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What is the metaverse?

Covid-19, lockdowns, extreme isolation and restricted mobility caused a major shift in life from the real to the digital world. People used the internet to a much greater extent and immersed themselves more deeply in social media, virtual games and immersive experiences. During this time, the world also saw a steady increase in the use of virtual reality and augmented reality. As a result, virtual worlds gained a massive number of users who wanted to interact with them more intensively and for longer.

Metaverse – Everything you need to know as a brand

The Metaverse fits perfectly into these needs. It creates a virtual world where people can use their 3D avatars to connect, work, play, build communities, buy/sell or immerse themselves in content. It provides an immersive, persistent and three-dimensional digital experience where people can consume or create content while being a part of that content. Brands can use these features to engage with their target audiences and provide them with an optimal user experience in what is perceived as a highly innovative environment.

Major brands such as Meta (formerly Facebook), Nike, Nvidia, Coca-Cola, Disney, Hyundai, Gucci, Louis Vuitton and many others have already started to move their business into the metaverse in various ways. Statista estimates in one of its articles that the size of the metaverse market will grow to USD 47.48 billion in 2022 and to USD 678.8 billion by 2030.

This raises the question of how important the metaverse is for brands. In this article, you will find out what the metaverse is, what significance it has and what potential it offers for companies to grow exponentially in the metaverse.

Basics – What is Metaverse Virtual Reality?

Neil Stevenson first used the term metaverse in his novel Snow Crash. The metaverse is the virtual place where the characters in the novel seek refuge from a totalitarian reality. Since the 1990s, progress has been made in the areas of AR, VR and gaming. In 2003, Second Life was the first multi-user environment for socializing in a completely virtual space. The rapid development of VR goggles has given this concept of virtual worlds an enormous boost.

Facebook (now Meta) acquired Oculus VR in 2014, which drew the attention of major companies and corporations to the virtual world. Meta is one of the tech companies that recognized the importance of the metaverse very early on. At the end of 2021, the metaverse gained further momentum when Mark Zuckerberg announced the rebranding of his company and changed the name of his parent company from Facebook to Meta in order to expand the scope of their virtual offerings in the metaverse world in the future.

Since this event at the latest, the metaverse has been considered the latest paradigm shift on the internet and has become one of the most well-known technological concepts. Simply put, a metaverse is a VR world in a VR universe where you can build avatars/appearances, communities, alternate realities or lifestyles. Each brand can create its own virtual world, so there can be any number of metaverses. In the same way, smaller brands can rent or lease spaces in other companies’ virtual worlds. It can theoretically replicate virtually any activity that is possible in the real world and can be used in areas such as education, entertainment, gaming, business, e-commerce, research and social gatherings.

How do brands shape the metaverse?

While there are many metaverses out there, we’ve listed the top three metaverses that are currently making a splash and have gained a significant advantage in the virtual world space. These metaverses are open to selling, renting and sharing their virtual space with other businesses and users.

  • Meta Horizon Worlds
    The virtual worlds from Meta (formerly Facebook) are collectively referred to as Horizon Worlds. These worlds can only be accessed via Meta headsets (formerly Oculus headsets), which are also their main product. Mark Zuckerberg said that his company is trying to extend the experience to contact lenses and also create holographic experiences in the distant future. In Horizon Worlds, users can create their 3D avatar and interact with others, play games, buy digital products or teleport to different experiences within their world. Horizon Worlds are centralized virtual spaces.
  • Sandbox
    Sandbox is one of the oldest decentralized gaming metaverses. It originated as a video game in 2018 and developed into a virtual world. Many NFT investors are connected to it. Users can buy and build on land in the sandbox metaverse with crypto called SAND/Land. Users can also sell or rent their land, connect with other players and socialize. Sandbox is a highly credible metaverse, and many early users now own real estate there. Since their land and tokens are considered finite, the price of their real estate has skyrocketed in recent years .
  • Decentraland
    Decentraland is one of the most popular metaverses today. It is characterized by its large cities and NFT plots. In Decentraland, anyone can purchase NFT properties and create something on this open platform. Users can access the platform from their personal PC and interact and play games in this world alongside digital real estate. Decentraland is currently working on implementing interactive apps, in-world payment and peer-to-peer communication for its users. Brands such as Samsung, Adidas, Atari and Prager metis own properties in Decentraland for various purposes to create NFT-exclusive content, virtual showrooms, etc.

Although these three metaverses stand out, there are many other metaverses that exist today and offer room for new developments. Other metaverses such as Genesis World or Treeverse all have their own unique take on NFTs, land and world building mechanics. As a technology service provider, we believe that part of the future lies in the metaverse, and we want to help you find your place in the virtual worlds.

Why should you as a brand take advantage of Metaverse technology?

In principle, most metaverses are of interest to companies for marketing and PR, but there are also a variety of possible uses in the fields of education, research, training and simulation.

Companies such as Nvidia believe that metaverse simulations will help in the development of sustainable production and logistics solutions. Microsoft uses its Mesh platform to create XR applications that integrate the real world into the immersive world.

Nike is also making its way into the virtual world, filing a patent for virtual goods and looking for ways to create virtual retail environments to sell these digital products. Nike also recently acquired RTFKT, which is developing virtual sneakers for the Metaverse.

Sotheby’s recently launched its virtual gallery for curated digital art in Decentraland. Many virtual exhibition spaces, art collections, fashion shows and other entertainment offerings are finding their way into the metaverse. Recently, many artists, influencers and content creators have used NFTS and blockchain to trade their art and content.

So there’s no doubt that brands are increasingly entering the metaverse and using it to their advantage. If you’re thinking about getting your company, product or idea into the metaverse, here’s what you should do now:

What can you do now?

  • Define your target group in the metaverse
    Before you enter the virtual world, you should examine your audience and your customers in detail. You should know the characteristics and personality of the users of the metaverse to make them your target group. Check how likely it is that your audience in the real world will switch to the metaverse in the coming years.
  • Observe the competition.
    You should also study how your competitors’ brands want to enter the virtual world. Always be ready to test and learn how the brands in the metaverse are now using it for their growth. We support you here with monitoring and regular workshops.
  • Define possible usage scenarios
    Entering the virtual world is not always just about expanding your business into the virtual space. Look for opportunities and applications that will accelerate your entry into the virtual space. This could be anything from the sustainability of your business, building digital metaverse content or the youth side of your brand. We are happy to help you find suitable usage scenarios.
  • Plan your entry.
    So once you have decided to enter the metaverse, formulate how you want to present your brand in the metaverse. Choose the best way to comfortably extend your brand identity to the users of the metaverse. We support you with a metaverse strategy and contacts to the most important players.
  • Keep the balance
    Virtual worlds are very captivating by nature, but they also come with risks. So be prepared to manage your brand according to risk and opportunity.

Typical entry scenarios for brands and companies in the metaverse

Before you invest heavily in the metaverse, you should do your homework and get started by learning and iterating. That’s why we’ve listed a few ways brands are already successfully taking advantage of metaverse technology.

  • Virtual events
    You can rent a room in the Horizon Worlds, in the Decentraland or in the Sandbox to host your virtual event. Or you can participate as a sponsor or guest in other virtual events planned in the Metaverse.
  • Influencer and community marketing
    You can partner with any influencer or content creator who already has an established community in the metaverse to market your brand. Through them, you can explore your audience and understand the scope of your business there.
  • Purchase branded locations, avatars or games
    You can purchase NFT-based branded locations, games or avatars and start establishing your presence in the Metaverse.
  • Sponsor metaverse content
    You can collaborate with brands and communities represented in the metaverse and support them in the creation of their content. Your brand’s visibility in the virtual world will grow along with your content.

The Metaverse represents not only a technological innovation, but also a transformative way in which we interact with our customers and partners. At DMG, we see the metaverse as a way to create immersive experiences that blur the boundaries between the physical and digital worlds. Our subject matter experts are ready to help companies seize the opportunities of the metaverse and develop customized solutions that pave the way for a new era of digital interaction.

Till Neitzke

Conclusion: The potential of the metaverse for brands and companies

The Metaverse provides an exciting and transformative platform for brands and businesses to discover innovative ways of interacting and engaging. It not only opens up new business opportunities, but also enables a deeper understanding of the needs and desires of the target audience. Through creative applications, interactive events and the use of technologies such as NFTs, companies can significantly increase their brand presence and build a loyal community.

To realize the full potential of the metaverse, it is crucial to take the right approach, learn continuously and respond flexibly to the ever-changing landscape. Brands that are willing to invest in this digital future and adapt their strategies accordingly will not only succeed in the virtual world, but also secure their influence and relevance in the overall market in the long term. The metaverse is more than just a trend – it is a new reality that will permanently change the way businesses operate and interact.

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