When I say “metaverse”, you say “…?” The past year’s marketing hype around the word has perhaps been a hindrance as confusion and misconception plagues its existence. However, this doesn’t mean the metaverse is over – far from it. Companies have deployed dedicated metaverse divisions, startups are banking on virtual worlds taking off, and let’s not forget, Facebook rebranded to Meta. And yet, why are there still so many question marks around the topic?

“The problem with metaverse is that there’s been way more hype than substance,” explains Phillip Wang, co-founder and CEO of Gather Town. “It’s just a bit too early for the amount of attention it has received.” Media outlets are not helping the cause either. Fast Company questioned “is the metaverse already dead?” in February, and the Financial Times asked “whatever happened to the metaverse?” whilst stating enthusiasm and investment is depleting from this virtual future in another opinion piece from last month.

However, predictions and numbers show a positive outlook for the metaverse. Consultancy firm Gartner predicts that 25% of people will spend a minimum of one hour a day in the metaverse by 2026 and financial institutions are betting big on the prospects of what the metaverse can offer. JPMorgan forecasts the metaverse will infiltrate every sector in the coming years and says it’ll be a $1 trillion yearly opportunity, whilst Citi says the metaverse market could be between $8 trillion and $13 trillion by 2030, with total people using the metaverse estimated to be around five billion.

The problem with metaverse is that there’s been way more hype than substance. It’s just a bit too early for the amount of attention it has received

Before we dive further into the whys and why nots of the metaverse, let’s address the elephant in the room and describe what it is. The metaverse currently exists as a series of distinct virtual worlds that are social, persistent, reactive, creative and everyday. The next phase will incorporate a key (currently missing) ingredient, which is to make these worlds interoperable.

The future of the metaverse will expand into an interconnected and limitless world where our digital and physical lives fully converge. For digital natives, virtual and physical coexistence is just part of life, and as technology advances, the online-offline continuum will become more fluid and natural. In a June 2022 study by Pew, over half (54%) of experts they interviewed expect the metaverse to be fully immersive, refined and functioning by 2040.

Last year, brands entering the metaverse weren’t interested in just launching a campaign leveraging the latest digital platform; instead they looked to capitalise on the hype by claiming to be the first brand in their industry launching in the metaverse, or introducing the company’s debut metaverse project.

Marketeers drained the word dry, leaving people feeling fatigued by the ambiguous term. But even this has not stopped brands from expanding virtual world offerings. Nike acquired virtual sneaker company RFTKT in December 2021 and has since been hiring virtual designers and launched dotSWOOSH, its co-creative marketplace that houses
virtual creations, in November 2022 with plans to showcase its first collection later this year.

Marketeers drained the word dry, leaving people feeling fatigued by the ambiguous term. But even this has not stopped brands from expanding virtual world offerings

Coca-Cola has launched several digital collectables since 2021 and in April 2022, inspired by the metaverse, they unveiled a limited-edition drink in Fortnite and in the physical world that is intended to ‘taste like pixels’. Decentraland will be hosting the second Metaverse Fashion Week in March 2023 with brands including adidas, Dolce & Gabbana and Tommy Hilfiger showcasing digital collections.

Whilst digital collections and branded virtual worlds have been taking off, Wang believes metaverse creations will ultimately need to serve a broader purpose beyond gaming. “The biggest problem the metaverse faces, which is also our primary focus at Gather, is building tangible product value for end users,” says Wang. Whether it is benefitting education, facilitating social connections, or enhancing remote work productivity, the metaverse should help solve problems that impact people both physically and virtually.

Gather Town launched in May 2020 with the mission to “build the best metaverse for humanity”, with virtual spaces designed for better human interactions. The government of Tuvalu turned to the metaverse to create the world’s first digital nation: as the group of nine islands is predicted to be submerged in waters by the end of the century, the digital twin of Tuvalu is a way to preserve its history and culture and highlight the stark impact of climate change.

To metaverse or not to metaverse? That is not the question. But rather to pursue the advances in technology that will expand opportunities and possibilities for our everyday lives

The positive benefits of the metaverse leave people hopeful. In a March 2022 survey by Wunderman Thompson Intelligence, 74% of people who know what the metaverse is says it is the future, 62% believe it will be more inclusive than the physical world, and 64% says it can bring people together.

To metaverse or not to metaverse? That is not the question. But rather to pursue the advances in technology that will expand opportunities and possibilities for our everyday lives. The metaverse is inevitable, whether that word is attached to this digital evolution in the long run or not. As Wang says, “[The metaverse] is very much happening between us and a number of other builders. We just need to make sure to cut through the hype and build fundamentally great products.” Marketing may have tainted the word metaverse, but the pursuit of it continues.

Emma Chiu is global director at Wunderman Thompson Intelligence; wundermanthompson.com; Top image: Shutterstock