The metaverse has a problem: Consumers still don't understand it.
A new report from Wunderman Thompson found that while three out of four consumers have heard of the metaverse, only 15% believe they are able to explain what the metaverse is to others.
The virtual world appears to hold high expectations for consumers even if they don't get it:
- Two-thirds believe the concept could be life-changing
- Almost 70% described it as the “next internet”, and
- Three out of four people stated it is representative of the future
Though expectations may be high, there are still concerns:
- Over 70% of parents worry about their children's privacy, and
- Two-thirds are concerned about their children's safety
Brands in the Metaverse
In an encouraging sign for brands, 9 out of 10 consumers expect the metaverse to have an impact on advertising.
In the midst of consumer confusion over what the metaverse means for them, advertisers may be hesitant to invest in the space. However, a different study by Razorfish found what Gen Z thinks of brands in the metaverse.
First, over half of Gen Zs feel that the metaverse is a space for self-exploration, where they can best express themselves.
And as Gen Zers are immersed in the game, they buy virtual goods to enhance their virtual experiences. According to the study, over the next five years, one fifth of Gen Z’s “fun budget” will go to the metaverse.
Finally, brands are welcome in the metaverse. The study indicates that Gen Z wants places to shop and wants to buy products from brands.
One respondent said, “brands make the metaverse feel real,” while another stated that “brands don’t interfere with the game at all. I think it’s actually pretty cool to see them there.”
The study is built around seven Gen Z insights and is definitely worth a read if you are interested in this space.
Images: Razorfish
