The metaverse is transforming how we live every day, even if those changes are nuanced. It’s changing how kids interact. It’s changing how you buy properties, and it’s changing what it means to be at a live show.
Though the hype around the metaverse has died down, the metaverse is growing in users and use.
Source: Google Trends. Search interest in the metaverse has fallen significantly since 2022.
Roblox usage continues to grow each quarter, with both total users and total hours per users growing at a consistent rate.
The metaverse’s encroachment increases, and its starting to affect other traditional media. Here are some areas that the metaverse could replace.
Online Advertising
Metaverse advertising is evolving right before our eyes. With Roblox testing immersive ads, ads that you’ll see while playing in a Roblox experience, the new system could have a profound effect on digital advertising.
The first is advertising spend. Already brands like Nickelodeon have been dabbling with some advertising in the metaverse by building their own experience for users to engage in. With metaverses like Roblox capturing larger and larger audiences of a younger generation, its clear to see that many brands will start moving their advertising spend away from traditional online advertising.
At the same time, metaverses continue to gain more users and active hours, with all forecasts pointing to continued metaverse growth over the next decade.
Overall, the metaverse will shakeup online advertising. Just like how online advertising didn’t completely replace traditional paper media, the metaverse isn’t likely to fully replace online media over the next decade. However, metaverse ad spending is very likely to take advertising revenue away from traditional online media until those companies adapt by embracing the metaverse.
Social Media
There is a reason why Meta Platforms pivoted so hard into the metaverse, the company could potentially become a big loser as the metaverse becomes part of our lives. Meta Platforms has failed to take any realistic chunk out of the metaverse space, and while their headsets may have a potential to grow, our analysis believes that the metaverse evolution is about platforms not hardware.
Right now, a whole generation of kids will never sign up for a Meta Platforms app. Forget Facebook and Instagram, kids are already plugged into Tic Tok, YouTube, and Roblox. Roblox in particular has a young player base that uses Roblox to connect with their friends. Facebook has now lost these users, and they’ll need to fight to get them back.
Social media will not be replaced by the metaverse, but its share of people’s attention will start to drastically fall as users spend their time instead share experiences in the metaverse.
Live Events
The metaverse will look to take over the concept of a “live event” in the next 30 years, but for now live events are here to stay. However, the metaverse has the ability to transform how people interact with live events.
Imagine you want to watch an NBA game with your friends who live in another state. Instead of making flight arrangements and buying hotels, you may someday be able to watch a live NBA game together through the metaverse. You could “sit together”, explore the arena together, and hang out together in your virtual seats.
This concept could give even more freedom to watch the game as the whole experience is created virtually in a metaverse platform like Roblox. Take the innovative 3-D technology of Matterport and make its 3-D renderings of actual areas real time, and suddenly, millions of people could be in the arena “virtually”. They could watch the game from the court side or from high up. They could hang out with their friends while the game is in the background even if those friends are far away.
With metaverse technology, millions of people could all watch a live game like they were actually in the arena, but even better because they could change seats, meet their distant friends, or even have other experiences while the game is in the virtual background.
Already, the Matterport technology has transformed how you tour a new home. Millions of people have been able to do a "walkthrough" of a house they want to purchase without leaving their home. This technology could completely transform other "live" activities like the NBA example above.
Video Gaming
The metaverse is already taking a huge share of the video game space. Think of games like Minecraft, Roblox, or Fortnite. These are simply multiplayer metaverses. Even older metaverses like “World of Warcraft” or Eve have significant user bases.
The reality is that the metaverse has already taken over video games. Traditional games still will have their place (these video games don’t share a virtual space with thousands of other players), and that’s good because playing video games by yourself is also a satisfying experience.
But more and more, a lot of games are being consumed by the metaverse. Your adversary, teammates, and interactions in a video game isn’t a computer but another human.
What is the downfall of metaverse?
The metaverse is an investment megatrend that is likely to continue growing throughout the next decade. The metaverse concept has completely changed how video games are made, how social media is conducted, and will soon transform online advertising.
Because the metaverse is so integrated into all these different technology segments, the metaverse will naturally continue growing for the next decade. And this isn’t based on hopeful forecasts. Even after the slowdown of media interest in the metaverse in 2022, the user base of major metaverses continue to grow. Roblox has seen year over year user growth consistently since its IPO in 2021.
Is the metaverse dying?
Even though online interest in “metaverse” has quieted since 2022, metaverse platforms have continued to grow. The metaverse isn’t dying, it is alive and vibrant. While certain companies may not label their service as a “metaverse”; Roblox, Microsoft, and others have earned significant revenue from their metaverse platforms.
The concept of the metaverse has quieted down as some metaverses struggle to maintain interest; however, the core platforms continue to grow.
Almost all forecasts point towards continued metaverse growth, and they all forecast growth for good reason.
The core metaverse platforms continue to grow even after the waning of interest in the “metaverse concept”. These core platforms like Roblox, Minecraft, and Fortnite have incorporated the concept of metaverses into traditional segments consumers and investors already understand - video games, online advertising, and social media.
Final Thoughts
The metaverse is a megatrend investment segment that is evolving the concepts of video games, social media, and online advertising. The rise of the metaverse isn’t a quick change, but instead a consistent evolution of those technology segments.
Though interest in the word “metaverse” has quieted in media and in search since 2022, the actual metaverse concept continues to expand and earn more users, activity, and revenue. Expect continued growth into the next decade as more users join the metaverse.
Read More
Investments in Metaverse Stocks
How the Metaverse Makes Money
Metaverse Investment Analysis
The metaverse is transforming how we live every day, even if those changes are nuanced. It’s changing how kids interact. It’s changing how you buy properties, and it’s changing what it means to be at a live show.
Though the hype around the metaverse has died down, the metaverse is growing in users and use.
Source: Google Trends. Search interest in the metaverse has fallen significantly since 2022.
Roblox usage continues to grow each quarter, with both total users and total hours per users growing at a consistent rate.
The metaverse’s encroachment increases, and its starting to affect other traditional media. Here are some areas that the metaverse could replace.
Online Advertising
Metaverse advertising is evolving right before our eyes. With Roblox testing immersive ads, ads that you’ll see while playing in a Roblox experience, the new system could have a profound effect on digital advertising. The first is advertising spend. Already brands like Nickelodeon have been dabbling with some advertising in the metaverse by building their own experience for users to engage in. With metaverses like Roblox capturing larger and larger audiences of a younger generation, its clear to see that many brands will start moving their advertising spend away from traditional online advertising.
At the same time, metaverses continue to gain more users and active hours, with all forecasts pointing to continued metaverse growth over the next decade.
Overall, the metaverse will shakeup online advertising. Just like how online advertising didn’t completely replace traditional paper media, the metaverse isn’t likely to fully replace online media over the next decade. However, metaverse ad spending is very likely to take advertising revenue away from traditional online media until those companies adapt by embracing the metaverse.
Social Media
There is a reason why Meta Platforms pivoted so hard into the metaverse, the company could potentially become a big loser as the metaverse becomes part of our lives. Meta Platforms has failed to take any realistic chunk out of the metaverse space, and while their headsets may have a potential to grow, our analysis believes that the metaverse evolution is about platforms not hardware.
Right now, a whole generation of kids will never sign up for a Meta Platforms app. Forget Facebook and Instagram, kids are already plugged into Tic Tok, YouTube, and Roblox. Roblox in particular has a young player base that uses Roblox to connect with their friends. Facebook has now lost these users, and they’ll need to fight to get them back.
Social media will not be replaced by the metaverse, but its share of people’s attention will start to drastically fall as users spend their time instead share experiences in the metaverse.
Live Events
The metaverse will look to take over the concept of a “live event” in the next 30 years, but for now live events are here to stay. However, the metaverse has the ability to transform how people interact with live events. Imagine you want to watch an NBA game with your friends who live in another state. Instead of making flight arrangements and buying hotels, you may someday be able to watch a live NBA game together through the metaverse. You could “sit together”, explore the arena together, and hang out together in your virtual seats.
This concept could give even more freedom to watch the game as the whole experience is created virtually in a metaverse platform like Roblox. Take the innovative 3-D technology of Matterport and make its 3-D renderings of actual areas real time, and suddenly, millions of people could be in the arena “virtually”. They could watch the game from the court side or from high up. They could hang out with their friends while the game is in the background even if those friends are far away.
With metaverse technology, millions of people could all watch a live game like they were actually in the arena, but even better because they could change seats, meet their distant friends, or even have other experiences while the game is in the virtual background.
Already, the Matterport technology has transformed how you tour a new home. Millions of people have been able to do a "walkthrough" of a house they want to purchase without leaving their home. This technology could completely transform other "live" activities like the NBA example above.
Video Gaming
The metaverse is already taking a huge share of the video game space. Think of games like Minecraft, Roblox, or Fortnite. These are simply multiplayer metaverses. Even older metaverses like “World of Warcraft” or Eve have significant user bases.
The reality is that the metaverse has already taken over video games. Traditional games still will have their place (these video games don’t share a virtual space with thousands of other players), and that’s good because playing video games by yourself is also a satisfying experience.
But more and more, a lot of games are being consumed by the metaverse. Your adversary, teammates, and interactions in a video game isn’t a computer but another human.
What is the downfall of metaverse?
The metaverse is an investment megatrend that is likely to continue growing throughout the next decade. The metaverse concept has completely changed how video games are made, how social media is conducted, and will soon transform online advertising.
Because the metaverse is so integrated into all these different technology segments, the metaverse will naturally continue growing for the next decade. And this isn’t based on hopeful forecasts. Even after the slowdown of media interest in the metaverse in 2022, the user base of major metaverses continue to grow. Roblox has seen year over year user growth consistently since its IPO in 2021.
Roblox Investor Presentation Q1 2024
Is the metaverse dying?
Even though online interest in “metaverse” has quieted since 2022, metaverse platforms have continued to grow. The metaverse isn’t dying, it is alive and vibrant. While certain companies may not label their service as a “metaverse”; Roblox, Microsoft, and others have earned significant revenue from their metaverse platforms. The concept of the metaverse has quieted down as some metaverses struggle to maintain interest; however, the core platforms continue to grow.
Almost all forecasts point towards continued metaverse growth, and they all forecast growth for good reason.
The core metaverse platforms continue to grow even after the waning of interest in the “metaverse concept”. These core platforms like Roblox, Minecraft, and Fortnite have incorporated the concept of metaverses into traditional segments consumers and investors already understand - video games, online advertising, and social media.
Final Thoughts
The metaverse is a megatrend investment segment that is evolving the concepts of video games, social media, and online advertising. The rise of the metaverse isn’t a quick change, but instead a consistent evolution of those technology segments.
Though interest in the word “metaverse” has quieted in media and in search since 2022, the actual metaverse concept continues to expand and earn more users, activity, and revenue. Expect continued growth into the next decade as more users join the metaverse.
Read More
Investments in Metaverse Stocks
How the Metaverse Makes Money
Metaverse Investment Analysis