New Research Finds Marketers Are Bullish on the Metaverse as Nearly All Plan to Invest in Preparation for the Next Evolution of Social

Rhea-AI Summary

Sprout Social’s 2022 Index reveals a gap between marketer enthusiasm and consumer readiness for the metaverse. While 67% of marketers plan to allocate a quarter of their budgets to metaverse strategies, only 24% of consumers expect to use it in the next year. The report highlights a shift towards short-form video, with 38% of consumers intending to use TikTok, a significant increase from 17% in 2020. Additionally, 51% of consumers plan to engage more with YouTube, despite 35% of marketers decreasing its use in their strategies.

Positive

• 67% of marketers plan to invest at least a quarter of their budgets in metaverse strategies.
• 38% of consumers are planning to use TikTok, up from 17% in 2020.
• Instagram, Facebook, and YouTube are preferred channels for customer care.

Negative

• Only 24% of consumers expect to use the metaverse in the next year.
• Marketers’ planned usage of YouTube has decreased from 52% in 2020 to 35%.

Sprout Social’s 2022 Index finds that despite marketers’ interest in the metaverse, consumers are still slow to adopt as just one in four consumers anticipate using it in the next 12 months

CHICAGO, May 17, 2022 (GLOBE NEWSWIRE) -- The past few years have proven that the only constant is change, and this is increasingly true for social media as new trends, platforms, algorithms and use cases emerge. Research from the 2022 Sprout Social Index, Edition XVIII: US Forecast, released today, indicates that marketers are not only open to change, but are embracing it as 67% plan to invest at least a quarter of their budget into metaverse tactics over the next 12 months. The survey findings underscore the significant role the metaverse and AR/VR technologies will play in social media’s future, along with brands’ confidence in using them—33% of marketers believe their brands are ahead of the curve for implementing AR/VR into their social strategy and 28% for integrating metaverse efforts.

Sprout Social, an industry-leading provider of cloud-based social media management software, surveyed 500 U.S. marketers about their biggest social media questions, challenges and priorities, and cross-referenced their responses with more than 1,000 U.S. consumers to understand shifts in consumer expectations and the bets marketers must take now to align with what consumers want in the future.

Despite marketer confidence in emerging technologies, interest among consumers is still in the beginning stages with just 24% predicting they will use the metaverse in the year ahead—17% for NFTs and 39% for AR/VR. However, consumers are increasingly showing interest in short-form video and the platforms that support it. Thirty-eight percent of consumers plan on using TikTok, up from 17% in 2020, and two-thirds of consumers prefer short-form content, up from 50% in 2020. Unexpectedly for marketers, consumers continue to invest their time in YouTube with more than half (51%) expecting to spend more time on the platform in the next 12 months. However, only 35% of marketers plan on using it in their strategies, down from 52% in 2020, suggesting that brands should look for more opportunities to not only meet consumers where they are, but with the content and formats they prefer to engage with, as they plan for the future.

“While our latest data shows the majority of consumers don’t expect the metaverse to play a significant role in the way they interact with brands just yet, marketers are preparing their teams and strategies to accommodate for the surge in interest we expect to see in the years ahead,” said Jamie Gilpin, CMO at Sprout Social. “Similar to the adoption of social media in the early 2000s, brands need to plan and prepare regardless of consumers’ readiness now, or they’ll miss out on future opportunities. As brands identify more ways for social to inform entire business functions, those who use this time to test and learn will ultimately gain a competitive advantage in this next evolution of social.”

Additional key findings from the 2022 Index include:

• As social teams pioneer new strategies and technologies, the need for top talent is on the rise: More than half (52%) of marketers say finding experienced talent is the #1 challenge they face this year. And as team expansion takes priority for businesses of all sizes, 88% of marketers plan to hire another team member in the next two years and nearly two-thirds (62%) anticipate hiring between 2-6 new positions in order to create the outcomes businesses have come to expect from social.
• Consumers are more likely to make purchases from companies that align with their values: Seventy-one percent of consumers think it’s important for brands to raise awareness and take a stand on sensitive issues, something that is even more important among Gen Z (73%) and Millennials (77%). Additionally, company alignment with personal values is 74% more important to consumers than it was in 2020. In response to this, half (48%) of marketers think it’s important to speak out on social issues or to stay culturally relevant on social media, but the majority (66%) still face challenges with pushing their companies and leadership to take a stand.
• Failing to prioritize customer care will cost brands in the long run as consumers continue to expect great customer service on social: When brands take too long to respond on social, 36% of consumers will share their negative experience with friends and family, 31% won’t complete a purchase and 30% will buy from a competitor. Fortunately, consumers and marketers are in sync on preferred channels for customer care, with consumers turning to Facebook, Instagram and YouTube, and brands to Facebook, Instagram and Twitter.
• Creator partnerships are effective, but only when done correctly: As consumers increasingly care about creators’ qualifications, choosing the right creator to partner with is key. But the implications when not executed well extend to creators themselves, as 81% of consumers will unfollow creators who post sponsored content more than a few times a week.

For more on the future of social as it claims its rightful spot as a strategic business function, download the full data report.

About Sprout Social
Sprout Social offers deep social media listening and analytics, social management, customer care, commerce and advocacy solutions to more than 30,000 brands and agencies worldwide. Sprout’s unified platform integrates the power of social throughout every aspect of a business and enables social leaders at every level to extract valuable data and insights that drive their business forward. Headquartered in Chicago, Sprout operates across major social media networks, including Twitter, Facebook, Instagram, Pinterest, YouTube and LinkedIn. Learn more at sproutsocial.com.

About the Data
The Sprout Social Index™ is a report compiled and released by Sprout Social as part of Sprout Social’s 2022 Index project. All referenced data is based on 1,236 US consumer respondents who use at least one social media platform and follow at least one brand on social media. The 506 selected US marketer respondents hold a full-time job in marketing and were involved (i.e., performed the job themselves or managed someone who does) in managing their brand’s social media strategy. Both the consumer and marketer surveys were conducted online by Lucid between February 22 and March 1, 2022.

Relationships between variables collected were analyzed using parametric statistics for statistical significance.

Social Media Profiles:
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www.linkedin.com/company/sprout-social-inc-/
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Contact:

Media:
Kaitlyn Gronek
Email: pr@sproutsocial.com
Phone: (773) 904-9674

Investors:
Jason Rechel
Twitter: @SproutSocialIR
Email: jason.rechel@sproutsocial.com
Phone: (312) 528-9166

FAQ

What percentage of marketers plan to invest in the metaverse according to SPT?

67% of marketers plan to invest at least a quarter of their budgets in metaverse strategies.

How many consumers expect to use the metaverse in the next year according to Sprout Social?

Only 24% of consumers anticipate using the metaverse in the next year.

What is the trend among consumers regarding TikTok usage in 2022?

38% of consumers plan to use TikTok, up from 17% in 2020.

What is the status of YouTube usage among marketers according to the 2022 Index?

Marketers' planned usage of YouTube has decreased from 52% in 2020 to 35%.