Within the past few months, Facebook has rebranded itself to the Metaverse. Why the change? We’re here to talk about the meaning behind the name change and what Facebook plans to do with it.
What Does Metaverse Mean?
The metaverse is described as an interactive and engaging virtual space. The goal of this futuristic technology is to allow people from all over the world to meet, socialize, shop, and play. While the term “metaverse” seems like it popped up out of nowhere, there are some games that currently use a metaverse concept like Minecraft and Animal Crossing. In these games, the player controls their character but they share a space with and can interact with other characters from all over the world.
Why the Change?
On October 28th, CEO Mark Zuckerberg announced that Facebook would be rebranding itself around the metaverse. The purpose of this is to be more than just a social media app. Meaning that over the next several years they will transition from a social media platform to a metaverse virtual space company. Facebook is currently the umbrella company for apps like Facebook, Instagram, Messenger, and WhatsApp. These apps will stay the same, but the company structure and focus will change.
Facebook has already made prominent steps toward this next chapter. They have been laying the groundwork for a significant change of focus on technology over the last few months and even years. Recently, they set up new metaverse technology teams. More than 10,000 employees are developing consumer hardware like AR glasses, which Zuckerberg believes will be as eminent as smartphones.
This new expansion will likely attract young generations, which is something that Facebook has worried about as its user base grows older. People under 30 are spending less time on the app, posting less, and sending fewer messages. The metaverse will be the new big focus that will likely draw in more teenagers and young adults compared to the current social media app.
There is speculation that there was a push to separate the company from the scrutiny of how Facebook currently operates. Many lawmakers, researchers, and users have criticized Facebook for how their platforms cause harm. In light of these events, many corporations and businesses have chosen to stop advertising on Facebook like Patagonia. Zuckerberg was sure to mention that both privacy and safety will be a priority for this new virtual space.
Other Rebranded Companies?
Facebook isn’t the big company to branch off in hopes to expand — Google and Snapchat have also rebranded in some capacity. In 2015, Google rebranded itself under the name of Alphabet. This was due in part to show that Google is no longer just a search engine, but now they are expanding to health and automotive technology as well. In 2016, Snapchat changed to Snap Inc. They made the switch because they now consider themselves a camera company and launched their first pair of spectacle camera glasses.
What’s Next for Marketers?
Advertising and promotion won’t be lost on the metaverse. Just because marketers aren’t all too familiar with the metaverse yet, doesn’t mean that it won’t be a powerful tool in the future. As we mentioned, the metaverse will be primarily made of young consumers — the next generation of buyers. It would be a smart move for brands to get in front of this audience as soon as they can. Just like social media made a name for itself and took over the internet, soon the metaverse will be the next big phase.
At Transformation Marketing, we work hard to stay on top of the trends and the expanding market. We’ll continue to do research and uncover the best ways to market yourself in the metaverse!