How Global Brands Are Navigating the Metaverse to Reshape Consumer Engagement

A new study conducted by researchers at the Department of Management, Economics, and Industrial Engineering at Politecnico di Milano delves into how global firms experiment with and integrate the metaverse into their branding strategies. At a time when the metaverse faces waning public enthusiasm and increasing skepticism due to shifting definitions and technological immaturity, this study provides much-needed clarity. Drawing on interviews with senior managers from 16 multinational corporations spanning fashion, automotive, finance, and consumer goods, the research identifies how companies are actively using virtual platforms like Roblox, Fortnite, and private immersive spaces to reimagine branding, reach younger demographics, and develop future-ready consumer experiences. Even as the hype surrounding the metaverse has softened, the findings reveal a growing resolve among firms to strategically explore its potential in tandem with advances in spatial computing and generative AI.

From Hype to Strategy: The Evolving Metaverse Landscape

Initially heralded as the next digital revolution, the metaverse captured massive attention following Facebook’s transformation into Meta. But disillusionment soon followed, driven by losses in tech investments and a lack of user readiness. Still, a steady shift has occurred, from opportunistic exploration to strategic commitment. Companies are no longer merely chasing trends but are positioning the metaverse as part of a broader digital transformation journey. They recognize it as a powerful new layer in the evolving marketing ecosystem, one that builds on previous waves of digitalization, such as social media and e-commerce. Apple’s introduction of “spatial computing” in 2024 further added to the metaverse’s complexity, but also reignited discussions on how immersive technologies can become embedded in long-term brand strategy.

Engaging Gen Z Through Immersive Storytelling

One of the clearest findings from the study is that the metaverse is particularly effective for engaging younger consumers. Platforms like Roblox now host over 85 million daily users, a large majority of whom are teenagers or young adults. Notably, 84% of users aged 14 to 26 reported considering a real-life brand after seeing their avatar interact with it in a virtual setting. This statistic is not lost on marketers. Companies are investing in immersive storytelling to elevate brand perception and emotional resonance. Initiatives range from virtual fashion shows and gamified shopping experiences to co-creation hubs and branded digital events. Such efforts allow firms to build reciprocal relationships with their audiences, often strengthening brand loyalty and paving the way for advocacy. These environments promote deep, sustained interaction, particularly effective in forming long-lasting impressions with digital-native users.

Four Pathways to Branding in the Metaverse

The study identifies four strategic approaches that companies adopt when entering the metaverse, categorized as: champions of exploitation, exploitative appointees, champions of exploration, and strategic exploratory appointees. Champions of exploitation typically emerge from personal enthusiasm within the company, often outside formal channels. They launch promising pilot initiatives but struggle to scale without internal buy-in or formal support. Exploitative appointees, meanwhile, are officially designated to lead metaverse initiatives but are limited by tight budgets and short-term KPIs. These efforts often result in superficial PR activities that lack strategic depth or longevity.

On the other hand, champions of exploration represent a more forward-looking approach. They drive early-stage experimentation, form internal teams, and foster cross-functional dialogue. While these efforts may initially operate on smaller budgets, they often evolve into structured pilot projects that inform long-term brand strategies. The most successful group, however, is the strategic exploratory appointees. Backed by cross-departmental teams, external tech partnerships, and long-term mandates, these champions are able to test and refine initiatives that are fully aligned with the company’s strategic vision. These companies stand out as metaverse pioneers within their industries, using structured experimentation to explore branding opportunities without the immediate pressure for ROI.

From Experimentation to Organizational Learning

What sets successful metaverse ventures apart is not just the creativity of the activation but the underlying organizational learning mechanisms. Companies that encourage open communication, internal workshops, and cross-functional collaboration are more likely to embed metaverse branding into their strategic DNA. The study emphasizes the importance of knowledge-sharing, both horizontally across departments and vertically through leadership alignment. Without these, metaverse efforts risk becoming isolated digital novelties. Moreover, firms that treat the metaverse as a playground for testing new ideas, rather than a channel for quick wins, are better positioned to adapt to changing consumer expectations and technological developments. In these organizations, learning does not stop at the pilot phase; it extends into capability-building, with dedicated roles and workflows tailored to immersive brand engagement.

Charting the Future of Metaverse Branding

While the research is grounded in Italian companies, the implications are globally relevant. The metaverse, as framed in this study, is not a short-lived gimmick but a test case for strategic innovation. For marketers, the key takeaway is to treat the metaverse as a medium that rewards creativity, adaptability, and long-term thinking. Firms must invest in organizational structures that support exploration while eventually shifting toward exploitation when the time is right. The balance of these forces, what scholars call ambidexterity, is critical to success. As the digital economy continues to evolve, the metaverse offers a unique opportunity to reconfigure branding into a participatory, immersive, and emotionally resonant experience. This study not only maps where companies are now but also sets a direction for how brands can transform themselves through virtual engagement in the years ahead.