The dynamic marketing landscape requires brands to stay ahead by understanding emerging audiences and trends. According to the Indonesia Gen Z Report (2024) by IDN Media, Gen Z, making up 27.94% of the population, is known for diversity, inclusivity, and digital savviness.[1] They influence marketing strategies with their unique digital lifestyles. Technologies such as the metaverse, AI, blockchain, 5G, and AR/VR offer them immersive experiences and personalized content. With an 87.02% internet penetration rate and widespread access to affordable smartphones, Gen Z is well-positioned to embrace the latest tech trends, according to the Indonesian Internet Service Providers Association (ISPA).[2]
Gen Z’s drive for convenience, customization, and connectivity fuels their adoption of cutting-edge technologies particularly the metaverse, seeking seamless and personalized digital experiences. In Indonesia, a tech-savvy and mobile-first generation has shaped a digital ecosystem with interactive designs and a strong focus on mobile-friendly solutions. Brands that align with these preferences can forge stronger connections with Gen Z in this evolving market.
Gen Z & the Metaverse: A Playground of Dreams
The COVID-19 pandemic accelerated the shift to virtual worlds, turning digital interactions into a focal point of Gen Z’s formative years in Indonesia. Lockdowns drove young people to increasingly rely on online platforms like Zoom, online gaming, and virtual worlds for connection and entertainment. Games such as Minecraft and Roblox played a significant role in their childhoods and served as early introductions to the metaverse. Local developers have also built similar platforms, enhancing the growing metaverse ecosystem.
Gen Z believes the metaverse will revolutionize social interactions, entertainment, and commerce, seeing it as a transformative environment for socializing, playing, learning, and shopping. A survey by Ipsos Indonesia (2022) revealed that 62% of Indonesian Gen Z respondents view the metaverse as crucial to their future, especially in connecting with others and experiencing entertainment.[3] Brands and advertising agencies must recognize the metaverse’s potential to redefine engagement strategies, offering a unique platform for immersive and interactive advertising.
Image 1: How Metaverse applications will impact people’s lives, Ipsos Global Advisor – Metaverse & Extended Reality, Ipsos, 2022
The metaverse is transforming digital interactions. According to PWC Indonesia (2023), 35% of Indonesians access the metaverse, with Gen Z leading the charge due to their tech-savviness and digital fluency.[4] For Indonesia’s Gen Z, the metaverse is more than just a concept; it’s a burgeoning reality. They are known for their tech-savviness and digital fluency. A study conducted by Populix and Meta (2022) shows that 65% of Gen Z are attracted to the metaverse.[5] Thus, they are rapidly adopting metaverse platforms and integrating them into their daily lives. This widespread adoption reflects their desire for rich, dynamic digital experiences.
The metaverse is crucial for Indonesian Gen Z, providing a platform for self-expression, identity exploration, and connection with like-minded individuals. Furthermore, a report by the Center for Digital Society (2022) also highlights the increasing familiarity and interest in the metaverse among this group, especially the upper socio-economic class.[6]
Image 2: A rising interest among Indonesian Gen Z in Web 3 elements like the Metaverse, avatars, AR, VR, and NFTs, Gen Z Trend Report (2022)
Fulfilling Gen Z’s expectations for authenticity and engagement requires brands to integrate the metaverse into their strategies. This tech-savvy generation demands innovative, immersive experiences, making the metaverse crucial for effective connection. The next step is exploring practical solutions for successful integration.
Viral Trends Or Lasting Impact? What Draws Gen Z To Different Ecosystems?
To effectively engage Gen Z in Indonesia, brands must adapt to their unique preferences. This generation values authenticity, interactivity, customization, and community building:
- Authenticity → Brands should focus on genuine interactions and transparency to build trust and loyalty with Gen Z. Real stories and honesty foster connection and respect.
- Interactivity → Create interactive content like VR experiences or live-streamed events to engage Gen Z, who prefers active participation over passive consumption.
- Customization → Offer personalized products and experiences to appeal to Gen Z’s desire for uniqueness and individuality, leading to higher satisfaction and brand differentiation.
- Community Building → Support digital communities where Gen Z gathers. Contributing valuable content and fostering connections creates a sense of belonging and relevance.
Case study: WonderVerse’s Engagement with Gen Z in the Digital Ecosystem
Image 3: Virtual representation of Indonesian culture in the Wonderverse, showcasing traditional dances and architectural landmarks in a digital environment – Ministry of Tourism and Creative Economy
WonderVerse is a metaverse platform initiated by Volare Advertising Network to boost Indonesia’s creative economy and tourism. As an innovative digital ecosystem, WonderVerse meets the growing consumer demand for immersive experiences. Referring to an article by the Ministry of Tourism and Creative Economy[7]. The discussion explores WonderVerse Indonesia (WVI) as a case study, highlighting the impact and sustainability of the metaverse in engaging Gen Z, the mobile-first generation in Indonesia.
WonderVerse Indonesia has become a pivotal player in engaging Generation Z by collaborating with communities that resonate with their interests, boosting Indonesia’s tourism and creative economy. A key initiative is the introduction of virtual concerts within the metaverse that blend traditional digital engagement with metaverse immersive possibilities. These events support MSMEs by allowing users to promote their own products digitally. Despite Indonesia’s steady economic growth, the government struggles to boost the creative economy and tourism post-pandemic, with growth in 2023 below 10%.[8] Meta-concerts offer a novel approach to revitalizing the hardest-hit sectors.
By March 2024, WonderVerse had achieved over 15,100 app downloads and engaged more than 27,500 desktop users.[9] The success of metaverse concerts, which combine the thrill of live performances with interactive elements, has been central to this growth. These events have become a vital connector between the ever-changing behaviors of Gen Z and the evolving landscape of the metaverse. By providing a familiar yet novel experience, WonderVerse has effectively bridged traditional digital engagement with new technological possibilities, driving growth in both user engagement and the broader creative economy and tourism.
Key Learnings
Winning over Gen Z requires understanding their digital behaviors, preferences, and values. This generation, accustomed to rapid technological advancements, expects authenticity, interactivity, and a sense of community in their online interactions. Brands and agencies should navigate the metaverse genuinely, creating personal and resonant experiences. Success hinges on viewing the metaverse, the secret innovation, as a dynamic space for creativity and meaningful connections. By embracing this, brands can build strong, lasting relationships with Gen Z, securing their loyalty and advocacy in an ever-evolving digital world.
[1] IDN. Indonesia Gen Z Report 2024.
[2] KataData. “Tingkat Penetrasi Internet Indonesia Capai 79,5% per 2024”. April 12, 2024.
[3] Ipsos. Enthusiasm for the metaverse and extended reality is highest in emerging countries.
[4] PWC. “Indonesia Termasuk Negara Pengguna Metaverse Terbanyak pada 2022”. February 24, 2023.
[5] Trend Report. Yang Dicintai Gen Z di Instagram. 2022.
[6] CFDS. “Indonesia Gen Z Report 2022: Understanding and Uncovering the Behaviour, Challenges, and Opportunities”. March 20, 2023.
[7] Ministry of Tourism and Creative Economy. “WonderVerse Indonesia, Promosi Sektor Parekraf Melalui Dunia Virtual”. November 1, 2023.
[8] Ministry of Tourism and Creative Economy. “Siaran Pers: Menparekraf: Tenaga Kerja Sektor Ekonomi Kreatif Terbukti Lebih Cepat Pulih dari Pandemi”. Press Release. October 13, 2023.
[9] Volare. Meta Concert Report 2023.
