Let’s not overcomplicate it: advertising in the metaverse isn’t science fiction anymore. In fact, it’s quickly shaping up to become a serious contender in the digital marketing realm, and when done right, it can be a surprisingly effective place to build brand awareness.

But it’s also a concept that’s heavily misunderstood.

Between the buzzwords—think jargon like non-fungible tokens (NFTs)—and the sudden rise and fall of interest, it’s easy to write it off as hype. However, people are already spending time in these virtual spaces, and not just for fun. They’re shopping, collaborating with coworkers, and interacting with brands in ways that go far beyond traditional ads like billboards.

So, how can your business keep up?

This guide breaks down what metaverse advertising actually looks like, why it’s worth paying attention to, and how your business can step into it without feeling like you’re chasing a trend.

What is the Metaverse?

The metaverse is still evolving, which means there isn’t one official definition. However, according to the University of Cambridge, it’s currently defined as a “network of digital worlds” where we “navigate seamlessly using virtual reality (VR) and augmented reality (AR) devices to connect with others.”

In essence, it’s a 3D universe where you interact with people in digital environments—all in real time. Rather than browsing or clicking around on a separate screen in front of you, the metaverse makes it so that you become part of the experience itself.

Picture yourself sitting at home while watching a holographic concert from your kitchen table, or checking out a virtual art gallery while chatting with friends from around the globe. The metaverse makes this possible, and it only continues to grow as more brands get involved.

Why Should Businesses Invest in Metaverse Advertising?

Because attention is constantly shifting, and attention is everything in marketing, it’s important to know how you can leverage the metaverse in your campaigns.

People are spending more time inside virtual environments, whether they’re exploring Roblox, shopping on virtual storefronts, or attending concerts inside Fortnite (Travis Scott’s “Astronomical” concert showed marketers just how massive virtual engagement can be).

For businesses, this means the chance to show up in unexpected, memorable ways.

How Are Businesses Using the Metaverse to Advertise?

Metaverse advertising lets brands meet users where they are, directly inside these immersive spaces, rather than waiting for them to stumble across an Instagram ad or an outdoor billboard. Plus, since so much of the metaverse is still being shaped, there’s real room for creative brands to stand out.

Instead of relying on pop-ups or banner ads, companies can create moments that feel like part of the world users are exploring, without making users feel like they’re being marketed to. 

That’s why product placement and in-world integrations are becoming more common. Just like a soda can on a desk in a TV show, brands are embedding themselves into metaverse environments, only now, the viewer can click on that soda and order it straight to their door.

And while newer tools are pushing boundaries, traditional advertisements like billboards still have their place, but with a twist. Metaverse billboards function like traditional outdoor ads, though they live in digital worlds. These placements offer visual impact without disruption, acting more like part of the scenery than a sales pitch.

Balenciaga x Fortnite

Balenciaga teamed up with Fortnite to release a line of digital outfits that players could purchase and wear in-game. The launch featured a dedicated Balenciaga retail store inside Fortnite’s Strange Times Hub, where players could explore the collection, see themselves featured on in-game billboards, and engage with a city-inspired world built around digital fashion.

But it didn’t stop there. 

They also launched limited-edition, physical merchandise for the real-life Balenciaga store.

Gucci Garden in Roblox

To celebrate its 100th anniversary, Gucci launched a virtual Gucci Garden in Roblox. Visitors could move through themed rooms, try on digital items, and explore the brand’s story through an interactive environment.

At one point during the event, users could even unlock exclusive free items, like the Gucci Denim Wide Brim Hat, simply by participating. With over 1 million visits, it showed that luxury branding can resonate with younger audiences without losing its identity.

Nike x Fortnite (Airophoria)

Nike created “Airphoria,” a branded island within Fortnite that blended storytelling, gaming, and digital fashion. Players could explore a floating city, collect virtual Nike sneakers, and unlock in-game rewards. The experience brought Nike’s identity into a format that spoke directly to its younger audience.

5 Tips for Marketing in the Metaverse

Marketing in the metaverse is not only about being visible. Your advertising team has to be able to strategically create something people can actually interact with. If your brand wants to make an impression, here are five ways to do it well:

1. Collaborate with Existing Communities and Creators

Showing up without understanding the platform is a quick way to get ignored. Work with people who already have influence in the space, whether it’s an artist, developer, or content creator. These voices can help your campaign build credibility and blend into the space organically.

2. Host Branded Live Events

Concerts, competitions, product drops—whatever your style, events create buzz. Think of these as your virtual block parties. Cheetos, Urban Decay, and Nike did it, and countless others continue to jump in. These events give users something to talk about, both inside and outside the platform. It’s the perfect opportunity to get people talking about your product.

3. Offer Collectibles

Digital items like wearables or branded tokens are part of how users express themselves in the metaverse. When you offer something unique, whether for free or in limited quantities, it adds value beyond the product itself. People are more likely to engage with a brand they can wear, trade, or show off.

4. Let Users Try Before They Buy—Virtually

Use AR and VR tools to offer 3D previews of your product. Let someone see how a couch looks in their living room, or how sunglasses fit their avatar’s face. 

Brands like IKEA and Porsche are already ahead of the curve on this.

5. Incorporate Real-World Billboards Into Your Marketing Strategy

Billboards still work, even in a virtual setting. From Fortnite to Decentraland, these placements are a smart way to drive brand recall.

Though, if you want to extend that reach even further, leading out-of-home (OOH) companies like Alluvit Media can help you extend your campaign from digital to physical spaces, bringing your marketing strategy full circle. The best OOH businesses tend to offer free, in-house graphic design services, so you don’t have to figure out everything alone or hire a separate creative team.

What Are the Advantages of Metaverse Advertising?

Digital gear. Exclusive content. The opportunity to go viral. 

These are just a few examples of how the metaverse lets brands curate experiences that feel engaging, not pushy. Instead of asking people to click, scroll, or sit through an ad, you’re inviting them into something they can interact with and share. When it’s done well, it won’t feel like marketing.

1. Endless Creative Freedom

In the metaverse, you’re not limited by physics, shelf space, or ad dimensions. You can build a floating showroom, animate your product, or turn your campaign into an interactive game. 

In a sense, it’s the digital version of guerrilla marketing as it’s unexpected and designed to make people look twice.

2. Early Advantage

Most companies are still watching how other brands interact with the metaverse from the sidelines, which means there’s space for bold brands to lead. Building a presence now gives you more freedom to experiment and get a head start on shaping the norms others will eventually follow. Waiting could mean missing the moment to stand out.

3. Deeper Engagement

When people explore your brand in the metaverse, they’re choosing where to go, what to click, and how to interact. That kind of active participation leads to stronger attention. It makes your brand part of their experience, not something they overlook.

What Are the Challenges of Metaverse Advertising?

While there are a ton of positives to advertising in the metaverse, they don’t come without downsides. 

For one, the technology is still catching up, which means not every user has access to the gear it takes to fully engage. On top of that, privacy concerns, unclear platform rules, and the sheer volume of competing virtual worlds can make it tough to scale or measure success consistently.

1. Tech Accessibility

Not everyone has access to high-speed internet or a VR headset, which means some audiences may be excluded from fully immersive experiences. If your campaign isn’t designed to work across devices, from smartphones to desktops, it could fall flat before it even gets noticed.

2. Data Privacy Concerns

The more immersive the environment, the more data you’re likely to collect, which includes everything from user movement to behavioral patterns. That level of insight comes with responsibility. 

Brands need to be upfront about how data is used and make sure they’re building trust, not eroding it.

3. No One-Size-Fits-All

The metaverse isn’t one unified platform. Each one (whether it’s a place like Fortnite, Roblox, or Decentraland) has its own rules and audience. What works in one won’t always work in another, so every campaign needs to be customized to fit the platform.

How Can You Prepare For the Rise of Metaverse Advertising?

Marketing in the metaverse space isn’t going away anytime soon, which makes now the right moment to begin thinking long-term. Start by understanding where your audience is spending time and which platforms align with your brand.

You don’t need to allocate all of your marketing budget to metaverse advertising, but you do need a strategy that’s flexible and future-focused. This could mean sectioning off 5% to 10% of your funds initially, and, if advertising in that space performs well, you’ll have a clear case for making it a more permanent part of your overall approach.

In the meantime, it’s a great idea to determine whether or not you’d like to invest in digital or outdoor ads. A strong presence in either—or both—can help bridge the gap between audiences who aren’t engaging with your brand online and those who aren’t seeing you in person.