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Metaverse - An opportunity or not? Let’s find out!
Metaverse - An opportunity or not? Let’s find out!

September 19, 2022

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Do you know a recent report by The Small Business Blog said that Facebook has invested 10 billion dollars on metaverse technology? It is predicted that it has the potential to generate a profit of 800 billion dollars by 2024. 

The global market for the metaverse is anticipated to grow from an estimated $478.7 billion in 2020 to $783.3 billion in 2024 at a CAGR of 13.1%, according to a Bloomberg analysis.

 

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The numbers are great, right? But will metaverse marketing help your business? Are we ready to use metaverse marketing? Let’s find out! 

A recent report by Essence, one of the many companies under GroupM, says, “That metaverse doesn’t exist. Not yet, at any rate.” but it also says that it is happening. So it is definitely in a stage where a lot of experimentation and trials are taking place. 

It is similar to the situation of the early 2000s when the world had started to accept the world wide web but had no idea about Youtube, Facebook, Twitter and Instagram. We may not know how it will look or how it will help in our marketing efforts, but it surely is bringing a wave of change. 

The metaverse, which uses real-time 3D software to create social, persistent, shared, virtual 3D environments, is the next evolution of the internet and social networks. As a result, leading social media and online entertainment organisations have the chance to take advantage of new revenue streams.

It may look that only the gaming industry can benefit from it, but that is definitely not the case. Many other industries like Education, E-commerce, Entertainment, Sports and more can benefit from Metaverse. 

As per Mckinsey, the elements of the Metaverse are:

  • It encompasses augmented reality technology mainly. 
  • Metaverse is online all the time and exists in real time. 
  • It is powered by a virtual economy, where people have money to buy existing things.  
  • The space has avatars of people who can completely control their actions. 

In 10 years, when the metaverse must be at its pinnacle, we cannot predict which new technological solutions will be available, but in the near future, these will undoubtedly include:

  • Virtual reality, a.k.a. VR
  • Augmented reality, a.k.a. AR
  • Mixed reality: AR+VR
  • Bitcoin and blockchain technology
  • Cloud
  • 5G, and subsequently 6G
  • IoT

In a podcast, Hoezay said, “Metaverse is the internet, but I don’t think one can decentralise it”. This statement made sense, but as mentioned before, Metaverse is in the making, so we still don’t know its true potential. 

The Benefits of Metaverse:

  • Newer ways to keep your users engaged. 
  • Organise virtual events for more opportunities.
  • Sell and display your products uniquely. 
  • Include ‘story living’ instead of just storytelling through immersive tools of Metaverse. 
  • Make remote working more manageable and better. 
  • Make seamless transactions with cryptocurrency and e-wallets. 

In conclusion, is the metaverse the technology of today or tomorrow?

Is the metaverse an emerging technology or something that won't be used actively for at least a few years? Both, despite how absurd that may sound. Although early versions of the metaverse are now available for testing, its more intricate iterations won't be accessible anytime soon. 

As the VP of Global Business Research and Marketing at Activision Blizzard says, “The metaverse is a difficult topic to grasp simply because it doesn’t exist, despite the occasional hyperbolic statement to the contrary. It’s not an entity or a thing, neither physical nor digital. Instead, it’s an idea built around less demarcation between our physical and digital selves.”

The gaming industry has been exploring the same rigorously, but now it is time for other industries to step in too! 

There is hype to a great extent, but it does not fully exist in today’s world. A recent report by Forrester said that one could be a ‘metaverse precursor’ to look beyond the hype. This experimentation process can help a business grab futuristic opportunities. 

Looking at the bigger picture, shifting to digital is the right step for your business. No matter what industry you belong to, with everyone having access to screens and the internet, your brand can do wonders with the help of the virtual world. 

It is the evolution of the internet, where users are completely immersed in the same instead of just looking at it. The metaverse is parallel to our physical world, having the same opportunities and capabilities. 

From Snoop Dog buying a property virtually for millions of dollars to Formula 1 racing including an AR experience, the world is steadily making everything digitally experiential. We, as entrepreneurs, must be ready to take on this challenge.

We should start experimenting and see where each brand can fit in this digitally powered universe. Like digital marketing revolutionising the marketing and branding game, Metaverse is here to add more to it. It will not only make your customer experience go beyond imagination, but it has the power to change the usage of products as well. 


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Dr. Vikram Kumar

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