How brands are building identity in the metaverse
Zak McKinven, COO at Brand Lounge, discusses the almost limitless possibilities afforded by the metaverse and how brands can make the most of these.
It wasn't long ago that the metaverse sounded like science fiction – an idea more at home in video games than boardrooms.
Today, Napster's recent US$207 million acquisition illustrates the metaverse's transformative potential. By reimagining a music streaming platform into virtual 3D spaces where fans enjoy concerts and artists sell merchandise across physical and digital realms, this move exemplifies how brands are creating entirely new forms of audience connection in the metaverse.
This shift reimagines what a brand is when there are no shelves, and no constraints, and your audience shows up as avatars. Brand experiences come alive across our "phygital" world, at the intersection of physical and digital realms.
More than just a game
While definitions of the “metaverse” vary, the common thread is immersive, shared digital spaces – places where people meet, create, play and even shop. Platforms like Roblox, Fortnite, Decentraland and Meta’s Horizon Worlds are early versions of this ecosystem. And while they might look like games, they have become social hubs, marketplaces and canvases for brand storytelling. As an industry, it’s projected to reach US$13 trillion in worth by 2030.
For brands, this presents both opportunity and challenge: how do you show up in a world that doesn’t behave like the traditional internet? The ones getting it right aren’t treating the metaverse like another ad platform. They’re treating it like a place to build experiences, not just push products, well, not directly.
From global leaders to regional players
Nike took a bold step by building NIKELAND inside Roblox – a digital world with branded arenas, avatar gear and mini-games. It wasn’t just product placement; it was interactive, playful and true to Nike’s identity of movement and innovation, attracting millions of visitors and positioning the brand as a relevant player in digital culture.
Meanwhile, Coca-Cola and Pepsi have tested these waters with NFT drops and virtual collectibles, while Samsung and RAK Ceramics created immersive showrooms in Decentraland. Adidas, Vans, Hyundai, 6th Street and Balenciaga have all crafted virtual activations with a common thread: meeting audiences where they are, not pulling them into brand-controlled spaces.
Why it’s working
The way people interact with brands is changing. For gen Z and gen alpha especially, digital identity is deeply personal. The clothes your avatar wears, the worlds you frequent, the experiences you choose – all say something about who you are.
In this context, brand presence becomes less about selling products and more about being part of someone’s digital lifestyle. The most successful brand activations in these virtual spaces do a few things well:
- Offer value beyond commerce – whether fun, exclusivity, entertainment or self-expression.
- Build community, not just awareness – enabling co-creation and participation.
- Reflect platform culture – (or create one). Understanding each space’s vibe and environment is key. It must align with your brand and what you stand for, not be gimmicky. That’s whether you create your digital environment or take part in one.
- Embrace creativity – Without the limitations of physical space, brands can do things in the metaverse they could never do in physical spaces – like launching global sneakers simultaneously or hosting interactive concerts.
Risks and rewards
Of course, there are risks. The space is still developing, and not every activation succeeds. Some brands face criticism for clunky experiences or tone-deaf NFT drops. Legitimate concerns exist around data privacy, digital ownership and accessibility.
But the upside is real: brands experimenting now are shaping the rules and expectations of what brand interaction will look like in the next decade. The true test remains to achieve positive ROI – creating digital environments can be costly, though AI may bring efficiencies. Whatever the metaverse experience, it must deliver positive outcomes in experience, brand exposure and sales.
Looking ahead
The metaverse isn't a single place, nor is it fully realized. That's precisely what makes it interesting. It’s a blank canvas where identity, experience and community matter more than polished campaigns or ad slots.
The limits of physical space experience where individuals need to travel can be prohibitive. Forward-thinking brand strategists now recognize the opportunity to blend physical and digital experiences, creating more compelling brand moments. In the metaverse, you can meet, showcase new products and services, train employees and specialists, and bring together communities anywhere in the world.
Whether hosting virtual product launches, selling digital merchandise or just showing up in the right way on the right platform, brands are learning that in the metaverse, you’re not just telling your story – you’re inviting people to live it with you.
