Tag Archives: Revenue

How Business Owners Can Leverage the Metaverse to Turn a Profit

Augmented Reality, Digital Marketing, Gaming & Monetization Strategies, Metaverse, , , , , , , , , ,

As many have heard, Facebook’s highly publicized rebranding as Meta in 2021 signaled their long-term expansion from social media into VR, the metaverse, and more. In the process, they launched the metaverse into a household name technology. The $500 million virtual real estate boom which proceeded only further hammered the point home—as far as Meta is concerned, the metaverse is the future. With VR and AR technologies developing at an astounding rate, businesses are entering the metaverse intent on generating revenue while the technology remains in its nascent stage.

The metaverse is here to stay—the question for business owners is: how can one take advantage of it? There is a long list of apps that use AR features to enhance the shopping experience. Sephora’s Virtual Artist app enables users to view how makeup will look before trying it on. The Ikea Place application enables users to view how furniture will look in their house before they place them.

The big question is: should you as a business owner delve into the metaverse? And if so, how can you leverage a metaverse presence to generate commerce? In this week’s blog, we present a few ideas to consider when making your decision.

REAL ESTATE

The first step to a metaverse presence is the acquisition of a virtual space for the business. Luckily, metaverse real estate has proven to be an extraordinarily profitable investment in and of itself. Armando Aguilar told Coindesk recently that the price of his three-bedroom, two-bathroom home outside New York City has appreciated two and a half times, while his metaverse property surged by 1,400% during that same time.

When purchasing real estate within the metaverse, consider which platform you’d like to see your company grow in. There’s a long list of options, from Sandbox to Decentraland, each with their own pros and cons.

When choosing a platform, consider which platform will provide the most short-term gains for your customers. Where do you anticipate long-term value? Investing wisely will lead to revenue as the price of virtual property rises.

For a list of the top metaverse platforms, check out XR Today’s list of the top metaverse platforms to watch in 2022.

EXPAND YOUR PHYSICAL PRESENCE

The metaverse presents an opportunity for companies to translate their brand into a virtual experience. Similar to the early aughts of the internet, companies which fail to capitalize on the new channel may lose money to companies that adopted the metaverse faster.

The metaverse differs from the internet in that it enables businesses to replicate three dimensional, physical spaces. This is a huge leap as we are physical beings and crave physical experiences.

While nothing can replace the physical retail experience, a great deal of commerce is generated by monetizing convenience. Delivery services like Amazon and Seamless generate billions of dollars in revenue by offering a variety of products to their customers through their digital presence, cutting out the need to stray from the home.

The metaverse capitalizes on our desire for physical experiences while enabling us to access them from the comfort of our couch. Rather than recreate their websites, businesses need to think about how they can create a physical experience for their customers.

Five years down the line, businesses will likely require a team of consultants and developers to build the metaverse experience. Check out the video below showing how Walmart created a physical shopping experience in the metaverse.

NFTs AND THE METAVERSE

Commerce in the metaverse will incorporate cryptocurrency and NFTs. NFTs, or nonfungible tokens, are unique digital files which function as certificates of ownership verified by the blockchain. They can be associated with any number of things—from sneakers, to songs and works of art. Although the market shows volatility similar to cryptocurrency, NFT value can appreciate by quite a bit.

NFTs represent a new buying channel that’s crucial to the metaverse. Creating exclusive experiences in the metaverse will draw your customers in.

https://twitter.com/adidasoriginals/status/1466443459951271939?s=20&t=toF7uzgidxO5yDtR3M9u5Q

Offering exclusive NFTs is a way to both create value and boost engagement with your customers. Adidas recently took advantage of this, generating over $23 million in ethereum in their first NFT drop.

Consider incorporating NFT’s alongside physical product drops. For example, offer an NFT to customers who enter the metaverse to make early pre-orders of future releases.

The metaverse is an opportunity to drive engagement and create value by offering personalized, exclusive experiences to your customers. NFTs are the perfect method to achieve this.

CONCLUSION

The metaverse poses a business opportunity for enterprises unafraid of innovation. What kind of experience can you deliver to your customers in the metaverse that you cannot in any other realm? Businesses which manage to answer that question will be rewarded with long-term profit.

Game Design Techniques: Significantly Increase Ad Revenue with a Sharp Core Loop

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Due to the budgetary, software and hardware limitations of mobile games, developers must hook audiences with a well-built game incorporating layers of psychological strategy. The core of any mobile game is the Core Loop. The Core Loop is the main facet of gameplay. It’s the beating heart upon which all progress is precipitated. In sports games, it’s the matches. In Angry Birds, it’s launching the birds to destroy the pigs. In Candy Crush, it’s the levels. The Core Loop is the obstacle that users willingly take on with the intention of overcoming in exchange for a feeling of accomplishment. While retention techniques can reinforce that feeling and can add to the experience, no game can survive a poor Core Loop. In some cases, a great Core Loop doesn’t need any sort of extravagant retention technique. Flappy Bird, which took 3 hours to make, can accrue $50,000 a day in ad revenue purely off the Core Loop.

THE BASICS

A good Core Loop for a mobile game generally entails a simple, enjoyable, repetitive action which triggers a reward when executed properly. This reward is something in-game which triggers a dopamine rush for the user. The rewards can be anything from gaining points, getting lives, advancing levels, power-ups, unlocking characters and items, and so forth. These rewards are tiered and the dopamine rush should vary depending on the level of accomplishment. For instance, the main action of Fruit Ninja is slicing fruit. Slicing one fruit triggers a dopamine rush, but clearing a level of fruit triggers a larger dopamine rush, and getting on the high score list triggers yet a larger one, etc. Retention tactics can dictate how these rushes are tiered, but the action which produces the rush is the most important thing: the Core Loop.

LOOPING

Rule number one of the Core Loop for mobile games is to actually loop. After one loop completes, another loop begins. The user completes a level and begins at the next level with their score intact, or they fail to complete the level and begin at the start of the same level with their score reset. Even rewards apps for retail stores rely on Core Loop to hook users. Console games are monetized through retail, so they can craft larger budget, more intimate single-player experiences, but mobile games are generally monetized through the Freemium model, which means ad-revenues will make up the bulk of their profits. Ads come at the end of the Core Loop, so the more loops per user, the better. Thus, mobile developers generally invest in simple but rewarding, well-crafted, repetitive gameplay systems.

PROGRESSION AND REPETITION

Pac Man Level 1 Vs. Level 2 via GitHub

While a Core Loop must loop, it also must instill a sense of progression. If the user doesn’t feel like they’re making progress, they will likely quit. Users want the satisfaction of accomplishment, and both satisfaction and accomplishment require a sense of finality. Arcade games are popular on mobile devices because they thrive on repetition. Level 2 of Pac-Man is not much different from Level 1, but it is different, and that minor difference instills a sense of progression; the sense that a new challenge must be conquered with skills accrued in past gameplay experience. Memories unconsciously become technique. In games like the aforementioned Flappy Bird, the goal is simply to get a high score. There are no levels, but a sense of progression is still built purely through how one’s high score builds. If the high score weren’t displayed, Flappy Bird would still have a Core Loop, but nobody would play it since one couldn’t measure one’s progress. It wouldn’t feel like a game. The beauty of high scores is they represent a single player game with a social release, which is also great for social media promotion.

SESSION LENGTH

Session length is a vital aspect of the Core Loop. The Starbucks Test entails that the user should be able to have a meaningful experience with the game in the time it takes the barista to make them coffee. A concise session length will get users coming back often in the empty pockets of their day.

DUAL LOOP

The Dual Loop is an advanced game development technique that can deeply enhance gameplay. At the end of the first loop, the Dual Loop technique offers the user the option to stop their session and enter into a mini-loop which enhances the next loop, which is a continuation of the first. When you play Clash of Clans, you can battle, which is the main loop, but you can also collect resources or build and train your army in between battles. The dual allows the user to add quick 30-second interactions which pass the Starbucks Test and increase their investment in the competition.

One of the best ways to enhance your ability to develop a Core Loop is to play and analyze other games. A well-designed Core Loop can lead to mobile gaming success on minimal budgets, and massive success on larger budgets.

How Sharing Economy Apps and Collaborative Consumption May Reshape the Future of Business

Android Development, iOS Development, Web Design, , , , , , , , , , , , , , , ,

In recent years, the tech community has seen a surge in popularity of apps which utilize the latest technology to link supply and demand in previously impossible ways. These apps have been deemed “Sharing Economy” apps and are shaking up not only the tech sphere, but the verticals in which each app operates. In an article at Forbes, Joe Kraus (a general partner at Google) says: “The sharing economy is a real trend. I don’t think this is some small blip.”

Previously, if you needed a taxi in the city, you would have to either wave one down or call a taxi company. Now with Uber, not only is a certified driver a tap away: payment is paperless, you can rate your driver, track his progress to your pick-up location in real-time, and, on top of all that, you can DJ your ride using Spotify.

Uber is among the most popular and successful sharing economy apps. It recently received a $1.2 billion investment and is currently valued at $17 billion. As astonishing as these numbers are, Uber gets even more shocking upon closer examination. Uber revenue is doubling every six months. That revenue is coming primarily from only five cities in which the app is well-established. Uber has been introduced in 125 additional cities where it hopes to develop into a mature business.

Only four years after its launch, Uber has made a major impact in public transportation and has incited widespread protests both internally from it’s workers and externally from taxi drivers. While the exceptional growth of the company has caused controversy, one thing is for sure: users love it.

Like Uber, Airbnb is also among the leading sharing economy apps. Airbnb connects tourists who need a place to stay and locals with extra rooms. Airbnb not only cuts out the middleman of hotels, it also encourages the formation of connections. The idea of Airbnb creating a community is a major part of their marketing strategy.

Airbnb recently received a $13 billion valuation, making it the second most valuable private company in the Silicon Valley to Uber. Airbnb has also received it’s share of controversy. New York is a hotbed for both Airbnb users and residents frustrated with the patrons of the new service. San Francisco also represents a major beacon of Airbnb usage. SF mayor Ed Lee recently signed legislation which made short term rentals of 30 days or less legal with a 14.5 percent hotel tax.

While both Uber and Airbnb are among the fastest growing companies in the nation, The New York Times recently argued that the one thing they have in common is the willingness to take risks. The same article claims Uber employed a surge of drivers in their rise to prominence and asked them to push any damage claims through their personal insurance companies despite the fact that most personal insurance companies don’t cover commercial activity.

Airbnb recently announced they will offer free $1 million liability coverage for its tens of thousands of US listings in 2015; however, this insurance will be secondary. Like Uber, Airbnb expects hosts to go through their personal insurance companies first.

Airbnb and Uber aren’t the only sharing economy apps on the rise. In fact, there’s been a massive flood of sharing economy apps pushing “collaborative consumption.” Chegg allows students to rent or buy college textbooks on the cheap. Lyft, an alternative to Uber, is described by co-founder John Zimmer as: “Your friend with a car on demand.” ParkAtMyHouse.com allows people in the UK to rent out parking spaces in their driveways. Getaround allows you to search for cars in your area which you can rent hourly or daily. Timebanks allows users to trade an hour of work in their specialty for an hour of work in another’s specialty. In other words, a cook can trade an hour of cooking to a plumber for an hour of plumbing.

These sharing economy apps all run with varying levels of success, but the underlying idea of “collaborative consumption” is what has tech gurus inspired. Collaborative consumption is how each of these apps works. According to Greenopedia, collaborative consumption is: “a global concept that involves sharing, bartering, lending, trading, renting, gifting, and swapping goods instead of buying them.” It’s disruptive to the standard business model of supply and demand.

The ideology behind the sharing economy and collaborative consumption is potentially revolutionary—especially as sustainability continues to rise in prominence as a global issue. It conveniently connects consumers to what they desire on the cheap, cutting out the middleman. Rachel Botsman claims it leverages technology to allow us to interact and transact in a way which is more natural to our species. It creates an economy of trust. And as evidenced by Uber and Airbnb, if one can find the right niche, it can also mean big business.

For more on Sharing Economy apps and the idea of “collaborative consumption,” check out these incredibly insightful 2010 and 2012 Ted Talks by Rachel Botsman.

At Mystic Media, we are constantly on the lookout for the next big vertical. We’re experts in all things web, mobile, application, social media and marketing. To learn more about our services, contact us today by clicking here, or by phone at 801.994.6815