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Meta, formerly known as Facebook, has deployed a significant portion of its resources and investment toward the development of the metaverse. Between October 2021 and September 2022, the firm reportedly spent over US$10 billion on metaverse projects. Of this, 40% was directed towards the development of virtual reality headsets and related business, 40% towards augmented reality headsets and related business, and 10% was invested in the Horizon Worlds social platform.
Over the next five years, Meta is planning to further invest billions of dollars in its metaverse ambition. While the firm has continued to bet aggressively on the future of the metaverse, the outcome has not satisfied investors globally. The less than-expected adoption among users and failure to attract creators and brand affiliates, Meta’s metaverse dreams have been outpaced by its competitors in South Korea. Naver and SK Telecom, two of the leading conglomerates giants in South Korea, have achieved significant growth in their metaverse ambitions.
Facebook, Instagram, and WhatsApp have 3.5 billion combined monthly active users. However, Meta's metaverse platform has failed to duplicate the success achieved by its other social media platform. According to a report published by Wall Street Journal, the firm had a target to build a community of 500,000 monthly active users by the end of 2022. However, the count stands at less than 200,000. Furthermore, many of the new users are not returning to the metaverse platform after a month.
Naver and SK Telecom are not just beating Meta in terms of monthly active users. Their metaverse projects are much ahead in terms of attracting creators and brands. Zepeto, for instance, has created a variety of ways for creators to monetize their content. Hosting live events and co-branding digital content with brands are some of the ways through which creators can monetize their presence on the metaverse platform. This strategy has allowed Naver to gain a competitive edge over its competitors like Meta.
Furthermore, Zepeto has also forged strategic alliances with leading global brands such as Samsung, Ralph Lauren, and Nike, among others. Through strategic collaboration, these brands in partnership with Zepeto allow users to buy digital versions of real-world items. Moreover, brands are also using Zepeto as a new advertising channel, owing to its widespread popularity among consumers globally. Like Naver-owned Zepeto, SK Telecom-owned Ifland also provides features for hosting live events and is working with brands globally to provide branding in the metaverse.
Meta also provides brands and creators with similar tools to engage with their customers and followers. However, the firm has failed to attract brands onto its platform. Both Naver and SK Telecom are looking to expand their presence in the global markets through strategic collaborations. Ifland, for instance, entered into strategic partnerships with Singtel in Singapore and e& (formerly known as Etisalat) in the Middle East.
Naver, on the other hand, forged an alliance with TRUE in Thailand in September 2022. The partnership aims at building a global metaverse hub for Thai content creators. With over 500,000 users in Thailand, the collaboration will further drive the digital ecosystem in Thailand. While players like Naver and SK Telecom continue to spread the reach and popularity of their metaverse platform globally, Meta is still struggling to gain an audience in its home market.
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