The $800 Billion Metaverse: Why Chasing Roblox and Fortnite Trends Fails Your Brand

Al Ware: 0:00

Hello and welcome to Tech Almighty, exploring the fusion of God, technology and business, the show where faith meets innovation. I'm Al Ware, your host. Today's topic the 800 billion metaverse and why chasing Roblox and Fortnite trends fails your brand. Let's dive in. Before I dive into why we need to focus on your brand's unique dynamics and customers, I want to first explain all the important details of the metaverse, particularly through platforms like Roblox, as it has seen significant developments in growth, reflecting a broad interest in virtual interactions, entertainment and online communities. Here are some statistics and insights related to the metaverse and Roblox. The metaverse market, including gaming, reached roughly around 13.84 billion in 2023, with an expectation to grow to 710.21 billion by 2027. Notably, the metaverse in entertainment is projected to increase to 28.92 billion by 2026. Additionally, the metaverse's role in education is also expanding, with the market expected to generate 24 billion in revenue worldwide by 2030.

Al Ware: 1:10

Roblox itself showcases a vast user base, with over 200 million monthly active users as of 2023, emphasizing its role as a significant player in the metaverse. Roblox is available across various platforms, including PC, mobile devices and consoles, ensuring a wide accessibility. Hosting over 40 million games, roblox offers an extensive range of game modes and genres, supporting user creativity and development. Players can enjoy various games and create their own using Roblox development tools. With a focus on social gaming, roblox provides a platform for users to make new friends, join communities and engage in collaborative play. The platform's emphasis on community has helped its growth significantly, especially among younger audiences. Roblox rewards its developers with Robux, which can be converted to real money, incentivizing content creation and innovation on the platform. Looking ahead, roblox is expected to play a crucial role in the evolution of the metaverse.

Al Ware: 2:11

Driven by advancements in VR technology and a growing emphasis on digital learning and creativity, the metaverse is experiencing rapid growth and transformation, impacting various sectors like entertainment, education and remote work. Here are some key insights on user engagement and trends in the metaverse. The number of metaverse users is projected to exceed 1.4 billion by 2030, with a significant increase in user penetration to hit 18%. Currently. I'm doing some research, but supposedly the metaverse gaming market alone has reached 13.84 billion last year in 2023, and it's expected to grow to 710.21 billion by 2027. Many people think that the metaverse is just about gaming. It's also about collaboration, education and entertainment. It offers a new world for remote work, enhancing collaboration and saving time on travel. The education sector, which I touched on a little in episode 9, is also leveraging the metaverse, with projections indicating it could generate $24 billion in revenue worldwide by 2030 through immersive learning environments.

Al Ware: 3:18

Despite the technological advancements and investments in the metaverse, there is a gap in public understanding and interest. A study showed that only 16% of the population understands what the metaverse entails. However, over 25% of global consumers are interested in trying virtual experiences such as museum tours and fitness classes within the metaverse. Significant investments are being made in the metaverse, with companies like Epic Games and Unity spending billions to advance their capabilities. The metaverse real estate market saw a boom in 2021 and 2022, with sales reaching $1.4 billion. However, there has been a downturn in value and trading volumes, suggesting a cooling off in the hype around metaverse real estate. Despite the challenges and changing market dynamics, the metaverse continues to evolve, offering new possibilities for interaction, entertainment and work. Bloomberg Analysis have forecasted the metaverse market to be worth nearly $800 billion this year, 2024, indicating its growing importance and the increased need for marketers to understand how to leverage this platform effectively.

Al Ware: 4:23

What many marketers don't understand present day is that marketing within the metaverse differs significantly from traditional marketing approaches. It offers brands the ability to create their own worlds, providing a fully immersive experience that can't be matched by traditional media. This new form of marketing is particularly aimed at reaching younger generations like Gen Z and Millennials, who are more engaged in virtual worlds and digital experiences. Companies have the opportunity to showcase their products in 3D, allowing consumers to interact with them in ways that closely mimic real life experiences. For example, ikea uses the metaverse to allow customers to view furniture in their homes virtually before making a purchase. Unlike traditional marketing, where ads can be as simple as a poster or a TV commercial, the metaverse is a fully immersive 3D world. This means that ads have to be part of an engaging experience rather than a message or an image. For example, a billboard in the metaverse might not catch as much attention unless it's interactive or part of a larger engaging event. Now, when it comes to user interaction, people in the metaverse can interact with the environment and each other in ways that aren't possible in the real world. They can fly, teleport or even transform into different avatars. Traditional marketing doesn't account for these unique interactions, which means marketers need to think of new ways to engage users that fit this dynamic environment.

Al Ware: 5:46

As of right now, the metaverse mainly attracts younger generations like Gen Z and Millennials, who have grown up with technology and expect more from digital experiences. They are looking for fun, engaging and authentic interactions, rather than straightforward ads. Traditional marketing methods, which is more direct and less interactive, typically don't resonate with this audience. One of the key aspects of the metaverse is its use of blockchain technology, which allows for a decentralized and secure way of owning digital items. Traditional marketing doesn't usually involve direct ownership or transactions of digital goods. In the same way, in the Metaverse, marketing can involve selling virtual products or experiences directly to users, which require a different approach. The Metaverse is not limited by time or space, meaning it's always active and constantly evolving. Traditional marketing campaigns are often designed for a specific time frame and the end, but the Metaverse marketing needs to be ongoing and adaptive to the world's changes.

Al Ware: 6:43

High-end luxury and shoe brands have been quick to explore the Metaverse, leveraging this new digital frontier to engage with consumers in innovative ways. Among the notable luxury fashion brands making their market in the Metaverse are Gucci, louis Vuitton, nike, adidas, prada, burberry and Balenciaga. These brands have launched various initiatives, ranging from NFTs, which stands for Non-Fungible Token, digital fashion collections, to interactive worlds and games within platforms like Roblox and Fortnite. Gucci, for example, has been particularly active, launching its own virtual spaces and NFT collections. Nike has created Nike Atlanta Roblox, inviting users to engage in a digital world inspired by its real-life headquarters, and has released digital sneaker collections as NFTs. Even Adidas entered the scene with its into the Metaverse NFT drop, blending digital and physical worlds. Prada collaborated with Adidas for a unique NFT project, while Burberry released a digital collectible within the game Blankles Block Party. Balenciaga has partnered with Fortnite to bring its high-fashion designs into the game, offering players unique virtual clothing and accessories. Hermes has hinted at future plans for the Metaverse by filing trademarks for virtual goods and services. These brands have recognized the Metaverse not only as a new channel for creative expression, but also as a significant opportunity to connect with younger, digitally native audiences. Please understand, through these ventures, luxury brands are still experimenting with how they want to blend their traditional values of exclusivity with the balanced possibilities of digital worlds, ensuring they remain at the forefront of innovation and consumer engagement in the evolving landscape of the Metaverse.

Al Ware: 8:18

Currently, there is a lot of data and research surrounding the brands I just mentioned, and many companies and individuals are using that information to base how they will build their brand in the Metaverse, and I'm here to tell you that you are only hurting yourself by doing that. Just because the research worked for those brands doesn't mean it will work for you. For starters, the vast majority of companies and individuals will not have the same type of marketing budget as the brands I named, nor will they have the same type of loyal customers. You have to stop focusing on what everyone else is doing and focus on how you can enhance your customer's user experience. Even though platforms like Roblox and Fortnite boost over 200 million users, launching your world or game on these platforms doesn't automatically guarantee you'll attract a lot of users. Here's a simple breakdown of why that is and how you can find success on these or other Metaverse platforms.

Al Ware: 9:15

1. Vast competition Both Roblox and Fortnite are filled with millions of games and experiences. Your world is one among many competing for attention. Chess being on a popular platform doesn't ensure visibility. 2. User preference Users have specific interests and preferences. Not every user will be interested in what you are offering, making it essential to target the right audiences. 3. Discoverability challenges With so many options available, users might not even come across your world unless it's marketed effectively or featured within the platform. 4. Engagement and innovation Users are attracted to unique and engaging experiences. Offering something new, exciting or valuable can help draw users to your world. 5. Community building Creating a community around your world can foster loyalty and repeat visits. Engage with your users, listen to their feedback and involve them in development processes. 6. Effective use of social media and influencers Promoting your world on social media platforms and collaborating with influencers can drive significant traffic to your world. Tailor your marketing efforts to platforms where your target audience spends their time. Roblox and Fortnite are not the only Metaverse platforms out there. Depending on your target audience and the nature of your experience, other platforms might offer better opportunities for success.

Al Ware: 10:33

As one of the leading design Metaverse studios in the world, as of right now, there is only one platform I recommend anyone to use with, just spatialio, and here is why. For developers, the platform provides a powerful creator toolkit powered by Unity. This toolkit allows developers to build interactive worlds and share them across multiple platforms, including Web, ios, android and MetaQuest, without the need for coding skills. Developers can bring their imagination to life by customizing stunning 3D environments, creating quests within interactive stories, importing custom avatars and even designing vehicles to explore these virtual spaces in style. The Creator Toolkit supports importing 3D models from various design software and offers integration with Sketchfab for environment models. Spatial updates the toolkit every couple of weeks based on community feedback, and developers can share their ideas or feedback through the platform's community channels. For users, spatial provides a rich and engaging experience with its free version and offers enhanced features with Spatial Plus. Some of the exclusive Spatial Plus features include host tools, token gating for exclusive access, overflow groups or instances to manage large groups of users, live speech, translations for global communication and unlimited storage for all your Spatial needs. These features enhance the social and interactive aspects of the platform, making it easier for users to host and participate in virtual events, collaborate on projects and engage with global communities in real time. The platform emphasizes the importance of community and creative expression, allowing users to explore a wide range of virtual spaces and experiences.

Al Ware: 12:10

As we come to a close, keep in mind, the Metaverse is growing rapidly, offering new ways to interact, play and learn in virtual worlds. With platforms like Roblox and Fortnite leading the charge, the Metaverse market is expected to skyrocket, showcasing its massive potential. However, having a presence on these platforms, or any platform, doesn't guarantee instant success. Moral of the story relying solely on current success stories or the size of a platform isn't realistic for everyone. The Metaverse is still evolving, and success depends on understanding your specific audience's needs and creating engaging, accessible experiences tailored to them. It's about innovative marketing, community engagement and offering something unique and valuable. So focus on what sets your world apart and how it meets the desires of your users. This approach, rather than just aiming to be part of a big platform, will pave the way to your success in the Metaverse.

Al Ware: 13:01

Now let's end this episode with a prayer.

Al Ware: 13:03

If you're in a place where you can close your eyes and focus, I invite you to join me.

Al Ware: 13:07

Heavenly Father, in the vast expanse of this new digital frontier.

Al Ware: 13:11

We come before you seeking your wisdom, guidance and discernment as we navigate through uncharted territories.

Al Ware: 13:16

Let your light illuminate our paths and your truth be our compass.

Al Ware: 13:20

Grant us the wisdom to discern the opportunities and challenges that lie ahead.

Al Ware: 13:24

Empower us to use this technology to bring glory to your name, to spread your love and to connect in meaningful ways that reflect your kingdom. Provide us with the guidance to make decisions that align with your will. Help us to use the tools and platforms responsibly, in a manner that uplifts others and fosters genuine community. May our digital interactions be seasoned with grace, kindness and understanding, lord, in all things. Let us remember that in our ultimate guide is the trends of the world, but in the enduring wisdom found in your word, as we explore this digital age, keep our hearts anchored in your internal truths and may our lives be a testament to your unfailing love and grace. In Jesus' name, we pray. Amen. Thank you for tuning in to Tech Almighty. I'm Al Ware and it's been a blessing to discuss this critical aspect of the 800 billion metaverse and why chasing roadblocks and Fortnite trends fails your brand. Join me next time for more insights where technology, business and Christianity converge. Until then, keep striving for excellence and all you do, god it by faith.