The Metaverse: A year on
This time last year we posted, with excitement, about the arrival of the metaverse. Back in 2021 it was described as something akin to the next big evolution of the internet: a virtual public space where you can work, play, shop, create, and hang out with friends (and their avatars). It was reported that the websites and platforms we experience in 2D on our screens today will become 3D destinations created within the lenses of new, wearable consumer tech. Spaces we could be more active in, as opposed to passive.
Meta reports that in 2021 it spent $10 billion trying to develop metaverse hardware and experiences, but in 2022 reality set in that the metaverse, as originally defined, is a very hard thing to build fast. Whilst things like the Oculus are being used widely, the metaverse isn’t something people are using everyday yet. It’s not become integrated into the devices we do use every day. But it isn’t all bad- it has presented HUGE opportunities for brands, which we will discuss later on.
But first, let’s dig into the meat of the last year or so with the metaverse. Meta’s Oculus headsets have been selling steadily, and they boast plenty of games that do well. And in order to entice would-be gamers, Meta has spent the last eight years buying up a slew of virtual reality app makers—including the maker of the Viking combat game Asgard’s Wrath and several first-person shooter and sports games—to develop a wide and varied library. Mark Zuckerberg has explained his interest in gaming: he told Joe Rogan in August that he dislikes how much time the modern world spends “passively” watching TV, and that a transition to more active gaming could result in a “net improvement in well-being for people overall.” Of course, Meta stands to gain financially quite a bit from becoming a gaming hub. According to Meta CTO Andrew Bosworth, one-third of all Quest store apps are making revenues “in the millions”, and the company currently makes a 30% hardware platform fee for sales made through Meta Quest Store. On the gaming front, Meta has done quite well.
Gaming and the metaverse may go hand in hand, but what about virtual work spaces? At the company’s Connect conference, Zuckerberg and other executives painted a vision in which employees can work anywhere in the world but sit at a virtual table with their colleagues, brainstorming ideas on a virtual whiteboard. They believe that virtual workspaces will be a huge upgrade over our Zoom, Slack and Microsoft Teams workflows that currently dominate the professional landscape.
But before Meta can convince other companies to use the headset, however, they’ll have to convince their own employees. Reports have slipped out about dissatisfaction and confusion about the company’s new direction. A May poll of 1,000 Meta employees found that only 58 percent of them said they understood the company’s metaverse strategy, according to the New York Times. And according to a more recent Verge report, Meta’s employees have been resistant to spending time in Horizon Worlds ( the virtual workspaces). “Why don’t we love the product we’ve built so much that we use it all the time?” Vishal Shah wrote on an internal message board in September. “The simple truth is, if we don’t love it, how can we expect our users to love it?”
It seems that behind the scenes, there’s a lot still to be clarified about the metaverse, but despite these challenges, big name brands remain firmly interested in the metaverse. A recent PwC study finds that the metaverse remains a top-line agenda item for many. Two thirds (66%) of those surveyed say they’re “actively engaged in how the metaverse will deliver sustainable business outcomes.” Emmanuelle Rivet, PwC’s TMT & Global Technology leader, tells Fast Company PwC believes that companies will encourage executives to experiment and find new ways to use virtual 3D environments “as the full metaverse continues to develop throughout 2023.”
“The brilliant thing about platform changes of this magnitude is its unpredictability,” investor and metaverse thought leader Matthew Ball said in 2021. “Innovation is recursive: Some brilliant technology is created which inspires more innovation, leading to new behaviours, unlocking new use cases. Suddenly, something no one thought we needed–like a persistent, real-time rendered simulacra of the world–will feel essential.”
For big name brands, the metaverse is like a playground:
Last year, we stated that, “we can see how the metaverse has the potential to completely change how we interact with brands. due to its nature, the immersive internet will enable prolonged engagement with brands as long as these experiences are unique, creative and social. the metaverse is opening up a new space for brands and marketers alike to share and explore.”
How true has this prediction for advertising and brands been? Let’s find out.
Samsung- In January 2022, Samsung launched its first metaverse store in Decentraland. Samsung 837x is modelled after the physical store at 837 Washington Street, New York City, and since its opening, Samsung’s digital store has received over 120,000 customers.
Initially, Samsung 837x was a store where users could stop by and browse collections or take on quests. Now, Samsung has revamped 837x for a more immersive experience—users can build their own adventure, interact with other in-game characters, and accomplish missions.
Ferrari- Ferrari released the 296 GTB, and the Fortnite community got to try it out first. This particular model has yet to make a physical debut, but Fortnite players can take it out for a drive on a battle royale. The collaboration showcases a detailed and realistic model for the 296 GTB, raising hype and anticipation for its real-life rollout. Following its success in the world of gaming, Ferrari is gearing up to further explore the metaverse and build a community with a passion for cars.
Gucci- Gucci has embarked on a number of initiatives that have propelled the Italian luxury brand to new fashion heights. Its first NFT-related project is inspired by its Aria collection. Of late, Gucci collaborated with metaverse and gaming platform Roblox, launching a space called Gucci Garden.
Nike- Nike launched a number of digital-only initiatives leveraging blockchain and web3 technology. It launched its presence with the inauguration of Nikeland on Roblox and the metaverse space is modelled after the company’s real-life headquarters.
Coca-Cola- Committed to building friendships with the power of Coke, Coca-Cola launched an NFT collection with OpenSea. The Coca-Cola Friendship Loot Box dropped in time for celebration of International Friendship Day The branded NFT assets can be used across the universe for avatars to show off. Meanwhile, the winning bidder for the collection would also win a real-life Coca-Cola refrigerator, stocked with Coca-Cola. The collection was won at the bidding amount of over US$575,000.
Adidas- Adidas grabbed eyeballs from everywhere across the globe for releasing its 30,000-strong NFT collection, that is created in collaboration with the Bored Ape Yacht Club, pixel vault’s PUNKS comics creators, and crypto investor Gmoney. The buyers can purchase not only buy the NFTs but also the physical clothing attached to them.
Ralph Lauren- Ralph Lauren’s first step into the metaverse market was when the fashion brand launched the “Ralph Lauren Winter Escape” experience inside the Roblox universe. Here, the visitors had the chance to snap up some of the brand’s NFTs, from puffer jackets to checkered beanies and a ski wear collection.
Boohoo- This is a British fast fashion retailer that has been experimenting with new platforms as of late. Recently, it launched boohooverse – a Web 3.0 platform dedicated to empowering women in the digital space. What is worth attention to is the fact that the initiative is dedicated to onboarding the female fashion community into Web3 and future fashion projects in the metaverse.
Conclusion:
The metaverse is ripe with marketing and advertising possibilities. While it is still in its early stages and developments are still being enhanced for fully-integrated augmented and virtual reality experiences for the everyday consumer, blurring the lines between the physical and digital worlds enables brands from various industries to cater to specific audiences and deliver personalised consumer interactions. Marketing to the younger audience also becomes more natural, as brands have the ability to launch video games and virtual shopping stores.
Overall, the metaverse may be young and volatile, but for brands and advertisers, this is a chance to pioneer in a new era of marketing.