The Future of online advertising is here.

The metaverse is an online virtual world where users interact through avatars. The Metaverse is changing how we interact with each other and how companies operate. It’s where people will shop, socialize, play games, and do business. The metaverse is an extension of the physical world, allowing users to interact virtually. This presents new and exciting opportunities and ways of advertising.

In 2021, it was estimated that the global metaverse market size stood at 38.85 billion U.S. dollars. In 2022, this is expected to rise to 47.48 billion U.S. dollars before surging to 678.8 billion U.S. dollars by 2030. Source: Statista

Branding products and services in a virtual world can be used as promotional tools to encourage people to buy a virtual representation of real-world goods or “try” goods virtually and buy real-world items. Virtual items can be anything from clothing to furniture to accessories.

Read more: The economy of the Metaverse.

Metaverse advertising examples

Many brands are investing in the Metaverse. The rebranding of Facebook to Meta is the best-known example. In addition, Nike created Nikeland on Roblox, and Adidas partnered with Opensea, Gucci Vault, and Unilever to host the Rexona virtual marathon. Other examples are Cheetos Halloween-Themed Metaverse or Coca-Cola’s Creations hub.

Some other inspiring examples: 7 Consumer Brands Reinventing Marketing in the Metaverse.

How blockchain will change advertising

Connecting with a new audience is one of the primary goals of most marketing strategies. The Metaverse is no different. However, most users in the Metaverse worlds are Millenials and Gen Z, a hard-to-reach group that has grown skeptical about traditional advertising and is very privacy-aware. Blockchain can help you to overcome these challenges.

Web3 IdentityOne of the challenges with online advertising is establishing the user’s identity. These challenges got only more significant with recently introduced regulations on what data is allowed to collect via third-party cookies and mobile device identifiers.

With a decentralized structure, there is no third-party or first-party data, only zero-party data. In the metaverse, users will decide what private data they want to share with your brand.

More information: Google Insights: How to prepare your business for a more private web.

When users agree to share their data via blockchain technology, advertisers can identify who interacts with their ads. This goes beyond tracking who clicked on the ad; you will be able to measure the interaction and the emotional response to your product. This allows them to deliver relevant offers based on the viewer’s interests.

These personalized ads are based on user preferences, interests, and behavior and can be used in real-time. This means that the advertiser will collect data from the user and use that data to deliver an ad tailored to the user’s needs in real time.

The identity of a user is verified on the blockchain via Web3-identity. Verified users log in with their digital avatar on the Metaverse or any other web3 application. Web 3.0 Identity is permission-based, and advertisers use data collected by users to deliver more relevant advertisements.

Read more: Web3 is here; is your business prepared for the token economy?

Digital wallets

with a digital wallet, users can store different types of tokens, cryptocurrencies, and NFTs. Digital wallets and traditional authentication methods can be used to track and manage user and application data.

Digital wallets are mainly used to store digital assets, but they can also be used to verify identity on Web 3 applications such as the Metaverse. From a user’s perspective, the login method is similar to the traditional SSO sign-on.