What is Metaverse?

Metaverse refers to a hypothetical iteration of the Internet as a virtual world, that is facilitated by virtual reality (VR) and augmented reality (AR) tools. To summarize Metaverse is a network of 3D virtual worlds with the focus on social connection

Recent interest in metaverse development is influenced by Web3, a concept for a decentralized iteration of the internet. Web3 and The Metaverse have been used as buzzwords to improve the development progress of various related technologies and projects for public relations and marketing purposes.

The Metaverse is a conversation topic since Facebook changed its name to Meta. Although it has recently become part of the public consciousness, it’s essential to understand that it has already been here for some time. [1]

Several metaverses already exist, encouraging people to spend their lives in a different universe. Brands like Roblox, Fortnite, and Second Life generate hours of use per day and billions of dollars in spending. [2]

The metaverse isn’t just a marketing hype, we believe it will affect Marketing Technology severely. Here below we list 5 areas of interest.

1. Understanding the Targeting possibilities

When social media got its foothold in the early 2000s, Myspace was the place you wanted to be. As more platforms developed, the environment fragmented into different audiences. Each one offers marketing opportunities, but the approach must be unique to each one to ensure needs are met. [[3]]

The metaverse will be the same way. There could be hundreds, if not thousands, of them to support the needs of everyone.

Martech creates an opportunity to turn a fragmented universe into target groups. Today, you can use one software solution to post and converse across several social media platforms. Expect the same for the metaverse.

READ MORE: Digital Transformations are necessary to deliver a relevant Customer Experience

2. Beyond Gamification

We often think of the metaverse as a place for entertainment and fun. When Second Life was introduced around the same time as Myspace, it opened the door for avatars to interact with objects and places.

With Second Life, users can still participate in group or individual activities, trade virtual properties, and engage in decisions similar to what daily life brings each person. It introduces the idea of turning events that we enjoy in person into something you could do digitally.

Although games are still an essential part of the metaverse, they’re not the only part. MarTech opportunities include virtual concerts, dating, and building a business.

These technologies also support collaboration, training, and immersive industries. Existing platforms will need to evolve to support these desirable capabilities.

3. Blockchain Opportunities

Second Life provides users with the Linden Dollar, a virtual currency you can exchange for something in the real world. In 1996, e-gold was a widely-used digital currency for the Internet until the government shut it down in 2008. Before Bitcoin, there was also Hashcash.

The blockchain might have gained attention because of cryptocurrency, but it is exploding in popularity today because of the non-fungible tokens (NFTs) it offers. Authentication of digital assets creates several unique MarTech opportunities.

In the metaverse, there is a native environment for these assets. That means they could have more value and meaning to each user, creating marketing opportunities for consumers to review.

The issue that needs to be solved involves ownership. Platform owners have the final say over what exists in their metaverse. Developing MarTech assets that could be suddenly gone is a risk some agencies might not want to take.

4. Changing Social Dynamics

The metaverse removes another protective layer from our interactions. You become a character on a screen or in virtual reality instead of being a person. Binging in an unhealthy world could create undesirable real-life dynamics that MarTech needs to prepare for today.

We often focus on the positives and look for opportunities, but there is already duplicitous behavior online. The metaverse will amplify both ends of the spectrum.

5. Metrics Development

Brands and businesses involved in gaming already have a head start in the metaverse. They’re ahead of the curve since these spaces are essentially large video games at their core.

Things that seem new and exciting to traditional brands could be irrelevant to early metaverse adopters. Paying attention to what gamers and those who socialize online want can open the door to future opportunities.

As the metaverse expands its footprint, the MarTech industry will be there at each step of the way. A proactive approach that includes experimentation will help each brand and business find its way in this next evolution. [1] https://www.nytimes.com/2021/10/28/technology/facebook-meta-name-change.html [2] https://www.forbes.com/sites/bernardmarr/2022/03/21/a-short-history-of-the-metaverse/?sh=3b8798675968 [3] https://www.nytimes.com/2019/03/19/business/myspace-user-data.html

Author

Helena Nordman Stålnacke

Strategic Advisor

Recoordinate

Connect with me: LinkedIn

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