How Spending In The Metaverse Will Affect Brands
Metaverse Will Affect Brands
The Brands and Metaverse | Web 3.0 - KOOP360
Brands are going to make their presence more prominent in Metaverse and there is going to be a spike in investments.
Business is changing and so are the customers. A majority of the customers around the world now have an online presence. They spend a significant amount of time online. They are either working, spending time on various social media platforms, or shopping something online. They can be found searching for things online, be it something related to their work or something that they need to buy. So the brands have no choice but to showcase themselves where their customers are. Online.
Brands are moving forward to advertising and marketing digitally and serving their target audience on the various different platforms where they are most active. The world is entering the third generation of the internet, Web 3.0. There are brilliant technological advancements such as the use of Artificial Intelligence (AI) and machine learning (ML). The future of technology is going to be something that no one has ever imagined.
What is the Metaverse and how will it impact Consumers
Metaverse is a parallel 3D virtual world created by the company Meta (previously known as Facebook). The users can navigate the ecosystem according to their own choice using a VR or virtual reality headset. Studies show that a significant amount of consumers will have their presence in the metaverse by the next five years. They will be creating their digital avatars, playing games, and engaging in fun activities digitally. All of this will make way for a huge market that will wait to be tapped into.
Brands will make their presence in the metaverse, advertising and selling exactly what their target audience wants. Not only that, the brands will do even more with the help of technology. The face of online shopping is going to change forever.
What do the experts have to say?
Leading consulting firm McKinsey & Co has stated in their report that businesses and consumers alike will be spending up to USD 5 trillion globally in the metaverse by 2030. E-commerce in the metaverse will be comprised from USD 2 trillion to USD 2.6 trillion. The report also said that virtual advertising will comprise another USD 144 billion to USD 206 billion. The spending on artificial intelligence last year totaled around USD 93 billion only.
The number of consumers in this virtual reality platform has grown exponentially and is likely to grow even more in the upcoming years. The study by McKinsey has been conducted not only just in the US but data has been collected from 21 different countries.
Metaverse has been defined by McKinsey as “primarily online platforms and experiences that not only occur in the virtual reality or require interoperability between the virtual worlds.” The metaverse according to experts will be used in doing five types of daily activities: gaming, socializing, fitness, commerce, and remote learning.
In the study, 79% of the respondents said that they have made a purchase in the metaverse. 47% of the respondents said that they had purchased something inside the games. 37% of the people said that they bought virtual cosmetic items and 33% said that they purchased real-world items.
WHAT DOES THE SURVEY SIGNIFY
The way the brands today are experimenting in the metaverse is a signal about how advertising and marketing are going to look in the upcoming future. The face of marketing is going to change. There is going to be a very different set of skills required for advertising in the metaverse.
In this McKinsey study, 95% of the executives have said that they believe in the metaverse making a positive impact on their respective industries in the next five to ten years. 25% of them said that they expect the metaverse to drive 15% of their organization’s total margin growth in the next five years.
Tech and clothing companies are teaming up and leaning towards the idea of ‘twinning’. This concept involves the users wearing the same clothes in the physical world as their digital avatars. A leading clothing brand sold a black beanie cap in its store after becoming popular on a metaverse platform. An executive of the brand said that there is going to be a trend where people will want to wear the same clothes in the physical world as their digital avatars.
What are NFTs and how are they related to the Metaverse
NFTs are perhaps the backbone of the metaverse. Non-fungible tokens or NFTs are a digital asset class with a unique identification code. NFTs cannot be duplicated or replicated and are very different from traditional digital items. These can be in the form of images, videos, artworks, songs, and more. These are decentralized and are based on the blockchain.
All the collectibles available in the metaverse are, after all, NFTs. The spending of the consumers in the metaverse where they will buy digital collectibles are in fact NFTs. So, digital artists and businesses have a good chance of making it big in the metaverse, provided their strategies are in place.
A great platform for developing NFTs is Koop360. This is an excellent decentralized, open-source, and customized BOT platform. It is dedicated to the development of the Metaverse ecosystem and NFTs. Various Artificial Intelligence and Machine Learning tools are used in the process. Newcomer programmers are also welcome in the platform and can think of innovative development ideas and earn money, rewards, and incentives.
The face of technology and business is going to change forever with the development of the metaverse. Brands are going to make their presence more prominent and there is going to be a spike in investments. NFTs are also going to be the next big thing in the upcoming years. If you are interested in developing NFTs and then selling them, Koop360 will provide you with the platform for the same. You do not require a great amount of coding knowledge and you can design exceptional NFT tokens or NFT digital art easily.