From curiosity to implementation: Harnessing the power of the metaverse and generative AI in marketing

Abstract

Generative AI and the metaverse are becoming increasingly more mainstream. To understand their potential in marketing, we must understand how they can impact brands and their interactions with customers and what the effects of combining them are.

The realities and challenges of the metaverse and gen AI

Editor’s note: Thomas Peham is the vice president of marketing at Storyblok.

Since Meta's pivotal rebranding announcement in 2021, the concept of the metaverse has captivated the imagination of both tech enthusiasts and industry giants alike. This interest has been paralleled by the rapid development of generative AI technologies, exemplified by tools like ChatGPT, which have revolutionized the creation of human-like text and images.

Now, as we approach mid-2024, the focus has shifted from curiosity to strategic implementation. Businesses are proactively exploring how these cutting-edge technologies can be effectively utilized in marketing to maximize return on investment (ROI).

How the metaverse can expand realities in marketing

The metaverse promises a blend of augmented and virtual reality with a level of interactivity that has never been seen before. Its potential for creating immersive marketing experiences is vast. From virtual showrooms and live product demos to interactive brand events, companies are increasingly leveraging metaverse platforms to engage consumers in rich, multi-dimensional environments.

Recent studies highlight that industries like fashion, automotive and real estate are leading this charge. For instance, luxury fashion brands have launched virtual stores where consumers can browse and purchase products in a fully immersive setting. Automotive companies are offering virtual test drives, allowing customers to experience a car’s features in a controlled, yet remarkably realistic, digital world. These applications not only enhance customer engagement but also provide brands with valuable data on consumer behavior within these digital realities.

Generative AI: Revolutionizing content and customer interactions

Generative AI has transformed content creation and personalized marketing. With the ability to generate text, images and even videos that are indistinguishable from human-created content, these tools offer a scalable solution for personalized marketing campaigns. For example, AI-driven platforms can now create personalized e-mail marketing messages that resonate with individual preferences and behaviors, significantly increasing conversion rates.

The role of generative AI in enhancing customer experiences is also unmatched. AI chatbots, for instance, have become more sophisticated, capable of handling complex customer inquiries with ease and accuracy. This not only improves the customer service experience but also frees up human resources for more strategic tasks, improving overall efficiency.

Combining the metaverse and generative AI

The combination of the metaverse and generative AI presents brand new opportunities for marketing strategies. For example, a company can use generative AI to create dynamic and personalized content within a metaverse, such as custom avatars or unique, on-the-spot generated promotional events that engage users in real time.

Furthermore, these technologies are redefining the concept of customer journeys by creating continuous, engaging narratives that guide the consumer through a seamless transition between virtual and real worlds. Brands that understand how to navigate and integrate these technologies are setting new standards in marketing, providing experiences that are not only engaging but also deeply integrated with users’ lifestyles.

Challenges and strategic considerations

While the potential is immense, the integration of metaverse and generative AI technologies into marketing strategies is not without its challenges. Issues such as data privacy, the digital divide and the need for substantial infrastructure investment are significant. Companies must navigate these challenges carefully to build trust and ensure a secure environment for their users.

Strategically, businesses must decide whether to invest in one or both technologies based on their specific marketing goals and the needs of their target audience. The decision should align with the company’s overall digital transformation strategy and its readiness to adopt new technologies.

How will generative AI and the metaverse affect the future of marketing?

It’s clear that both the metaverse and generative AI will play pivotal roles in shaping the future of marketing. The companies that will thrive are those that view these technologies as integral components of their marketing strategy that can offer substantial competitive advantages and ROI.

While the technology landscape continues to evolve at a rapid pace, the integration of metaverse and generative AI holds promising prospects for transforming marketing strategies. By focusing on creating value-driven and engaging consumer experiences, businesses can leverage these technologies to not only meet but exceed the evolving expectations of their customers. The journey from novelty to mainstream application is ongoing and the most successful marketers will be those who can harness these technologies to create more connected, immersive and personalized consumer experiences.