MP chatted with Jack Cameron, co-founder of Insomnia Labs, about the Metaverse. We discussed the Metaverse’s pros, cons, good and bad points, and what it has in store for different groups.
What barriers prevent businesses from entering the Metaverse, and why?
Currently, there is still a high technical barrier to entering the Metaverse.
For example, people must learn to create digital wallets and know a seed phrase.
Not only that, but the nature of the blockchain is very public and irreversible.
Due to the very open and permanent nature of the blockchain, it could scare businesses that are not as accustomed to this.
What roles will businesses and consumers play in the Metaverse, and how will such roles redefine how businesses operate?
As the trend continues, almost all businesses must translate their physical products into the Metaverse.
Most companies will have to invest in creating a Metaverse/Web3 department, which comes with complications. Within the department, they will need to implement crypto into their legal, financial, and marketing teams.
We can communicate more directly with these businesses/brands in terms of consumers and make our voice heard.
As Web3 nature is very community-driven, there is much more back and forth between the consumers and businesses, which I believe is a win-win situation for all parties involved.
How will the Metaverse enable businesses to reach and monetize their existing customers?
The Metaverse allows brands more freedom in expressing their brand identity because they can create new and exciting experiences for new and existing customers.
For example, a brand like Intel could become cooler by providing a digital experience alongside selling powerful CPUs, or a beverage company like Bud Light might be able to sponsor/empower virtual concerts to continue servicing existing customers without physical products.
But most importantly, if brands want to monetize their existing customer base, they must identify the important digital spaces/digital experiences they can create, which will not only translate into a new audience but also satisfy their existing customers.
A brand shouldn’t suddenly change their marketing game plan for the Metaverse, but they should double down on what works and find clever and exciting ways to re-shape those to fit into the Metaverse.
They will inevitably succeed if they successfully translate real-life emotion, experience, and value into the Metaverse.
How will the Metaverse serve as a platform to enable businesses to reach new audiences, and why does it matter?
As mentioned earlier, the Metaverse allows brands more freedom in expressing their brand identity.
Therefore, the brands can do cool and new experiences that could attract a different type of crowd too.
Interested in learning more about the Metaverse? MP covers many areas of the Metaverse, including business, ethics, legal, and more.
Because Web3 engagements are incredibly high, if a brand can find an authentic corner of this crowded space, they will be able to engage their customers like never before. The physical limitations of distance, money and manpower are largely removed in the Metaverse, so it comes down to the brand to capitalize on.
How will the Metaverse enable businesses to further develop their brands through experiences, and could this be a double-edged sword?
It could definitely be a double-edged sword–but that’s just like anything in marketing.
For example, even if you have an innovative idea, your project could be taken in a bad light if you activate it during the wrong time. However, on the other hand, the Metaverse experiences a level of engagement that hasn’t been seen anywhere yet.
The consumers are giving instant feedback, and instant data can be collected via the blockchain, allowing everything to be real-time and honest. But as always, more access means they can praise you when you do well, but they can also turn against you quickly if there is something they don’t like.
What brand experimentation opportunities does the Metaverse present businesses, and why do they matter?
I think one interesting experimentation in the Metaverse is the concept of land.
Brands willing to engage with purchasing land show that they are making a serious investment into a Metaverse.
Because these plots of digital lands are scarce, the choice of where you want to plant your flag is super important and shouldn’t be taken lightly.
How can a poorly executed Metaverse strategy adversely affect a brand, and how can such a disaster be avoided?
As you probably saw in the news, if a brand activates poorly, it makes the brands look either silly, antiquated, or money-driven.
Instead of being recognized as being forward-thinking and innovative, you will end up being ridiculed on social media, negatively impacting the brand’s image.
Therefore, the most important thing to avoid disaster would be simply being thoughtful. Brands shouldn’t just think about how much money they can make but hone in on the experiences they can create with their consumers.
How much money does it take to create a brand-aligned experience in the Metaverse, and what are the ongoing costs?
This is hard to really say because there are so many different components to a project.
However, I would say it typically ranges between $100K-$1M.
And in terms of ongoing costs, most of it ends up in community management and the utility you have promised or hinted to your community.
How will the Metaverse expose businesses and consumers to new types of fraud, and what steps can be taken to prevent such nefarious acts?
Some of the most common frauds are people impersonating your business in NFT Marketplaces. They will create multiple collections that look similar or identical to your collection.
However, the brand should have an official social page with all the official links so people can know which sites/collections are real.
The key is to have very clear communication channels. Another big step is for the brands themselves to have a FAQ or an education channel where they can inform basic Web3 principles so that people that newly join can stay safe.
How will the Metaverse adversely affect our mental health, and what can be done to protect ourselves?
I think one thing to really be mindful of is that Web3 communities can be super draining. I can honestly speak for myself when I say being glued to my screen daily is an exhausting experience.
However, one thing I do for myself, which I think could be helpful, is to find time to simply “log off”.
We need to find time to mindfully take time off to exercise and rest our time so that we are not overworking ourselves.
This doesn’t just apply to the Metaverse but goes into anything you do with your phone, laptop, or TV.
Responses provided by Jack Cameron, co-founder of Insomnia Labs