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McKinsey; brands to spend over 5 trillion in metaverse!

McKinsey released its new estimates for the metaverse in a study on the subject that also included the results of a survey of 3,104 consumers in 11 countries,

and a poll of C-level executives at 448 companies in 15 industries and 10 countries.

Businesses’ and consumers’ annual global spending related to the metaverse could reach $5 trillion by 2030, according to a new report from consulting firm McKinsey & Co.

Seventy-nine percent of survey respondents said they have already made a purchase in the metaverse

*tweet on Mckinsey  metaverse survey

According to McKinsey,

the metaverse will include five types of daily activities: gaming, socializing, fitness, commerce and remote learning. “People are signaling that connection is probably their number one interest,” said Lareina Yee, senior partner at McKinsey.

Seventy-nine percent of respondents said they have already made a purchase in the metaverse as it exists today, with 47% of those people saying they had made in-game purchases, 37% reporting buying virtual cosmetic items and 33% saying they purchased real-world items that were offered through virtual platforms.

  • Brands’ experiments in virtual worlds so far offer signals about how marketing and advertising to consumers in the metaverse might look down the road, McKinsey researchers concluded

“There is a need for very different marketing skills, which are much closer to videogames and movies, TV series and so on,” said Eric Hazan, senior partner at McKinsey.

  • Chipotle Chief Marketing Officer Chris Brandt said the potential benefits of exploring the metaverse outweigh the risks.

Ninety-five percent of executives in Mckinsey study said they believe the metaverse will have a positive impact on their respective industries in five to 10 years!

Authentic Brands Group Forever 21 has leaned into the idea of “twinning,”

a concept that entails people wearing the same clothes as their digital avatars. Forever 21 sold a black beanie in its store after it became popular on Roblox, for example, the company said.

Brands should temper expectations and investments in the metaverse, as it will take time before mass consumer adoption happens, said Mike Proulx, vice president and research director at Forrester Research Inc.