Mark Zuckerberg, CEO of Facebook, stunned everyone last November by announcing that the company would henceforth be called Meta, as a manifesto of the goal of transforming its ecosystem into a metaverse.
The metaverse concept had actually been circulating in the tech and digital world for some time: several companies and start-ups, in fact, had begun experimenting on this new way of understanding the web, each with its own approach. Only with the entry of a biggie like the Menlo Park giant, however, did the idea of the metaverse capture the interest of the general public.
Thus, 2022 could be the year when the metaverse begins to take hold, with major new applications appearing on the market. If you have an online business, therefore, it will be crucial to figure out quickly whether it is an area worth investing in.In this article we tell you about five reasons to bet on it, but also a problem to be solved.
Let’s proceed in order, however.
What is the metaverse?
The announcement of the birth of Meta has certainly intrigued many, but more importantly it has raised a legitimate question: what is it in practice?
Actually, the answer is not so obvious, first because the metaverse is not something that actually exists, so much as more of a prospect for the future. Second, it is difficult to explain simply because a concept that combines several different trends.
Let us start by saying that the metaverse is a concept that originated in science fiction, and specifically coined by Neal Stephenson in the 1992 novel “Snow Crash” and taken up by Ernest Cline in “Ready Player One.” In these cases, the metaverse is an alternate virtual reality where one can escape from a dystopian outside world.
The “real” metaverse, on the other hand, aspires to be a collection of different virtual experiences on multiple channels where one can interact with physically distant people. In a nutshell, in short, it would be an evolved version of Zoom calls and chatrooms, where more in-depth interactions could be created in both work and leisure.
The ways in which this could be achieved are diverse, ranging from actual 3D environments to be experienced through VR viewers, to more simple sharing platforms, not too far removed from a video game like Fortnite or Minecraft.
Now that we have a smattering of what the metaverse means, let’s waste no more time and move on to the five reasons to bet on it in 2022!
1. Web giants have already started
Facebook is not the only big tech company that is betting on the metaverse, quite the contrary. Here’s how the biggies in Silicon Valley and beyond are doing it.
- Apple: according to analysis, the Cupertino-based company is reportedly planning its entry into the mixed reality sector, with AR and VR technologies likely to become a natural evolution of mobile devices and wearables in web fruition. If Apple were to launch a product leveraging this technology in the next few years, the boost to the market could be substantial.
- Microsoft: the parent company of Windows was certainly more explicit in its intentions, announcing the 2022 launch of Mesh for Teams: this is a feature that will combine the possibilities of mixed reality with productivity tools, enabling more natural remote working. According to the company, through the use of avatars and virtual rooms, it will be possible to make interactions less detached and eliminate some common problems of videocalls.
- Niantic: the AR software house famous for Pokémon GO has announced the launch of a free and open source kit for developing more accessible augmented reality experiences. According to the company, this will enable the creation of mixed reality applications, where the metaverse becomes an extension of the real world. The goal is thus to take advantage of the opportunities of this new web paradigm, without losing the physicality and human warmth of live interactions.
- Snap Inc.: the company behind Snapchat and Bitmoji is considered even ahead of Facebook in developing the metaverse. In fact, the yellow social platform has long introduced the ability to create custom avatars and features that take advantage of augmented reality to make the experience more immersive.
- Roblox: Founded in 2006, this software is defined as an “imagination platform” because it allows users to create their own 3D worlds and interact with other users to play, talk or collaborate on creative projects. Going public in November 2021, the software house Roblox Corporation is considered among the most promising companies in the industry.
These are just some of the tech companies that are investing in the metaverse: others include Tencent, Nike, Dyson, Epic Games, Nvidia, and Amazon. A list that is set to grow again in 2022.
2. The pandemic has accelerated this evolution
Unlike during major economic crises, the global health crisis situation we are currently experiencing has not slowed down technological evolution, but rather accelerated it. With the reduction of travel and the spread of remote work, many people have begun to look to online experiences as a new way to interact with others.
This unprecedented need has led, on the one hand, to the popularization of applications such as Zoom and Houseparty or video games such as Animal Crossing, and on the other hand, as we have seen, it has prompted many companies to invest in virtual or mixed reality.
The emergent situation has certainly accelerated the adoption of digital tools for interacting with our social circles, thus breaking down the barriers to entry that many people previously had. At the same time, however, this rapid all-in has highlighted several elements that make these applications still somewhat crude with respect to the concept of the metaverse: for example, the frequent lack of “persistence” of the virtual world, poorly accessible interfaces, and lack of integration between different services.
In short, COVID has played the role of normalizing our perception of online platforms as spaces of interaction: instead, in the coming years we will witness that further momentum of evolution that will transform these different “proto-verses” into a true metaverse.
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3. The role of blockchain and cryptocurrencies
The concept of the metaverse is spreading in a historical period particularly rich in technological innovations in information technology, which have stimulated new ways of looking at various aspects of reality.
The technological foundations from which it arises are the same ones that have enabled the development of increasingly popular blockchain applications, and which will facilitate the transition to the so-called Web3. In essence, the blockchain structure can become one of the tools with which to create virtual experiences integrated with the real world. Something similar is happening, for example, in the case of social tokens, virtual “tokens” with which to redeem services and experiences or with which to influence the choices of public actors (such as celebrities or sports teams).
Cryptocurrencies will also play a role in the development of the metaverse. In a virtual world, it is clear that any economic transaction must take place online: this will certainly give an additional boost to electronic payments, but it will also make the idea of owning “digital” money more acceptable to users.
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Finally, the spread of NFTs is also freeing the art world from the materiality of the work, helping to create new monetization opportunities for those who create digital content. Should the popularity of NFTs continue to grow at today’s rate, it could become a key element in the emergence of the metaverse.
Thus, it can be said that the metaverse, blockchain, cryptocurrencies, and NFTs are different sides of the same reality, which will support each other over the next few years.
4. For many brands, the metaverse is already a reality
It is not only Internet-based companies that believe in the metaverse: from the automotive and fashion industries to entertainment, beauty, and FMGCs, there are already many brands that are experimenting with the possibilities of the metaverse. Here are some examples.
- NASCAR, the U.S. auto racing competition, has launched a multi-year joint venture with Roblox to promote the brand among younger people. Several initiatives, among them: the launch of a virtual car, branded clothes for avatars, and a contest to design your own uniform.
- Mexican food chain Chipotle also tapped Roblox to launch an exclusively virtual Halloween event, where it gave away 30,000 (real) burritos to visitors to its digital store.
- Coca-Cola launched NFTs on Open Sea on World Friendship Day, donating proceeds from the auction to Special Olympics International. A strategy this has also been used by other actors to do charity work in innovative and effective ways.
- Korean automotive brand Hyundai has created Mobility Adventure, a virtual space where users can learn about the brand through interactive experiences and sharing. The platform features a central plaza for events, an eco-forest to tell the story of sustainable mobility, and a race track to play with high-performance models.
- In the fashion world, luxury streetwear signature Balenciaga has partnered with Fortnite to make some garments available within the game.
- Gucci, on the other hand, organized an exhibition on Roblox in which it auctioned off a virtual bag for more than $4,000 (more than the price of it in reality).
5. Gen-Z is already in the metaverse
Any B2C brand, in order not to age over time, needs to engage the younger generation. In particular, Gen-Z (those born 1996 and later), now represents an important segment of the market and will gradually assume an increasingly dominant role in companies’ strategies.
These consumers have grown up in a world where the Internet, social media and virtual interactions are an integral part of everyday life. What’s more, as many as 87 percent of “Zoomers” are gamers, averaging 7.20 hours of use per week, meaning that this generation has become accustomed since childhood to moving through virtual worlds.
For Gen-Z people, the Internet is an extension of their reality where they socialize, inform, compare, shop and work. For this reason, they will be the generation that will lead the spread of the metaverse, the most likely to seize the opportunities it can offer and willing to be engaged by the brands that will exploit it.
Conclusion: the real problem with the metaverse
In this article we have seen some of the main reasons why in 2022 (and well into the years to follow) you should carefully consider investing in the metaverse.
At this point you may be wondering: where’s the catch?
There, as anticipated the development of the metaverse poses a major problem, especially for smaller entities. Indeed, the most complex aspect of embracing this new opportunity lies in the skills required.
In order to bring an integrated virtual experience to life, it is indeed necessary to have advanced skills in programming, web development and 3D modeling. You will then need gamification and multichannel marketing skills, as well as a solid underlying business strategy to maximize ROI. Last but not least, very advanced data analytics skills will be required, as you will need to move into an experimental and as yet unexplored terrain, where recognizing trends is critical.
Basically, if after reading this article you are looking forward to harnessing the possibilities of the metaverse for your business, our advice is to always include these activities within a broader digital strategy by getting digital marketing experts to work with you. This will help you understand whether your ideas are feasible and identify the right skills to do so.
