Rising technologies for marketers to watch

The top reason brands gave for not already engaging in the metaverse is that they face difficulty with developing or implementing the technology (45% of respondents), issues that can be caused by limitations in skill sets, talent, or budget. LS&HC respondents reported even higher rates of concern (55%) that technology implementation is a serious barrier.

The data suggests, however, that implementation barriers are not enough to dampen interest in the metaverse. Only 10% of respondents said the metaverse is “not relevant for my industry.” ER&I sector respondents are the most likely to believe it’s not relevant to their industry, with 24% of respondents seeing it as irrelevant. Still, these numbers suggest that broad adoption of these new technologies is likely on the horizon.

Marketing executives that we interviewed also noted that a path toward metaverse adoption is not yet clear cut. There remain questions about which metaverse platform to join based on where customers are most likely to end up. Some brands reported tentatively exploring existing spaces, while others reported considering developing their own. For example, Claire Tellenbach, marketing manager at H. Moser and Cie. (which produces luxury watches), says, “For now, we are developing our own metaverse space, which is the Moser Lounge to welcome customers and press. We are exploring different ideas for launches and press conferences. Postpandemic, instead of doing huge video calls, maybe we can host them in the metaverse.”²

Other brands recognize the value of the metaverse but are taking a slower approach to accommodate other competing priorities. Ömer Barbaros Yis, CEO of LC Waikiki E-Commerce Business, a European fashion retailer, says, “I deeply believe that the metaverse and all the immersive experiences—let's say metaverse or virtual reality, augmented reality, mixed reality, and all that stuff—have that tremendous potential in e-commerce as well, making experiences more immersive for customers before they buy, to try them out.” However, he also notes, “[The metaverse] is not my [top] priority, [because] when people have struggled with prices, with economics, when they have even struggled to pay for energy, they care more about affordability [of the metaverse].”³ Instead, he plans to keep working on a longer-term road map for adoption of up-and-coming technologies in years to come.

Brands across industries should start to consider the role the metaverse might play in their marketing strategy in the medium to long term. In the coming year, based on our fieldwork with CMOs, we recommend:

• Look before you leap. Define your objectives for creating metaverse experiences, and keep an eye on early adopters who will pave the way for broader adoption in 2024 and beyond. Make sure to consider potential challenges including cybersecurity, trust, brand reputation, and digital rights management.
• Weigh brand priorities in developing your adoption strategies. Our data shows that companies are still prioritizing investment in technology platforms and capabilities to support personalization and achieve customer-centricity as a top priority, but brands that fail to create a strategy for joining the metaverse may lose the opportunity to become a leader in the space.
• Start laying the groundwork for a metaverse strategy. The metaverse offers CMOs across industries new opportunities to expand engagement and experience, and to grow new revenue channels. Marketers that fail to set a strategy early may find themselves playing catch-up for years to come.

Blockchain technology makes gains in regulatory environments

While blockchain’s use in marketing is still nascent, pressure to address privacy issues may be fueling early adoption. Of the CMOs who say addressing the regulatory environment is their top priority, 35% have already implemented blockchain technology in their advertising strategy, compared with 21% of all other respondents (figure 2). This is because, particularly in regulatory environments, blockchain offers new possibilities for strengthening consumer privacy and allowing consumers to control their own data. For example, blockchain offers innovative possibilities for the health care sector, which can use the technology to store, share, and utilize data to communicate with patients without sharing data with a third party.

Still, 41% of all CMOs plan to support their advertising strategy with blockchain in the next 12 months, and blockchain and other technologies were the fifth-most important technology cited by CMOs. These data points indicate a larger shift toward the nascent technology in the coming year. Tellenbach says that Moser is implementing the use of blockchain because it offers the promise of solving specific needs within the watch market: tracking and authenticating products over their lifespan and ensuring service follow-ups even if they are sold or traded on the secondhand market.⁴

Different industries will likely need to adopt different, more localized approaches to these technologies that carefully prioritize the needs of their customers with the existing resources the brands have. Our results show that brands working in regulatory environments should probably consider a strategy for blockchain in the coming year for the data privacy reasons mentioned above. Other industries, on the other hand, can keep a close eye on digital currency leaders to start laying the groundwork for broader blockchain adoption in the coming years. Less regulated industries will likewise have the opportunity to build consumer trust, as well as to provide a more customized, direct consumer experience.

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