These brands are betting big on the metaverse
Global metaverse revenue opportunities on things like live events, ads, social commerce, and hardware are expected to reach over $1 trillion according to JP Morganand 800 billion dollars according to Bloomberg. The market for game makers and gaming hardware alone could exceed $400 billion.
Gaming and entertainment brands, as well as some fashion brands, are paving the way for brands looking to navigate the metaverse. Meanwhile, Google has contributed nearly $40 million to a private equity fund for all metaverse projects, and Walmart has filed dozens of metaverse trademark applications since December 2021. And big brands like Nike, Metaverse and Disney create their own metaverse business units.
There is already 1 billion active augmented reality (AR) users worldwide, and that number will nearly double by 2024. Additionally, 56 percent of influencers say they currently participate in the metaverse. As marketers continue to break through the noise consumers face 24/7, understanding and embracing new immersive technologies can be an effective way to engage and delight audiences.
According to harvard business review, brands looking to enter the metaverse must first determine their place in it and balance the risks and rewards of entering the digital landscape. Then they need to figure out if and how much of their target audience is spending time in the metaverse and adjust their approach accordingly. The metaverse may be the next iteration of how we use the internet to connect, communicate, and transact. So it’s also important for brands to stay in “test and learn” mode and stay nimble as they venture into this uncharted territory.
Ahead, check out a roundup of some of the brands that have embraced the Metaverse so far — or are considering doing so in the near future — and how they’ve handled some of the considerations raised by HBR.
Autodesk developers have recently started using its software to design and build virtual worlds for entertainment and games. It now offers several products with the aim of rendering 3D animation, constructing virtual buildings, and creating virtual reality (VR) and augmented reality (AR) landscapes. Revenue from this segment alone grew 10% year-over-year (YOY) in Q3 2021, further indicating the possibility that Autodesk will soon be the main competitor for metaverse developers.
In the Italian fashion brand’s metaverse retail store, digital shoppers won’t buy clothes but instead participate in gaming experiences with the chance to accumulate QR codes, which can then be used to make purchases. purchases in physical Benetton stores. According to WWD.
TikTok’s parent company is in beta testing of its own metaverse called party island. Although ByteDance refuses to label it a “metaverse”, Party Island is conceptually a metaverse. Users can create personal avatars, chat in a virtual world, and plan real-world events. The company spent $1.4 billion to acquire VR headset maker Pico, cementing its entry into the Metaverse space as well as a number of other investments within the Metaverse supply chain.
Google began investing in the Metaverse with a $39.5 million contribution to a private equity fund for all Metaverse projects. Despite the failure of its AR glasses in 2014, CEO Sundar Pichai has since spoken frequently about the company’s continued interest in AR. It can even make services like YouTube and Maps available within the virtual landscape.
Gucci and Roblox
In May 2021, Gucci launched the Gucci Garden, a two-week art installation aimed at increasing brand awareness among young customers, inside Roblox. Upon entering the garden, visitors could view, try on, and purchase Gucci digital products to dress up their pristine, sexless avatars before exploring the garden’s themed rooms.
JPMorgan Chase and Decentraland
The largest bank in the United States and the seventh largest in the world recently took steps to modernize its brand by designing and launching a virtual world lounge based on the Decentraland blockchain called Onyx. The opening coincided with the release of its Metaverse Growth Opportunities report, which revealed that the Metaverse market opportunity will reach over $1 trillion in annual revenue. He said the risk “of being left behind is worth the extra investment needed to get started” in the race to occupy a space in the metaverse.
Few companies are boldly pushing for a future metaverse like Meta, formerly Facebook, is. Mark Zuckerberg shifted the company’s focus almost entirely to the Metaverse and committed an initial $10 billion investment in development, and filed several patents related to technology that uses Metaverse users’ biometric data to generate what they see in the virtual landscape. The company intends to monetize the metaverse through virtual commerce and advertising revenue streams.
Microsoft aims to expand its dominance in the business software market by integrating the Internet of Things into the metaverse, as well as digital twins and mixed reality. For example, to troubleshoot, boost collaboration and interact directly with their product spaces, Microsoft Dynamics 365 Connected Spaces will allow professionals to recreate and visit their points of sale or factories during virtual meetings.
Additionally, the company took a major step into the social metaverse space in January when it announced its acquisition of Activision Blizzard for $69 billionwhich would give the company access to 400 million monthly active players.
Microsoft’s Xbox celebrated its 20th anniversary with a 3D virtual museum where players could customize their own avatar and POV camera to delve into the history of the franchise’s consoles, games, and infamous mistakes.
It’s no secret that the Metaverse requires a monumental amount of processing power. This is where Nvidia has a head start in the metaverse. Chief Executive Jensen Huang said the Metaverse could save money and resources while reducing waste by simulating factories, factories, power grids and other infrastructure products before they are built. in the real world.
Qualcomm recently announced a new partnership with Microsoft to develop new technology that makes it easier for consumers and businesses to adopt AR. The company’s chief executive mentioned that its Snapdragon semiconductor products, which already power a range of augmented and VR devices including Meta’s Oculus Quest, will dominate the next generation of the Internet of Things and the Metaverse.
Founded in 2004, the online entertainment platform that allows users to develop games has approximately 47 million daily active users (including about half of American children), 9.5 million developers, its own digital currency and several unique virtual experiences. The company recently purchased Guilded, a platform designed to connect diverse gaming communities.
Selfridges and Pokemon
To commemorate its 25th anniversary in 2021, Pokémon teamed up with Selfridges, designer Charli Cohen and Yahoo Ryot Lab, to build a virtual city called Electric/City where fans could purchase exclusive virtual and physical Pokémon merchandise. Visitors were able to create personalized avatars, dress them up and view them through Snapchat’s AR body tracking lens and share them on social media and other virtual platforms.
The Canadian e-commerce company will play a vital role in monetizing the metaverse. He will be responsible for digitizing assets, currency, and the ability of content creators to get paid. In 2021, he made two moves giving him a foothold in the metaverse’s possible business aspirations. First, it acquired the AR Primer app, which will allow users to see first-hand the effects of a purchase or project in their space, a powerful tool that will allow subscribers to create interactive experiences. purchase and stores in the metaverse. He also launched an NFT platform allowing digital creators, the first of which was the Chicago Bulls, to sell art and other content directly to consumers.
Several other companies are beginning to toy with the idea of a future metaverse by filing trademark applications. Brands like Victoria’s Secret, L’Oreal and McDonald’s and even the now defunct Blockbuster have all filed trademark applications for online retail services offering virtual food, brand names, product names , etc Premier League champions Manchester City and new partner Sony are building their iconic home, Etihad Stadium, in the metaverse using image analysis and skeletal tracking technology from Sony subsidiary Hawk-Eye.