Why brands should enter the metaverse as part of their long-term strategy

"These events and Instagrammable moments were the buzzwords and focus not only for consumers, but as importantly, for brand marketers and businesses. During that time, the world was just beginning to hear about this virtual place called the metaverse or Web3, NFTs and the like. Early pioneers in the space certainly understood the various Web3 platforms and opportunities - unlike the general public, brands or various businesses, which were neophytes in understanding how to play in this sandbox (pun intended)."

"That all changed when the pandemic transformed our lives. It became the catalyst that parked us in front of our screens as outlets to our new world of lockdown. It became the digital vehicle for brands and consumers to create new ways to bring back our craved physical connections to our now virtual lives. Enter the accelerated importance of the metaverse."

"The stats speak for themselves. According to McKinsey & Company, investment in the metaverse more than doubled in 2022, backed by private equity and venture capital ($12-$14bn) as well as buzzworthy corporate acquisitions (e.g., the pending $69bn acquisition of Activision by Microsoft). If you're metaverse savvy, a day doesn't pass without hearing about the successes and active users of Roblox, Decentraland or The Sandbox."

Before the pandemic, consumers prioritized physical experiences such as FOMO-filled activations, pop-up interactions, travel, and Instagrammable moments. Early Web3 pioneers understood virtual platforms and NFTs while mainstream brands and businesses lacked expertise. The pandemic redirected attention to screens and accelerated adoption of the metaverse as a way to recreate physical connections in virtual environments. Investment in the metaverse more than doubled in 2022, fueled by private equity, venture capital, and major corporate acquisitions. Platforms like Roblox, Decentraland, and The Sandbox demonstrate active user engagement and growing opportunities for brands to merge digital and physical presences.

Read at The Drum