With the metaverse projected to hit $800 billion in 2024, tech giants like Meta, Microsoft, Apple, and Google are investing big bucks to turn the dream of immersive digital experiences into reality. This dream, the metaverse, is both sparking the interest of major players and spurring startups into action. Matthew Ball, an expert on the subject, and writer of The Metaverse and How It Will Revolutionize Everything, defines the metaverse as:
“A massively scaled and interoperable network of real-time rendered 3D virtual worlds that can be experienced synchronously and persistently by a virtually unlimited number of users with an individual sense of presence, and with continuity of data, such as identity, history, entitlements, objects, communications, and payments.”
Those are some big words, so just imagine a massive, interconnected system of 3D virtual worlds, all generated in real-time. These universes are so expansive that all users can experience them simultaneously and continuously. Each user feels a personal connection, a sense of being there. It's like a massive, shared digital space where everyone can interact, explore, and own virtual assets, and the experience is synchronized for everyone.
The metaverse is essentially a 3D rendition of the Internet and computing. Ball talks about how in the early days of the internet and computing, interactions were heavily text-based – think email, messages, usernames, etc. (Web1) As they have evolved, we’ve seen a shift to more media-based content- like photos, videos, social media and livestreams (Web2). The metaverse is up next in the expansion of the digital world, advancing user interfaces and experiences into 3D. Ball expands on this concept stating:
“If we think of mobile as placing a computer in our pocket and the internet being available at all times, think of the metaverse as always being within a computer and inside the internet.”
From Fiction to Reality
In the last few years, the hype of the metaverse has become more mainstream, but most of us are not sure what exactly the term metaverse means. The term has been floating around for quite a while. The 1992 sci-fi novel Snow Crash by Neil Stephenson is the first to coin the term, referring to it as an “all-encompassing digital world that exists parallel to the real world.” The real-world implications of the metaverse are pretty similar to this overarching idealogy. The metaverse is somewhat of a sci-fi thriller coming to life. If you’ve ever seen an episode of Black Mirror, you’ve probably made some connections to today’s metaverse by now, but don’t worry, there’s nothing to be scared about.
The metaverse is still a baby, with gaming leading the way. Major metaverse platforms like Fortnite and Roblox present big opportunities for collaborations, especially when it comes to appealing to younger audiences. The metaverse is a great place to strengthen authentic connections with target demographics and promote their unique identities.
The metaverse isn't just one type of technology; rather, it’s a range of technologies that reshape our online interactions. Web3, the next internet phase, is closely tied to the metaverse. Simply put, Web3 is a decentralized internet, giving users ownership. Understanding Web3 can be tricky due to terms like blockchain, crypto, and NFTs. Some see the metaverse as a digital version of the physical world, envisioning a new digital economy. This includes virtual real estate, owning items, hosting events, education, and even virtual marriages. The term metaverse covers extended reality (ER) technologies like VR, AR, and MR, along with user-shaped virtual worlds and massively multiplayer online games (MMOs) like Roblox.
Characteristics of the Metaverse
For the metaverse to truly be successful, we will see one platform emerge that connects all of the experiences. The idea of interoperability is the sophisticated way of bringing a suitcase of virtual items like clothes, accessories, or even houses from one platform to another. Currently, you can’t bring things with you between different metaverse platforms. Currently, different metaverse platforms don't allow item transfer. The future lies in interoperability, the ability to bring a suitcase of virtual items across platforms. The interoperable metaverse is an extension of the vision Meta, Microsoft, and others are working to make a reality. Making virtual items portable between worlds is complex, and no company has achieved it… yet. The challenge is shaping the user experience in a 3D world parallel to the physical. The metaverse is a complex, interconnected system, requiring collaboration across sectors for interoperability. Companies need to collaborate rather than compete. Some key characteristics remain constant across the multidimensional realm of the metaverse.
- Always Active: Unlike traditional games, the metaverse doesn't pause; it continues even when users are offline
- Real-time: Metaverses sync with physical time zones, allowing real-time interactions
- Agency: Users have the freedom to explore and engage as they wish
- Own Universe: The metaverse functions as a unique virtual universe with distinct features and rules
- User-generated Content (UGC): UGC is highly valued, fostering creativity and decentralization
- Across Multiple Platforms: Metaverses exist on various devices, and future integration across platforms is anticipated.
If you’re a millennial like myself, thinking about Webkinz or Club Penguin interactions of our childhood we can see some similarities to the metaverse.
The Metaverse: A Digital Playground
At Connect this year, Zuckerberg emphasized that the modern “real world” combines the physical and the digital is still being created — and that it all connects to “this concept we call the metaverse.”
Now is the perfect time to dive into the metaverse and discover its potential for building connections, fostering collaboration, and boosting personal productivity. The metaverse is like a virtual world where you can play, shop, learn, and interact. Businesses are using it as a space for socializing, entertainment, and exploration. The metaverse is creating a lot of excitement, and though we can't predict exactly how it will unfold, it's definitely happening.
Virtual Storefronts
Immersive virtual store experiences take online shopping up a notch. Instead of browsing through pictures online, customers can virtually try them on, all from the comfort of their homes. The magic happens through Augmented Reality (AR). You've probably seen some implementation of AR through things like Snapchat filters. Some businesses are leveraging this technology through things like virtual fitting rooms.
Customer Engagement
Think of the metaverse as a cool playground where businesses can get creative in how they connect with customers. For example, a music festival, like Lalapalooza or WeFest, could be recreated in the metaverse, allowing fans to join in from all around the world. Or, a business could create an interactive scavenger hunt, through gamification, encouraging their audience to explore their virtual space. Lots of brands including Nike and Gucci have jumped on the bandwagon, creating rewarding and memorable experiences for their audiences.
IRL: Paris Hilton's Slivingland promotes social podcast engagement. Upon entering Slivingland, a project with Sawhorse, visitors are greeted by a virtual Hilton avatar encouraging them to "come 'sliv it up." This virtual world, developed in collaboration with Hilton's 11:11 Media, offers a variety of entertainment, including music, DJs, TV shows, and podcasts. Slivingland has attracted 1.1 million visitors to date. In the communal podcast lounge, avatars can come together to listen and chat, featuring episodes of "The History of the World’s Greatest Nightclubs," co-hosted by American singer Ultra Naté and Paris Hilton herself.
Virtual Advertising
The metaverse offers new advertising opportunities that extend beyond pop-up ads. Imagine this: a car company setting up a virtual showroom in the metaverse where you can check out the latest models and even take them for a spin. Or, a sports brand creating a digital stadium for you to feel the excitement of a live game. Now, think about businesses advertising in the metaverse by putting up virtual billboards. These billboards are like supercharged versions of the usual ads. You can walk right into them, explore different worlds, listen to music, and even try out product demos – way more fun than traditional ads! It's like stepping into a whole new dimension of advertising.
Virtual Market Research
The metaverse is a valuable place for businesses to gather data about customer preferences and behaviors. By watching how people move and interact in the metaverse, companies gain insight into what products and experiences click with their target audience. For example, a beauty company creates a platform where users can explore and interact with digital representations of beauty products. Users could virtually try on different makeup looks, experiment with skincare routines, and engage with virtual beauty consultants. The metaverse space could simulate the application of various beauty products in real-time. By observing user interactions, the company can gain valuable insights into the popularity of specific beauty trends, preferred product formulations, and preferred color palettes. Users may provide feedback on virtual beauty products, helping the company refine its real-world product offerings.
Virtual Conferences and Meetings
The metaverse provides a unique and interactive space for hosting conferences and meetings. Unlike traditional video calls, attendees in the metaverse can explore virtual booths, engage with speakers, and interact with other participants in real-time. This format enhances the overall conference experience by adding an immersive element, making it more engaging and enjoyable.
IRL: Blavity, a media company, embraced the metaverse in 2020 when faced with challenges due to the pandemic. They transformed their annual in-person conference, AfroTech, into AfroTech World, a fully customized virtual space in partnership with eXp World Holdings. This metaverse experience replicated the features of the in-person conference, including prizes, workshops, pitch competitions, guest speakers, performances, and expo halls. The success of AfroTech World led them to continue offering a digital experience. The subsequent AfroTech conferences saw a significant increase in attendance and revenue (In 2019, about 10,000 people attended, 15,000 attended in 2020, and over 16,700 attended both in-person and metaverse events in 2021.) with people willing to pay more for metaverse tickets. Not to mention that the innovative approach attracted more sponsors, resulting in higher sponsorship revenue year-over-year.
Virtual Team Collaboration
The metaverse provides a virtual environment that fosters team collaboration and communication. Take, for example, a company with remote employees. Instead of relying solely on traditional video calls, the company can create a virtual office in the metaverse. This virtual office offers a more engaging and interactive space for employees to collaborate. It goes beyond the limits of standard video calls, providing a unique and immersive setting for team interactions.
Virtual Brand Experiences
Virtual Museums and Exhibits
The metaverse can serve as a platform to create virtual museums and exhibits, offering a unique way to showcase art and culture. Imagine a museum creating a virtual exhibit featuring artifacts from ancient civilizations. Visitors can explore this digital collection, bringing history to life in an engaging manner. Virtual technology in the metaverse allows for interactive experiences with art as well, in the metaverse, users can get close and personal with digital art. Artists can leverage the metaverse to create virtual art galleries, offering a new way to showcase and sell their art directly within the virtual environment. An artist might build a virtual gallery where visitors can explore their art collection and make purchases, enhancing the accessibility of art through the metaverse.
IRL: The Met partnered with Roblox to engage a younger audience, noting that 67% of Roblox players are under 16 years old. This collaboration offers an immersive experience in both the physical museum and virtually. Visitors can access the augmented-reality (AR) smartphone app, The Met Replica, equipped with in-app maps and treasure-hunt clues guiding them to specific artworks within the museum. Scanning artworks unlocks art-inspired avatar wearables for their Roblox characters, including iconic pieces like Vincent Van Gogh’s straw hat from "Self-Portrait with a Straw Hat." The app also seamlessly transfers these wearables to the Roblox platform. Additionally, for those unable to visit in person, The Met has created a virtual replica on Roblox, mirroring the museum's layout and featuring unlockable digital collectibles.
Virtual Real Estate
The virtual real estate market provides a new approach to property dealings. Leveraging the metaverse, businesses can establish digital properties for buying, selling, and renting. For instance, a real estate company might develop a virtual property tour, enabling prospective buyers to explore the space and even make virtual renovations before signing the papers.
Virtual Fashion Shows
Virtual Tourism
The metaverse provides new possibilities for the way we experience travel and tourism. For example, a travel company could create a virtual tour of a destination, allowing customers to explore a place before making a booking. Obviously, traveling will not be the same in the metaverse, but it will be able to provide travel agencies with a new way to engage through a unique POV of the destination.
Virtual Sports Events
The metaverse provides the opportunity for a new experience of the thrill of live sports, just check out what the NFL is doing. For example, a sports league could create a virtual stadium where fans can watch games and even participate in virtual tailgating. The day that sports matches are displayed in the metaverse is not too far away, with the increased functionality of AR and Artificial Intelligence. Soon we will be able to see player stats, stats about the ball or performance of the athletes from a scientific standpoint, watching live in the POV of the athlete, and much more.
Virtual Concerts
The metaverse serves as a platform for artists to host virtual concerts, which is a great new avenue for engaging with their fan base. A musician could organize a virtual concert, enabling fans to immerse themselves in the performance from various viewpoints and interact with fellow fans in a virtual setting.
IRL: Grammy-winning artist Megan Thee Stallion collaborated with AmazeVR for a virtual reality concert tour titled "Enter Thee Hottieverse." Megan's incorporation of the metaverse into her tour aligns with her authentic personal brand. The VR concert, featuring a half-hour performance by Megan, took place in movie theaters nationwide. The initial leg of the tour sold out rapidly after its announcement in early 2022. Notably, other artists like Ariana Grande and Travis Scott have also explored the metaverse, hosting concerts in Fortnite.
Virtual Education
Matthew Ball points out: “Just like how you'd understand dissection much better by actually performing it rather than just reading about it, 3D-based education is likely to be much better than, say, schooling over Zoom.”
Virtual Philanthropy
In the metaverse, you can create virtual fundraising campaigns that offer a new way to support charitable causes. For example, a nonprofit organization could create a virtual charity event that allows supporters to participate in fundraising activities and learn more about the organization's mission and impact. Being able to connect a worldwide audience, with a reduced footprint, and being decentralized by nature paints the ideal picture for non-profits, charities, and fundraisers to explore what benefits the metaverse has to offer.
Navigating the Metaverse
Existing technologies such as XR wearables offer immersive experiences ranging from gaming to virtual workspaces. Drawing inspiration from platforms like Roblox and Fortnite, connect with customers through NFTs and virtual events, and create captivating content unlockable through NFTs or mini-games. Thought leadership can be shared via avatars, and immersive experiences can be crafted to captivate audiences. Roblox's staggering daily user count of 70.2 million, particularly among younger audiences, shows promise. While Gen Z and Gen Alpha currently exhibit lower purchasing power than their millennial counterparts, their early brand loyalty hints at a giant economic impact in the future.
As we witness the evolution of metaverse marketing, the future holds exciting prospects. The metaverse is a rapidly changing technology, so staying informed about what is going on within it underscores the importance of adapting to it. While anticipating what’s coming next, it's crucial to balance meeting customers where they currently are.
As Karen Kerrigan, founder of the Metaverse Business Alliance, aptly puts it, "The metaverse is making its way into our economy and culture, and preparing for it now will help make a small business more competitive both in the short and long term." Embracing the metaverse is not just an option; it's a strategic move for businesses to stay ahead.
