The Metaverse: what, who, where..

In October 2021 there were over 2.6 million Google searches for the term 'Metaverse'. Mainly because a somewhat influential social media company decided to change their name to Meta.

Since then, the Metaverse has quickly entered the zeitgeist.

But, the technology can be confusing and difficult to define. It can encompass 3D worlds, NFTs, cryptocurrency and the blockchain. Access to it can require software installation or linking of crypto wallets.

Quick definition

Put simply, the Metaverse is a virtual version of our physical world where digital representations of people (avatars) can work, socialise, relax, learn, shop and play. All powered by its own digital economy.

The Metaverse is a place where people can be who they want to be. They can create avatars that look like them or that look like anything they want. They can explore virtual worlds and interact with other people from around the world. The Metaverse is also a place where people can buy and sell virtual goods and services.

A key point is that there is not one virtual world but many worlds that are typically accessed by a link provided by an organisation or the platform itself. Users can use virtual reality (VR) headsets for a more immersive experience, or the Metaverse can be used on a screen. 

There are a number of trends that suggest that the Metaverse will continue to grow in popularity in the coming years. First, there is a growing trend of social media users spending more time in virtual reality (VR) and augmented reality (AR). This is likely to continue as VR and AR technology becomes more sophisticated and widespread. In addition, the rise of e-sports and online gaming is another factor that is driving growth in the Metaverse. 

This is because gamers are increasingly spending more time in virtual worlds, and many e-sports tournaments are now being held in virtual environments. Finally, the increasing popularity of cryptocurrency is also likely to boost the growth of the Metaverse. This is because many of the key platforms and applications that make up the Metaverse, such as Decentraland and Cryptovoxels, are built on blockchain technology. 

As cryptocurrency becomes more mainstream, it is likely that more people will become interested in using the metaverse for a variety of activities, including gaming, social networking, and shopping.

The Metaverse is widely tabbed as the next phase in human evolution. 

Key platforms & what they're best for

• Horizons (Meta) - meeting, sharing and conferencing, like the Metaverse equivalent to Zoom
• Decentraland - eCommerce and branded experiences
• Spatial - live events & social
• Sandbox - eCommerce and branded experiences
• Roblox - gaming, social & live events
• MozillaHubs - exploration & work
• VRChat - social, gaming, meeting sharing (available through VR only)

Organisations already in the Metaverse

• Netflix has just joined the Decentraland Metaverse by launching a replica of a maze found in its recent film, “The Gray Man” starring Ryan Gosling.
• Nike has filed four patent and trademark applications for downloadable virtual goods operational in the Metaverse  
• Disney is developing a Metaverse theme park. In December, the company filed for a patent for a "virtual-world simulator."  
• Hyundai Motor Company created Mobility Adventure, a Roblox metaverse showcasing motor goods and future mobility solutions.  
• Coca-Cola recently auctioned its first NFT, a prize package on OpenSea that reaped $575,000.  
• Louis Vuitton created Louis: The Game. 
• Gucci opened Vault, a Metaverse concept store selling "Supergucci" NFTs.  
• Balenciaga intends to continue merging the fashion and digital worlds after their successful collaboration with Fortnite.  
• Designer Charli Cohen and retail house Selfridges collaborated on a collection and VR experience to commemorate Pokémon's 25th anniversary. 

Market size

In 2020, the Metaverse market was worth $46 billion. The tech industry predicts that this will rise to $800 billion by 2024 and reach 1 billion people by 2030 with over 10,000 jobs created over a five-year period. And then there are the highly respected JP Morgan and Goldman Sachs throwing around figures of $1-12 trillion.

Developing your strategy

The Metaverse opens a whole new realm of ways to engage which we expect will lead to uniquely new services and business models. Not everything in the Metaverse will be relevant for every business. However, there is little downside to taking the opportunity to explore. 

There are a number of considerations businesses should take into account when developing a metaverse strategy, such as the following:

1. What business objectives do you hope to achieve by operating in the Metaverse?
2. What value can you offer users in the Metaverse?
3. Who are the key players, which platform is best for us?
4. How will you create a presence in the metaverse that is compelling and engaging for users?
5. What policies and procedures do you need to put in place to ensure a safe and secure experience for users?
6. How will you generate revenue in the Metaverse?
7. What are the risks and challenges associated with operating in the Metaverse?
8. What legal and regulatory issues do you need to be aware of?
9. How will you stay ahead of the competition in the Metaverse?
10. How can I get out to market quickly? Is there an expert agency to partner with (the answer is yes - Greenwood Campbell!)
11. What is our roll-out plan? We understand we can’t all have a Gucci sized marketing team, however, no campaign regardless of how useful or cool will be successful without a roll-out plan to reach the right audiences. 

For a more detailed explanation including data and privacy, what are cryptocurrencies and NFTs and useful applications for organisations, download our Metaverse 2.0 guide.