Thu, 31 Mar 2022 18:52:24 +0000
The metaverse is one tech trend showing no signs of waning – in fact, quite the opposite. Experts believe that the metaverse is perhaps the most significant transformational opportunity to hit branding and marketing since the advent of the internet itself. Investment bank Jefferies states that the NFT market, the backbone of decentralized metaverses, will reach over $80 billion by 2025. Morgan Stanley believes there’s a $56 million opportunity on the table in the luxury goods sector alone.
But when we talk of brands entering the metaverse, what does it really mean? Well, setting up shop in a virtual realm isn’t so different from what you’d need to do here in the meat space. First, you need to acquire metaverse land.
Most metaverses have a defined quantity of land available for purchase as NFTs on primary or secondary markets. Buying land will give you the “space” you need in the virtual world to start monetizing. Prices may vary, but the scope of what you can do with your land is almost limitless. Here are four ways you can leverage land in the metaverse to max out your possible returns.
E-commerce was one of the premier use cases for the internet, giving rise to the global behemoths that are Amazon and Alibaba – both e-commerce firms that have expanded far beyond their retail roots. Now, the savviest brands are setting up their v-commerce outlets in the metaverse, allowing users to browse a range of digital and physical products in a customized, branded environment that isn’t constrained by physical boundaries.
Samsung is one example, having launched “Samsung 837X,” its digital-only retail location designed to emulate the firm’s flagship NYC location in the Decentraland metaverse. Decentraland is also set to host the first-ever Metaverse Fashion Week at the end of March, so if the event is a success, it seems likely we can expect a few high-end brands to set up virtual outlets in the metaverse.
The play-to-earn (P2E) craze has taken the gaming world by storm over the last year or so, leading to an influx of VC funding for P2E startups. Some metaverses, such as Bullieverse, allow users to configure their own P2E games on land in the metaverse, creating the opportunity for developer income based on player revenues.
Bullieverse has integrated Unreal Engine as its game development platform, which offers rich, 3D graphics without even needing any coding tools. It allows users to build games using pre-defined templates and assets.
For brands, this option provides an entirely new revenue stream of gaming income while offering a tailored game to engage potential consumers while paying them token rewards. Bullieverse has also just announced a partnership with Admix, allowing anyone to further monetize their game creations with non-intrusive, opt-in ads from any of the firms 300+ partner brands.
Excited to announce our partnership with @Bullieverse 🚀
— Admix (@admixplay) March 25, 2022
Branding specialists can let their imaginations run riot with all the creative ways to position their assets and products within the game itself. Rewards could also be branded, providing users with tokens that can be redeemed for in-store credit or merchandise.
Along with gaming, NFT art is one of the predominant use cases for the technology right now. Christie’s was the first big-name art auction house to engage with auctions of digital art, while Sotheby’s has joined Samsung by setting up a virtual auction house in Decentraland.
However, some innovators believe that the art buyer UX is currently lacking the metaverse touch. Realm is a metaverse project that wants to do away with the rather sterile, eBay-type listing that NFT art buyers currently experience. Instead, Realm offers artists the opportunity to share and present their NFT creations in a unique and creative way. Think of a customizable AR/VR gallery that could be floating through space, underwater, or an interactive exhibition based on sound and movement.
Anyone using Realm can create as many realms as they like using a suite of builder tools. Users can create their own exhibition spaces, hold a virtual auction, or invite collaborative creation to explore what’s possible in the world of NFT art in the metaverse.
Still not sure what’s the best use of your metaverse land and want some more time to mull over the options? Why not just rent it out for passive income in the meantime? If you’re on a longer-term time frame, you could rent the land to another brand to develop any of the ideas outlined above.
But even if you’re on a short-term time frame, there could be other options. For instance, brands wanting to advertise their presence in the metaverse may be willing to rent out your land for advertising space – think the virtual equivalent of the Golden Arches or a band advertising for an upcoming concert.
The metaverse is still very much in land-grab mode, so if you’re on the fence, consider that even simply buying and holding could be a worthwhile option if prices continue to appreciate at the rate they have been. Either way, if your brand isn’t currently thinking about a metaverse strategy, you could find yourself arriving very late to this virtual party.