EBS BUSINESS SCHOOL

Master Defence Thesis

Branding in Metaverse: A Study of Opportunties

and Chanllenges for Brands

Sagar Vasudeva, MBA FT 2021

Oestrich-Winkel, 21st December 2022
Agenda

01 Introduction and Reserach Question

02 Literarure Review

03 Reserach Methodology

04 Findings

05 Discussion

06 Future Scope and Conclusion

Introduction and Reserach Questions

01
 01. Introduction
The Metaverse Web 2.0 and Web 3.0 Research Questions
The Metaverse

The "Metaverse" – a concept drawn from science fiction

snow crash by Niel Stephenson
It is a network of interconnected 3D experiences,
underpinned by an ecosystem of technologies and enablers
that, once combined, are set to disrupt how we consume,
socialize, and work online, but also interact with the
physical world
It is better understood as the next evolution of what the
Internet can be in the future. It will become the entry point
to most online experiences, and also underpin much of the
physical world.
It is a continuum of technologies already in use, such as
virtual reality or AI – now evolving and converging at the
same time

21.12.2022 Branding in Metaverse Source: https://www.crif.com/knowledge-events/resources/metaverse-meets-banking/ 4

 01. Introduction
The Metaverse Web 2.0 and Web 3.0 Research Questions
Web 2.0 and Web 3.0
Before diving deeper into the metaverse, it’s important to lay the foundation between features of today’s metaverse—Web 2.0
characteristics, and the emerging Web 3.0 characteristics

Web 2.0 Web 3.0

Example Virtual worlds Second Life, Roblox and Fortnite Decentraland and The SandBox

Organization Structure Centrally owned Community governed, generally through a foundation

decentralized autonomous organization (DAO)

Native tokens are issued and enable participation in

governance

Digital Asset Ownership Leased within platform where purchased Owned through non-fungible tokens (NFT)

Digital Asset Portability Locked within platform Transferrable

Activities and User Interaction Socialization Play to earn games

Multi-player games Experiences
Competitive games(e.g. e-sports) Same activites as Web 2.0
21.12.2022 Titel der Präsentation 5

Source: https://www.jpmorgan.com/insights/research/understanding-the-metaverse
 01. Introduction
The Metaverse Web 2.0 and Web 3.0 Research Questions
Research Questions

The past five years have been marked by digital disruption on a scale and at a pace never seen before. The COVID-19 pandemic
has accelerated our shift toward digital, in work and leisure, and our social life will likely be increasingly impacted by this
fundamental shift in our habits and preferences. From this, emerges a new vision of our future: the Metaverse

1 2 3 4
What
What opportunities will advertising/branding What difficulties will What is the consumer's
brands pursue as they formats are available to brands face as they motivation for entering
enter the Metaverse? brands in the enter the Metaverse? the Metaverse?
Metaverse?

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Literature Review

02
 02. Literature Review
Components of the Metaverse Current adoption of the Metaverse
Components Of The Metaverse

1. Immersive Realism 02. The Ubiquity of Access 03. Interoperability 04. Scalability
and Identity
Fully realized Metaverse must provide Scalability may be the most
How much a user is transported into a Interoperability is encapsulated by
platform for interaction that is challenging virtual world element to
virtual world and how transparent the transitioning from autonomous virtual
psychologically engaging for the user, master, as the physical world is
boundary between the user's actions worlds to an interconnected network
just like the physical world. massive and potentially limitless in
and those of their avatar is, a virtual of 3D virtual worlds or The Metaverse. layers and dimensions.
environment is more realistic. Interoperability must also be
An embodiment in the Metaverse is considered in terms of continuity.
about more than how avatars can Three dimensions of virtual world
represent the self; it is also about how scalability are identified. Concurrent
the avatar body allows users to users or no. people communicating
interact with other avatars, agents, with each other at any given time,
objects, and events in the space. Scene Complexity and User/Avatar
Interaction.

21.12.2022 Branding in Metaverse Source: 3D Virtual worlds and the metaverse: Current status and future possibilities: ACM Computing Surveys: Vol 45, No 3 8
 02. Literature Review
Components of the Metaverse Current adoption of the Metaverse
Current Adoption of the Metaverse
The current spike in adopting new technologies and advancements in connection, interaction technology, and artificial realities,
is radically transforming the world into a digital one. The Metaverse is gaining popularity due to its increased social utility. The
Metaverse applications are divided into two categories: "Metaverse as a tool" and "Metaverse as a target.

The phrase "Metaverse as a tool" refers to the use of the Metaverse to "Metaverse as a target" refers to how the Metaverse can accomplish
solve difficulties and problems in the real world. The Metaverse operations such as profit generation. Metaverse as a target: Quantified
augments the real world in various ways by performing jobs that are data in the Metaverse can potentially be used to simulate user behavior.
difficult to perform in reality. The Metaverse can be used to simulate As a target, consider the Metaverse itself, i.e., the target is the
social phenomena and marketing campaigns Metaverse itself. People have discovered social communication and
value in the Metaverse.
21.12.2022 Branding in Metaverse Metaverse beyond the hype: Multidisciplinary perspectives on emerging challenges, opportunities, and agenda for research, practice and policy — TU Delft Research Portal 9
Reserach Methodolgy

03
 03. Research Methodology
Research Methodology Interview Participants
Research Methodology

Given that my research topic is new and the industry is still in its infancy, a qualitative research approach together with
semi-structured interviews seemed the most appropriate.

Reserach Design Data Collection Data Analysis

At this stage, a content

analysis method was
An exploratory research used. To draw
The data collection
design was used, and the conclusion, first identify
process consisted of
research questions were patterns in the data and
three steps. Pre-survey,
investigative in nature make inferences. Second,
secondary research, and
and based on the an objective, systematic,
semi-structured
participants' own or real- and predictive
interviews
world experiences. description of the
communication's
manifest content
21.12.2022 Branding in Metaverse Source: Qualitative Inquiry and Research Design: Choosing Among Five Approaches - John W. Creswell - Google Books 11
 03. Research Methodology
Research Methodology Interview Participants
Interview Participants
The collecting of samples and data: My interviews were performed with a variety of interviewees from various backgrounds, including marketers,
brand managers, professors and authors, and industry executives, all of whom have substantial experience in their respective fields.

Interviewee Names Designation Company Category

Andrii Shykhman CEO and CBO MetaverseBay and Strategist and Consultant
Xploriya, Czechia

TorstenDannenberg Senior Manager Ernst & Young (E &Y), Innovation Leader

Germany

Luis Bravo Martins CMO KIT-AR, Protugal Tech Author and Speaker

Sujeet Kumar Kotalwara Senior Technology Ernst & Young (E &Y), India Product Managment
Consultant

LucaLupattelli Digital Project Manager Hexagon Geosystems, Marketing and Digital

Switzerland eCommerce

Paolo Miscia CEO Vertimedios, Colombia Marketing and Tech leader

Samantha G. Wolfe Prof. NYU and Tech PitchFWD, USA Marketing Prof.
Author

21.12.2022 Branding in Metaverse 12

Findings

04
 04. Findings

Consumer Motivation Consumer Motivation Brand Motivation Opportunities Challenges

Persuasiveness is the key factor that stood out among all the interviewees who addressed the topic of consumer motivation to enter the
Metaverse.

Games Gen Z Socialze / Entertain FOMO

Interactions in the Because of the
Which The most significant
aspect of the Metaverse
This sizeable segment of
consumers believes that Metaverse are/will be Metaverse's unique
segment of space up until now has the virtual world is friendlier than those on characteristics, Fear of
missing out (FOMO) may
been games. In the early necessary in their lives. social media. Another
consumers stages of the Metaverse, They lack understanding significant motivation- drive the market for
it is anticipated that the of how the real world deriving factor has been artificially scarce digital
and which gaming industry will play and virtual world differ catalyzed by the assets, further
motivating consumers to
factors will a significant role. from one another. entertainment industry.
Because of the adopt or at least have
Extending to the physical
determine world implies that they psychological presence some presence in the
intend to retain a that is experienced Metaverse.
pace? comparable lifestyle. during metaverse
encounters—also
referred to as the illusion
of "being there"

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 04. Findings

Brand Motivation Consumer Motivation Brand Motivation Opportunities Challenges

The Metaverse is about immersion, vividness, and the impression of being in the real world. This possibility allows marketers to extend their
consumer experience

The growth of new digital transactions (NFTs) in real estate,

apparel, and accessories indicates that brands are thinking
about entering the Metaverse not only to increase brand
awareness but also for business and financial reasons

Brands that manage to deliver the same customer experience

in digital and physical space have an opportunity to solidify
their brand identity / value

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 04. Findings

Opportunities Consumer Motivation Brand Motivation Opportunities Challenges

Similar to the physical world, users in the Metaverse will have different identities depending on the situation. Because it
serves as your digital identity, an avatar is a crucial component of the Metaverse. In this context, the Metaverse provides a
variety of options for brands across various industries.
Opportunity Example

In-Metaverse advertising is one of the simplest Coca-Cola, Samsung, and Volkswagen that
and fundamental ways for brands to be visible in have invested in virtual billboards inside
the Metaverse. Dynamic Billboards, sometimes video games like Football Manager and
known as virtual billboards, have been introduced Hyper Scape.
in a gaming environment or gathering.

Brand activations, also known as experiential Vans, a company that makes skateboarding
marketing, are a format that borrows from real- footwear and gear in the United States, is a
world brand marketing methods and allows perfect example of how to successfully
brands to interact with customers where they are launch a brand activation campaign and
already active engage your target group on Roblox

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 04. Findings

Opportunities Consumer Motivation Brand Motivation Opportunities Challenges

Opportunity Example

Digital doppelganger of real-life influencers or Avatars currently seem different across

Avatars are another way for big brands to use the various platforms. In Roblox, the character
Metaverse platform best. One of the most has a blocky appearance, and in Wolf3D, it
significant elements of the Metaverse is not even is more cartoonish, whereas, in Meta's
a physical object; instead, it is ourselves as we Horizon World, it is somewhat
choose our modes of representation. photorealistic.

Selling to avatar or selling for avatar, the most Ralf Lauren putting its classic Polo T-shirts
intriguing method of marketing for brands is into the Roblox environment. Visitors could
Direct-to-Avatar, which is only available in the spend as little as $5 on some of the brand's
Metaverse NFTs, which included puffer coats,
checkered beanies, and a ski clothing.

Brand must ensure a community around its target To date, various event forms have been
audience, engage them with the content they organized in the Metaverse. Musical
want, and nurture their interactions. Building on performances or festivals are the most
community engagement and gatherings, some common, with numerous instances. Concerts
businesses may need a more focused strategy are immersive experiences

21.12.2022 Branding in Metaverse 17

 04. Findings

Challenges Consumer Motivation Brand Motivation Opportunities Challenges

To understand the various challenges or risks that brands may face in the Metaverse, parts of various definitions were
recapped in this section.

Reliance on synthetic sources of

Interoperability / scalability
customer experience
For the Metaverse to succeed, it must achieve something
Because of degree of anonymity people may acquire
that has never been done before: it must offer a
somewhat different purchasing habits for their virtual avatars
persistent, fluid connection across experiences. The ideal
and real-life identities due to the decentralized capabilities
Metaverse experience needs continuity to create a
and privacy that Metaverse may offer.
playable and immersive experience. To realize the full
potential of the Metaverse developing and reaching a
consensus on standards is usually tricky.

How to measure success? Ethical Concerns

Disruptive changes will occur in how people interact with Challenges related to virtual influencers are yet another obstacle.
advertising in the Metaverse. As a result, measuring Virtual influencers may closely resemble one another, users may
engagement metrics will take much work. Will it remain find them unsettling. The Avatar may occasionally resemble a
the same, or will eye-tracking, face-tracking, hand- natural person so closely that it is impossible to tell them apart. In
tracking, and movement data obtained when users this age, users’ need for social media approval and positive
interact with immersive technology replace it somehow? feedback, is so strong that it can pose a risk to one’s mental-health.

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Discussion

05
Discussion
My research will enable businesses entering this domain to weigh the
advantages and disadvantages of the Metaverse and provide them with
empirical findings. This study's findings have significant implications for
brands looking to enter the Metaverse area.

Micro-communities - groups with meaningful interactions. Brands

stand a better opportunity of collecting more accurate data and
feedback on their products and services. Brands may customize their
The results of my interviews show how companies
products or services to these local groups, and these smaller
can effectively increase viewership by utilizing
locational and visual advantages communities can act as brand ambassadors.

Storytelling
Brand democratization - Brands need to offer
customization. Instead of a top-down, centralized Metaverse will serve as a strategic point of contact
approach to traditional marketing, brands will need to for brands that will improve the customer journey
offer incentives and advantages that are highly or brand experience and boost brand equity.
individualized in order to attract customers.

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Future Scope and Conclusion

06
Future Scope and Conclusion
The Metaverse is still being developed, so there are many prospects for academic research on a wide range of topics relating to Metaverse,
its extensive use for Brands, and how consumer behavior will grow about Metaverse.

Limitations Limitations with

with data
collection and Data collection and
Sample Samples

Comprehensive Comprehensive
Behavioral
Behavioral aspects aspects

Opportunities Opportunities
Outweigh Outweigh
Challenges
Challenges

21.12.2022 Branding in Metaverse 22

Thank you!

Sagar Vasudeva, MBA FT 2021

Oestrich-Winkel, 21.12.2022