The Metaverse is Challenging Businesses to Be More Immersive

The metaverse is one of the most talked-about topics in business and technology. The concept of interconnected immersive worlds where people and businesses interact through avatars has raised all kinds of questions about how relationships are formed between people and companies. This new venture has a good reason for such interest: the metaverse could generate $5 trillion in economic opportunity, according to McKinsey. With such high stakes comes an equally high opportunity for success. However, businesses will need to be innovative, user-centric, and hypervigilant to create the best possible customer experience to fully earn their share of that $5 trillion estimated value. This means creating new plans that could differ completely from how they've generated economic value on the Internet as we know it today.

What is the metaverse?

A refresher: The name "metaverse" comes from Neal Stephenson's 1992 science fiction novel Snow Crash. Stephenson's novel envisioned a virtual world in which people would use avatars to interact with each other. One of the latest renditions of this idea can be found in Steven Spielberg's movie Ready Player One which wasbased on the 2011 science fiction novel Ernest Cline. Both movie interpretations played a part in building buzz around the concept of a VR world served to a large audience.

Real-world examples exist, too. Linden Lab launched an early version of the metaverse in 2003, Second Life. As is the pattern for most technology ahead of its time; Second Life didn't nearly gain the same popularity as metaverse platforms such as Fortnite. However, the interest in creating and perfecting the metaverse has not wavered and if anything, was reignited. Nearly two decades later, Second Life still exists and has over 700,000 active monthly users.

While many people struggle to define the metaverse, the most agreed-upon definition is that it is an all-encompassing virtual world where people live and play using avatars and virtual goods in a computer-generated environment. In fact, revisiting the early idea of the metaverse in the entertainment industry, it almost entirely reflects the prediction Neal Stephenson gave about the Snow Crash metaverse. 

With the metaverse gaining increasing interest around the world, it creates new possibilities for brands and people to interact with each other. One of the key challenges for businesses is to find a way to develop a brand presence that fits seamlessly into the avatar-only format without looking out of place. The quality of their virtual places will define the experience, regardless of how well their real-world brands are doing, name recognition alone will not equate to success for 99% of businesses. Launching a metaverse campaign means businesses will have to dedicate new teams, extra time, and resources to developing what will ultimately become the foundation of their future digital reputations.

It's one thing to design a better website or develop banner ads to build awareness, but it's another task entirely to do those things in a virtual world. Offering a unique virtual experience is the key to attracting more business and increasing your business's chances of surviving and thriving economically. As we have blogged before, the race to cracking success in the metaverse on and everyone is trying their hand at new concepts. Gucci, for example, created a virtual Gucci Garden on the metaverse platform Roblox and sold virtual goods via Roblox currency (Robux). The gaming platform Minecraft has worked with businesses such as Disney  to offer virtual content. Speaking beyond businesses, recording artists have also taken the challenge head-on to capitalize on platforms Meta, Roblox, Fortnite, Wave and Horizon Ventures by hosting virtual concerts.

Roblox makes a significant announcement

Roblox, one of the leading metaverse platforms, continues to push brands to figure out novel ways to connect with people. Roblox recently previewed a new advertising format, Immersive Ads. With Immersive Ads, businesses can build 3D portals that transport players of the online game to custom virtual worlds.

Roblox positioned the offering as a way to help advertisers foster deeper connections with its community of 58.5 million daily active users. Roblox showcased a demo in which a Roblox character takes a 3D portal to Vans World, which is a virtual skatepark from the apparel marketer. The portal/playground is peppered with Roblox Vans World posters (a video previewing the experience bears a "Sponsored" disclosure so that it is clear that this is not an organic experience). After stepping through the portal, the avatar is transported to a branded space. Leaving Vans World works the same as entering it, with the player stepping back through the portal to the original experience.

Why are Immersive Ads significant? Because they:

• Demonstrate how businesses can monetize the metaverse. Roblox will earn money by charging brands to create Immersive Ads. Businesses such as Vans will be able to sell virtual goods inside the immersive experiences they create. For the sake of comparison, the Gucci Garden generated revenue for Gucci that in some cases was more than Gucci could have made in the analog world.
• Show how brands will create immersive experiences inside the metaverse. Whether a business actually uses Immersive Ads, the bigger point is that creating brand experiences inside the metaverse will require businesses to step up their game with how they apply technologies and tools such as 3D, virtual reality, and augmented reality.

What businesses should do

Consider first of all whether it makes sense to start engaging with people on digital platforms such as Fortnite, Minecraft, or Roblox. Or consider also how your brand might want to connect with people through metaverse elements such as digital currencies. The metaverse may also create some fascinating ways brands and people connect with each other through content, such as: 

• Virtual events conducted through avatars. 
• Creating playful content that people unlock through digital currencies and nonfungible tokens (NFTs).
• Sharing thought leadership such as a discussion of the future of virtual reality or augmented reality through your own avatars on a platform hosted by another company. 

One thing not to do: ignore the metaverse. It's important to know what it is and assess your interest.  

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