It is no secret that Meta’s primary bet was – and still is – developing the Metaverse. At least their own version of it, something similar to what we saw in the grandiloquent presentation with which we saw 2021 out. Not only has 2022 been a bit different than we expected, with loads of unforeseen disruptions.
The latest news from the tech giants and a lowered euphoria raise suspicion around its actual imminence.
So, we thought this post could underline the essential steps towards the Metaverse to get closer. Especially after learning that the European Union threw a virtual party to raise awareness and promote its Metaverse initiatives, which turned out to be a small gathering of about 6 people.
And unpredictable Q4
Many marketing agencies have realized over 2022 that we are not as close to it as we thought. The Metaverse as a subject matter has rapidly gone out fashioned, mostly because businesses need to keep up with their activities. As of now, we can only wait for the necessary reconfigurations, partnerships, and buyouts to take place and bring all sectors involved into alignment towards a common goal. The battle for the Metaverse is still on, with costs and effects we wouldn’t imagine one year ago.
Elon Musk bought Twitter out, sacked most employees, and is working day and night implementing untested changes with a purpose only he knows. Shortly after, Meta also laid off 13% of its staff, to “restructure and optimize its resources”.
Since the pandemic, there has been more competition between online businesses, and a higher cost of ads to stand out. But the increasing concerns users have about their privacy have critically affected Meta’s main source of income: advertising revenue. And that is quite a setback that has altered the planned steps towards the Metaverse.
Zuckerberg hasn’t changed Meta’s bet on the Metaverse. And while Twitter is a different case, they both pursue the same goal: centralizing essential functions for the Metaverse, and becoming the super-app Western countries still don’t have.
Three necessary steps towards the Metaverse
Step 1: centralization
No one doubts the Metaverse is a long-term venture. And the first step is to structure its revenue in a sustainable way.
Meta already allows some users to make simple transactions within the messaging app. In Brazil, one of WhatsApp’s biggest markets, WhatsApp’s new payment tool was launched last week through the messaging service.
Step 2: budget allocation
Staff has been Meta’s biggest expense, followed by capital expenditures. Now, the bulk of it has shifted to social platforms.
20% of Meta’s budget was dedicated to Reality Labs – the unit in charge of developing the Metaverse: 50% of Reality Labs’ budget goes to R&D for AR glasses, while 10% goes to Horizon. This percentage, as Zuckerberg said, is divided between augmented reality and smart glasses. The company has high hopes in this field and no qualms about keeping the funding going.
We talk a lot about the very long-term opportunities like the metaverse, but the reality is that business messaging is probably going to be the next major pillar of our business as we work to monetize WhatsApp and Messenger.
Mark Zuckerberg
Step 3: awaiting big entrances
Besides Meta and Google – sorry, Alphabet, many companies are slowly digging their way into the Metaverse: Tencent or nVidia, for example.
But because the Metaverse is seen as a virtual space where everything happens, we will need physical things from the physical world to enter the virtual world, we’ll need to see that sweet spot between competition and collaboration. Musk has probably a plan here, called Neuralink: why use glasses when you can have a chip implanted?
Remember Morgan Stanley’s words: “The Metaverse will only get real when Apple joins”. And whether that is with their long-awaited Apple Glasses – rumored to be launched during the coming year, or direct retinal projectors – already patented there’s quite some hype around it.
As we once mentioned, Apple’s main technological advantage is owning its own software and hardware. Thus, it is likely that when they finally step in, they do in style.
What does this have to do with product content?
The way towards the Metaverse is a long one, which explains why the initial buzz vanished so fast. No urgent strategy changes are necessary at this particular stage, although the recent frenzy around AI image generation tools like Dall-E and ChatGPT proves things move even when we don’t see them. Nothing will change overnight, but the Metaverse is slowly building up. Anticipation can really make a difference when it comes to products. In fact, 3D renders and 3D animations are key in the development of the Metaverse, from avatars to products and spaces. And they are already a growing trend for complex products, so they can be seen in different contexts or explained in detail through exploded views.
