Advertising in the metaverse and its implications for brands and society: A multi-stakeholder perspective

Abstract

The aim of this paper is to identify the characteristics of advertising in the metaverse and its implications for brands and society. A group of 35 experts representing advertising agencies and brands from Central and Eastern Europe were interviewed. The findings are presented in the form of a conceptual model that provides a cartography for the landscape of metaverse advertising. Our results demonstrate that metaverse advertising uses existing formats (e.g. billboards, product placement), while also developing new ones (e.g. automated avatars, virtual products, and branded spaces). In addition, metaverse advertising is more focused on brand building than on direct, measurable impact. Advertising in the metaverse is not as precisely targeted as it is on the internet. Given their high up-front costs, these activities are currently more suitable for multinationals and well-known global brands. Metaverse advertising is not perceived to be associated with elevated brand risk. However it is burdened with myopia, understood as a lack of long-term perspective. Our findings reveal three stakeholder personas representing different approaches to metaverse advertising; including cautious pioneers, empathic pragmatists, and blockchain enthusiasts. We conclude by documenting the social consequences, capturing shifts towards automated communication, digital ownership, and the metaverse's potential to replace social media.