What Happened to the Metaverse?
Neil Stephenson introduced the metaverse as a concept in his 1992 novel Snow Crash, where he depicted it as a digital realm where users, represented by avatars, engage in a simulated reality. Fast-forward more than 30 years, and the concept is often associated with platforms like Roblox, Fortnite, Meta’s Horizon Worlds, and the Sandbox. However, these typically represent individual, proprietary experiences rather than the unified virtual world that was originally envisioned.
The metaverse and its related technology have surely evolved, but why has it not quite lived up to the hope many had placed in it?
Today’s metaverse commonly refers to virtual, mixed, or augmented reality experiences that immerse humans, playing as digital avatars, into virtual worlds that might interoperate with other virtual worlds. The modern metaverse consists of separate virtual platforms that facilitate gaming, shopping, and information exchange. The ultimate goal, however, is a seamlessly connected digital world where users can work, socialize, and entertain themselves. Leading the space are platforms from players like Meta, Epic Games, Microsoft, Roblox, and Decentraland, each offering very distinct virtual environments.
“While there may be cross-device compatibility—such as the fact that Playstation and Xbox players can play Fortnight together—there isn’t one large interoperable metaverse where personalized avatars can run freely from one experience or platform to the next,” says Mark Morrison, vice president of sales at VividQ, a provider of holographic technology for the gaming industry. “The metaverse doesn’t exist as one singular thing yet. It’s a subjective word, often redefined for a brand or a technology company’s marketing benefit.”
Thomas Franklin, founder and CEO of Swapped.com, a cryptocurrency marketplace, believes that while the metaverse is not dead, the initial hype around it is.
“The metaverse has changed from an inevitable digital frontier to a niche, experimental space with uncertain viability. It’s not the fully immersive digital utopia that was promised,” he says. “A few years ago, companies threw billions into virtual spaces, betting on a massive shift in how people interact online. That shift never fully materialized.”
For proof, Franklin notes that Meta’s Horizon Worlds struggled to retain even 200,000 users out of Facebook’s total 3 billion, while Decentraland and the Sandbox, once seen as virtual real estate gold mines, now attract daily users in the low thousands. Companies poured millions into virtual stores, events, and non-fungible tokens (NFTs)—the unique digital assets that represent ownership of real-world or digital items—only to realize most consumers never showed up. JPMorgan, for example, predicted a $1 trillion metaverse economy when it launched a lounge in Decentraland in 2022. A year later, the platform averaged fewer than 5,000 daily users.
But even when users show up, profits haven’t followed. “Brands quickly realized that digital foot traffic does not equal real-world sales,” Franklin continues.
Brock Campbell, vice president and director of client engagement at Littlefield Agency in Tulsa, Okla., points to several factors that have led to slow adoption.
“First, Meta hasn’t cast a clear vision for what they believe the metaverse is and will be, and they’ve set unrealistic expectations. Second, there’s the expense of VR headsets. And it’s not for everyone. Virtual and mixed reality adoption won’t be particularly high compared to things like gaming. Although we’ve been talking about the metaverse for some time now, in the minds of many it remains as much about the future [as] the present,” Campbell explains.
Still, while the initial fever pitch around the metaverse has cooled, the platform hasn’t lost its pulse.
“We’re in a reality-check phase. Businesses no longer view it as a cure-all innovation,” says Kacper Rafalski, demand generation team leader at software developer Netguru. “Those early sky-high expectations now reflect a more measured view of what’s possible. Yet for brands targeting younger, tech-savvy crowds, the metaverse packs real marketing punch.”
Success Stories and Cautionary Tales
Metaverse winners grab a lot of headlines. Companies like Nike, Hyundai, and Gucci on Roblox; Sketchers, JP Morgan, and Heineken on Decentraland; Adidas and Warner Music Group on the Sandbox; Balenciaga, Marvel, and the NFL on Fortnite; and Wendy’s on Discord and Twitch have embraced the metaverse in recent years to effectively engage with digital audiences.
“Nikeland on Roblox attracted nearly 7 million visitors within a year. Gucci’s digital handbags sold for over $4,000, more than their real-world versions,” Franklin points out. “These brands succeeded by integrating into platforms where digital engagement already existed. They did not try to build their own worlds. They tapped into existing audiences that were already engaged in virtual spaces.”
However, while some companies have successfully garnered large impressions from their metaverse virtual worlds, few have generated self-sustaining revenue beyond an initial and limited publicity cycle.
“Walmart created a Roblox world, but not many Roblox players have driver’s licenses or do their own shopping. Nike, Versace, Adidas, and other brands have digitally inserted their brands into games and apps, but the end users are not always their target demographic,” Morrison says. “On the other hand, some of these major brands have produced PR and marketing by creating metaverse [experiences]. Is that enough ROI or does it generate real-world sales for the brands? Probably not yet.”
Morrison cites Niantic’s Pokémon GO as a showcase for what a unified, ubiquitous metaverse could become, blending proprietary technology, content, and a secure environment. By opening its platform for others to build upon, Niantic is paving the way for a virtual city filled with brands, people, and experiences, though true interconnectivity is still years away. Meanwhile, metaverse success today hinges on user base size: Platforms like Fortnite attract massive audiences, enabling major artists like Marshmello to perform there for millions, a reach that smaller companies or artists can’t yet afford.
Encouragingly, metaverse opportunities have gained traction in sectors beyond retail and entertainment; for example, opportunities exist in enterprise and education to enhance experiences like interactive employee onboarding, safety training, and virtual learning. Case in point: Stanford University offers a remote freshman-level anatomy course through Quest 3, allowing high school seniors and international students to participate from anywhere.
Smaller businesses can also benefit, although the risks and frustration levels can be high.
“We tested virtual product showcases for a tech client, creating an interactive demonstration space where their customers could explore product features in 3-D,” says Aaron Whittaker, vice president of demand generation and marketing for Thrive Internet Marketing Agency in Arlington, Texas. “While the experience impressed users who participated, the primary challenge was driving sufficient traffic to justify the development costs. This highlighted a key lesson: Metaverse presence needs integration with broader marketing strategies to generate meaningful engagement.”
One of Campbell’s clients sells heavy equipment, much of which is showcased at major trade shows. It has enjoyed early success via the metaverse.
“It’s not viable for our client to transport the largest of their product lines to trade shows. By instead offering a metaverse experience at a trade show, they were able to give attendees an opportunity to experience more of their product lines,” he says. “Their use of the metaverse also makes a statement that they are a technologically advanced company.”
Nikita Sherbina, cofounder and CEO of AIScreen, says the company has explored interactive digital signage in VR environments to simulate real-world retail experiences, with mixed results.
“While it helped boost brand engagement, we found that adoption lagged due to accessibility issues,” Sherbina notes. “Many users still prefer mobile-first or web-based experiences over full VR.”
Rafi Friedman, president of Coastal Luxury Outdoors, recalls being especially excited about the metaverse when the buzz around it started.
“It seemed like an absolute perfect fit for our landscaping and pool construction business since it would give our customers a chance to see our work before buying any services,” he says. “I decided to take a wait-and-see approach with it, and I’m glad I did. Even when it was new and growing, it simply didn’t attract enough customers to make financial sense for us, especially as a local business.”
Pros and Cons of Using the Metaverse
The metaverse offers a distinct cost-effective marketing advantage: Digital content is far cheaper and faster to produce than traditional physical campaigns, which often take months to plan and execute.
“The metaverse can be a great way to promote products and services, particularly for companies whose products are not easily accessible for demonstration or trial,” Campbell says. “The metaverse can provide companies and users a great alternative to being face-to-face and real-world with the product. Being ready for it means building virtual experiences where interested users can encounter your products and interact with your sales team.”
Rafalski agrees that the metaverse offers fresh ways to grab attention through immersive experiences that outshine standard digital marketing.
“But the drawbacks pack a punch too. Creating quality virtual content drains both wallet and clock. It is worlds apart from slapping together a social post. You can pour resources into designing virtual stores, crafting branded worlds, maybe even minting digital goods,” Rafalski warns. “But without deep pockets and clear direction, it feels like rolling dice with marketing dollars.”
Consider that a well-designed virtual activation can cost anywhere from $50,000 to $500,000, according to Franklin, who notes that there is no guarantee of engagement. And maintaining a presence requires constant updates, community management, and promotional efforts.
“But when done right, it delivers high-impact brand experiences,” Franklin continues, adding that Coca-Cola’s NFT launch in Decentraland generated $575,000 in digital collectible sales, proving there is money to be made—just not in the way most expected.
Companies can effectively showcase products in the metaverse by creating virtual showrooms, lobbies, and collaboration spaces.
“While this requires investment, it offers unique advantages. Imagine you’re a company that sells big-rig trucks but wants to provide remote demonstrations. Instead of transporting that huge vehicle across the country, a potential customer can explore a 3-D model in a virtual showroom, receive a guided walk-around, and discuss details in a virtual conference room,” Campbell says.
The metaverse can be effectively used to promote products and services nowadays, insists Jonathan Moran, head of martech solutions marketing at SAS. But companies and marketers need to acknowledge crucial factors that are slowing mainstream adoption, including the following:
- Technology. Currently, like generative AI, the metaverse demands high processing power, making it costly and energy-intensive, while the hardware necessary for users to fully immerse themselves for long durations remains costly, cumbersome, and inconvenient.
- Interconnectedness. “While we’ve seen many brands set up their own environments or ecosystems, many of these ecosystems from hyperscalers do not integrate with each other,” Moran notes.
- Competingpriorities. The focus has shifted toward other advancements like generative AI, drawing attention away from the metaverse. However, both technologies often find themselves in situations where they appear to be solutions in search of a problem.
- Ubiquity. Although the metaverse has gained traction among specific groups like gamers, streamers, and crypto enthusiasts, it’s likely to stay a niche space until it becomes more affordable, user-friendly, and widely accessible.
“Yes, the metaverse is viable, but it shouldn’t be a sole focus of any marketing or advertising strategy,” Moran cautions.
Best Practice Recommendations
The key to success on this platform is knowing where your target audience spends time online and determining if your products and services are a good fit for this digital experience.
“The metaverse works best for brands that already have strong digital communities,” Franklin states. “A company selling high-end watches or financial services will struggle to find an audience in virtual spaces. A brand focused on gaming, entertainment, or youth culture will have better luck.”
Morrison firmly believes that most marketers and salespeople will not and should not use the metaverse as a marketing platform unless they know that their user base is engaged in that platform.
“Maintaining a successful online or metaverse presence is time-consuming, requires constant new content, and may be more expensive than in real-life marketing methods for newcomers,” Morrison cautions. “Anyone not versed and well-educated in immersive technology may be better off marketing through traditional channels.”
For companies and players still interested, the best approach might be to dip your toes in the water vs. plunging in.
“Test and learn first,” Franklin suggests. “Running a limited-time virtual experience costs far less than committing to a permanent virtual storefront. Start by hosting exclusive events, offering digital rewards, or creating interactive challenges.”
To maximize engagement, Moran advises companies to offer exclusive services, rewards, and discounts available only in virtual spaces while exploring innovative ways to interact with consumers.
“Starting is the hardest part. It can be intimidating and even costly. But keep in mind that you don’t need to offer your entire product lines in the metaverse. Give users an experience to remember, even if they see only a small number of the products or services you offer,” Campbell recommends.
Rafalski says companies perform best when they weave the metaverse into their existing presence rather than treating it as a shiny new toy. “Virtual stores or events that amplify real-world connections tend to strike gold. Pure sales plays usually fall flat. Engagement trumps exposure every time.”
Additionally, “don’t treat the metaverse as a separate channel. Instead treat it as an immersive, experiential layer to an evolving digital world,” Moran adds.
Lastly, remember that the metaverse is not a replacement for traditional marketing, but it can be a powerful tool when used strategically.
“Companies that approach it with clear goals and realistic expectations see better results,” Franklin says.
Prognosticating the Metaverse’s Path Ahead
Industry insiders are split on where the metaverse is headed in the near and long term.
“While the metaverse has taken off in certain sub-communities, until it becomes more affordable, accessible, and understandable, it will likely remain niche,” Moran says. “With the rapid rise of generative AI competing for attention, and the processing needs of the metaverse remaining cost- and power-prohibitive, the metaverse becoming ubiquitous is still some time away.”
Campbell agrees but is optimistic that we are on the cusp of greater possibilities with these virtual platforms.
“Commerce for many of the clients we represent will one day be done from the metaverse,” he forecasts. “That will happen not because of wider consumer acceptance of VR but instead because more businesses will realize the necessity of VR. It allows people anywhere to be able to replicate an experience.”
While the initial hype around the metaverse as a business platform has cooled, its evolution is far from over.
“What’s already happening, and which we will see more adoption of in the future, are 3-D models in retail, such as an IKEA sofa that you can place in your living room virtually on a smartphone,” says Marcel Hollberbach, chief information officer at e-commerce platform provider Productsup. “Today, our phones serve as an intermediate step, but in the near future, AR glasses will overlay digital content onto physical products, transforming how consumers interact with brands. Imagine walking into a store and seeing instant product demos, influencer reviews, or personalized recommendations simply by looking at an item. That’s where the metaverse is headed, and that’s where its marketing and sales potential will thrive.”
However, until hardware becomes more accessible and user-friendly, the metaverse will struggle to reach mainstream audiences, Franklin maintains.
“In the short term,” he says, “expect niche use cases, limited activations, and more brand experiments rather than full-scale adoption.”
Erik J. Martin is a Chicago area-based freelance writer and public relations expert whose articles have been featured in AARP The Magazine, Reader’s Digest, The Costco Connection, and other publications. He often writes on topics related to real estate, business, technology, healthcare, insurance, and entertainment. He also publishes several blogs, including martinspiration.com and cineversegroup.com.