How Brands Benefit from AI in Metaverse
Posted By : Arpita Pal | 22-Sep-2023
What is Metaverse?
The Metaverse serves as a digital realm resembling a virtual world where users can interact, work, attend events, purchase virtual goods etc., by utilizing innovative technologies such as spatial computing, augmented reality (AR), and virtual reality (VR), etc., to support its infrastructure. It is considered the next stage of the internet which facilitates combining the use of digital currencies with virtual interaction to perform activities that were previously difficult to achieve using earlier web technologies. The market for Metaverse is estimated to be $627 billion by 2030.
Metaverse has showcased strong abilities in structuring virtual infrastructure that can replicate the experience of a digital store. Along with a robust and secure payment system supporting the virtual experience, brands have come to realize the potential of completely reimagining the way they sell and market their products. Big brands such as Microsoft, Balenciaga, Unilever, PepsiCo, Forever 21, Vans and more have invested a great deal in building, curating and launching their unique non-fungible tokens (NFTs) collections which users can purchase using various cryptocurrencies. Brands can then convert these tokens into real money adding to their overall conversions. Metaverse offers brands and its users the possibility to go beyond the limitations of traditional web technologies and the physical world to explore their full potential in artistic expression and technological capabilities to create a one-of-a-kind experience.
How Brands Can Benefit from Metaverse
Expand its Range of Products to the Virtual Realm: Metaverse offers a unique opportunity for brands to utilize their depths of creativity and make stellar NFT collections displaying their unique styles which are empowered with technology. For retail brands, they can offer digital wearables that users can wear to dress their digital avatars. Consumer brands can display their wide collection where users can have first-hand experience of exclusive content which can later be released as physical products. In gaming, special features and powerups can be offered which can also be exclusive to the Metaverse experience.
Build a Loyal Customer Base: Metaverse allows brands to develop a special bond with their customers by providing an interactive platform where they can socialize with like-minded people, view exclusive collections and products, participate in virtual events and purchase digital products directly from the brand. They can effectively engage with interested audiences and extend invitations for new users to try and experience their products which can help in building a large consumer base.
Provide Immersive Virtual Brand Experiences: Many brands have collaborated with virtual platforms like Roblox and Decentraland to create enthralling virtual experiences where users can visit, interact and perform many other activities in these curated virtual spaces. Brands have gone further to conduct virtual events such as fashion shows, live concerts from big names like Ariana Grande, Justin Bieber, Marshmallow, etc., and sports tournaments that users could attend with the help of their devices.
Expansion of Brand Worlds with AI in Metaverse
The advent of AI in Metaverse has brought advantages capable of redefining how Metaverse interacts with its users. AI enables Metaverse to amplify its ability to add personalization to immersive virtual environments, provide intelligent responses, automate tasks, and provide enhanced security to both the platforms and the user. The experience for its users will be refined through tailored experiences with personalized recommendations in various content such as games, music, digital wearables etc. It will do so with the help of tracking user behavior and their past interactions with content in Metaverse.
Enhanced Security: As the popularity of Metaverse increases, the number of users will also grow. As a large number of users will be dealing in digital currencies for purchasing items from brands, the possibility of identity theft, frauds, and attacks from malicious softwares will also increase. AI will identify any malicious behavior that can be a potential threat to safety and effectively eliminate them to ensure security to the users and the platform.
Personalized Experiences: By tracking user behavior and past interactions with content, AI in Metaverse will be able to gain a better understanding of their preferences. On the basis of AI-powered marketing, it will be able to suggest brands in the fields of wearables, gaming, entertainment, etc. Users will be provided with personalized experiences, brands and curated collections that match their requirements. AI will also prove to be an enabler of accessibility in Metaverse for people with disabilities by providing helpful features such as image recognition, automatic translation, digital avatars for full movement in avatars and more.
Immersive Technologies: With the assistance of AI, Metaverse will be able to offer virtual brand experiences that will utilize immersive technologies to offer futuristic digital experiences for the user. It will assist in creating error-free virtual world-building and digital simulation-based environments that brands can create specifically for the themes and collections that they want their customers to experience. It has led to a digital transformation in marketing by changing the way consumers interact with their preferred brands as before purchasing the product, brands will be able to provide a curated experience and control the narrative of how they want their consumers to experience the brand.
Powerful Smart Contracts: In Metaverse, to promote decentralization, blockchain is a heavily integrated feature for ensuring trust and security. Through AI in Metaverse, secure smart contracts will be enforced through automated transaction handling and reducing the involvement of manual guidance. This will ensure democratization by tracing the sources to the origin and improve overall safety.
Assistance in Content Creation: Integration of AI-powered tools such as NLP, 3D Models and texture creation tech, etc., will significantly decrease the time in creating content for Metaverse. Users will be able to generate high-resolution quality content in a shorter period of time and will enjoy greater output in frequent durations.
Use Cases: Brands that are Building Their Own Niche in Metaverse
The introduction of Metaverse has opened a plethora of versatile opportunities for brands to bring the experience of their products to their customers in exciting new ways. Brands ranging from luxury to motors, have come forward as early adopters of Metaverse by utilizing Web 3.0 technologies to create their own unique virtual experiences for users. Following are some of the technology-driven brands that have built their own niche in Metaverse:
Coca-Cola: The beverage company has been very forward with its ventures in Metaverse providing extensive experiences to their consumers in recent years. Their first venture was with Decentraland in 2021, where exclusive NFT collectibles for auction were launched which included fashionable clothing items that digital avatars could wear. In their next collaboration with Polygon, they introduced a new drink called Coca-Cola Zero Sugar Byte. To bring 'flavor of pixels to the byte', the user would have to reach â€˜Pixel Pointâ€™ in the Fortnite game to try different flavors of Coke. As per Coca-Cola, they have launched up to 4,000 NFT digital collectibles since the first time they entered Metaverse.
Hyundai: Focusing on the tech-savvy population, Hyundai has created â€˜Hyundai Mobility Adventureâ€™ in collaboration with Roblox where users could view their vehicles and tech, and even play games and enhance their own digital avatars. They were the first company in the automotive industry to create their own virtual experience which spreads across five zones for engaging with their customers.
Burberry: In partnership with Mythical Games in 2021, they launched an NFT collection in the multiplayer game called 'Blankos Block Party' where collectibles were sold out immediately. On the basis of their previous success, they launched another collection on this game that showcased a variety of products such as branded sliders, boomboxes etc., and created their own mini virtual experience within the games to interact with their consumers.
Nike: With 7 million visits from users, Nike created its own curated metaverse experience, which enables socialization among fans and gives the opportunity to get involved in promotions, etc. through a collaboration with Roblox. With its entry, Nike bought RTFKT which is similar to NFTs and has managed to sell sneakers worth $3.1 million. Their first collection goes by the name of CryotoKicks Dunk Genesis which allows customization from users by utilizing â€˜vialsâ€™.
Gucci: Another big name in the luxury fashion industry, Gucci partnered with Roblox to create an immersive experience of 'Gucci Garden' for their 100th Anniversary in May 2021. It was a virtual exhibition consisting of 6 rooms with different exhibits and collectibles, where users could collect them to dress their digital avatars. They also sold items worth 4115 dollars, cementing their success in the digital verse.
H&M : The Swedish retailer brand H&M opened its first digital exhibit in Metaverse where they launched an exclusive collection called â€˜The Metaverse Design Storyâ€™ which was in partnership with the Institute of Digital Fashion. In the exhibit, users could view the collection and interact with each other. The collection involves both digital creations in the form of 3D filters and physical clothes. Although it does not have a digital store in the Metaverse yet, it does have big plans to expand its outreach in the Metaverse front in the upcoming years.
Metaverse has brought a transformation in web technologies by providing accessibility to virtual worlds for the common man. Now a diversified range of users are able to harness the potential of immersive digital realms which has also led to change in the future of advertising. Brands have realized that they can expand their business opportunities by delving into virtual reality marketing and providing a unique digital experience for their users through digital world-building and immersive environments. The emergence of AI in Metaverse has provided foundational strength to its infrastructure and enhanced its overall technological capabilities both for platforms and their users. With multiple advantages such as personalization, improved safety, and digital efficiency, brands with the help of AI can further improve their ability in virtual marketing and provide a seamless brand experience to their consumers. Artificial intelligence and Metaverse contain immense capabilities to transform digital technologies and functionality for individuals and entire multi-scale platforms. If you're looking for solutions in either Metaverse or AI to provide similar immersive experiences for your business or consumers, Oodles Technologies can help you achieve your goal. You can send us a query here, and we will get back to you within 24 hours.