Defining the Ads-Metaverse
Participate and Earn
In the next ten years, the metaverse is expected to sign on a billion users and eventually earn over $1 trillion in revenues. This presents a massive opportunity for brands, marketers, advertisers and users alike. In the context of advertising and marketing, the metaverse can be defined as a persistent, 3D, and virtual space where users can spend their time and may be targeted with brand-related content and sales enablement tactics.
The closest analogy today would be social media, where users log in , and engage with their friends, family, and peer network – and in the course of these interactions, they encounter brands, advertising, sponsored content, and calls to conversion.
Over time, social media has evolved to feature direct-to-customer stores where you can pay for products online and get them shipped to your address.
Similarly, the metaverse could have 3D “Ad Spots” where you not only view ads but can also try out products and make purchase decisions.
Our unique approach is to totally decentralize the Advertising Supply & Inventory Flow and the Advertising Demand and Money Flow rewarding every stake holder across the value chain.
DECENTRALISING THE ADS INDUSTRY
When the internet evolved to become the space where human beings started eyeing the most, alongside the television, newspapers, billboards, events and so on, so too followed advertising dollars behind it, with the earliest brands and companies who started using the internet to market themselves gaining significantly in terms of brand recall and value. Today, digital advertising dominates the world for a majority of the population is now receptive (and even used to) to viewing and sharing ads, provided, of course, that the ad is worth their attention and time.
In the Web 3 world, to which we’re just about transitioning towards, the ethos of decentralization and transparency dictates that users and publishers can deal directly with each other using smart contracts and tokens, instead of value accruing to a third-party. In fact, going even further the ideal vision would be to reward users for viewing and promoting the products that they like, instead of paying people to do so. Digital money helps communities attract the right individuals and rewards genuine value creation.
The current programmatic advertising landscape is highly opaque and fragmented. Far too many intermediaries stand between advertiser and publisher. This causes inefficiency in pricing while intermediaries fees consume huge parts of publishers’ revenue. For example, Google Adsense takes a 32% cut for allowing you to find suitable advertisers. Reliable estimates of typical intermediary fees are hard to get (no surprise!), but estimates point to around 50% fees. Some high-profile cases point to even more absurd fees up to 70%ii. Just to recap: advertisers pay $3.00 per thousand impressions while the publishers who actually deliver these impressions only get $1.50, or perhaps even $0.90! This massively inefficient market is ripe for disruption and that is where Pandora X comes in.
A typical day in the metaverse – a shared immersive virtual world – may before long closely resemble the familiar world we live in. We will visit shopping centres, drive across town, meet friends in cafes, and exchange contacts in ways that seem strikingly real – thanks to rapid advances in virtual reality and 5G communications.
Metaverses have existed for decades in the form of multiplayer online games. But we may soon enter an age of immersive experience hardly distinguishable from our real world – fostering new modes of interaction for gamers and non-gamers alike.
Prototype next-generation metaverses such as Decentraland and Somnium Space already show the beginnings of true society, with individuals settling land, interacting socially, exchanging goods and asserting ownership rights. Any society (physical or virtual) needs a functional economy. And in the metaverse, the economy depends on authentication of digital properties, such as one’s metaverse home, car, farm, books, clothing and furniture. To flourish, it also needs the ability to travel and trade freely between realms that might have different laws and rules.
Non-fungible tokens – records of digital ownership stored in the blockchain – will be the linchpin of the metaverse economy, by enabling authentication of possessions, property and even identity. Since each NFT is secured by a cryptographic key that cannot be deleted, copied or destroyed, it enables the robust, decentralised verification – of one’s virtual identity and digital possessions – necessary for metaverse society to succeed and interact with other metaverse societies.
Beyond the hype of multi-million-dollar digital art sales, the significance of NFTs may lie in enabling the beginnings of something resembling genuine human society, based on free markets (for goods, services and ideas), independent ownership and social contracts, to flourish in the metaverse and which better industry than the Ads Industry.