With the Metaverse opportunity exceeding $1 trillion, it’s time for brands to take the plunge

JP Morgan is betting on the metaverse, calling it a $1 trillion annual opportunity in a recent report – and it’s putting its money where its mouth is, opening the virtual world’s first bank. It is a strong indicator of the opportunities for brands and companies in the growing decentralized metaverse economy if they strategically enter this new space.

How does it look? Yonatan Raz-Fridman, CEO of Supersocial and host of the Into the Metaverse podcast, sat down with Marty Berman, VP North America/LATAM for LandVault to dive into what this means for brands now deciding to establish a presence in blockchain-based metaverse- as platforms – from gaining a foothold to developing a long-term metaverse strategy.

– Advertising –

“So many brands currently see the metaverse as an extension of the Internet, the next version of the Internet, but it’s just not there yet,” Berman explained. “It’s not an opportunity for scale and scope right now. There aren’t 70 million consumers there. It’s about quality over quantity – it’s about inviting consumers to experience your brand in new and exciting ways that you simply can’t can do in other media.

The decentralized metaverse, which includes platforms such as Decentraland, Sandbox, Somnium Space, TCG World and many more, is community driven and built on blockchain ownership. They’re digital experiences that originally evolved from playgrounds like Minecraft, but have come to encompass a variety of worlds and social events, whether you’re on a VR headset or in a browser.

From a decentralized perspective, the metaverse consists of a wide variety of platforms, and the number of platforms will only increase in the coming years. What’s happening right now is an opportunity within these ecosystems to define how much land is available for businesses to buy or lease, and then to value that portion of virtual real estate.

It’s important to understand that these are real economies, Berman said, and land values ​​will fluctuate, especially here at first. For this reason, brands should view land as a long-term asset or consider leasing short or long term to test and learn. Leasing also means that brands are not locked into one platform as the market grows and new platforms are launched. LandVault takes the long term, buying land and leasing it, believing that ownership of land is what will ultimately create value from an economic perspective.

Best practices for brands ready to take the plunge

What does a branded metaverse experience look like? Instead of creating replicas of real-world encounters in the metaverse, it creates what Berman calls “the digital experience.”

“From a best practices perspective, you have to take off that web2 lens and really look at it from a web3 perspective: what is the platform capable of?” Berman said. “The question is how do we push the boundaries of technology and each platform’s capabilities to be able to enjoy and take advantage of these new experiences?”

It takes a deep dive to understand what your platform can do and how you can leverage it to represent your brand. You’re going to have to figure out how you can measure this in terms of success from this Web3 lens, how you can leverage current initiatives in this space and bring them to life in a way that illuminates your brand in a three-dimensional way .

Brands can engage consumers with entirely new metaverse opportunities, such as quests with rewards, a place to earn or buy wearables or NFTs, a place to socialize and play with other brand fans. It’s especially important to always keep the end goal in mind when creating: What keeps users coming back after their first visit? From this perspective, it’s about pushing the boundaries of technology and each platform’s capabilities to find completely new ways to excite a visiting consumer.

One of the most effective strategies for driving consumers to new metaverse experiences is to create them as part of an ongoing initiative. Berman pointed to the success of Mastercard’s Pride Plaza, which Ad Age hailed as one of the best metaverse releases of June 2022.

Why brands need to start now

Establishing a presence in the metaverse is a long-term commitment, Berman said. It is also a completely new challenge. You move from a point of view of selling to consumers to inviting you to connect in a whole new world and build an interactive narrative rather than a one-way conversation. It takes time to click.

“As I like to say, aim small and miss the small right now,” says Berman. “Right now is the opportunity to get in and before the consumers. Think of it as an 18-24 month journey where you take your brand and your team to understand what consumers interact with. Before it takes off, you want to be able to understand what engages your consumers so you can iterate, test and learn as you continue to learn from experience.

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