The Presence of Brands in the Metaverse

Introduction

According to the study by McKinsey & Company (2022), the value of the metaverse could reach $5 trillion by 2030. Given its business potential, several academic and professional studies have been developed to better understand the nature and challenges of the Metaverse (Lee et al., 2021; Narin, 2021; Park & Kim, 2022), including the development of technological roadmaps of the Metaverse (Mozumder et al., 2023). The concept of the metaverse first appeared in 1992 in the fictional work “Snow Crash” by Neal Stephenson. At the time, this author described the metaverse as a space that simulates physical reality to create “parallel worlds” represented in three-dimensional environments that provide a high level of immersion for users (Duan et al., 2021). That is, it is a kind of virtual world that attempts to replicate reality through a series of digital devices. It is a shared collective and virtual space created through the convergence of physical, virtual and augmented reality (Newzoo, 2021). All its users will create their respective avatars, through a duplication of the real world, similar to their physical “self”, in order to experience an alternative life in an unprecedented way (Lee et al., 2021). Currently, the Metaverse is based on the social value of Generation Z, with no differentiation between their online and offline “self” (Park & Kim, 2022). The technological advances in progress and the new consumption needs in the digital market are determining a profound sociocultural transformation, which implies new challenges for the management of brands and the adoption of new behaviors. The development of the Metaverse has been translating this turning point (Lee et al., 2021). Effectively, such a concept is changing people's lives, and brands need to be aware, understanding their consumers' attitudes towards the Metaverse and assessing the impact on their businesses.

As highlighted by Wunderman Thompson (2022), the ongoing digital transformation is redefining the consumer/brand relationship. Consequently, those who are responsible for brands need to design effective strategies aimed at their presence in the Metaverse, considering that virtual worlds and assets can be a business card for their brands, as they presently present profiles on social networks and websites. That is, brands will need to start configuring their management teams to enter the Digital Age (Liffreing, 2021).

Always in constant mutation, the new technological world implies an increase in complexity in the brand management process. Companies will have to develop new strategies, provide new experiences, and better understand their consumers (Agersborg et al., 2020). In fact, aiming at the modernization of the Metaverse reality, several organizations worldwide have already been invested to satisfy the needs, desires and expectations of the new consumers’ profiles. For this reason, the Metaverse will become increasingly visible and familiar among people (Duan et al., 2021). Thus, the development of the Metaverse should constitute a crucial research area for brands, requiring special attention from researchers and professionals in the sector, to create perceptible value for their customers (Kim, 2021).

Based on the literature review and a qualitative research strategy, this study aims to identify the factors that brand managers should consider when developing and implementing their strategies for effective presence in the metaverse. To this end, three specific research objectives were defined: (i) to understand consumers' perceptions and knowledge of the Metaverse; (ii) to analyse what factors determine the virtual experience; (iii) to identify consumer behaviour and attitudes. The paper is structured as follows: an extensive literature review was conducted on the main issues related to the Metaverse, followed by the methodology section, the main results and discussion, and conclusion, which ends with future research directions.