The metaverse may take a new place in the retail consumer environment to become more of a platform for business communication.
Consumers’ attraction to the modern metaverse is indicative of significant changes in the way people use technology. If the metauniverse becomes fully operational, marketers definitely shouldn’t miss out, says Marcel Hollerbach, co-founder and chief innovation officer Productsupa product-to-consumer (P2C) platform firm.
Hollerbach suggests that this may well be at the center of change in how we conduct business in the workplace and how we communicate with colleagues to complete daily tasks.
According to some early industry reports, consumers care about and are expanding their knowledge of the metaverse. In fact, 47% of US consumers can relatively accurately identify the metaverse.
Therefore, it is important for marketers to learn how to navigate the metaverse in order to reach consumers. Industry observers estimate that by 2026, at least 25% of people worldwide will spend at least one hour per day in the metaverse for digital activities, including work, shopping, education, social interaction or entertainment.
If this prediction comes true, organizations will need to understand the mechanisms of the metauniverse and how to promote consumers within it. Just like the Dot Com era, companies that don’t know how to go to market with this new technology will be seen as laggards.
“There are two things that brands need to know about introducing their products into the metaverse. First, ignore the pessimistic perspective that the metauniverse is dying and unprofitable. Second, brands are still heavily involved in the metaverse for product sales and general workplace efficiency,” Hollerbach said.
Business use
Meike Jordan, Head of Human Resources and Culture at Productsup, predicts that the metaverse will fundamentally change the 9-to-5 routine in the workplace. New technology will significantly change the way teams communicate in a post-pandemic world.
Creating a virtual space for employees to interact both in the office and in remote locations is only the surface level. Over time, the metaverse could change the way employees conduct business, receive training and communicate with others both internally and externally, Jordan added.
However, the metaverse as a business tool is far from standing on solid ground. 2022 was a year of experimentation for marketers, and that will likely not change in 2023.
Many advertisers have had to make efforts to find new ways to communicate with their audience. According to Nancy Smith, CEO of analytical company Analytic Partners marketers also had to contend with inflation, economic uncertainty, and ever-changing data and privacy regulations.
This year, she predicts that the metaverse will not scale, pushing brands back to real-life experiences. Although many marketers have felt the need to enter the metaverse to explore and experiment, virtual channels will not be the right way to engage customers in 2023.
“For more than two years, audiences have felt a lack of human connection, and in the coming year, brands that can leverage an engaging personal experience will benefit,” he said.
Opportunities are still emerging
Brands also need to know that the meta universe is not a quick profit opportunity, says Johan Lillieros, General Manager and Senior Commercial Advisor Avensia a company that provides strategic strategies for multi-channel commerce.
“Developing a metaverse is a long-term investment. Generations of young people will be the driving forces, and they will grow as this generation becomes a stronger economic force,” said Lillieros.
It will also affect the older generations as the young people introduce them to the technology, he added. He believes that older generations will use technology around the metaverse or the metaverse itself for experiences, travel/tourism, health and shopping.
Liljeros sees brands increasing sales of consumer goods in the metaverse. Possibilities include selling digital images of products such as fashion and makeup, buying ad space in games or AR environments where you can now purchase airspace for your ad or coupon.
“Not only will the audience continue to attract retailers and brands, but the metaverse will also create a more immersive and social shopping experience where you can literally shop with your friends and loved ones,” he said.
Misled or lost technology?
Mark Zuckerberg announced Facebook’s vision of a metaverse in October 2021. This vision is still many years away from its development. According to Hollerbach, Meta’s recent moves have reinforced the narrative that the meta universe is doomed, given Meta’s losses in the stock market [з жовтня 2021 року] and [недавні] significant layoffs in the company.
“However, brands must recognize that the metaverse is a major digital transition, much like the Internet. After the creation of the metaverse, the first users will receive the benefits,” he said. “Despite all of this, Meta has just announced that it will spend 20% of its spending in 2023 on the development of Reality Labs, which is Meta’s metauniverse arm.”
From a company culture perspective, the metauniverse offers a possible solution to a critical issue that has plagued workplaces since the pandemic began — employee engagement, Hollerbach said. Most employees are tired of looking at and talking to a screen, with virtually no opportunity to interact with each other.
“Through the capabilities of the metaverse, normal operations can continue to be conducted remotely, but ‘metaversal’ capabilities offer the opportunity for greater employee interaction,” he countered.
Factors for fixing marketers
According to Hollerbach, marketers and retailers are recognizing the potential of the metaverse. About 56% of media buyers are investing in or considering metauniverse advertising and marketing initiatives.
He suggested that the hesitancy of 44% of marketers and retailers to fully embed their organization and products in the metaverse is a wait-and-see strategy for what the metaverse might do to their product. There is still a lack of a standard way to engage retailers as the meta universe is not yet fully developed.
One of the biggest benefits that marketers and retailers can expect from investing in the meta universe is having complete control over a product’s online presence. Customers could interact with the products, explore the brand’s mission and goals, and even play virtual games.
“Currently, the technology to create such an immersive effect is still under development. But that’s the biggest benefit I see for retailers and marketers,” Hollerbach reasoned.
Changing traditional workplace operations
Hollerbach is confident that after two years of using video conferencing technologies like Zoom, the ability to interact with other employees in the metaverse will be a welcome addition to the organization’s tech stack. It will offer a level of personalization for colleagues.
But how organizations implement the metauniverse is a critically important process. The execution must be carried out methodically, in contrast to what happened at the beginning of the pandemic.
“It should be used in a way that provides real value to employees. “Almost a year after the first announcement of the metaverse, there are still several concrete examples of consistent use of the metaverse by companies,” he noted.
By slowly building it into the basic structure of remote work and taking the time to understand what works and what doesn’t, employees will become more accustomed to using the technology and more receptive to its purpose. The goal from the beginning was to increase the level of communication between people.
“Achieving this goal in the workplace, the metauniverse aims to combat employee burnout and video conferencing burnout, and help remote or hybrid workers feel more connected to their organizations,” he said.
Budget and deadlines
The metauniverse is still developing key technologies to make the final product possible. According to Hollerbach, such technologies as 5G, artificial intelligence, peripheral computing augmented reality and virtual reality are still not advanced enough to create a virtual environment similar to the one Zuckerberg depicted in 2021.
Another aspect that is often overlooked is that the technology must be sold at an affordable price, he advised. Otherwise, adoption will be a lengthy process due to budget constraints.
Market conditions force companies to focus more on core business rather than experimentation. This is the main reason for the slow adoption of the metaverse, he warned.
“Some experts suggest the year 2040 is when we will be able to see what the metaverse is capable of. I believe that this is a fair assessment – concluded Kostyantyn Kryvopust.
