Survey Reveals the Metaverse's Expansion and Business Potential (Part 1)

The metaverse—a collective term for virtual spaces and their services. Many people likely feel they've been hearing this term more frequently lately. Dentsu Group, with its cross-group XR technology specialist team "XRX STUDIO" as the primary investigator, conducted a "Metaverse Awareness Survey" targeting general users. The second survey, conducted in 2022, examined changes in awareness, interest, and engagement with the metaverse compared to the results of the first survey (conducted in 2021).

Transformation SHOWCASE interviewed Mr. Shusuke Morioka from Dentsu Innovation Initiative, Mr. Makoto Kanbayashi, and Mr. Shimon Tsutsumi from Dentsu Inc., who were involved in this survey. Based on the findings, we delve into the current landscape surrounding the metaverse and how it can be leveraged for future business.

To capture market trends and promote metaverse business

Q. Mr. Kanbayashi, wepreviouslyheard from you about whatcould be calledan"introduction to themetaverse." At that time, you mentioned your role as a core member of the Dentsu Group cross-organizational unit "XRX STUDIO," where you handle end-to-end metaverse initiatives including business planning, marketing, development, and operations. Could you tell us about your roles within the company and your involvement with the metaverse, Mr. Morioka and Mr. Tsutsumi?

Morioka: I belong to the R&D Promotion Team at Dentsu Inc. Innovation Initiative (DII). My primary responsibilities involve assisting overseas startups and solutions with their Japanese market entry and business development. Recently, I've been focusing on the metaverse and gaming domains.

Tsutsumi: Since last September, I've been working alongside Mr. Kanbayashi in the same XR Metaverse Development Department, collaborating on XR-related projects.

Q. What prompted the decision to conduct this "Metaverse Awareness Survey" in the first place?

Morioka: Around 2021, "metaverse" became a buzzword, and across the Dentsu Group, we started receiving more inquiries like "What exactly is the metaverse?" and "How can companies participate?" In response, we decided to conduct this survey with the goals of first collecting primary data to increase the Dentsu Group's collective knowledge about the metaverse, exploring future penetration strategies and utilization methods, and ultimately promoting metaverse-related business.

Conducting this survey annually with the same content allows us to track changes over time, making this kind of awareness survey important as a fixed-point observation. We plan to continue with a third and fourth installment going forward.

Q. Mr. Kanbayashi, as a central figure in Dentsu Inc.'s metaverse business, how did you perceive the response to the first survey in 2021 and its significance?

Kanbayashi: Back in 2021, the term "metaverse" was frequently discussed among companies, but there was no visibility whatsoever on how consumers themselves perceived it. We thought this was a point of interest for our clients too, so we wanted to use the survey to clarify how consumers actually perceived and used the metaverse.

When we presented the first survey results to various companies, the feedback was very positive—they found it easy to understand the current state, including how the metaverse is being used. We believe that accurately capturing market trends and presenting those results to companies is crucial for driving the future development of metaverse-related businesses.

Awareness of the metaverse has significantly increased. Market size also shows an annual growth trend.

Q. The results of this second survey have already been published. Could you highlight the key points of the findings?

Morioka: First, regarding awareness of the term "metaverse," it has increased significantly across all age groups, rising to about four times the level seen in the first survey. Looking at it by generation, awareness among those in their 40s and 50s, which was low in the first survey, has grown considerably compared to other age groups. This really shows how it's becoming widely permeated throughout society, including in business settings.

Morioka: On the other hand, while many people have heard the term "metaverse," the number of people who have actually used related platforms or services is still quite low. Conversely, we found that those who are using it are quite proficient. It became clear that users who have already experienced the metaverse exhibit characteristics typical of early adopters: they are sensitive to trends and actively seek out information.

While the usage rate itself isn't exceptionally high, the number of users has increased by 1.4 to 1.7 times compared to the first survey. Annual spending on paid services and usage amounts have also increased by 1.6 to 2.2 times, with the "total annual spending on paid services" nearly tripling. This result might indicate the market size and potential of the metaverse. Seeing these numbers grow makes me feel that business opportunities are finally emerging for companies.

Tsutsumi: I'm technically part of the millennial generation, and from around my university days, paying for smartphone apps and games felt completely normal. So, I think younger generations going forward will likely feel less resistance to paying for the metaverse, treating it much like playing games.

How is the metaverse expanding? Penetrating as a "natural presence" among younger generations

Q. Based on the survey results, it seems awareness of the metaverse has spread rapidly in just one year. Are there any particular characteristics or trends in how the metaverse has been expanding recently?

Kanbayashi: The spread of the metaverse feels similar to the phenomenon when smartphones became widespread. The number of users multiplied many times over in a short period, and the concept of smartphones rapidly expanded, right? However, compared to that, what's slightly different is that, as Morioka mentioned earlier, while awareness of the metaverse is spreading, it hasn't yet reached the stage of explosive growth in user numbers. We anticipate that a tipping point will emerge in the future, driven by societal evolution and consumer acceptance, where user numbers surge dramatically. We aim to develop services targeting that point.

Morioka: Compared to equally high-profile Web3.0areas like NFTs and blockchain, I think the metaverse's defining characteristic is its broader societal penetration beyond just business contexts. Particularly among younger generations, it seems to be spreading as an extension of their everyday actions and experiences—like "I was playing a game, and it turned out to be the metaverse"—without them consciously thinking about the term "metaverse" itself.

The metaverse has become a buzzword symbolizing our era, with high expectations for its future. Our "Metaverse Awareness Survey" revealed that while awareness is rapidly expanding across all generations, this recognition does not necessarily translate to actual usage experience. Building on these findings, Part 2 will delve deeper into the relationship between the metaverse and the real world, and explore how businesses should leverage the metaverse moving forward.

• Survey Reveals Metaverse Expansion and Business Potential (Part 2)