Meta’s disappointing Q4 2021 results have put even more pressure on the social media giant to get its metaverse experiment right. More than three years after the Cambridge Analytica scandal, Meta still falls short of a credible strategy on data privacy and misinformation and these issues will continue to dog the company as it enters the metaverse, says GlobalData, a leading data and Analytics Company.
As per GlobalData, “Meta has left several metaverse-related questions unanswered. These include how its advertising business model will work without relying on targeted advertising and how it can ensure consumer safety in this digital world. The flood of misinformation on its Facebook platform has tarnished Meta’s reputation, and it’s likely that online harm and harassment will only amplify in the metaverse.
It is still unclear how Meta will reconcile the need to monetize the metaverse with the promise of building a privacy-friendly virtual environment. As on its flagship social media platform, targeted advertising will lie at the root of data privacy and misinformation issues in Meta’s metaverse.
Meta’s weak outlook shows that the social media company still bears the scars of Apple’s iOS changes. It will need to dismantle its platforms’ targeted advertising infrastructure and replace it with a privacy-centric one. At the same time, the company is investing heavily in the metaverse, particularly augmented and virtual reality technologies, which has impacted profitability.” A report says, a number of companies are discussing that the metaverse rose every quarter in 2021.
Virtual and augmented reality, digital media, artificial intelligence, and mobile gaming were some of the metaverse-related themes discussed on 2021 earnings calls. ‘Metaverse’ largely appeared on transcripts and is a tell-tale sign of analysts also being more curious about investments and strategies. Firms are scrambling to be the top in the ever-growing Metaverse trend, underlined by Microsoft’s acquisition of Activision Blizzard.
The GlobalData expert say: “The metaverse is attracting significant media attention and is often described as the next incarnation of the internet. While the metaverse is still conceptual, early prototypes and use cases are emerging, with gaming-related companies such as Meta, Epic Games, Nvidia, and Microsoft are leading the pack. In addition, AR and VR are key enablers of the metaverse, both for consumer applications and the future of work. More investments will go into AR and VR over 2022, as companies strengthen their capabilities and search for talent to position themselves in the metaverse mega-theme.”
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