Writer and entrepreneur Matthew Ball describe the metaverse as a network of ‚Äúpersistent, massively scaled real-time rendered 3D worlds and simulations across interoperable networks.‚Äù
Simply put, the metaverse is a digital realm that combines social media, gaming, augmented reality, virtual reality and cryptocurrencies. It allows users to interact in a shared immersive virtual environment.
The metaverse is:
Expansive: There are only a few limitations to users and applications
Creator-focused: User-generated content plays a large role
Persistent: It is always on, regardless of time and place
Web2 vs Web3 Metaverse
While many metaverses and use cases are still being built, their functionality benefits differ for both, Web2 and Web3 metaverses.
The Web2 metaverses primarily are about large tech giants and their ad-supported business models. It is centralized. Revenue is earned by renting ad spaces and running targeted ads. Centralization and audience targeting seem to continue in a Web2 metaverse while they start to test blockchain-based pilots. One of the best examples of it is Facebook which last year rebranded itself as "Meta" to establish its focus on the Metaverse. Here are some more examples:
Facebook and Instagram are working on plans to let users create, showcase, and sell NFTs on their platforms.
The core tenets of Web3 are decentralization and personal ownership of data and assets. With more blockchain-enabled products being created, these principles will enable assets in the metaverse to be transferrable‚Äî be it anything as simple as gaming outfits or metaverse characters. Here are a few good examples:
We‚Äôve pointed out that the metaverse is expansive and creator-focused. These characteristics are more likely to be fuelled by an ownership economy to build and monetize unique experiences.
There could be avatars, games, conferences and other community events powered and governed by digital tokens holders. For example, rapper Snoop Dogg recently released a music video featuring a virtual avatar of himself in the metaverse. This was set in a space called ‚Äúthe Snoopverse‚Äù.
In this user-first economy, such events allow brands to find new data pipelines and build engagement.
Some Web3 Metaverse Examples
Sandbox: A virtual gaming platform where users build and own digital assets
Decentraland: A 3D platform where users buy virtual plots of land as NFTs
Somnium Space: An open-source platform in which users purchase digital land, build homes, play games, and host live events
Manticore Games: A digital community arcade with user-created games and activities
Why Marketers Shouldn‚Äôt Ignore the Metaverse
There is a significant growth in the number of people joining the Web2 metaverse.
Studies show that the global metaverse market was USD 22.79 billion in 2021. It is expected to grow at a compound annual growth rate of 39.8% from 2022-2030.
This growth will significantly impact advertising, e-commerce, and gaming budgets. There will be a steep rise in the number of eyeballs to advertise to. Marketers will have to find new ways to engage current and prospective users.
If you're a marketer or a growth leader, making sense of this data is becoming an increasing priority. To discover more, sign-up with Blaze today. Our Web3 tools can help you unlock the true potential of the metaverse for your brand.