
Social Media
While some legislators want a complete ban on TikTok due to spying concerns, US marketers want to spend more on the platform.
THE METAVERSE
By our News Team | 2022
Consultancy says this “represents a strategic inflection point for companies” and a significant opportunity to influence the way we live.
Is the Metaverse really going to be as big as some techies and marketers predict? Management consultancy McKinsey & Company thinks it is going to be very big indeed – with the potential to grow up to US$5-trillion in value by 2030.
McKinsey’s new report, entitled ‘Value Creation in the Metaverse’, shows e-commerce as the largest economic force ($2.6-trillion), ahead of sectors such as virtual learning ($270-billion), advertising ($206-billion), and gaming ($125-billion).
Image by Tumisu from Pixabay
“The Metaverse represents a strategic inflection point for companies and it presents a significant opportunity to influence the way we live, connect, learn, innovate and collaborate,” said Eric Hazan, Senior Partner at the consultancy.
“Our ambition is to help leaders of both consumer and B2B companies better understand its power and potential, identify strategic imperatives, and act as a force for its evolution.”
Already this year, companies, venture capital and private equity firms have invested more than $120-billion in the metaverse—more than double the $57-billion invested in all of last year.
The study says multiple factors are driving this investor enthusiasm:
Now it’s all becoming real as people spend real money
“While the idea of connecting virtually has been decades in the making, it is now increasingly real – meaning real people are using it and spending real money. And companies are betting big,” said Lareina Yee, another Senior Partner at McKinsey.
“Yet this booming interest has made it difficult to separate hype from reality. It’s worth remembering that while the bust of the first dot-com boom resulted in the disappearance of scores of companies, the internet itself went from strength to strength, giving rise to new entrants.”
Consumers are already there. McKinsey’s research shows consumers are excited about transitioning life into the Metaverse, with almost six in 10 (59%) consumers preferring at least one Metaverse experience over its physical alternative.
Among those consumers, certain types of activities stand out for being most preferred in the immersive world:
The report says business leaders see the Metaverse’s potential to drive impact and margin growth. Ninety-five percent of leaders say they expect the Metaverse to have a positive impact on their industry within five to 10 years, with 31 percent saying the Metaverse will fundamentally change the way their industry operates.
Perhaps more significantly, a quarter of leaders expect the Metaverse technology to drive more than 15 percent of their organisation’s total margin growth in the next five years.
While some legislators want a complete ban on TikTok due to spying concerns, US marketers want to spend more on the platform.
Utah is the first state to heavily curb minors’ access to social media, but others may follow with even stricter laws.
Businesses can make more accurate predictions about demand, optimise their operations and make better decisions about inventory management.
High-level Chartered Marketer (Africa) programme equips marketers to operate successfully in the continent’s complex and diverse markets.
Why do some articles captivate readers and encourage them to keep reading, while others make them lose interest after just a few sentences?
Analysis finds social media used by less than 4% of people, while mobile phone connections are equivalent to less than 60% of Malawians.
E-commerce giant is yet another tech company that is finding the market increasingly tough. It has already cut 18,000 jobs.
Survey finds 60% of marketing leaders believe collecting customer data while balancing privacy and customer value is now more challenging.
Charge as if you’re employing a small team. It’s not deception, it’s the money you will use to start hiring and scaling the business.
It is not sufficient for consumers to want to decrease sugar intake. Brands should offer appealing products that help reduce consumption.
Absa Kenya CMO says the fundamentals of marketing remain unchanged, but the practical implementation of strategy is evolving.