The industry cause of the Metaverse boom

1. The considerations behind Facebook’s renaming of Meta

Facebook’s name change event detonated the concept of “Metaverse”. On October 29, 2021, Facebook announced a strategic transformation and officially changed its name to “Meta”. The so-called Meta comes from the prefix of the Metaverse “Metaverse”. Zuckerberg said, “From now on, we will put the Metaverse first, not Facebook first.” This is not the first time Facebook has “waving the flag” for the Metaverse, and it has already laid out in the Metaverse field.

The industry cause of the Metaverse boom

In July 2021, Facebook established the Metaverse product team; in September, Facebook announced that it would invest $50 million to cooperate with relevant institutions to establish a “Metaverse”; in October, Facebook said it planned to create 10,000 jobs in the EU in the next five years , to promote the development of the “Metaverse”. Until Facebook changed its name to meta, which detonated the Metaverse concept stocks in the A-share market, and drove the hype of the entire Metaverse, and other technology companies followed suit. Some research institutes said that Facebook’s renaming of Meta is a milestone in the development of the Metaverse.

The industry cause of the Metaverse boom

Facebook has been plagued by negative news recently and is facing a huge crisis. Since October 2021, Facebook has received continuous negative news about antitrust, youth protection, data security and privacy issues, and has suffered huge fines from many countries in terms of antitrust. The U.S. federal court, U.K. antitrust-related agencies, Russian courts, Irish data protection, and the Federal Trade Commission have all issued fines to Facebook for monopoly or privacy issues.This series of problems has caused Facebook’s stock price to plummet and its image to suffer.

The industry cause of the Metaverse boom

At the same time, Facebook is also stuck in a revenue growth bottleneck. As the world’s second-largest digital advertising platform after Google, Facebook has been hit hard by Apple’s new privacy policy. In September 2021, Facebook warned that changes to Apple’s privacy policy would increase the cost of advertising on iOS devices and reduce revenue. Relevant financial reports show that Facebook’s revenue in the third quarter of 2021 was far less than expected, and the slowdown in revenue growth was mainly due to the decline in advertising revenue. The reason why it chose this time to change its name to Meta and reshape it to resemble the Google of the year was that Facebook had no choice but to divert the crisis from the negative news and divert its attention.

The industry cause of the Metaverse boom

2. Internal reasons for Internet giants to change the track

The blue ocean market has turned into a red ocean market, and the industry has become seriously involuted. There are profound economic and social reasons behind the sudden popularity of the Metaverse concept. The dividend of mobile Internet has reached its peak and is beginning to fade. The blue ocean market of games and other industries has turned into a red ocean market. In recent years, some existing technical concepts in the Internet field are facing exhaustion. At the same time, users are looking forward to new things, capital needs new directions, and a new concept is urgently needed to rekindle the enthusiasm of users and capital under the situation of the influx of Internet giants.

The industry cause of the Metaverse boom

The Metaverse just came out just in time. From extensive market expansion to intensive operation, to provide personalized needs. Today’s consumers have entered the “Metaverse era”, and there is a strong demand for personalized virtual products. Only by constantly advancing with the times based on diversified, personalized and refined social needs, we can carry out experience innovation, functional innovation, technological innovation, and even model innovation, marketing innovation, etc.

The industry cause of the Metaverse boom

Only by providing customized, differentiated and scarce products and saying goodbye to the extensive business model can Internet companies win the living space in the fierce competition. In this sense, “Metaverse” has brought more application scenarios and market demands, opening up new business expansion space for Internet companies. However, the Metaverse capital market is still immature, and it is necessary to be alert to the risk of capital over-packaging and hyping up the concept of “Metaverse” and misappropriating money.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-industry-cause-of-the-metaverse-boom/
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