What is the metaverse?
Written by Barry Eichhorn
Owner & AI Advisor
In this blog we introduce the metaverse, analyse what it means and look at both the current and future challenges and opportunities. We then present the various ways in which marketers can use the metaverse in the coming years and how they can get a foot in the door of this new development.
What is the Metaverse?
Technology is constantly moving, and so is marketing. The evolution of the metaverse is just one recent development in the world of technology, but it is one that will have an enormous impact on the human experience as we know it. Although digital marketing has made a lot of progress over the past decades, the metaverse is one that has made many businesses and marketers stumble. How can they use the metaverse to their advantage?
The metaverse was conceived by Matthew Ball, a venture capitalist and writer, and later taken up by Zuckerberg. The metaverse is an online world where people can meet to get to know each other, network, learn new skills and build relationships. The metaverse also offers the possibility to deliver products and services, collaborate, relax, shop and consume.
Put more simply, the metaverse is a hypothetical version of the internet that supports online 3D virtual environments. This happens through personal computing (a current example is the online game Second Life), virtual reality headsets and augmented reality headsets.
There are already games such as Roblox and Fortnite that form the basis of what many consider to be the future of the metaverse. In these games, virtual avatars walk around, able to move within a virtual environment and communicate with other players. These games also offer the option to buy in-game products, such as clothing and decorative accessories that personalise the experience.
An NFT, or non-fungible token, is a digital proof of ownership that cannot be replaced or copied because it is stored on the blockchain. The most common forms of NFT at the moment are digital art and images. Within the metaverse, however, an NFT can take on other forms and start to play an important role.
According to Morgan Stanley, the multinational investment bank, NFTs have the potential to become a market worth 56 billion dollars between now and 2030. How? All thanks to the demand that the metaverse will create. With the rise of virtual avatars, demand for virtual fashion will shoot up.
The need to personalise yourself within the digital space is undeniable, and fashion is one of the easiest ways to do so. Just look at the success of games like Fortnite and Roblox.
Metaverse and NFTs: how are they connected?
How will the metaverse affect marketing?
If you haven't yet thought about how the metaverse will affect marketing, you are lagging behind. The metaverse is not an "if" but a "when". In other words, it is inevitable. The metaverse will affect marketing in many ways, a number of which you can already implement now.
Virtual Reality
Virtual reality is not new. In fact, it has existed for decades in various forms. Of course, it has picked up speed in recent years, and that will continue in the years to come. From product development to the sale of existing products or services, virtual reality allows you to take customers into a new dimension.
Virtual reality can play an active role in multiple stages of the customer journey. In fact, many customers will seek out such possibilities rather than shy away from them. The generations that are coming of age now and over the next 15 years, such as Generation Z and Alpha, will feel more at home in these environments than the generations before them.
Augmented Reality
Unlike virtual reality, which completely takes over your view, augmented reality adds elements to the real world. Think of the popular mobile game Pokemon Go, where you see a Pokemon sitting in the street through your phone. Augmented reality takes the knowledge of your surroundings and uses it by adding images, animations or data to it.
Where does marketing come in? From trying on glasses or a dress to taking a test drive in a new car, augmented reality takes the shopping experience to another level. In an augmented environment, customers can interact with products without leaving their home. But in-store experiences will also benefit from the metaverse.
Since augmented reality is an overlay on the real environment, you can use it in shops to share in-depth information and to show extra features and use cases. Think of it as a parallel marketing experience.
Branding in the metaverse
As the metaverse grows, the possibilities for branding and advertising will increase too. Think of virtual message boards, billboards, merchandise, and even the virtual clothing that avatars wear. NFTs will therefore also play a bigger role. With the ability to personalise avatars and spaces such as "homes" and shopfronts, you can show your virtual brand to virtual customers.
Virtual pop-ups
Pop-up stores are a common phenomenon for businesses of all sizes. Whether you sell products or services, a virtual pop-up store gives you the chance to promote your brand on a larger scale. This is also a concept that will play a role within the metaverse.
Just like a regular pop-up store or stand, a virtual pop-up is an opportunity to network, advertise and sell your products and services. Pop-ups at a physical location have the problem that fewer people come because they have to travel there. In a virtual environment such as the metaverse this is of course not a problem, which means the reach will be greater.
Virtual training or lessons
Since coronavirus, virtual (or digital) training and lessons have already become a large part of how we work today. Although many virtual training sessions and lessons will probably continue in their current form, the metaverse creates a space for them to expand.
By taking lessons from the real world to the virtual world, the growth opportunities are endless. Think of a virtual reality training about a product, or a use case walkthrough of a company's services. It is even possible to hold product demonstrations with potential customers or problem-solving sessions with existing customer groups.
Metaverse events
After the corona period, it is not hard to imagine that the need for virtual meeting spaces will remain. From family gatherings to concerts and non-profit galas, the metaverse knows no limits here. A nice example of this is the metaverse festival that was held in Amsterdam. During this event, professionals from the tech world and other sectors can attend all kinds of events and take part in discussions.
Now that events like these are becoming more and more popular, especially among Generations Z and Alpha, metaverse events will not just be a tool you can use, but a necessity. As your target audience changes, your marketing efforts will change too. This is just one example of the role the metaverse will play.
Your metaverse opportunities?
Are you curious about the opportunities the metaverse has to offer your business?
BE Digital closely follows all developments and is already working on several projects for clients in this field. We would be happy to help you take a step into this new world!