Hat
The idea of a virtual world does not come out of a hat. The word “metaverse” appears in the years 90-92 with Snow Crash, the novel of Neil Stephenson depicting a parallel virtual universe. Then the beginnings of metaverse emerged with gaming in 2000 (the Sims and Second life). The cinema has also largely explored this notion. Among the cult films, Tron (1982), Matrix (1999), Minority Report (2002), Inception (2010), Avatar (2009), Ready Player One (2018). The concept of virtual world has been around for a while; its resonance increased three years ago.
In November 2021, 21% of French people had heard of it, in January 2022, 40%! Ditto for Americans: 55% of them have heard of at least one metaverse platform like Roblox for example. Among these 55%, 80% have used it and are able to give a precise definition. Cryptocurrencies, blockchain literally exploded in terms of mentions. Horizon Worlds (the metaverse of Meta) has just arrived in Spain and France (August 2022)…
Of course, if we ask ordinary mortals, we are only at the beginning, both in terms of understanding and in terms of current metaverse offering. Metaverse remains an abstract concept for most (Depending on the generation). But we are seeing a dazzling progression on these notions, that’s for sure. Who will use it first? ‘Early adopters’ as always: they have an appetite for technology. But they are not necessarily geeks either.
5000
By 2030, McKinsey estimates the potential value of the metaverse at $5 trillion. Investments have more than doubled between 2021 and 2022, rising from 57 to 120 billion dollars. On the other hand, it is expected that more than 15% of corporate income will come from the metaverse in 5 years.
Metaverse
Talking about a virtual world to define the metaverse is not enough. Adding ‘immersive world’ is essential, in 3D too. ‘Shared World’ also highlights a key dimension of the metaverse. Why? Because the interactions are very real. It is a world in which we live through an avatar and which offers a wide variety of experiences. (Learn, play, work, etc.)
What’s striking is the difference, for example, between the “Second life” of 2003 and today: the metaverse presents itself as an economy in its own right: the development of cryptocurrencies and NFTs means that we can acquire goods, sell them, invest, speculate, create value. There is a major financial interest for all actors.
Wet firecracker
Wet firecracker? Trend? No way. The question “I believe in it, I do not believe in it” no longer arises. It is a fact. A train you take or don’t. That said, and there is unanimity among experts on the subject, we are not ready. Even if things are moving forward and initiatives are developing.
Why? Several factors. First the technology: it does not yet allow millions of users to be accommodated simultaneously in real time. It takes computer power, network power, calculations… This huge energy-consuming power, we don’t have it yet.
Then, because people don’t necessarily have a virtual reality headset. It is expensive: between 300 and 500 euros! And it will remain so until the adoption is massive, until the technology has advanced. Classic. We have seen it with Playstations and smartphones.
Besides the price factor and the accessibility of the technology, there is also the subject of the performance of the technology. It is currently not optimal from an experience point of view. And deceptive experiences are a real barrier to adoption!
The lack of regulation coupled with decentralization also create possible abuses: counterfeiting, data protection, cybercrime, digital identity, psychological issues (addictive behavior, etc.), ethics, protection of sensitive audiences like children…
Hence a certain skepticism… Which does not prevent the development of technology. The transition from Minitel (videotext terminal) to the Internet has raised the same questions! The metaverse will not be the same in 20 years. It will, however, be there.
Bull & Bear
A “Bull market” = a growing market where prices are rising. A “Bear market” = a market in recession or stagnation, with a drop in share prices.
After the exceptional performance at the end of 2021 when Bitcoin reached its ATH -All Time High, the highest value ever reached by a cryptocurrency- at $68,979 and the total market capitalization exceeded $3,000 billion, we find ourselves today in a bear market environment.
The media exposure has also added to the confusion. “Is the metaverse a fake good idea”? “The bubble has already burst” … While we are only at the phase of explanation, understanding, clarification. Do not be afraid, it is a natural cycle. It allows us to work on the long term. To think long term.
In addition, the “Bear market” will not last forever. It will change and pick up again! This is a good time to reflect and prepare.
Ecosystem
NFTs, cryptocurrencies, blockchain are essential to understand the metaverse ecosystem. Cryptocurrency is the virtual exchange currency for carrying out market transactions, NFTs are the virtual objects that can be purchased with this currency, the blockchain is the computer technology that supports everything, and the metaverse is the natural environment in which these actions can be completed. Everything is connected.
One or one hundred
It is not the metaverse but the “multiverse” or the “manyverse“. There is indeed not one metaverse but hundreds! Each of them brings a different experience, an added value. A few weeks ago, during MetaWeek 2022 in Dubai, I had an interesting encounter with a rabbi who explores how spirituality can exist in the metaverse! Will this initiative live in a Decentraland? Surely not! But in another context? Most likely. Alongside the heavyweights (Roblox, The Sandbox, Horizon Worlds, Decentraland, etc.) there is a multitude of project leaders who create their metaverses. (Fitness, education, metacities…).
So what’s likely to happen? We will put on our virtual reality headset and go to a metaverse to work, to another to play, to another to travel, learn…
The challenge can be summed up in one word: interoperability. Gateways will enable the transition from one metaverse to another, allow us to keep and/or convey the baggage we have in one so as not to lose our data in the other… The major players in the metaverse are working on this critical concept. This is the very reason for being of the Metaverse Standards Forum (Epic Games, Microsoft, Meta, Nvidia, etc.) launched in June 2022.
Spelling
“Metaverse” is the metaverse in English. The Métavers is the French spelling. But French also writes it “métaverse” with an accent and an e. 😊
M2
Real estate: a real question in the metaverse! Many companies and individuals acquire land there, sometimes at exorbitant prices. Everyrealm (formerly Republic Realm, one of the biggest virtual land developers) bought land in The Sandbox for $4.3 million in 2021; the value of the virtual real estate market is estimated at $1 billion in 2022 vs. 500 million USD in 2021.
Parcels or “lands” are NFTs purchased in cryptocurrencies. 3.0 specialized real estate agencies are also emerging. More than half of the real estate market is located in The Sandbox (3/4 of land sales, 62% of available land). Parcels are the most expensive there. X 300 in 2 years. The number of parcels is also limited. Decentraland has 90,000 parcels (size of a parcel: 16m X 16m), The Sandbox, between 150 to 160,000 (size of a parcel: 96m X 96m).
It’s who will buy the best land knowing that, as in real life, the value depends on the location of the parcel in the metaverse… If for example you want to buy the land adjoining Snoop Dogg’s mansion in The Sandbox, you will have to shell out approximately $400,000 vs. Average price: $12,000.
The actors play on rarefaction. Buyers also want to speculate… turning these parcels into property marketing areas.
Gamification
That said, reducing the metaverse/metaverses to video games/gaming amounts to drastically limiting its uses. Yes, clearly gamers are a natural and historical target of the metaverse.
But concretely, what are we going to do in the metaverse?
We’re going to play, of course, but we’re also going to have a medical teleconsultation, take a distance learning course, travel virtually, shop, meet friends and new people, attend events: festivals, concerts, etc. Today, this is what we imagine (not everything is accessible yet); other uses will be invented and generalized.
Chin hair
38% of metaverse users (Minecraft, Fortnite, Roblox gamer profile) are between 10 and 20 years old, ok. But we must keep in mind this: studies make millennials the “most interested” group; baby boomers, on the other hand, expressed a “sensitivity to the concept”. It will still evolve, become more democratic.
Gender
An experiment carried out in Meta’s Horizon Worlds reveals that 90% of users are male. Same observation for the 59% of gamers in the metaverse.
Things will definitely change: in 2022, The Sandbox launches, in collaboration with World of Women, the WoW foundation whose objective is to achieve greater representation of women in the NFT and metaverse sector. $25 million endowment, spread over 5 years. Similar initiatives will emerge! Dove ‘s ‘real virtual beauty’ is a good illustration.
Avatar
Our digital representation. We exist in the metaverse through avatars. At least today, it looks like that. Avatar design varies across different platforms. On Horizon Worlds for example, avatars have no legs, which sparked huge criticism 😊 and will be changed soon, according to the statements of the Meta group.
But there’s more. Our identities will also extend digitally according to the universes, whether they are photorealistic metaverses (metacities) or imaginary metaverses, sometimes psychedelic ones. We will be able, from scratch, to define who we want to be: a monster, a butterfly and a bearded man of 34 or 102 years old all at the same time…
Access
How to access the metaverse?
1. Get a virtual reality headset or augmented reality smart glasses.
2. Install the various apps and games.
3. Create your avatar.
4. Start interacting with other users. (discussions, games, virtual concerts, etc.)
You can also access the metaverse without a virtual reality headset via your computer, tablet or smartphone. But don’t expect a 360 degree immersive experience! The very principle of the metaverse – as it is envisaged and represented – is linked to its immersive aspect. To the evolution of the web. The immersive aspect without the filter of a screen.
Geography
Initiatives stem from everywhere; they are not confined to any geography. President Macron announced the creation of a European metaverse at the time of France 2022 presidential election. At the end of 2021, the same for Seoul, which wishes to deploy its metaverse. Barbados is having plans to introduce the first virtual embassy into the metaverse. Recently, the UAE said it is accelerating its metaverse strategy with state reform. They envisage the creation of infrastructures to govern a virtual space, 40,000 virtual jobs, and multiply by 5 the number of companies working in the blockchain. Africa is also very active with -among other projects- Africarare, the first African metaverse launched in January 2022, and Ubuntuland, where 149 plots have already been acquired by leading companies including the pan-African heavyweight MTN. India and Pakistan are hotspots for major metaverse developments…
Today Tomorrow
Today the metaverse comprises of social experiences within walled gardens– video games– (which target a specific audience) or crypto native-friendly products focused on virtual real estate. Tomorrow, a multitude of interconnected metaverses will open up the possibilities.
Today, the metaverse is used as a “PR tool” or a publicity stunt… But today does not mean tomorrow. It will become critical for brands to be part of long-term projects with real relevance and value for users.
Ad
Advertising in the metaverse does exist! Each metaverse offers its advertising spaces in different forms. (Purchase of space, creation of event, purchase of a land…). The offers are developed in partnership with the “advertisers”. The entry ticket varies between 50K and 90K depending on the type of action planned and the platforms. In addition, Metaverse Avenue, is the first advertising metaverse to have emerged in January 2022. The platform allows investors and advertisers to buy and sell advertising space in the form of NFTs.
Caution ! Do not take advertising in the traditional sense of the term. Advertising will only make sense if the installations proposed with virtual billboards offer an interactive, experiential and participatory dimension. The highlight of this user experience remains the interaction.
Big & small
No, the metaverse is not only for major luxury, fashion, retail, gaming or tech brands.
For me the metaverse is not an end in itself; it must be an integral part of an overall strategy. The first thing is to think about the objectives, no matter the size of the company. To determine if it matches its DNA. What it is going to do there. For what need. What identity. The basics of marketing also apply to this new channel!
If we take NFTs for example, most of the brands to have launched initiatives are certainly big brands, but there are also SMEs, even if the entry ticket can be relatively high.
Another example. Does the company or brand evolve in a B2B context, where meetings with partners and suppliers play an important role? Conferences of a new kind can be put together… there are a thousand ways to imagine the possibilities. As long as there is a plethora of metaverses (telemedicine, work, travel, etc.) and each of them meets specific objectives & targets a dedicated audience, there are openings for companies at all levels, in all sectors.
The main thing: do not mislead clients. Stay strategic.
If today a client comes to me saying: ‘we want to create our metaverse‘, unless he/she is a state, with tens of developers and millions of euros, I would not recommend it. On the other hand, defining which metaverse he/she must choose to provide an exceptional user experience to a community, there I say yes. We come back to basics: the value proposition remains at the heart of the equation.
Four legs
Will brands have to relearn everything? Talking, walking, counting?
I say learn, not relearn. Evolve not necessarily revolutionize.
An American study reveals the main motivations of users, in order of importance: to live experiences impossible to live in physical reality (41%), to communicate with others (40%), to escape their daily reality (28%). The starting point is the notion of immersion! We must rethink the user experience on this basis. It changes the game, requires an adaptation of brand communication and experiences brands & companies do offer.
It’s a new channel to understand with its own codes, even if they are still under construction. Brands have to own these codes. To integrate the fact of moving from an online tool to a virtual tool. To invent new immersive interaction and communication formats that will enhance the multi-channel approach. To experiment. But also to keep the fundamentals. What is the journey? The story ?
Replacement
The metaverse will be part of everyday life as the internet is today. Of course, it does not replace real life. It does not replace social networks or the Web 2 it needs to exist (and vice versa). But it offers a new way of living, of consuming, of interacting, of educating oneself, of abolishing borders. For me the metaverse is a new channel to integrate. Hence the crucial interoperability between metaverses and the physical world.
Branding
A verb strikes me and keeps coming back: “Enhance”. Stronger than “Improve”. Amplify, enchant…
Re-enchanting the brand will be at the heart of branding in the metaverse. Branding will have to be reconsidered accordingly. It will integrate sensory marketing. Because beyond the virtual reality headset, we must think of all the innovations in haptic technology that will increase sensations, enrich the experience and content: vibrating suits, gloves. We will probably arrive at the olfactory! Without forgetting the essential role of sound… Branding will become an experience in its own right.
Second point: as metaverses offer a variety of visual universes, brands will also have to adapt. Realistic meta city universe? Totally dreamlike universe or other? The challenge for them will consist in embracing these multiple visual languages, while maintaining their homogeneity, readability and bearings.
Hence the importance of branding; because in the metaverse, brands bring users into their worlds and vice versa!
This will also be one of our key roles (us = brand consulting partners). Build the appropriate branding. Define the most relevant metaverse according to the natural territory of the brands, their objectives and their culture. If the B2B and corporate anchoring of the brand is strong, we will not necessarily take it to a gaming metaverse with monsters, where we find ourselves in space. I schematize. But it is one of the key stakes for branding.
Readiness, Ripeness
Although adoption is not massive and opinions differ on the time required to achieve it, the metaverse phenomenon is there, unavoidable. Brands must anticipate, prepare, contribute. They will have to do it sooner or later. Might as well think about it today. Business model, strategy, marketing, communication, technology, human resources, income generation, operating framework… Many questions call for a detailed examination.
How to do it ?
First of all, you can’t do it alone. That’s a fact. So surround yourselves with specialists to start defining the best path. Experts who understand the issues, master the culture, have a perfect knowledge of what exists and what can be done, beyond the technological and design aspect of course. Advice is key, even if monitoring and acculturation work can be carried out internally. The Branding dimension is obviously a strategic and central element of the thinking. The metaverse in what form? With what identity? Which brand territory? What tone of voice?
It’s not about rushing headlong. If companies decide not to venture into the metaverse for a year or even 2, they can move forward on these issues in parallel. Develop their vision. And educate their own communities, who can also play a part in the adoption journey!
Why
But in fact what excites me is the future. Whatever form it takes. My primary motivation is not the tool, it is the evolution of solutions.
COINCEPTION is a metaverse and Web 3.0 consulting agency specializing in digital interactions and experiences of the future.
