What is the scope of influencer marketing in the Metaverse?

After Mark Zuckerberg renamed Facebook as ‘Meta’, the term that was originally coined by a science-fiction novel author Neal Stephenson, we have been hearing the words Meta, Metaverse, Web 3.0 being used a lot lately. Web 3.0 is believed to be the third version of the web and is focused on decentralising the internet and giving the end-power to the user. 

According to Zuckerberg, the Metaverse can be described as a group of technologies that combine the virtual and real world. The Meta ‘world’ will combine the experiences of gaming, finance, event experiences etc. According to many of those close to the tech part of this world, this new version of the web will want you to make ‘digital’ avatars for different experiences like attending virtual concerts, weddings, trying and experience digital versions of products and buying and selling NFTs. 

Some companies are launching their own NFTs (Non-Fungible Tokens), while others are hosting 3D virtual events. Brands like Nike, Gucci, Louis Vuitton, Tommy Hilfiger and Forever 21 have carried out some level of meta-focused campaigns. Celebrities like Shawn Mendes, Eminem, Paris Hilton have also launched their own NFTs. In India, some big names like Amitabh Bachchan, Salman Khan have launched their own NFTs and are promoting them.  

So, while we are already seeing some activity from brands in the metaverse, what will be the scope of influencer marketing now? 

Experts suggest that while the eco-system is in the early stages of adapting to the new world, possibilities for creativity are endless for both the brands as well as the creators. 

Gautam Madhavan

According to Gautam Madhavan, CEO, Mad Influence, the scope for influencers in this space currently is to ‘sell’ digital properties like NFTs. “There are many influencers who are in the crypto space (many of which are operating on web 3.0 platforms) who are guiding people about buying and selling crypto. Similarly, there are marketplaces that are selling these NFTs and then there are influencers who are getting people interested in these properties.” 

Saurabh Gupta

Adding to this, Saurabh Gupta, Co-Founder at Tamasha Live which is an influencer led gaming platform, said, “The influencers are today working towards building communities towards passions. For example, there is this popular NFT called ‘Bored ape yacht club’ which costs millions of dollars. Where did this value come from? It comes from the cult or communities built around it. The creators of this NFT got influencers on board and they started talking about it. You also have people like Justin Bieber promoting NFTs today to bring value.” 

He added that the kind of influencer marketing we see on web 2.0 with platforms like Instagram is very different. “It will be much more evolved and personalised,” he added.   

Gurpreet Singh

Gurpreet Singh, Co-Founder, One Digital Entertainment, said, “A lot of influencers and brands have a lot of potential to reach millions of followers and viewers through this medium and in fact brands are flocking to make a foray into this space by creating virtual avatars and brand ambassadors with the influencers’ collaboration etc. Virtual avatars of the popular influencers can be used and collaborated with the brands to create multiple opportunities and communities in this space. Influencer marketing is expected to grow exponentially in Metaverse.” 

Achint Setia

Achint Setia, Head of Marketing and Social Commerce, Myntra, said we will see a lot of innovations in the coming days, as live commerce is something that everyone is trying their hands-on, so the transactions will also accelerate. “You would also see a lot of regional influencers get associated with brands, it will get discovered in the coming days with the advance of technology connecting different parties such as influencers, content format, brands, followers/consumers. Metaverse is coming with possibilities so immense that offline events can also happen virtually like never before in the past, and people across horizons can participate easily,” he said. 

Influencer marketing challenges in the Metaverse 

One of the biggest reasons why influencer marketing has worked for brands is because influencers bring their own personality and style to the branded content. But is that level of relativity and personality easy to achieve in a virtual avatar? 

Singh of One Digital Entertainment thinks creating a virtual avatar of an influencer is exciting as the audience is excited to see and interact with them. He said a lot of research goes into building a digital avatar of the influencer, with the help of the experts and AI available today. “It should not be a challenge to represent a similar personality in the metaverse. Like how it sounded challenging in earlier times to get into digital, but within no time frame, almost everything is digitalised.” 

“It might sound difficult to believe today but the way digital avatars will build relatability and connections with audiences will be no different than real human-to-human physical connections. With more people adapting to the metaverse and the time they shall be spending in the virtual world, the opportunities to build connections and relationships shall increase tremendously. I think it would be fun and exciting to connect with digital avatars and see your own version of it. It will be very interesting to see not only real-life influencers building their digital avatars and engagement but also digital-first virtual influencers and avatars truly backed by AI who shall have no real-life forms,” he added. 

Shivang Shah

On the other hand, Shivang Shah, Co-founder at Django Digital said while the answer may be subjective, platforms with tools have already made it easier for the creators to present their superficial selves, which is the concern. “This is going to be a bigger concern on the Metaverse. Meta and others will have to start thinking about how they will tackle the question of authenticity here. Credibility will be a major concern but on the other hand, real feelings/experiences will be easily replicated through avatars. Instead of vicarious living, people can experience shopping, strolling at the parks, music concerts and others from home with a completely realistic experience,” he added. 

Creator monetisation in the Metaverse

There is a lot of conversation around about how platforms like Facebook, YouTube, Google hold a monopoly over the internet and get a significant amount of revenue from publishers just for having them on their platforms. According to many experts, web 3.0 is all about giving the power of the internet to the users and ‘decentralising’ it. 

Currently reach, content, the number of followers etc play an important part in determining the monetisation of branded content. So, if giants like Facebook are getting ‘decentralised’ how will monetisation evolve for creators? 

According to Gupta of Tamasha Live, “YouTube, Google etc make a lot of commission from your content without making an effort just because they have the software. Here there are no middlemen, it is about giving value to the end-user. Creators will be able to earn better. For example, you create viral music so every time anyone uses it, you will keep getting commission out of it which will not be shared with platforms like YouTube, Spotify, etc.” 

Madhavan of Mad Influence suggests that metaverse will further empower the original creators of content. Giving an example of the viral meme ‘Binod’, he said numerous brands used it in their communication. However, quite a few people know that the original meme of that meme was on a YouTube channel called Slay Point where a YouTube user often posted his name in the comment section. 

“Anyone can claim that they made Binod because there is no trace of origin as to who made it. What will happen on the blockchain is that no one else can replicate it unless the influencer sells the property to someone else. This is going to be a boon for creators, people will start claiming their work, there will be authenticity,” he explained. 

Adding to this, Singh stated, “There will definitely be certain hiccups while adapting to newer technologies and new business opportunities but that is an evolutionary process that is seen every time a pathbreaking technology is introduced. There will be overnight hits and misses but creators who shall enter this space with long-term vision and goals will definitely make the best out of it. NFTs along with privilege access features and exclusive memberships offered by creators will become a big revenue stream for creators in the near future provided it's built with a vision and a real value is added to the fan community doing transactions.”