A new report from global consulting firm McKinsey & Co. says spending in the metaverse could reach a total of $5 trillion by 2030. E-commerce itself will make up $2 trillion to $2.6 trillion of that, the report says. Virtual advertising, the smaller piece of the virtual pie, will account for just $144 billion to $206 billion of the total spending.
The study included a survey of 3,104 consumers in 11 different countries and a poll of C-level executives at 448 companies in 15 industries in countries.
To deliver its report, McKinsey defined the metaverse as online experiences that are not entirely virtual or require interoperability between virtual worlds. According the firm, the metaverse will consist of five types of daily activities:
- Gaming
- Socializing
- Fitness
- Commerce
- Remote learning
One interesting note: 79 percent of those surveyed said they’d already made a metaverse purchase.
What Impact Will the Metaverse Have on Business?
Forward thinking brands don’t wait until something is popular before the consider implementing it. They get in front of the trends and lead the way into tomorrow today. That’s what Chipotle Mexican Grill did when it partnered with Roblox to deliver empower players to earn in-game currency that could be traded for real-world burritos. According to the company’s chief marketing officer, Chipotle tested metaverse advertising with a $100,000 campaign.
Fashion brand Forever 21 is another company that has tested metaverse marketing through a concept it calls “twinning.” They encouraged Roblox players to wear the same clothes as their avatars.
According to McKinsey, 95 percent of executives surveyed said the metaverse will have a positive impact on their industries in five to 10 years. Twenty-five percent said it will drive 15 percent of their margin growth in five years.
When is the Right Time to Dive into Metaverse Spending?
One thing that can come out of a metaverse spending test for businesses is an idea of metaverse marketing potential. Currently, there aren’t that many people experiencing the metaverse. A company must put its brand and its message in front of people where they are to gain the maximum benefit and effectiveness of the spend. For most businesses, the metaverse isn’t there yet. However, it is time to start thinking about the metaverse as it will likely grow steadily between now and 2030.
Consumers interested in the metaverse can start now, but it should be noted that the metaverse currently exists of only a few companies.
Currently, gaming is the largest segment of metaverse applications. Roblox is the clear and early frontrunner. But there are a few others. Epic Games, creator of Fortnite, is creating a metaverse platform. Decentraland is a blockchain-based game like Second Life where players can earn cryptocurrencies buying and selling virtual land. Niantic, creator of Pokémon GO, is also building a metaverse.
There are also business applications for the metaverse, as well as social media applications. Apple, Google, and Microsoft are all working on business applications for the metaverse. And Meta Platforms, formerly Facebook, is creating gaming and social media applications.
There will likely be other companies building applications for the metaverse by 2030, and if the size of the metaverse market will be $5 trillion by then, you can imagine what the size of it will be by 2040.