Mark Zuckerberg, Founder and CEO of Meta Group, has a jump-start plan to grow his business. The leader bets everything on the metaverse and artificial intelligence. Explanations.
Interviewed by CNBC, Mark Zuckerberg believes the metaverse will allow Metacan reap huge profits in the future. The billionaire assured that digital universes in virtual or augmented reality will represent a significant portion of Meta activities in the second half of the decade. That’s why the Facebook group replaced its own Meta last year.
By 2030, the CEO of Meta hopes to see an estimated “ a billion people in the metaverse “. Many studies are much in the same direction as Mark Zuckerberg. According to a report by Gartner, a consulting and research firm, 25% of people spend at least an hour a day in the metaverse of 2026.
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The metaverse, the promoter of Meta growth
Within the metaverse, Internet users are invited to spend money. The Facebook founder expects users to buy “digital objects, digital content or other self-expressing objects”. According to him, it could be for example “clothes for their avatar or various digital items for their virtual home” or decorative items for “their virtual conference room”. Meta has also opened a virtual clothing store for avatars.
To pay for and store these digital elements, Internet users have to resort to Meta Pay, the logical evolution of Facebook Pay. The mobile payment solution is slowly evolving to become the must have digital wallet in the metaverse. This wallet will store digital money and non-fungible tokens (NFTs). In order to make a profit, Meta seeks to need paid for 47.5% on every sale of a digital object on its platform. This commission is primarily concerned with interior creators, the central element of the metaverse economy.
Mark Zuckerberg seems convinced that the metaverse will sooner or later come to life again with the growth of his company, which is gradually contracting. During the last quarter, Meta announced a net profit that fell 7.5% compared to the same period in 2021. Despite an annual increase of 7%, the company’s turnover worried investors. Worse, Facebook lost users for the first time in the last quarter of 2021.
This is why Meta has investing large amounts in the metaverse, which is considered a promoter of growth. However, despite Zuckerberg’s enthusiasm, the company was forced to cut spending on the thing. Most of the deficiency, Reality Labs, the division dedicated to virtual and augmented reality, has canceled several projects in recent weeks. The connected Meta watch project, which has two integrated cameras, is particularly aborted.
“It will take some time to scale to hundreds of millions or even billions of people in the metaverse, just because things take so long to get there”, Zuckerberg admitted. A few months ago, the dealer had already warned shareholders: the Reality Labs division could not produce no profit on its products before 2030.
The short Meta solution: copy TikTok
To raise the bar in the foreseeable future, Meta seeks to bet on artificial intelligence. The Silicon Valley giant plans to copy internal recommendation algorithm which made TikTok a success, the favorite social network of 18-25 year olds.
Meta also announced its intention to scrutinize the Facebook news feed based on the TikTok interface. As Mark Zuckerberg explains, the social network is gradually abandoning the system where “Most of the content you see on Facebook and Instagram”. From now on, “Most of this problem comes only from AI recommendations.” Will this fundamental change allow Facebook to escape obsolescence while waiting for the rise of the metaverse?