Metaverse has reportedly stopped pitching advertisers about Metaverse and rather started focusing on its short video and AI tools. Apart from this one advertiser who has spent hundreds of millions with Meta said they are offering a very huge discount which is “unusually large”.
No more Metaverse Pitching
Various reports have suggested that Metaverse has stopped pitching about the Metaverse and also stopped campaigns that promote Metaverse. reportedly, it has started shifting its focus from Metaverse to AI tools, Reels, and short-term video products.
By laying off 20,000 employees Meta is observing its “Year of Efficiency” and the shift to promoting such products instead of Metaverse aligns with it. The reality labs division, assigned to the development of Metaverse faces extreme financial pressure despite previous commitments by Mark Zuckerberg.
In addition to promoting short-format videos, Meta is showcasing tools such as Advantage+ which delivers targeted ads by employing machine learning. Meta is also investing in generative AI which can help in marketing campaigns. All these investments could mean short-term gains for the company which is currently facing financial heat.
In the most recent round of layoffs, Zuckerberg mentioned over 2000 words in his note in which he hardly mentioned Metaverse twice while on the other hand, he described AI development as the company’s “single largest investment”. Not only this during Meta’s full-year earnings discussion in February the executives brought up AI six times while Metaverse wasn’t mentioned even once.
Metaverse’s downfall
The division responsible for developing the Metaverse strategy is being closed by Walt Disney. The Next Generation storytelling & consumer experience team which consisted of 50 people will be closed leading to the closure of a larger structure which will lead to 7,000 job losses over the next two months.
According to The Wall Street Journal, the metaverse division was “tasked with finding ways to tell interactive stories in new technological formats using Disney’s extensive library of intellectual property.” Disney’s metaverse development has included patenting technology for virtual theme parks
On the other hand, the European Union is waiting for feedback on its proposal to formulate regulations to better govern virtual worlds like the Metaverse. Following a World Economic Forums article last month the EU antitrust chief Margrethe Vestager has raised questions about the stronger regulatory monitoring of the Metaverse. The commission has also issued a “call for evidence” asking what the metaverse legislation should look like.
“There is a risk of a small number of big players becoming future gatekeepers of virtual worlds, creating market entry barriers and shutting out EU start-ups and SMEs [small and medium-sized enterprises] from this emerging market,” the document warns.
Summing up
With rising speculations from Europe to ignorance by Meta’s own company executives the metaverse is finding itself in a tough position right now. With cost effective solutions in the “year of efficiency,” It is going to be challenging for the Metaverse to grow.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/04/23/no-more-metaverse-pitching-to-advertisers-by-meta/