The rise of the avatar era and the influence of pop culture.

Masks have been used since ancient times in ceremonies and rituals to symbolize deities, spirits and even emotions. In the digital realm, avatars follow the same pattern; they have evolved into our contemporary masks, blending our true selves with the image we want others to see.

Popular culture has had a significant impact on our idea of avatars. Films like Ready Player One, The Matrix, and even Avatar have portrayed worlds where virtual reality and digital projections are as tangible as our physical existence, with barely perceptible differences. Likewise, video games like Cyberpunk 2077 or the iconic Grand Theft Auto enable us to immerse ourselves in roles and characters that, despite being fictional, shape our perception and influence our actions in the real world.

Some of the early examples of virtual avatars’ success span from Second Life, where people could purchase properties and live alternate lives, to the competitive world of Fortnite, where players can obtain and customize skins. Even in Roblox, we have the ability to create an avatar and construct a whole experience to recreate stories, much like the Cielo Grande campaign for Netflix, which won a silver award at the 2022 Clio Awards.

Furthermore, just like certain pop culture phenomena have shaped our perception of virtual avatars, these avatars are also transforming other industries. For example, they can now attend and actively engage in virtual concerts, where they interact with other avatars and savor live performances. Last year, the Song Breaker Awards were hosted on Roblox, featuring virtual performances by artists like GAYLE and Lizzo using state-of-the-art motion capture. 

Speaking of stars, in the midst of this avatar-dominated era, the emergence of digital celebrities further blurs the lines between authenticity, fame and reality. Take Lil Miquela, for example, a CGI-created character who has achieved influencer status on par with real-life personalities. This very concept inspired us to create the film The First-ever BMW iX2, a project that, together with Lil Miquela, aims to challenge the distinction between real-life experiences and virtual beings, showcasing the longing of a digital entity to belong in the physical world. (Quite ironic, isn’t it?)

The construction of identity and its impact on brand perception.

In the realm of online self-expression, virtual avatars serve as a means for individuals to create and project their identities digitally. However, even those who have not yet explored this virtual avenue are actively shaping their identities online. There is no better evidence of this than on social media, where influencers and celebrities, who exist in the physical world, have mastered the art of presenting idealized versions of themselves. Through filters, edits and careful image curation, they set standards for how we should look and behave in the digital realm.

On one hand, the desire to present ourselves differently in the digital realm is largely influenced by an era where vanity metrics, such as likes and followers, have become the ultimate social currency. We build our digital identities based on how we want to be perceived and how we think others want to see us. However, the digital world has allowed us to break down barriers across gender, sexuality, race and more—and that’s why 60% of Gen Z believe that how you present yourself online is more important than how you present yourself IRL.

It is important for brands to understand and navigate this dynamic when engaging with their audience. The concept of authenticity may be changing, but the importance of transparency and respect for individual identity is as relevant as ever in building meaningful connections in the digital space. Ultimately, individuals tend to follow and connect with brands that align with their values, interests, and lifestyle.

Recommendations for brands in the era of digital identities.

Just like people build their personalities online, so do brands. As individuals, we ponder: What does my avatar say about me? What hidden secrets, desires, and truths lie behind aesthetic choices such as hair color or clothing style? For brands, these questions are equally thought-provoking: Is this digital representation the essence of what truly defines my brand, or is it merely a projection of the ideals set by a brand manager? Are we allowing our brands to evolve in the digital realm naturally, or are we confining them within strict boundaries of expectations and corporate norms?

In my experience, the key lies in harnessing the power of creativity and technology to explore and express what truly resonates with the brand’s essence and with the digital identities of their consumers. Here are some recommendations:

1. Align your brand with the values and aspirations of your target audience. Just as individuals shape their digital avatars to reflect their desired identity, brands should strive to align themselves with the values, interests, and aspirations of their target audience. Understand what matters most to your audience and ensure that your brand messaging and experiences resonate with their digital identities.
2. Embrace fluidity and adaptability. Allow yourself to be flexible with your brand book and have different personalities and tones of voice depending on the channels your brand lives in. Digital identities are constantly evolving, and if people can do so, why can’t a brand? Use A/B testing to understand what resonates best with your target audience, redefine success parameters as you progress, and learn from your experiments.
3. Let people make your brand their own. Foster spaces where users can collaborate and co-create with your brand, customizing their experience and contributing to the narrative of your social brand. This gives them a sense of ownership and personalization that aligns with their desire for self-expression in the digital realm.
4. Navigate from digital to physical and vice versa. The journey doesn’t have to be one-way. Blur the boundaries between the digital and physical realms by creating meaningful connections and experiences that resonate with both, while tapping into your brand’s passion points 
5. Emphasize authenticity and integrity. In an era where digital identities can be curated and idealized, brands should prioritize authenticity and integrity. Strive to portray your brand’s true essence and values, avoiding the temptation to conform to unrealistic expectations or projected ideals. By remaining true to who you are and upholding transparency, you can build genuine connections with consumers. 

Ultimately, the proliferation of digital avatars in the online world has given individuals the power to create and project their desired identities—thus giving brands a unique opportunity to connect with their true selves. As individuals shape their digital avatars based on their values and aspirations, brands should align themselves with the values and interests of their target audience. By fostering collaboration, blurring the boundaries between the digital and physical realms, and emphasizing authenticity, brands can build meaningful connections with consumers in the era of digital identities.

In addition to making digital spaces like the metaverse accessible to audiences far and wide, it’s crucial that brands offer consumers a wide variety of representational features to facilitate self-expression and secure a sense of belonging. Online you can be whoever you want—the beauty of the internet is that it has long enabled people to self-present on their own terms, but it is up to the creators behind the scenes to provide consumers with the tools to do so. 

Why are representation and self-expression in the metaverse important?

To younger generations, real-life and digital identities are equally important. The first generation that grew up with digital avatars has now come of age, and digital experiences are pivotal to shaping their identity, our virtualization report highlights. In fact, 60% of Gen Z and 62% of Gen Y “believe that how you present yourself online is more important than how you present yourself IRL.”   

Digital platforms are important spaces for identity construction, and virtual-first brands can satisfy an audience’s desire to build identity by providing accessible, personalized experiences that enable self-expression. Movements like #BlackLivesMatter and #SayHerName, which have a standing both online and offline, are driven by identity and fuel the growth of social groups connected by shared beliefs, interests or experiences. Virtual-first brands that actively engage with such new, hybrid identities are able to foster a sense of belonging for diverse audiences.  

Beyond the element of fun, the metaverse can serve as a tool for empathy. Brands play an important part in determining the metaverse’s impact on consumers. The Ancient Greek philosopher Plato once said, “you learn more about a person in an hour of play than in a lifetime of conversation.” While we’re well into the 21st century, this statement is as valid today as it was back then. 

“The metaverse gives us a shared sense of space that you don't get through 2D experiences,” says Catherine D. Henry, SVP Growth, Metaverse & Innovation Strategy. “This medium enables intellectual and emotional connections that transcend our physical bodies, allowing us to experience (once again) the purity of relationships formed as children—when people connect over interests and shared play, rather than commonalities and socially imposed signifiers. This is truly liberating, and the reason why fantastical avatars and gender fluidity in the metaverse are so important.”

Through play, people can engage with others in a fun and meaningful way and learn to get along with their peers, as seeing others from a different point of view allows people to practice empathy, our Social Innovation Lab argues. Research shows that the embodied experience of inhabiting an avatar that is physically different from oneself can lead to behavioral changes that align with that avatar and influence someone’s self-perception, suggesting one can start to see overlap between the avatar and the self. “This is important because empathy and tolerance can be fostered in virtual environments, and help bridge the social divide created by Web2,” says Henry. “The missed opportunity for brands is not so much to have games, but now it’s more about amplifying authentic, often underrepresented voices and creating space for people to learn.” So, rather than an escape from real-world problems, virtual-first brands view digital as a tool to help solve them.

Besides all the perks, digital spaces also come with problems—that’s no secret. One thing to watch out for is (unconscious) biases of creators that limit representation and self-expression, such as customization options based on stereotypes and cultural appropriation, or exclusion of customization features that people want to use, like Black hairstyles. Even more worrisome is the issue that user behavior can go against expectations. Think of how some social media platforms are used as a tool to manipulate through fake news, or how online groups are weaponized to harbor hate groups—when they could serve as a refuge for those looking for belonging. However, the metaverse is a new digital chapter and thus presents new opportunities to do better. 

So, how do we achieve representation and self-expression in the metaverse? 

Diversify avatar use and customization. Given that in the US 48% of Gen Z consider themselves non-white and one-third of Gen Z identify outside the gender binary, providing a wide variety of representational features to facilitate self-expression and belonging is essential. This means offering a range of skin tones, choice of prosthetics, hairstyles, body shapes, voices, and so on. Another important step brands can take is to keep default avatars free or cheap, and only charge (more) money for additional differentiators, like a cool jacket. That said, features for self-presentation can go beyond physical characteristics to represent a more emotive sense of self-identity as well. Adidas, for instance, partnered with Ready Player Me to create unique avatars that are based on a person’s personality rather than their physical likeness, ensuring an authentic reflection of who they are. Above all, don’t force people to show up as themselves, but allow them to choose whatever they want their avatar to (re)present in the metaverse. 

As a brand, give user-makers the tools and get out of the way. It’s crucial not to constrain user-makers, since they’re the ones forging the future of how we use the metaverse—keeping in mind that we encourage brands to be transparent about how they monitor their users’ contributions to ensure the metaverse remains a safe space for everyone. That aside, brands can invest in education and work with influencers to market the tools they offer to DIY. Duolingo is a great example of a brand that has built assets for its users to create their own games, but then got out of the way. This circles back to the point of accessibility; we need to make sure as many creators from different walks of life as possible are included in the building process to counter biases.

Allow ways to gather and group for belonging. Digital environments offer a safe space for exploring identities—and to ensure safety, brands need to establish ethics and guidelines from the get-go. Online you can be whoever you want, so people tend to feel more confident to speak up. Fortunately, many people are able to bring something from that experience back to their real lives. For instance, people from the LBGTQ+ community were able to form community support systems within social VR—and for some, this offered the only form of support as they weren’t able to access any offline. This combination of a supportive community and the embodied avatar experience empowers many in the real world and helps them understand their identities better.  

In all, the whole engine behind the metaverse world must be diversified. From executives and employees who work at the companies making the metaverse, to decision-makers at brands creating experiences in the metaverse, owners of digital environments, and influencers and user-makers—the metaverse is for everyone, so everyone should be able to contribute a building block. The issue is, many people don’t know how.

In the same vein, looking at the expected influence and impact of the metaverse, brands can integrate metaverse strategies into their ESG commitments—the possibilities to diversify are endless. 

How does this all come back to the real world?

Digital behavior inspires real-world change, that’s a fact. Conversations that take place in the metaverse expand out into other spaces, such as meet-ups, talk shows and other real-life events. In a digital environment like the metaverse, we’re able to meet people from around the world that we would’ve otherwise never met and actually get to know them on a deeper level. Some may just see avatars, but we see people who are willing to be their authentic selves in connecting with others. 

“People are more willing to be open, vulnerable and their real selves when, ironically, they're not actually in person and when they’re behind an avatar, so people have more ‘real’ experiences connecting with somebody that in real life they wouldn’t have ended up talking to,” says Susan Parker, Executive Creative Director. “And then they might take it outside the metaverse.”