Understand why large companies are betting so much on the metaverse

A growing number of large companies have seen the metaverse as an opportunity to reach out to target audiences, increase revenue and position the brand as an innovator.

The term, which indicates a virtual world that tries to replicate reality through technology, is on the rise and gained more evidence after Facebook announced last year that it would become a “metaverse company” within five years.

Until then, this reality was closer to video game aficionados and cryptocurrency lovers. But as it spreads to the general public, it also became an important marketing tool for companies.

Boeing, for example, has promised to launch its next plane into the metaverse. Nike bought a virtual shoe maker with an eye on sales. Clothing brand Gucci sold a digital version of the Dionysus bag in the Roblox game for $4,115, which is more than the physical version of the product.

In addition to them, Gap has released NFTs (non-fungible tokens, which act as a unique digital certificate) for its hoodies and Mattel has released NFTs versions of its Barbie and Hot Wheels lines.

Igor Hosse, professor at Universidade Anhembi Morumbi, says that brands are migrating to this market for three reasons: the monetization of NFTs, the new possibilities of connecting with customers and the chance to position themselves as innovators.

According to him, buying items from these companies in the virtual world “gives the player status and, at the same time, a sense of belonging”.

For Hosse, the metaverse also had a boom in the pandemic due to social isolation. “We needed to stay at home and away from people, and with this digital universe, we were able to get closer to people, even if virtually”.

According to the specialist, the brands saw in these meetings a new portion of customers. “The objective of companies when migrating to this universe is to be close to potential buyers, making NFTs available for users to buy and use in games”.

Virtual world

Unlike large constructions in real life that require several professionals, NFTs, or virtual art, are easy to create and can be done by a single person. Games that run on blockchain have programs that run on simple computers and offer mechanisms to create a digital asset.

“Similar to the Minecraft game, users buy their land in the metaverse of a game and are able to build blocks,” explains Alex Buelau, CTO at Parfin. “And this facility is also an attraction for companies”.

Users who don’t want to build buildings can just enter the game and interact with buildings already created.

He says that big brands often buy larger land and build buildings that players can interact with. However, with the popularization of games, Buelau says that spaces ended up getting more expensive.

Virtual land in the Decentraland online world was sold for a cryptocurrency equivalent to $2.4 million, for example.

Changes in e-commerce

Buelau also believes that the metaverse will be used by companies as an arm of e-commerce and has the potential to revolutionize this market. “When we buy a car over the internet, for example, we can’t get the exact dimension and what it looks like inside. We only have static photos,” he says.

For him, the new technologies can help to have a better dimension of the products. “When companies migrate to the metaverse, the customer will be able to get in the car, understand the size of the product and be more certain about the characteristics of its acquisition”, he says.

But Parfin’s CEO highlights that, although companies are already eyeing this digital universe, only a small portion of their revenue will come from this market. “For now, brands are understanding the power of technology and proving innovative.”