20 November 2021 by Spencer Symmons
As it faced intense scrutiny over how its platform handles the spread of misinformation data privacy and the potential harm it can cause to children and teenagers, Facebook’s founder and chief executive Mark Zuckerberg announced the company’s rebranding strategy.
Whilst the corporate entity – now called Meta – encompasses social media platforms Facebook and Instagram, messaging service What’s App and virtual reality (VR) headsets Oculus, the rebrand looks to encompass both hardware and software products as Zuckerberg signalled a shift to the “metaverse”.
What are the next steps for Facebook/Meta, and how will this change the company’s image?
Coined in 1992, the term "metaverse” - a portmanteau of the root word “meta-“ meaning beyond and “universe” - described a vision of a “computer generated universe”.
Applied to 2021, Zuckerberg’s vision of the metaverse includes new uses of the Internet which would allow people to “get together with friends and family, work, learn, play, shop, create” and “teleport instantly as a hologram” through 3D augmented reality (AR).
In its announcement, Facebook/Meta said this technology would allow its the trillion-dollar company to move beyond its social media app-based experiences to connect people in new digital spaces.
The company has, for a long time, invested in VR – it acquired the VR headset start-up Oculus VR for $2 billion in 2014 to expand its offering – and is now building a video calling device named Portal, headsets and voice-activated sunglasses.
The corporation told investors it would double its metaverse team by hiring up to 10,000 employees to shape its platform across Europe and spend $10 billion this year on its VR and AR team (renamed "Facebook Reality Labs").
In September 2021, Facebook also announced a $50 million investment in global research and program partners to “responsibly” develop metaverse products.
While the VR world is still considered to be a niche for afficionados, the company has been trying to attract more users through pop-up stores in airports and inside Macy's across several US cities.
The tentative move to retail stores has been trialled since 2018, but the discussion has now moved towards building the metaverse through brick and mortar outlets.
While launching VR and AV retail stores in the digital era is a challenge, can this new mission really change Facebook/Meta’s image?
By its own admission, it will take between 10 and 15 years to fully realise many of the products essential to the metaverse experience. It remains to be seen whether this rebranding can change public opinion and trust about how the tech giant does business in that time.
Facebook/Meta may be the company to lead the way for the metaverse, but this unexpected rebranding can only be effective and successful if the company sincerely addresses the many legal, regulatory and societal scandals it has been embroiled in by bringing substantive changes in the company.
As the tech sector prepares for the next frontier, get in touch with our experts to discuss how we can help you amplify your company’s competitive edge.
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