Five Mixed Reality Marketing Trends to Watch in 2023

Shoppertainment is a form of brand engagement derived from the usage of social video apps, like Kuaishou, Douyin (aka TikTok), Tiki, and the social commerce site Pinduoduo. Entertaining and gamified video content resonates among young consumers with short attention spans who are bombarded with mobile promotions. A new report by TikTok and Boston Consulting Group uses the term “entertainment-first engagement”. It says brands seek to stimulate emotional responses among shoppers through “a variety of content types including video, live-stream broadcast, shoppable TV and shoppable live events.”

Scenario-based activations deploy virtual and AI technologies to connect people to the moment. In China, Louis Vuitton live-streamed its Spring 2023 men’s collection show from a futuristic beach landscape in Qinghuangdao. Broadcast on eight video apps, the show featured audience members wearing the new lines on the beach catwalk and attracted 330 million viewers.

In Vietnam, a smaller-scale street activation presented an incentivized personal challenge. Carlsberg created an interactive billboard competition to win a free beer. Passers-by were invited to speak into a voice-activated installation and correctly pronounce the brand's name. Their voice was instantly analyzed by an AI tool, and if deemed correct a bar tap dispensed a cold beer.

Takeaways:

• Shoppertainment uses video-first storytelling across different content platforms to inspire, educate, incentivize and, crucially, entertain mobile-native consumers
• The scope for shoppertainment activations is almost infinite but competition is fierce to deliver content and competitions that elevate the “wow” factor
• The cross-platform approach makes shoppertainment content sharing and feedback instant and far-reaching

Asian consumers are accustomed to pop-up stores and installations in malls and plazas. Brands use time-defined concepts and limited-edition lines to drive interaction based on the “fear of missing out” (FOMO), an emotional driver of behavior among young consumers. For this reason, pop-up campaigns quickly achieve a high level of peer sharing and response on social media.

Pop-up metaverses expand these precepts into the mixed reality world. While maximizing short-term engagement, they empower consumers to navigate their experience journey. Pop-up metaverses appear around festivals and celebrations. Malaysia created Merdekaverse to celebrate its Independence Day and Macau combined virtual and real-life dining experiences to increase participation in its annual Macao Food Festival.

Interactive metaverse and augmented meta experiences are also custom-created for the duration of sports tournaments. These include the FIFA World Cup, the Southeast Asian Games, and the Australian Open, which is promoted as the Grand Slam of Asia. During the 2022 Indian Premier League cricket tournament, new franchises Lucknow Super Giants and Gujarat Titans launched interactive metaverses to build their online fan bases.

Takeaways:

• Pop-up metaverse experiences are a logical extension for consumers who are accustomed to pop-up stores and street concepts
• Time-limited metaverses are designed to maximize engagement by emphasizing FOMO
• Metaverses give consumers the control to navigate their virtual journey and brands can learn in real-time about their brand and activity preferences

Hyper-realistic, computer-curated influencers, also known as Virtual Idols, are hot properties, and their personas are becoming more human-like and diverse. Brands are custom-crafting lifelike digital ambassadors whose storylines reflect the company’s experiential outlook. Virtual idols engage with young mobile consumers through metaverse, extended reality, and video streaming platforms.

Trend-setting virtual idols such as Ayayi and Noah created a social media storm in China for the 11.11 (Singles Day) online shopping festival. They are also being deployed by luxury brands, such as Dior, Gucci, and Prada, for metaverse-only fashion shows. Meanwhile, the Korea Tourism Organization debuted Lizzie, claimed as “the world’s first virtual traveler”. This stylish avatar visits destinations across South Korea every day and mobile fans can follow “Lizzie’s daily life” on social media and short video apps.

Takeaways:

• Brands curate the trend-setting style and personality of a virtual idol to reflect the experiential messaging of their products and services
• The narrative drive of a virtual influencer can be seamlessly modified to reflect shifting customer tastes and feedback
• Digital idols enable omni-channel engagement. Campaigns and promotions can be integrated and subtly differentiated across social media and video app platforms

Virtual-to-offline social impact marketing is a trend to watch. Brands are collaborating with interactive tech providers and NGOs to create promotions that tackle issues of social inequality and environmental protection.

In India, chocolate brand Cadbury partnered with NFT on GuardianLink to enable parents to upload their children’s artwork to a virtual gallery. The artworks were curated as collectible NFTs and buyers could bid to purchase each piece. Funds raised were donated to a Save the Children school program for underprivileged children.

In Vietnam, Brokerage firm Vantage teamed with online sports training platform UpRace to host a virtual marathon. Using a smartphone app, runners accumulated race kilometers to raise money for the Association of Vietnamese Handicapped Orphans and Save Vietnam’s Wildlife. The e-sports event also raised awareness about the real-life benefits of active fitness.

Takeaways:

• Virtual impact campaigns enable consumers to participate in social initiatives while enjoying personal online challenges
• Demonstrating a commitment to important social and environmental concerns builds trust with consumers
• Combining mixed reality technology with real-life experiences increases the potential engagement and social app sharing

Real-life Asian celebrities and pop superstars are expanding their fan bases through metaverse and extended reality experiences. This is reinvigorating the so-called “fan economy” and will drive new marketing strategies and engagement innovations. Chinese internet giant Tencent teamed with Adidas to host the Landing on the OZ Future concert, which featured Asian performers, digital idols, and show-themed virtual merchandise.
 

Using celebrities for virtual events and endorsements is beyond the financial budget of many companies, but their vast fan bases could stimulate broader metaverse activity. South Korean, Chinese, and Japanese pop stars and actors are popular across the region, and exclusive virtual experiences will encourage more Gen Zs to participate in metaverses for the first time. If they enjoy their experiences, this could create an enlarged populace of regular metaverse participants for brands to engage with in the future.

Takeaways:

• Metaverse concerts and festival performances by Asian megastars like Jay Chou, BTS, and Blackpink generate millions of viewers and virtual interactions
• Guest appearances by celebrities in virtual fashion shows and computer games will expand the scope of Asia’s fan economy
• Destinations will create pop culture-themed metaverse journeys for virtual travelers offering myriad brand activations and in-the-moment shopping options