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Creating value in the Metaverse

Are you bored of hearing about the Metaverse? Are you sceptical about the role it will play in your life? Are you just straight up against the idea of a virtual world taking over? All are common and reasonable concerns, BUT whether you like it or not, the Metaverse is too big for you to ignore.


Now if that doesn't spark your interest, I am not sure what will.


McKinsey has produced a comprehensive report that outlines the value creation expected in the Metaverse, the opportunities, and how to start incorporating the Metaverse into business strategy. Here are our key takeaways.


So why are people so confident that the Metaverse will create considerable value?


Most people who have embraced the Metaverse believe it is the new digital disruption that we have seen a few times before, and consequently, they have FOMO. Such disruptions include the dawn of the internet, social media, cloud, and mobiles. People have seen the riches generated by these disruptive technologies, and now they want to be part of it. And who can blame them?


The new disruptive trend?


Unlike other recent digital innovations that have gained notoriety, the Metaverse undoubtedly has real-life benefits that we have seen for early users of the technology. This characteristic is common for all major disruptive technological advancements. The Metaverse benefits are more tangible than other recent innovations and point to a much large ecosystem. The Metaverse incorporates many of the recent technologies that we have seen rapidly expand involves such as blockchain, cryptos, and NFTs.


What is so exciting about the Metaverse is that it has the potential to impact everything, including but not limited to:


  • Social connectivity

  • Employee engagement

  • Shopping

  • Education

  • Gaming

  • Fitness

  • Sales/Marketing


Is it just a new fad for gamers?


Some believe that the Metaverse is just a new technology to enthral gamers, and therefore there is scepticism about its longevity and whether it will generate wider interest. There is no doubt that Metaverse gaming will be massive, however, we believe that it will go much further than this, and will synergise/combine both our normal and digital lives, with use cases far beyond gaming. It is tricky to define the said use cases due to constant innovations, but the ability for thousands of users to interact with each other simultaneously across multiple platforms and devices will certainly create wider interest.


How much interest is there already?


When the big dogs such as venture capital (VC) and private equity (PE) firms are investing, you know that there is real value involved. McKinsey states that “Corporations, VC, and PE have already invested more than $120 billion in the metaverse in the first five months of 2022, more than double the $57 billion invested in all of 2021”. This trend of large companies investing already outstrips the investment seen in AI at a similar stage in its development. Furthermore, 79% of consumers that use the Metaverse have already made a purchase. It is clear that the Metaverse is not short in value creation.


What is the driving force behind investor engagement?


There is no one driving force, but rather a multitude of forces. The main ones are; exciting technological innovations, consumer-led brand marketing, increasing youth investor engagement, and marketplace readiness to facilitate such investor interest.


The metaverse promises similar opportunities to that of when the internet was first created, and therefore there is a lot of interest and excitement amongst people seeking to capitalise. We have already seen billions worth of funding pumped into Metaverse related companies, this trend is expected to grow exponentially. Moreover, McKinsey states that 95% of business leaders believe that Metaverse technology will positively impact their industries in the next 5-10 years.


How far can it go?


The Metaverse is not industry-specific, and has the potential to affect how almost every industry could operate, the most significant impact being on retail, TMT, healthcare, and education. Due to the industry-wide impact, it is increasingly looking like it is the largest growth opportunity in the coming decade. This is primarily due to its potential to develop new business models, products, engagement channels, and services for all. That's why the estimate of $5 trillion by 2030 is a likely reality.


Don’t worry, you aren’t yet late for the party


Any organisation that is involved in, and is leveraging, the Metaverse already is developing a competitive advantage in this space. Organisations should be examining potential benefits and goals as part of a new business strategy. Whether it be testing, hiring experts, seeking outside consultation, teaching/learning, looking at consumer behaviour, launching new activities, and/or identifying where they need to improve their capabilities, these will all help organisations get a foothold in the Metaverse and will embed it into their business model. The simple fact that you have read this far demonstrates that you are prepared to embrace and prepare for the monumental change in our digital future.


Next steps?


We would love to help you create some ideas for your organisation that will help you leverage your way into the Metaverse. As one of the largest Web3 agencies in the UK, we are not short of innovative ideas to create value for your brand. Please do get in touch.


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