Lab Weekly - 02/11/2022
Analyzing Facebook’s latest crisis and its bet on the metaverse; New Floor 9 episode; Plus, news analysis and cool stats roundup
Hi there, welcome to another edition of Lab Weekly. This week, let’s take a closer look into the crisis unfolding at Meta (née Facebook) and what it means for brand marketers, while also offering some commentary on the latest news in metaverse, OTT streaming, telehealth, and more. Let’s dive in!
Decoding the Two-Fold Crisis that Meta Faces
Facing an existential crisis on top of a near-term financial crisis, Facebook’s bet on Meta is more important than ever — but can they pull it off before it loses too much attention to TikTok and gaming platforms.
In case you missed it…
Outlook 2022: Embracing Entropy
“Over the next three to five years, the most reliable prediction will be disorder, with multiple possibilities happening at once,” writes Adam Simon, UM Worldwide's US Head of Innovation, in our 2022 Outlook trend report. Read now to learn the four key trends in consumer tech and culture that all brands and marketers will need to reckon over the next 3 to 5 years.
How Brands Can Find the Right Entry Points to the Metaverse
From in-game experiences to connected communities, brands should carefully weigh the pros and cons of each emerging option as they prepare to enter the metaverse.
Episode 133: Outlook 2022 Trends, Part 2
Welcome back to Floor 9! In this episode, the Lab’s strategy team will continue to walk you through the remaining two trends in our Outlook 2022 report: The Multiplayer Internet, and The Great Escape. Co-hosts Ryan and Adam are joined by Richard Yao to chat about things like:
what our increased sense of online “presence” can unlock new types of digital experiences
what “time-shifted togetherness” means and why brands can leverage that to enrich their offerings
the roots behind our increasing need for a mental escape and how brands can help without being tone-deaf
the role that various vice economies play in enabling our collective need for escapism and the brand opportunities within
We hope you enjoy this episode. If you like what you hear, please spare a minute and give us a five-star review on Apple Podcast!
Click here to listen and subscribe!
Gucci Plans Virtual World For Gen Z On The Sandbox [Vogue Business]
Following Warner Music Group, Gucci has entered the Sandbox by buying a plot of digital land on the Ethereum-based metaverse game. The luxury brand made the announcement on Twitter and on a Discord group with 73,000 members, a great way of tapping into connected communities for user-driven projects like this.
The company also said it is expanding Gucci Vault, its online concept store, to create an interactive experience with digital collectibles for purchase. It is interesting to see Gucci opting to explore multiple metaverse platforms and hedge its bets, but this is a great early-stage strategy for exploring the potentials that metaverse has to offer and finding the right entry points.
Of course, this is not Gucci’s first foray into the metaverse. The company previously created a trippy virtual exhibition called Gucci Garden on Roblox to mark its 100th anniversary, allowing the platform's then-42 million users to purchase collectibles. Other luxury brands have also been venturing into the metaverse, often with an NFT focus to sell digital collectibles. Morgan Stanley forecasts luxury-branded NFTs could become a $56 billion market by 2030.
Related: RIAA goes after NFT music website HitPiece [Engadget]; The crypto backlash is booming [The Atlantics]; YouTube considers jumping on the NFT bandwagon [Engadget]
Disney+ Tested Livestreaming With Announcement Of Oscar Nominations [CNET]
In a first for the service, Disney+ tested livestreaming with the announcement of the 2022 Academy Awards nominations on Tuesday morning. The announcement also streamed on Hulu, now also fully owned by Disney, and the Academy’s own website. Some speculate that Disney may be planning to add live channels, a la ViacomCBS-owned Pluto TV and Paramount+, to its service. But the more likely outcome here is that Disney is simply laying the groundwork for true live events.
In order to turn Dinsey+ into a direct fan engagement channel, adding access to live content such as live TV musicals, livestreams of existing Disney events like the D23 Expo, or even exclusive live content that could speak to dedicated fan bases like cast reunions, would help boost the service’s appeal. Disney recently reiterated its commitment to expanding its sports streaming portfolio, which could factor into its livestreaming infrastructure as well.
Related: Disney is placing its bets on sports streaming and the metaverse [The Verge]; Disney stock jumps in after-hours trading on the better-than-expected results [WSJ]; Disney+ will expand to 42 countries this summer [Engadget]
Amazon Expands Telehealth Program Nationwide [The Verge]
Earlier this week, Amazon announced that it is rolling out Amazon Care, its D2C telehealth service, nationwide. Launched internally as a pilot program back in 2019, the service initially focused on providing easy-to-access virtual care, such as free telehealth consultations and in-home visits for a fee from nurses for testing and vaccinations, and it has since expanded into more of a primary care service. For now, this is still mostly positioned as a B2B product, as Amazon announced it started providing services for Whole Foods, as well as chipmaker Silicon Labs and staffing management company TrueBlue. But given Amazon’s deep customer relationship, one could imagine a consumer-oriented push won’t be too far away.
Of course, Amazon’s entry into the telehealth space won’t be without competitors. Having in-network coverage is a key component of accessing virtual care, and when it comes to virtual primary care plans, insurers are increasingly launching their own programs. UnitedHealthcare, CVS Health’s Aetna division, and Cigna, all now offer employers virtual primary care plans. Still being a digital-native company, Amazon could leverage its proven expertise in designing digital interfaces and its industry-leading cloud services to provide a competitive user experience.
Related: Anthem expanded its virtual primary care services in 11 states [Fierce Healthcare]; Cigna acquired telehealth startup MDLive [Fierce Healthcare]
Nordstrom Launches First Podcast, The Nordy Pod [Glossy]
Podcasting is a great low-barrier tool for brand marketers to test evergreen branded content, and retailer Nordstrom is the latest brand to enter the space. Billed as “a new way for Nordstrom-obsessed customers to peek behind the curtain,” Nordstrom says its first branded podcast will aim to explore topics that are relevant to brands and designers in today’s fashion landscape.
Recent data from an Advertiser Perceptions survey indicates that interest in branded podcasts has continued to grow during the past several years. Among ad agency employees, 48% said they too are interested in creating a branded podcast. Of course, not every company needs a podcast; it is important that brands find a unique perspective to share with prospective customers. Rather than treating it as a promotional channel, brands should focus more on the content they are creating, while also making an effort to help the produced podcasts find their audience,
Related: Walmart launched a new podcast to promote its new private label brand Free Assembly [Who What Wear]; Survey points to growing interest in branded podcasts among ad agencies and marketers [Inside Radio]
Several major streaming services enjoyed double-digit growth in viewing time last year, further securing their spot at the top of a crowded industry. Disney+, Hulu, and Prime Video all saw viewing time increase by 19.9%, 17.1%, and 10.1% year over year, respectively, according to eMarketer’s latest estimates.
Disney shares jumped in after-hours trading. The Disney+ streaming service added nearly 12 million new subscribers, WSJ reports, more than expected, in the last quarter, and its theme parks returned to profit.
In the fourth quarter of 2021, Netflix’s subscriber growth continued to reaccelerate, including in the U.S. and Canada. However, while Netflix closed the year with 221.8 million subscribers, up 9% year over year it fell short of the company’s own forecast for new subscribers in Q4, according to the company’s latest earnings report.
If you find our insights valuable and would like to have a deeper conversation on technology and media innovations, or need to sound smarter in a client meeting or a pitch, please feel free to reach out to our Group Director Josh Mallalieu!