Can AR save Facebook?
So, Meta lost $230 billion in one day back in February. Did you know?
Just poof. Gone with the winds.
That’s more than the market value of Netflix, AMD and AT&T combined. There are several reasons why it happened:
For the first time in 18 years, Facebook lost Daily Active Users (DAUs).
They’ve been losing advertisers to TikTok and YouTube.
And younger audiences have been leaving the platform for TikTok and Snap.
More privacy regulations and platform policies are hurting their revenue.
And to top it up, Zuckerberg is committed to spending billions of dollars on the Metaverse. Building it undoubtedly needs considerable investment, but it doesn’t solve Facebook’s current problems, and that’s what left Meta investors worried.
Meta’s 10-year growth plan is to build hardware for the Metaverse
In a recent interview on The Tim Ferris Show, Zuckerberg shared Facebook’s new strategy and one of its pillars is ‘Living in the future.’ It seems that Meta is committed to winning in the next decade of social technologies even if it hurts in the short term.
Meta is betting on AR glasses becoming as common as smartphones by the end of this decade.
Project Nazare is their first iteration of AR glasses that will come equipped with muscle commands and work without a smartphone. The lower-cost version called ‘Hypernova’ will need to be plugged into a smartphone. Andrew Hutchinson/SocialMediaToday
Meta sees ‘AR wearables’ as their ‘iPhone moment’. The one technology that will change the world forever. And it seems that Zuckerberg’s 10-year growth plan for Meta is to make a bet on the next phase of social technologies. Alex Heath/TheVerge
Producing their own hardware is a necessity for Meta to realise Zuck's vision of the Metaverse.
Without it they’ll be relying on the whims of Apple and Google.
💵 Making NFTs more accessible is the next challenge for brands
Digital commerce is moving at lightning speed, and NFTs could be the future of brand loyalty programs.
Like any other collectable, the value of an NFT is based on how much the market is willing to pay for it. For brands, the value of using NFTs comes from loyalty, exclusivity and cultural cachet. That’s why charity auctions and fundraising are how big brands have used NFTs so far. Maile McCann/ModernRetail
So far, NFTs have attracted investment-minded collectors from the crypto world. But now, brands aim to benefit from the community and exclusivity aspects of owning NFTs by making them easy to purchase using fiat currency instead of crypto coins. Liz Flora/Glossy
From the beginning of the NFT craze, cosmetic brands have been at the forefront. Their biggest challenge right now is to translate makeup looks across platforms. That’s an area where we can see more collaborations between gaming companies and traditional fashion or cosmetic brands. Liz Flora/Glossy
In the bigger picture, brands, artists, and platforms need to come together to educate consumers. According to a consumer study from January, 77% of Millennial respondents had purchased from a virtual store only 38% would like to do so in the Metaverse. Ivy Liu/Digiday
🤳 How Retailers are using Shoppable and Livestream Video
Seriously, don’t get left behind.
Instacart has rolled out shoppable recipes where food content creators can link their TikTok videos to shopping lists on Instacart. Gourmet food marketplace Goldbelly created its in-house content team and launched a production house and video platform for shoppable food content. And Wish launched “Wish Clips,” an integration that lets merchants add shoppable videos to their product pages. Maile McCann/ModernRetail
There are invaluable lessons from Livestream shopping for anyone planning to experiment with Shoppable Video. According to Somer Tejwani, “The key is to educate, entertain and inspire. With Livestream shopping, you’re able to have on your phone an expert makeup artist showing you how to get a full look. And she’s in real-time giving you feedback,” His advice for anyone going into the space is to build an authentic connection first. Emma Sandler/Glossy
Live commerce brings instant purchasing of a featured product and audience participation together. It’s already transformed retail in China in less than five years. According to McKinsey, in a 2020 survey, two-thirds of Chinese consumers said they had bought products via Livestream in the past year. And by 2026, it's projected to account for 10 - 20 per cent of all e-commerce in China. /McKinsey
67% of TikTok users were inspired to make an unplanned purchase after watching a TikTok. With new tools, TikTok is trying to convince brands to build a native shopping experience, market their products, and run their e-commerce business directly on its platform. And 2022 will be the first full year for TikTok Shopping, a suite of e-commerce tools that turn videos and LIVE into shoppable entertainment. /TikTok
💎 In case you missed…
Elon Musk is right about Twitter. /Wired
Global management programmes can help win the escalating ‘talent war’. /LSE
The neuroscience of Customer Experience. /MITSloan
House-flipping algorithms are coming. /MITTechnology
Advertisers rate their most effective media channels. /MarketingCharts
❤️ TedTalk of the week
I’m a big fan of Adam Grant’s work, but that’s not why this is one of my all-time favourites. I love this TedTalk because it’s given me a new perspective on being intentional about embracing new ideas and building a bias for action. Watch it here.
Expert advice like HBR meets the brevity of Vox Sentences, but for marketers. You’re welcome!