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, led by its cross-group XR technology specialist team "XRX STUDIO," conducted a " Metaverse Awareness Survey " targeting general users. The second survey, conducted in 2022, compared results with the first survey (conducted in 2021) to investigate changes in awareness, interest, and engagement with the metaverse.

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 state 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 the metaverse." At that time, you mentioned your role as a core member of the Dentsu Group cross-organizational unit "XRX STUDIO," where you handle everything from business planning utilizing the metaverse to 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 expansion 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 "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 awareness survey annually with the same content allows us to track changes over time, making this kind of fixed-point observation crucial. We plan to continue this effort 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 clear understanding of how consumers themselves perceived it. We thought this was a key concern for our clients, so we wanted to use the survey to clarify how consumers actually perceive and use 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 these results to companies is crucial for driving the future development of metaverse-related businesses.

Awareness of the metaverse has significantly increased. The market size also shows a trend of expanding year by year.

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 very clear that users who have already experienced the metaverse possess the characteristics of early adopters: they are sensitive to trends and actively seek out information themselves.

While the usage rate isn't exceptionally high, the number of users themselves 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 like the norm. 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 spreading? It's permeating 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, the difference is, as Morioka mentioned earlier, that 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 moment.

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. On the other hand, especially 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, a buzzword symbolizing the era and holding promising future potential. 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)