The biggest public health regulator on the planet, the World Health Organization, recently released a technical report detailing the comprehensive extent of how alcohol is being marketed worldwide. It highlights the different techniques on how alcohol brands have focused on digital advertising to gain new customers across borders. Despite the heavy regulation on advertising alcoholic products from numerous territories.
The report raises some concerns from countries with lighter regulations on alcohol advertising, such as Australia and New Zealand. It’s where alcohol is marketed and consumed with little restraint. As alcohol brands and their marketing efforts shift more towards the digital space, many wonder how we regulate marketing in the Metaverse?
Understanding cross-border alcohol marketing
Cross-border marketing is a technique where a product is created and distributed in one particular country. It later spreads across borders into nearby territories. This method is used mainly by many multinational corporations to establish their presence and increase sales. It is also utilized by the alcohol industry to normalize the consumption of alcohol. Plus, it raises the demand for alcohol products.
This manner of advertising is now done more within the digital space. Businesses use online media platforms which provide cheap advertising with a broad scope of reach. By maximizing their online presence, brands can focus their messaging to achieve better impact and engagement. In turn, this generates more interest and overall sales. But while this manner of marketing is deemed highly effective, it does raise some concerns among more vulnerable groups.
With the advent of online marketing also comes data collection, which marketers and, therefore, alcohol companies value. This data provides them with better insight to create personalized marketing approaches that target individuals to gain a wider reach. It also makes it easier to customize advertising campaigns spread among young people.
Digital advertising allows marketers to target different demographics with a method of purchase that’s more accessible as it is all done online.
Alcohol brands begin marketing in the Metaverse
Along with the innovation of the digital world, with the introduction of the Metaverse, the alcohol industry has now shifted its focus toward marketing in the Metaverse. The Metaverse is the next-level virtual world with a unique 3D experience built for gaming and entertainment. With amped-up data-driven personalization and biometric psychographics, this provides a dynamic approach for brands intending to innovate their e-commerce experience.
By incorporating experiences in the Metaverse with real-world applications, alcohol brands can amplify their customer engagement. For example, Treasury Wine Estates, the company behind The Walking Dead wines, has begun turning each of their wine bottles into having unique stories revolving around the zombie hunter Rick Grimes. Each bottle has a custom QR code that provides the added entertainment experience when you point your smartphone at it.
On the other hand, the world’s largest alcohol corporation, AB InBev, is marketing its brand Stella Artois by sponsoring virtual horse racing through the Australian Zed Run platform. These Augmented and Virtual reality experiences broaden the opportunities for the alcohol industry to pursue.
Alcohol harm regulations
While the innovations of the digital world provide unprecedented opportunities, the question of regulating alcohol marketing in the Metaverse has raised the need for debate. However, the Metaverse is still a vague topic for many public health leaders and policymakers. This is why WHO’s report mainly outlines the different approaches to regulations in the digital sphere.
There have been notable efforts to regulate alcohol marketing online, from Norway’s complete ban to Finland’s regulation of user-shared content. The WHO emphasizes the requirement for strengthened surveillance and enforcement while suggesting strict penalties for alcohol companies who choose to breach regulations.
Alcohol products are regulated as they cause reduced well-being and risk developing harmful drinking habits with prolonged consumption. Therefore, the WHO’s call to shed light on alcohol marketing, especially in this developing time of the Metaverse, is a call that should raise public concern.
