UNEXPECTED ORIGINS
Most of us have probably heard of the metaverse by now. And most of us probably think itʼs a term that originated in the last few years, maybe coined by Mark Zuckerberg, Bill Gates or another of ITʼs super-luminaries. But no. Incredibly, the metaverseʼs first appearance was in 1992 in Neal Stephensonʼs novel ″Snow Crash″. Set in a tech-driven world, for a work published 30 years ago before even mobile phones were an everyday item, its prescience is remarkable. Electric cars. Sat nav. Wireless internet. Virtual reality. Avatars. Itʼs all here. A debate over whether this uncannily accurate take on a future society was conceived as a dystopian or utopian vision could occupy us for some time.
The metaverse concept reappeared in Ernest Clineʼs 2011 sci-fi tome ″Ready Player One″, adapted for the big screen by Steven Spielberg and released in 2018. Set in 2045, the world is in the midst of an energy crisis and climate change, leading to the gradual collapse of society and the world economy. The utopian/ dystopian thing appears fairly ′cut and dried′ here. People escape this disintegrating world in the Oasis, accessible via a headset and haptic gloves with a virtual currency immune to the fluctuations caused by the instability of the ′real′ world. Again, thereʼs much that is now familiar in a gaming context. But this is key: arguably the roots of the metaverse as it is currently evolving can be found in gaming, with the 2011 debut of Minecraft in particular seen as a trailblazer. Omar Hikal, CEO of The Brand Company gazes into the metaverse to assess its influence and impact upon branding and brands, now and in the future.
ENOUGH OF THE METAVERSE'S LITERARY ROOTS. WHAT EXACTLY IS IT?
This clearly covers a multitude of experiences, including social interaction, commercial activity, entertainment, even sightseeing. And there are political implications too. Returning to Minecraft, the organization Reporters Without Borders has created a virtual library of publications within the game by censored authors from around the world.
The physical rendering of the library building itself is truly stunning, taking 24 people 250 hours to create. And that's before we even consider what's within, and the powerful message that its free availability sends. It seems almost trite to call a platform hosting such content a 'game'.
Writing in the Harvard Business Review, Janet Balis describes the metaverse as
"any digital experience on the internet that is persistent, immersive, three-dimensional (3D), and virtual, as in, not happening in the physical world."
IS THE METAVERSE REALLY SUCH A BIG DEAL?
The Facebook empire has renamed itself
'Meta'. This probably tells us all we need to know. The metaverse removes geographical boundaries. It enables meaningful, genuine interaction with people, with businesses and with brands regardless of physical location. We can watch a live band, learn in a virtual classroom or shop for clothes online now, but it's a solitary, sterile experience.
In the metaverse, we'll feel like we're there. At the moment, we can natter in a chat room, or in a WhatsApp group, but chat is pretty much all it is. In the metaverse, we're sharing an experience, with the emotional element that a true experience entails. And it's this emotional component that is so relevant in the context of brands and branding. Brands are all about emotion. They trigger an emotional response and forge a connection that will only be enhanced by the increasing opportunities that the metaverse offers. But where and how will those emotions be expressed? At the moment emotions don't exist in the metaverse, though they can be expressed from outside it. But in the future, who knows what our avatars will be capable of?
And then there are the gaming platforms. Roblox, with more than 47 million active users and valued at 68$ billion. We mentioned Minecraft earlier, now owned by Microsoft, whose 70$ billion purchase of Activision further acknowledges the importance of gaming as the foundation for metaverse technology and a gateway to the metaverse.
SO WHO ARE THE KEY PLAYERS?
We've already touched on Meta, Facebook's new identity. If that's not a statement of intent, what is?! There's talk of hiring 10,000 people in Europe alone to create a metaverse where people can "socialize, learn, collaborate and play" (Meta's own words). The (virtual!) Mark Zuckerberg's presentation on Meta's own metaverse home page pretty much tells you all you need to know about what he thinks will be possible. Social Connections. Gaming. Entertainment. Exercise. Work. Education. Commerce. And, you'd imagine, that's just for starters. Meta has been patenting new tech for Metaverse applications, including systems for the tracking of pupil movements, facial expressions, and gestures, the personalization and sale of Metaverse-based advertising, and the creation of hyper-realistic avatars. Facebook already makes 28.6$ billion a quarter with ads driven by user data. The revenue created from the data collected using these new technologies would far exceed that currently achieved.
And of course, there's Microsoft. Microsoft Mesh brings the opportunity for avatars to interact, for example in Teams calls, while their holoportation technology enables "you" to be projected anywhere in the world, in real time.
BUT WHAT'S ALL THIS GOT TO DO WITH BRANDING?
As I mentioned earlier, branding and brands are all about emotion.
The metaverse gives brands the ability to generate an emotional connection with a
"remote" audience in a way that up to now hasn't been possible.
Highly attractive, fully immersive online experiences can only improve engagement, and stimulate an emotional response.
The online experience can be shared with others regardless of their location. And this isn't something for the future. It's happening now. In the world of fashion, Gucci, Balenciaga and Louis Vuitton have created virtual worlds, tying in with metaverse leaders like Roblox and The Sandbox to buy "land", where virtual showrooms, gardens and museums enable users to browse and purchase clothing and accessories for their avatars that in the real world they could only dream of.
In the virtual Gucci Garden, items priced initially at just a few dollars but with limited-edition status create exclusivity and a re-selling market, inflating prices to the extent that one Gucci bag sold for over 4,000$. Its "IRL" (In Real Life) cost? 3,400$.
In just a few years revenue generated by metaverse sales is expected to approach $400 billion. Numbers like this simply cannot be ignored. Smart brands will be looking at how the metaverse will impact them, and how they can impact the metaverse.
Cryptocurrency and NFTs are also fundamental to a metaverse presence: this paradigm shift in the field of payments and monetisation will require brands to completely reassess their transactional processes. With NFTs brands can "drop" a product or grant access to exclusive events, experiences or product releases.
IT'S SO MUCH MORE THAN JUST MONEY.
IT'S NOT COMING, IT'S HERE.
The metaverse is hard to get your head around. Believe me, I get that. Clearly we don't have much to thank Covid for. But maybe it unwittingly gave the metaverse a helping hand? All those 'Teams' calls. The Zoom quizzes. Online shopping. Family catch-ups with grannie and the kids.
Most of us are now comfortable with communicating, interacting and transacting remotely, even if it might not have been in a virtual world. But for mass acceptance, the metaverse needs to be accessible beyond the realms of kids playing Fortnite in headsets, immersed in this other reality and insulated from all that's taking place around them (especially Mum shouting 'tidy your room'!). Maybe Covid was the start?
It's still early days. How we see the metaverse now may not be how we see it in ten years' time. And there's the challenge; we don't really necessarily know how this thing will evolve. But one thing is certain.
The brands that begin their journey into the world of the metaverse now, or who have already, will be one step ahead of those that wait and see what happens.