Would you buy a plot of land in the metaverse? Would you invest millions of dollars in virtual property? Well, some people do. In fact, metaverse real estate is booming. But why? Who benefits from that? Could this be an opportunity for brands and advertising agencies? Let’s try to shed some light on all these questions.
What’s going on?
Would you buy a plot of land in the metaverse? Would you invest millions of dollars in virtual property? Well, some people do. In fact, metaverse real estate is booming.
But why? Who benefits from that? Could this be an opportunity for brands and advertising agencies? Let’s try to shed some light on all these questions.
Last year Adidas bought a plot of land in The Sandbox and in January this year, Warner Music Group acquired a piece of digital property (an Estate) where they plan to host immersive social music experiences. Also, Snoop Dogg is selling parcels in the Snoopverse and they are not cheap. Just three months ago, someone paid a generous amount of money to become the famous rapper’s virtual neighbor: $450,000.
These are just a few examples to understand how fast things are evolving. From celebrities like Taylor Swift to businesses like JP Morgan -that owns a piece of land in Decentraland-, the rich and powerful seem to be fascinated by the metaverse, which explains why prices are going up at breakneck speed.
But why is the metaverse so attractive? Apart from being an incredible technological development, the metaverse allows for the coexistence of multiple “realities” at the same time. This ultimately implies that some of the things that we cannot do or reach in real life are still possible in the metaverse.
Maybe you can’t materially move next to Paris Hilton, but can do it virtually. The same could be true for a meeting, a concert or any other life experience. Not able to get tickets for Taylor’s Swift next show? Try in the metaverse.
Time is on our side
But, hey, wait a second. The metaverse hasn’t been fully developed yet, right? That’s right and it’s also the reason why now it’s the time to be real virtBut, hey, wait a second. The metaverse hasn’t been fully developed yet! That’s right and it’s also the reason why now it’s the perfect time to join it and shape it. This is exactly what the fashion house Louis Vuitton, Coca-Cola.
Although the idea of a metaverse is not new, with people spending more and more time online, the pandemic created the perfect environment for the development of virtual worlds. Facebook’s metaverse is, in fact, a 3D version of the Internet. This means that people can not only experience the Internet in a new way, but also live differently.
Once this idea is clear, it seems obvious to think that Mark Zuckerberg’s metaverse will bring many new business opportunities, as well as offer the chance for some of the old activities -say, real estate, for instance- to keep growing.
The metaverse is a multi-trillion-dollar opportunity.Tim Sweeny
What does it mean for brands and advertising agencies?
Brands have the opportunity to engage with customers and fans in a totally different way by establishing new relationships and by crafting new virtual, interactive communication strategies. Event and content possibilities will be basically infinite. Connecting with people will be easier than ever as distances and barriers will slowly fade and disappear in the virtual world.
However, we should not forget that real estate in the metaverse is actually space. Therefore, for brands, agencies, and marketers in general, ad space. The question is now how to buy, sell, and manage that space.
Would it be cheaper to place a billboard in some regular metaverse street rather than next to LAND or Snoop Dogg’s house, for example? Probably yes.
This opens the door to new advertising possibilities, such as a programmatic approach of virtual OOH or new in-game developments. Not to mention creative product placement.
If the Metaverse captures enough attention and in-world advertising gains popularity, buyers will want to use their existing programmatic buying tools. Advertisers would also expect the same verification and validation to occur, regardless of the environment.Trey Titone, Adtech Explained
Brands, real estate, and advertising
Like in the physical world, the real estate business is deeply related to branding. No prestigious clothing brand would open a flagship store in an unknown street, right?
In fact, we are seeing how fashion brands in the metaverse are entering the new virtual world and even joining fashion events like Decentraland’s Fashion Week, changing not only the fashion industry, but also the real estate game.
With land in virtual worlds like Decentraland getting bought up, fashion brands are rethinking their approach to setting up shop in the metaverse.Zofia Zwiglinska, Glossy
Because the real estate business is not an illusion, but a real business, the relationship between brands and businesses in general and property is still equally important in the metaverse as in the real world. Only, the impact could potentially be a bit different. A show in Warner’s LAND can reach millions of people at the same time and engage with them at a very deep level -deeper than on 2D channels-, while a physical venue can only host a limited number of people.
However, the existence of a real estate market in the metaverse has many other consequences, such as virtual NFTs linked to physical buildings or the development of virtual real estate marketing. After all, like in the physical world, this type of business is at the heart of the new -blockchain-based, crypto- economy. That’s why, it is not only an activity that will surely be supported by other industries such as marketing and tech, but also, a topic that is already helping publishers increase their revenue.
What it the metaverse?
Metaverse refers to a virtual universe created by Meta where users get together to interact with each other and the digital environment.
How can I buy land in the metaverse?
You can do it without intermediaries, through third-party resellers such as opensea.io, or through a real estate broker. Although SAND is the currency connected with The Sandbox, and MANA is connected with Decentraland, there are other cryptocurrency options as well. Ethereum, for instance, is one of the most popular ones.
How much does land in the metaverse cost?
Prices in the metaverse are quickly going up. While in the last quarter of 2021 the average cost per transaction was $13,000, in January 2022, it was already $18,000.
What is the cheapest land in the metaverse?
Although Decentraland used to be cheaper than The Sandbox, now things have changed. Buying a plot of land in The Sandbox can still be done for less than 4 ETH, but it’s impossible in Decentraland.