When I reflect on the story of technological innovation, it’s almost always a tale of surges and setbacks, visionaries and skeptics, followed by the slow march toward maturity. Not so long ago, the automobile industry was a Wild West of competition, only to narrow down to the few giants we all recognize today. I’ve lived through similar upheavals with personal computers, smartphones, and the rise of social media. Now, as I look at what’s happening with the metaverse, I can’t help but see echoes of those transformative moments.
Living the Evolution of a New Ecosystem
To me, the metaverse feels like a whole new universe in the making. For anyone still unsure, it’s essentially a collection of interconnected 3D virtual spaces, enabled by increasingly immersive technologies. Sure, it’s early days—but even now, it’s clear to me this could change not just entertainment or online communities, but global business itself. I’ve seen first-hand how people pour real money into digital objects in these worlds—a market that’s become worth billions every year. Some predict that before long, buying and selling digital goods and experiences—what many now call iCommerce—could become a trillion-dollar industry.
We shouldn’t ignore how blockchain and things like NFTs have deepened this transformation. Unique digital assets (NFTs) are already blurring the lines between the physical and virtual, whether that’s a piece of art, exclusive skins in games, or branded digital collectibles. As these get further woven into our virtual lives, I see ownership itself shifting, becoming less about “real” versus “virtual” and more about what that ownership means to us.
Where Brands Should Be Excited—and Cautious
I know from advising clients that brands everywhere are venturing into the metaverse. I’ve helped launch virtual events where people—from Lisbon to Tokyo—connect with products in ways never before imagined. Sometimes a digital sneaker or rare collectible might fetch more than its real-world counterpart! All this speaks to massive possibility.
Yet, there’s another side I can’t ignore. Almost weekly, I read or hear about issues like harassment, scams, or disturbing content in virtual spaces. I’ve seen public figures react strongly when their kids are exposed to something alarming in a game. I often remind clients: the risk is real. Stories of virtual bullying or stalking are not isolated incidents. Without proper safeguards, brands could face damage that outweighs any advantage from being first in the space.
How I’m Advising Brands to Prepare
For businesses considering a jump into the metaverse, I always urge a careful, coordinated approach. Here’s what I recommend:
1. Form a Diverse, Cross-Functional Team:
Gather people from legal, tech, communication, human resources, marketing, and operations. In my experience, this mix helps spot both the bright opportunities and the lurking dangers. I always suggest including those with gaming, NFT, and crypto expertise—they see the angles others miss.
2. Explore Multiple Use Cases:
The headlines are about marketing, but I see so many other possibilities—prototyping new products, building digital partnerships, recruiting and onboarding, supply chain simulations, and employee training, especially around ESG and sustainability. Each has unique risks and rewards, so I encourage a period of critical exploration to find what really aligns with business goals.
3. Emphasize Data Stewardship:
Interactions in these virtual worlds produce huge volumes of data—voiced conversations, body language, even biometrics. To me, robust data policies aren’t optional; they’re urgent. Address how data is collected, stored, used, and deleted, and strive to be ahead of emerging regulations.
4. Safeguard Intellectual Property:
I find that, despite talking a good game about security, metaverse platforms often put the burden of protection on the users. Brands must actively defend their logos, creations, and virtual assets from theft or misuse.
5. Monitor Brand Placement:
In wild, user-driven digital spaces, brands may unintentionally appear next to objectionable material. Constant vigilance and real-time moderation systems are, in my view, non-negotiable to prevent reputational harm.
6. Follow Regulatory Trends:
Just as social networks faced tightening rules on privacy and content, I expect metaverse platforms to attract scrutiny from governments everywhere. Taking the initiative to develop ethical, compliant policies now is the best way to build trust with users and future-proof the brand.
Looking Forward
At Full House Partners, I try to balance our excitement for these opportunities with a healthy respect for the risks. Experience tells me that the biggest winners will be brands that stay curious, agile, and, above all, prepared for whatever this new digital world brings.