09. October 2023
Avatar Worlds: New horizons in virtual worlds
In recent years, a new era of virtual experience has emerged that blurs the boundaries between the real world and the digital sphere. Avatar Worlds are platform-based, virtual 3D worlds - whether accessible via virtual reality application or browser - that (want to) provide their users with an immersive and extended Internet experience including all associated areas of use. In contrast to the virtual worlds that have been established for years, such as Second Life or Minecraft, Avatar Worlds go one step further: they not only offer their users a virtual gaming environment, but are also designed as fully-fledged social networks and ecosystems.
In these virtual worlds, the focus is on the user experience. It is no longer just about playing and exploring, but about the complete representation of different areas of life. From social activities and meeting friends, to working and learning, to shopping and partying - all of this can take place in an Avatar World. The goal is to eliminate the separation between the real and the digital world and to create an immersive experience that evokes real emotions in the user.
The most popular Avatar Worls platforms
One of the most popular Avatar Worlds is Roblox. While Roblox originally started as a pure gaming platform, it has evolved in recent years into an Avatar World with a distinct social character. The online platform - with Lego-like game world blocks - bundles games, experiences, and social gathering places designed and created by its user:s. What's fascinating: The size of the community and its age. Users:inside are mostly children or teenagers. Roblox has 65 million daily active users, about half of whom are under 17.* To meet the changing interests of its aging audience, Roblox announced in September 2023 that it would incorporate animated video chats into its virtual world.
Roblox also takes into account the current developments around the topic of Generative AI. For example, the ability to automate the creation of custom Roblox worlds through an AI model was recently announced**, giving a foretaste of a future scenario in which users can create personalized virtual worlds simply "at the touch of a button".
Blockchain economy as the basis for Avatar Worlds
The idea of Avatar Worlds is also closely related to blockchain technology and non-fungible tokens (NFTs). Many of the more popular virtual worlds are based on a blockchain economy that allows users to own virtual assets such as avatar clothing, land or buildings in the form of NFTs. This makes users active participants in the ecosystem and gives them a say in how their virtual worlds are designed.
Blockchain-based Avatar Worlds
From a trend perspective, blockchain-based Avatar Worlds are in the valley of tears at the moment, but the most well-known two platforms - Decentraland and The Sandbox - still stand out with their possibilities and events.
Decentraland offers a wide range of different activities and resembles a social network where people explore, interact and socialize. Transactions and ownership of virtual goods are handled via the blockchain (Ethereum). With a marketplace for digital goods, partnerships, and a vibrant community, Decentraland is a major player in the emerging Avatar Worlds landscape.
The Sandbox has a strong game and entertainment character and allows users to create and interact with their own worlds and earn money from them. If you are interested in Sandbox Land, you need the cryptocurrency SAND, which is part of the game. On this land you can create your own NFTs - also in the form of games. Other players can come by and solve tasks (quests), such as creating courses or defeating virtual opponents. Unlike Decentraland, which creates a reality-like visualization, The Sandbox resembles pixel-like games - even in its avatars.
Big brands take advantage of the momentum
Brands have recognized the potential of Avatar Worlds and are using these platforms to bring their products and brands to life. From simple 3D objects to elaborately designed interactive experiences, they offer a new opportunity for content marketing. The fashion industry is particularly active here, as it can present (digital) garments in virtual worlds.
At the beginning of the "Avatar Worlds Hypes", brand integration and brand presence in virtual 3D worlds was mostly used for PR purposes only. Today, that alone is no longer enough. Good concepts, implementations and stagings are in demand - especially with connect to real life! We present two successful Avatar Worlds cases from our point of view:
Case Nr. 1: Absolut.Land x Coachella
To celebrate its 10th anniversary as the official vodka of the Coachella Festival, Absolut has created Absolut.Land in 2022, a presence in Decentraland that helps to address the event itself. Absolut.Land is all about fashion, music, art and cocktails. A good "standard implementation" with a link to the real event. More information here: Absolutland - Absolut Vodka
Absolut.Land x Coachella
Case Nr. 2: Gucci x Milan Fashion Week
As part of this year's Milan Fashion Week, Gucci presented its "Ancora" collection and successfully transferred the event into the virtual worlds of Roblox, Zepeto and QQ. Roblox visitors were transported to a virtual replica of the venue in Milan's Brera district, interacting with elements of the show and unlocking content from the real fashion show through various tasks. Gucci showed not only with this, but as early as 2021 by selling virtual accessories on Roblox, how fashion and technology can merge in today's world. More info here. More information here.
From a brand perspective, presence in 3D virtual worlds is about a new kind of brand experience with the following added values:
Value creation and exclusivity
Brand experience and narration
Community and co-creation
Engagement, interaction and loyalty
In summary, it is important to emphasize once again the clear proximity to other microtrends, such as virtual reality, generative AI or non-fungible tokens (NFT), which are present in various places. Avatar Worlds want to unite these in one (virtual) space. The fact that this is not yet the case in practice makes them a kind of preliminary stage of concrete manifestations of an overall Web 3.0 concept, especially immersive applications of all kinds.
Currently, (blockchain-based) Avatar Worlds are in the media valley of tears, but we still consider them suitable from a management perspective to better understand the increasingly important target groups GenZ and GenAlpha.
* Source: https://www.wired.com/story/gadget-lab-podcast-611/
Press Kits:
Decentraland: https://decentraland.org/press/
The Sandbox: https://press.sandbox.game/#/anchor-images