PROVO, Utah & SEATTLE–(BUSINESSWIRE)–The future of advertising may be in the metaverse, with 59% of marketers reporting it is the most successful channel on which they advertise, according to new research from Qualtrics (Nasdaq: XM). See full results here: qualtrics.com/blog/metaverse.
The metaverse is a simulated digital environment that mimics the real world using augmented reality and virtual reality to create spaces for users to interact. For many marketers, the metaverse presents an opportunity to connect with consumers in ways that have never been possible before.
Faced with budget cuts, marketers are re-evaluating how and where their dollars are spent to ensure they are keeping up with consumers. Although 96% of marketers agree it is important for their brand to be on all channels – including the metaverse – 90% of them also agree there are too many channels on which to engage with consumers. This channel fragmentation has caused marketers to be unsure of where to focus their efforts, increasing their need to have up-to-date data to help them make the best decisions. Conflicting responses from marketers indicate competing priorities as 35% of marketers shared their top priority was to drive growth, yet 29% of marketers also shared their greatest challenge was to improve customer loyalty.
“During times of uncertainty, marketers and CMOs need data to back their decisions,” said Michel Feaster, Qualtrics Chief Product Office of Research. “It’s clear that marketers are overwhelmed with the complexity of reaching and engaging with consumers. They need better tools to navigate the noise and show proof that their efforts are driving impactful results on every channel, including the metaverse.”
Marketers that have adopted the metaverse are ahead of the curve in comparison to consumers, though there is still some skepticism from both sides. Thirty-seven percent of marketers who don’t currently advertise on the metaverse cited the top reason was lack of validation proving metaverse advertising works. Additionally, most consumers spend more time on other channels; TV, podcast, and social (YouTube, Facebook/meta, Twitter, TikTok) outranked the metaverse. However, more than half of consumers (62%) say they are open to purchasing products on the metaverse.
For marketers who aren’t on the metaverse just yet, there may be more incentive to try it soon. Of those who are already advertising on the metaverse, over half (74%) report it as the top channel on which they advertise.
More key takeaways from the study:
97% of marketers say they will likely be advertising more on the metaverse five years from now
The demographic that spends the most time on the metaverse are males (63%) and consumers aged 26-41 (59%)
The top platforms consumers pay the most attention to advertisements on are: YouTube (58%), Facebook/meta (43%), TV (36%), Instagram (30%), and Metaverse (19%)
62% of consumers are likely to purchase a product through the metaverse
This study was fielded between May 9 and May 26, 2022. Respondents were selected from two surveys including a marketing and consumer panel and were considered eligible if they were familiar with the metaverse, lived in the United States, are at least 18 years of age , and are employed full-time. The total number of respondents was 2,900 (868 marketers, 2,032 consumers). Respondents who did not pass quality standards were removed. See full results here: qualtrics.com/blog/metaverse
Qualtrics, the leader and creator of the Experience Management (XM) category, is changing the way organizations manage and improve the four core experiences of business—customer, employee, product and brand. Over 16,750 organizations around the world use Qualtrics to listen, understand and take action on experience data (X-data™)—the beliefs, emotions and intentions that tell you why things are happening, and what to do about it. The Qualtrics XM Platform™ is a system of action that helps businesses attract customers who stay longer and buy more, engage employees who build a positive culture, develop breakthrough products people love and build a brand people are passionate about. To learn more, please visit qualtrics.com.