In consumer purchasing decisions, the appeal often lies in the blend of product excellence and brand reputation. Take Nike, its success lies in combining a trendy image with comfort and top-notch materials.
Beyond just the brand, consumers are attracted to the tactile experience, the durability, and sustainability of its products.
There is still enough space for lesser-known brands, which may not be widely recognised but succeed by offering products of superior quality and comfort.
However, when it comes to the metaverse, the scenario changes. Picture this: Alex, a Gen Alpha boy, is preparing for his first date in the metaverse. He decided to go with a virtual suit by Gucci, a statement of style that speaks volumes on his behalf. And his shoes?
Pure Louis Vuitton elegance, making every virtual step a mark of sophistication.
On his wrist is a virtual Rolex, adding a dash of luxury. And his ride for the evening? A Ferrari, virtual yet breathtaking, its sleek design turning heads in the digital world. The destination: a virtual beach where the sunset seems almost real, surrounded by the beauty of a digitally crafted seascape.
In this digital world, it’s all about creating moments that transcend the virtual, making Alex’s virtual first date a dazzling experience.
In this near virtual future, it’s only the brand that makes the moment.
From Web 1.0 and 2.0 to the Metaverse Era To grasp the future direction of branding in the metaverse and set expectations, it’s important to look back at the directions of Web3, noting its similarities to the paths taken by Web 1.0 and Web 2.0 Each of these stages in the web’s history began with an initial surge of excitement, followed by a period of slowdown, and eventually expanded into wider adoption and integration.
Web 1.0’s growth in the mid-1990s led to the dot-com bubble, which eventually burst, yet the web stabilised and continued to develop.
Similarly, Web 2.0, introduced in 2004, initially caused a stir with its new interactive capabilities, but faced challenges such as privacy concerns, only to later become integral to our daily online experiences.
Now, Web 3, peaking in interest in December 2021, is mirroring this pattern. It rose rapidly as a solution to Web 2.0’s limitations, but the excitement has tempered as it faces its own set of challenges in building a decentralised internet. However, the current trend indicates that it’s gearing up for a comeback, and it’s going to be big.
As we look towards 2024, the metaverse market size is anticipated to experience a slight decrease from 2023, reaching a value of $74 billion. This reduction can be partly attributed to the fact that the metaverse is still in its developmental stages and also the current global economic recession.
However, this will not lead to a substantial decline. In fact, the metaverse market is forecasted to expand rapidly, with an annual growth rate of 38 per cent from 2024 to 2030.
Despite a forecasted downturn in the overall metaverse market, a notable increase in infrastructural investments is anticipated, led by industry giants, pouring billions of dollars into its development. Meta, Microsoft, NVIDIA, Epic Games and Roblox are investing heavily in developing the computing resources and networks that will be required to support the metaverse, preparing a powerful and scalable infrastructure.
These substantial investments, coupled with the advancement of AI and an anticipated economic recovery around 2025, are expected to rejuvenate the metaverse market. As a result, the market is projected to surge, reaching an estimated $508 billion by 2030.
This growth will open up myriad opportunities for businesses in commerce, entertainment and education. More companies will likely capitalise on this by selling virtual goods and services, engaging in metaverse advertising, and having no choice but to develop innovative business models adaptive to this virtual world.
This means we need to prepare for the metaverse to become a regular part of our lives, changing how we hang out, work, play, and even see the world.
The metaverse offers a vast platform not only for major corporations but also for innovators, creators and anyone eager to leave their mark. Whether you represent a brand, a creative agency, or are simply an individual with grand ideas, this can be your opportunity.
Much like the inevitable adoption of social media and Web 2.0 by businesses, the metaverse and Web 3 are poised to become essential platforms for participation.
The metaverse’s complexity and newness create a niche for agencies, in particular, as that can navigate its complications and guide brands and businesses effectively.
Now is a golden opportunity to engage with the metaverse, while it’s still less crowded. Rather than watching from the sidelines, take the moment to act and be part of this exciting evolution.
By Dave Ansari, Business Strategist at Dream Farm Agency
