in a variety of shapes and sizes, and it's clear to us that each company has specific needs. Currently, DEPT® works with four ready-to-use models, but we are always ready to try new things.
What are the biggest opportunities/most dangerous pitfalls for positioning in the metaverse?
The metaverse is an opportunity for us to meet customers where their attention is. In digital worlds, brands and artists can offer their fans personalized and meaningful experiences and products. The spaces created by AR and VR are experienced in a unique way by each individual user. Marketing efforts therefore appear more engaging, exciting, and less intrusive than advertising as we know it today. However, entering the metaverse is not without risk from a branding perspective. By its very nature, brand presentation in the digital space deviates from traditional, physical contexts. Well-known brands in particular may have difficulty presenting an image in the metaverse that matches customer expectations. This could, at least theoretically, weaken the brand's power of differentiation.
Would you create a scenario for us that will be reality in three years, in terms of the evolution towards Web3?
We already spend almost half of our time in digital spaces. Be it in our free time while gaming, shopping or on social media - be it in business in MS Teams rooms, in Zoom Calls or in Google Docs and Spreadsheets. Not least since Covid, we have seen that people have designed a digital twin in addition to their "physical" persona. This digital persona also has needs, e.g., for exchange, ownership, interaction, self-expression, identity, recognition, entertainment, pop culture, and so on. Thus, Web3 can be understood as a normal evolution of the "Internet" as we know it. Accordingly, no "revolution" is to be expected in the next 3 years, but rather a steady evolution towards a digital world in which our digital twin is entitled to more and more possibilities. The game industry is setting the pace here, and what is taken for granted in the gaming world today - such as the ownership and exchange of digital assets or digital identity - will have arrived in the mainstream tomorrow and find applications in the world of work or in e-commerce.
Connection
Werbewoche.ch: Konnex is actively involved with the topic of Web 3.0. Where do you see challenges and opportunities for the marketing and communications industry?
Monica Jaeggi: When we talk about Web 3.0, from a marketing and communications perspective we are primarily concerned with the metaverse. In this, the possibilities for marketing are almost limitless. This can be a great opportunity because, for example, you can come into contact with new target groups that were not interested in your own brand before, or because you have completely new ways of presenting your brand world. At the same time, however, it is also a great challenge because you can also get lost in these possibilities. Today, for example, there is still no interoperability between the different platforms. So which platform should you rely on? Which will also be relevant in the future? We will also have to say goodbye to the idea of achieving mass reach within short periods of time - as is still possible today with TV and Out of Home. That's no problem if you're marketing a niche product. But what does that mean for consumer brands? In terms of financial and human resources, one should also take into account that many things are still at a very experimental stage today. And last but not least, security and data protection are certainly one of the biggest challenges. How are these issues to be regulated in the new virtual world? How can it be ensured that brands operate in a "secure" environment?
Do companies proactively turn to Konnex to push campaigns around the metaverse, or are agencies required to explain the need to engage with the topic to their clients?
The metaverse keeps our customers busy. At the moment, however, it's more about getting more information than already planning concrete campaigns. Even though the topic is very present in our industry, there are still many unanswered questions about what this means for communication. What should also not be ignored: Outside our industry, most people look at you rather blankly when you mention the keyword "metaverse." For us, this means that you don't have to rush headlong into the next metaverse adventure and pay a lot of dues. At the same time, however, you must not miss the start. As is so often the case, there is a risk that a trend is overestimated in the short term but underestimated in the long term. Therefore: Now is the time to acquire know-how and to test and learn.
Where do you think Switzerland stands in terms of digitization? Are we pioneers in Europe and is there a sense of sluggishness?
Corona in particular has shown that Switzerland still has a lot of catching up to do when it comes to digitization. In general, I have the impression that Switzerland is more of a "follower" than an "innovator. People tend to be cautious and wait and see what comes along before getting involved in something new. In the marketing and communications industry, people are perhaps a little more open, but here, too, new developments take time. A good example of this is the topic of "Programmatic Avertising". Even though its share has increased steadily in recent years, the proportion of programmatic advertising booked in Switzerland is still significantly lower than in the rest of Europe or in the USA, regardless of the media channel.
TMI
Werbewoche.ch: TMI has positioned itself with three new expertise pillars: Shopper Activation, Transforming Retail and Inspiring Brands. Where and how does the Metaverse and the NFT-gamified Brand Experience play a role there?
Nicolas Schibler: Metaverse and NFT are currently being driven mainly in the Transforming Retail area, but the conception of the independent storyline that fits the brand is being done with the creative power of the Inspiring Brands Circle. The topics are new for many companies. It is primarily about innovation and getting to know the new possibilities. However, as with all projects, simply implementing the project technically is not enough for a great customer experience. A lot of customer understanding and creativity in design and communication is needed. To create the most holistic customer experience possible and to leverage all the activation know-how, such projects are often a co-creation of all areas.
Is Switzerland ready for the metaverse yet, are the customers?
Applications such as Pokemon Go have shown that people are ready. In Switzerland in particular, we have many early adopters who often like to try out new technologies. However, in order to make a project successful, the focus must always be on the customer benefit. If gamification and the brand experience are relevant, intuitive, and inspiring for the user, the customer will be happy to use them.
Is Web 3 the future or just a virtual gimmick? Will marketing shift to the metaverse?
Web 3.0 is an exciting and very powerful addition to the marketing mix. The fact that the big technology corporations are investing billions in the development of Web 3.0 shows that its importance should not be underestimated. However, just as online commerce has already not Web 3.0 will not completely replace traditional marketing here either. It offers new and exciting opportunities for marketers. At the same time, mastering the entire marketing keyboard is becoming more complex and demanding. Here, we are happy to help you set the right priorities with our know-how.
This article is one of a series of publications on metaverse in the m&k anniversary issue 8-9/2022.
- Main article: The metaverse comes to stay
- 2nd article: Where does the Metaverse music play?
- 3rd article: The first steps to your own project
