What is the Metaverse?

In case your first question is what is the Metaverse, we’ve got you covered: the Metaverse is a 3D, digital environment where individuals can explore, socialize, game and/or shop through an avatar. If your kids spend time in Roblox or Minecraft, or you loved the Sims, you’re 10 steps ahead – those are Metaverses, as are the virtual lands built for games like Fortnite and Animal Crossing.

How does the Metaverse work?

That said, the Metaverses that are getting brands and investors the most excited today are those that are run on blockchain technology and open – you can buy and sell land in them, then operate that land as you would in a real city. Our client, Tokens.com, for example, has purchased a land parcel in Decentraland, that will be used to build the Rodeo Drive of the Metaverse, hosting fashion events and leasing retail space for luxury real-world brands (as explained by the Wall Street Journal, the New York Post and Insider). Assets owned by companies or individuals in the Metaverse can generate real revenue for their owners.

How can brands get involved?

For brands like Gucci, Jimmy Choo, Nike and Balenciaga, the lure of reaching a new audience who is consuming in a new way has led to quick moves to Metaverses. These iconic brands are selling items as NFTs, hosting events and advertising in digital worlds.

2022 will only bring more brand interaction in the Metaverse. Expect to see virtual flagships, NFTs bought in the Metaverse that have a correlation with a physical good, and avatars becoming means for self-expression through fashion NFTs. Just as brands couldn’t ignore social media and its impact on marketing and commerce 10 years ago, ignoring the impact of blockchain and the Metaverse will leave legacy brands behind. Expect to see a C-level Metaverse lead popping up at major brands in the years ahead, and prepare to have your own experts who can help navigate this quickly shifting digital world.

There are currently more than 3BN gamers who spend over $100BN per year in Metaverses – ignore the opportunity to capture their mindshare (and share of their wallet) at your own peril!

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