Metaverse is the new media
The metaverse is an immersive 3D world, connecting avatars, universes, and digital assets. Whilst similar experiential layers have existed in a web 2.0 world, the development of web 3.0 and gaming technologies has provided significant input to the foundation and enhancement of ever more engaging platforms.
The key creators in the metaverse include both incumbent tech companies and new players. Facebook’s recent rebranding to Meta signalled their future area of focus, reflecting common attitudes in the tech community. Key builders in the metaverse space include Decentraland, The Sandbox and Roblox. Decentraland is a 3D virtual world browser, with users able to buy virtual plots of land with the MANA cryptocurrency, raising $26m in its initial coin offering in 2017. Sandbox has created a similar structure, transitioning from a mobile game to a full virtual world after its acquisition by Animoca brands in 2018. Roblox operates a different model, allowing builders to create their own games within the ecosystem, utilising a digital currency but not on the blockchain. Roblox has over 164m monthly active users, including over half of all children under 16. Whether utilising web 2.0 or web 3.0 based technologies, the user growth of metaverse centric platforms has been one of the most significant technology developments over the past few years.
Platforms such as Decentraland and The Sandbox have seen exceptional partnership developments with brands. Decentraland has seen property purchases from Samsung, Adidas, PWC and Sotheby’s even holding a metaverse auction in March 2022. The Sandbox has secured over 150 partnerships, with Snoop Dogg, The Walking Dead and Atari all developing promotional relationships with the platform. Brands recognise the opportunity to engage current customers and gain access to new audiences utilising non-traditional avenues. Sandbox has in excess of 1m monthly active users, with a ‘significant proportion’ between the ages of 13-24 (VentureBeat 2022). This ability to target younger customers through new promotional vehicles is extremely valuable to brands. With the user base of these platforms set to grow strongly over the coming years, the metaverse could become the preeminent marketing vehicle.
The metaverse has deep and wide ranging applications in sport and media. Fans can build avatars, interact directly with their stars, and experience matches/concerts at home as if they were in the stadium. In 2020, 46 million people watched Travis Scots’ Astronomical Tour in Fortnight, the first clear indication of mass metaverse adoption. In 2022, AC Milan agreed a partnership with the Nemesis metaverse, launching the platform in a game against Fiorentina. The club claim metaverse based content distribution, will form a ‘key part’ of their MENA distribution strategy. Bucking the trend of slow tech adoption, sporting rights holders have quickly seen the value of the metaverse in mobilising current and new audiences.