MAM
GUEST COLUMN: How will metaverse redefine the advertising industry?
Mumbai: The recent advent of the metaverse—a continuous and virtual 3D world where users may interact with one another, hold meetings, and even shop for items—has been a popular topic of discussion in recent months. The opportunity for advertisers to target metaverse users with branded material and other sales strategies is evident.
When it comes to advertising in the metaverse, immersion will be the key selling point. This implies that marketers will not only be able to provide better, broader, and more sophisticated branded experiences, but they will also be able to do it without appearing intrusive because customers will already be immersed in a virtual environment.
But how will that manifest itself on a practical level?
Brands should see the metaverse first and mainly as a new Advertising channel. The metaverse, like any other channel, will provide advertiser’s with unique chances that will lend themselves nicely to richer, more immersive narrative experiences. Advertisements in the metaverse have already taken on some common forms, such as product placement.
Here are some instances of how brands may utilise the metaverse to advertise themselves:
Characters and virtual real estate
It’s understandable to wonder if businesses may own virtual real estate and have branded characters in the metaverse. This is how it might work: World of Virtual Reality, a company can purchase VR world for its specialty and incorporate a storefront / experience center for consumers to visit and shop, as well as an exercise space where people can compare items side by side. Many businesses have built branded characters and venues, as well as reproduced their services, within the virtual world. Interestingly, advertising has blended in seamlessly with surroundings.
Avatars in metaverse
When you first started using the internet, you probably came across avatars. They are virtual representations of our physical identities and may provide a great chance for advertising industry to establish its presence in the metaverse. Avatars are an essential component of the metaverse, and they would be crucial in a variety of metaverse advertising use cases. Once you’re able to totally immerse yourself in a world using your holographic glasses, your avatar will be the first ‘connection’ you’ll be able to wear and feel. Branded avatars, one of the most engaging and participatory methods to advertise a business, would play a significant role in upgrading your avatar’s appearance. In the future, businesses may give their new collections to customers virtually before they are released. It is easy to see the dual benefit of having avatars as tools for allowing customers to evaluate things.
Massive Interactive Live Events (MILE)
Massive Interactive Live Events, or MILEs, employ a single simulation to bring together a large number of participants on a single platform. Events are the next big thing that will provide chances for marketing in the metaverse. The power of live events is already being used by numerous businesses, but it has the potential to be taken to a whole new level in the metaverse. Events may be used to build interest in a product, market new products or services, and teach employees. Advertisers seeking to attract the attention of a large audience might utilise events to generate interest in new items that will be offered at a later date.
Diversity and inclusion
Finally, the most essential element influencing chances for metaverse advertising examples would be inclusion and diversity. These characteristics are critical to metaverse adoption since they not only provide a chance to get more users into the systems but also allow users to have a better understanding of who they are and how they interact with other users. As part of a wider campaign to promote the benefits of the metaverse among current users, these features must be reinforced through advertising possibilities. The metaverse, on the other hand, may enable companies to break through such barriers by allowing customers to construct their own experiences. Brands may seamlessly enter consumers’ metaverse experiences, making them feel connected.
In the end, the metaverse provides a unique marketing platform. If the advertising industry can create an atmosphere in which people can engage with brands it will make their communications more real. This may lead to increased retail and other business development, as well as more interactions with customers when they are on-site. Brands may reach a worldwide audience for advertising objectives by using SL avatars and user-generated content. While the structure of SL and OS projects may not be as prominent in mainstream advertising as video or social networks, the metaverse is a perfect place for the advertising industry to experiment with new advertising strategies and concepts.
However, every new marketing channel or technology has its own set of obstacles. So one should proceed with extreme caution when it comes to metaverse advertising.
(About Author: Arun Fernandes is the founder and CEO of Hotstuff Medialabs)
Digital
GUEST COLUMN: How AI is restructuring distributor and retailer motivation models
From incentives to intelligence, AI is redefining how brands engage channel partners
MUMBAI: Artificial intelligence is rapidly transforming how brands engage with their most critical yet often overlooked stakeholders: distributors, retailers, and last-mile influencers. For Abhinav Jain, co-founder and CEO of Almonds Ai, this shift marks a fundamental departure from traditional, transaction-led incentive models toward behaviour-driven, data-intelligent ecosystems. In this piece, Jain examines how AI is enabling brands to decode partner motivations, predict engagement patterns, and deliver personalised, scalable experiences—ultimately redefining channel relationships from transactional exchanges to long-term growth partnerships.
Across many sectors, there is increasing recognition that motivating those who bring products to market (distributors, retailers, last-mile influencers) poses a growing challenge.
Brands continue to invest significant marketing and digital resources to consumers, yet in many countries and the vast majority of emerging economies, these types of consumer-focused investment areas have had little impact on ultimate product delivery. Rather, it is still the case that traditional retail continues to make up most products sold.
So why is it that the systems built around motivating these channels have yet to evolve?
For decades, distributor and retailer engagement revolved around static schemes – quarterly targets, volume-based rewards, and occasional trade promotions. These programs were designed around transactions, not behaviour. The assumption was simple: if incentives increase, performance will follow.
Now, with the advent of artificial intelligence, the definition of performance is being challenged.
With the development of artificial intelligence, businesses can move beyond simply creating loyalty based on transactional-based models and toward models built on behaviours, the behaviours of channel partners that are intrinsic to their motivations in engaging with particular brands. As a result, the means by which businesses develop relationships within their distribution network are starting to evolve; thus, ultimately changing how brands interact with those within their distribution network.
Assessing engagement: Transitioning from transactional- to behavioural intelligence
Traditional loyalty systems refer to transactional activity (sales data). Although this data is valuable and important, it only provides a partial view of engagement across the channel partner.
For example, a retailer may have a high frequency of sales of a product, but their lack of engagement with the manufacturer would not reflect that they have true loyalty toward that brand. Conversely, a retailer who actively participates in training programmes, acts as brand advocates, and is engaged in learning with the supplier would exhibit more profound levels of loyalty but would have been invisible based on historical incentive programmes.
Artificial intelligence allows for the identification of behaviours that help to address this gap. Brands are able to use a variety of engagement data points, participate in learning programs, respond to communications, redeem behaviour and track platform use behaviour in order to identify motivation through behaviour.
McKinsey has stated that companies that leverage advanced analytics for their sales and distribution functions can achieve as much as a 15-20 per cent increase in productivity due to increased awareness of their behavioural trends throughout their networks.
This visibility of behavioural patterns within channel ecosystems can be transformational to brands as they can now view how partners engage on their path to purchasing products, instead of just measuring the sales revenue generated by those purchases.
Predicting motivations, not just measuring performance
Possibly, the largest contribution of Artificial Intelligence (AI) to helping brands engage with partners via channel ecosystems is its ability to predict future engagement versus simply measuring past performance.
Traditionally, brands only realised that a partner was disengaged (not likely to purchase products) once their sales performance had already declined. By then, the brand would have to use significant amounts of incentives or aggressive promotional activities to recovery their partner’s engagement level.
AI models can help organisations to detect early signs that a partner is becoming disengaged, such as declining participation in learning modules, declining interaction via the platform, or slower reward redemption rates. These indicators can help organisations to proactively engage with their partners before their sales performance begins to decline.
The practical application of AI and predictive analytics gives brands the ability to re-engage with their partners prior to their sales performance declines. For example, instead of developing and implementing broad-reaching incentive programs that provide a “one size fits all” incentive to all partners in an ecosystem, brands are able to develop targeted, engaging re-engagement programmes. This is how personalisation can be done on a large scale, such as across global distribution and retail networks.
The vast majority of distributor and retailer channels have thousands, if not millions, of individual channel partners. Historically, providing personalisation to such a large number of businesses has not been feasible.
However, with the advent of AI, personalisation at scale is becoming a reality.
Brands can now create tailored engagement journeys for all their partners, based on their partner profiles, through some combination of machine learning models and behavioural segmentation. For example, high-performing distributors might receive higher levels of leadership-based recognition and greater incentives to continue to grow. Emerging retailers, on the other hand, might be supported with training, onboarding rewards, and measurable performance milestones.
The shift towards personalisation of partner engagement echoes the direction that consumer marketing is already moving towards.
According to Salesforce’s report, over 70 per cent of customers expect personalisation in the way that brands engage with them. As such, there is a growing expectation for B2B ecosystems to have these same types of expectations from their channel partners.
Gamification and continuous engagement
AI is also radically changing how brands will engage with their channel partners through the use of gamification.
Many traditional incentive-based contests and leaderboards would spark temporary engagement among their participants, but they struggled to sustain engagement over time. With the use of AI, gamification mechanics are evolving dynamically based on historical and evolving participation patterns by their channel partners.
Challenges, rewards, and recognition structures can be modified continuously in order to sustain engagement with all of a brand’s partner segments. This will provide a greater opportunity to move away from episodic campaigns towards ongoing, continuous engagement experiences.
When channel partners receive motivation as part of their daily business activities through recognition, learning, and tracking their performance, long-term loyalty will be achieved.
Aligning motivation to broader impact
There is a growing trend within the channel ecosystem to integrate sustainability and socially responsible behaviours into the channel partner programmes of brands.
Increasingly, brands are motivating their partners to use sustainable practices in their operations, participate in sustainable practices like sustainability-related knowledge programmes, or promote products that are in line with their sustainability objectives.
Brands can use AI to monitor and measure these types of behaviours and incorporate them into their incentive frameworks so that brands can align their commercial objectives with broader social and environmental outcomes.
A shift in the way brands view their channel partners
AI is having the most significant impact on the way that brands are now viewing their channel partners, as it relates to the underlying philosophy of those fundamental relationships.
For the past several decades, many brands have viewed their channel partners as intermediaries in the supply chain. More and more brands are now beginning to view their channel partners as key ‘partners-in-growth,’ and their actions can have a direct impact on market performance.
In fact, all the channel ecosystems are using behavioural engagement platforms to design new models that reward not just transactional behaviour, but also create continuous engagement journeys for their partners, where their partners can receive recognition for their participation, learning, and continued engagement, thereby reinforcing long-term loyalty to the brand.
The future: Intelligent channel ecosystems
As we consider what the next phase of channel engagement may look like, many believe that it will be based on intelligent ecosystems, using AI to continuously monitor and adjust the engagement strategies used to engage their channel partners, in real time and based on the behaviours of those partners.
For brands operating in complex distribution networks, the ability to perform well will be determined both by whether products are available to their customers, as well as by the enthusiasm, expertise, and loyalty shown from each channel partner that represents the brand each and every day that they are working on behalf of the brand.
While AI clearly does not eliminate the human aspect of a brand’s relationship with its channel partners, it does allow brands to better understand and nurture that relationship.
In markets where the last mile will determine whether a sale is made, how one leverages the intelligence gained by using AI will ultimately be the difference between gaining a new, sustainable competitive advantage versus losing one.
