Virtualization defines the transformation of digital.

As the world opened back up, an era of digital transformation gave way to the transformation of digital. By this, we mean virtualization: a set of new audience behaviors, cultural norms and technology paradigms resulting from 30 years of digital transformation, hyper-accelerated over the past five years. Virtualization, covered in our report earlier this year, marks a revolution in consumer behavior as people demand more from the digital platforms they engage with, which implicates the ways they look at digital experience, community, ownership and identity. For example, the design of ComplexLand, a virtualization of the hype-fueled annual event ComplexCon, was built around the insight that today’s fashion trendsetters are becoming just as invested in their digital identities as their corporeal ones.

The Social Innovation Lab, who explores up-and-coming trends in social, delved deeper into what motivates some of these behavioral changes in The Search for Meaning. By exploring how technology shapes the ways consumers find and make meaning in their lives, the Social Innovation Lab uncovers how brands can adapt to the new era in digital.

Experiments in the metaverse drive real success.

One of the biggest manifestations of the virtualization trend has been the rise of the metaverse, which many brands have experimented with this year to find their footing. Duolingo celebrated the birthday of its lovable (and persistent) mascot by hosting a game jam in Roblox and building larger-than-life public artwork in Decentraland. Logitech for Creators reinvented the awards show format by building the first music awards show in the metaverse, the Song Breaker Awards.

The fashion industry in particular has found a lot of success in the space. Liam Osbourne, Global Client Partner at the FLUX.Monks, our dedicated fashion and luxury team, shared with Vogue some insight on how the metaverse is an opportunity to become more inclusive. For brands exploring that question and more, the FLUX.Monks have authored a quick bulletin on why the metaverse matters.

As the metaverse continues to take shape, now is an excellent time for brands to continue experimenting in the space, which was a large part of a discussion shared between SVP Web3, Metaverse & Innovation Strategy Catherine D. Henry; Chief Innovation Officer Henry Cowling; and Mike Proulx, VP and Research Director at Forrester as part of our Meet Me in the Metaverse series. Eager to get started experimenting in the metaverse yourself? Our map of the metaverse can help you find the right home for your brand within this quickly evolving space.

Web3 and other emerging tech begin to mature.

In addition to the metaverse, other emerging technologies have fueled transformative digital experiences—most notably Web3. We showed up at NFT.NYC, the biggest Web3 conference on this side of the screen, with an immersive installation for Cool Cats that blurred the boundary between virtual and the real. Meanwhile, Gucci opened the virtual door to an immersive gallery space used to host an auction of NFT artwork.   

More than just a new tech infrastructure, Web3 marks a foundational shift in brand-consumer relationships, a topic covered in a bulletin we released in collaboration with Salesforce this year titled Web 3: The Future of Customer Engagement. For those wondering how to begin making moves in Web3, check out insights from our In a Monk’s Opinion series, which lays out everything you need to know about NFTs and the blockchain. One tip from the Labs.Monks: be sure to make your NFT projects sustainable.

Speaking of the Labs.Monks, our R&D team has continually released missives on the bleeding edge of tech throughout a year of innovation. Their most recent report on generative AI explores the potential of AI tools like Dall-E and Mid Journey that have captured creatives’ imagination (and people’s social feeds). One example of what the tech can achieve: unlocking efficiencies in animation and other production needs.

Creativity and media go hand in hand.

Throughout the digital era, it’s been tempting to focus attention on vanity metrics. But as CMOs invest more dollars into media (and face increasing budget scrutiny with a possible recession), they will benefit from transforming their approach to a more holistic strategy that blends media and creative to optimize their spend. Speaking to Digiday, Media.Monks Global Head of Media Melissa Wisehart unveiled how our integrated media pillar is designed to help brands make this leap.

Uni's relaunch campaign demonstrates this more holistic approach through the development of both the creative and media placement by one partner. With three creative variations and four measurement initiatives, we ensured the creative rolled out across today’s most relevant channels according to their purpose within the brand ecosystem.

When it comes to creative optimization, wellness brand Hatch found great success—and shared some of their secrets in an episode of In a Monk’s Opinion featuring Hatch’s VP Growth Marketing Holly Elliott. Many brands that rely on digital platforms for their marketing face a series of challenges: rising acquisition costs; a limited ability to manage their performance, attribution and audience targeting; and the risk of losing brand authenticity. Hatch assuaged these concerns by striking a balance between creative and performance. In the episode, Holly and our creative performance experts offer insight into how historical performance data can fuel further creative iterations.

Brands prepare for the oncoming privacy era.

While media optimization and performance may be top of mind now, budget conscious CMOs are also eyeing another obstacle on the horizon: overcoming their reliance on third-party cookies as attitudes in privacy shift and as Google aims to sunset third-party cookies with the Chrome browser. And speaking of cookies, VP of Data Services and Technology Doug Hall recently shared ways marketers can rethink cookie consent and management using the Privacy Sandbox platform.

Add to the mix that Google is sunsetting GA360 to make way for its new GA4 platform, meaning brands have plenty of adjustments to manage in the near future. Thankfully, GA360’s sunset was postponed to July 2024, meaning they have more time to perfect their migration strategy. Our data experts put their heads together to create a short guide on how to maximize your move to GA4 before the deadline.

We’ve also got some inspiration based on how other brands have future-proofed their data strategies with great success. We began our partnership with Molson Coors in 2021 with the goal to bring more of its digital media in-house. By taking an ambitious, holistic approach focused on modernization, we’ve since helped the brand future-proof with a robust, in-house digital media team: a data transformation that ranges from data acquisition, data activation and enrichment, and optimization.

And in the commerce space, leadership from Canadian retailer Reitmans shared the role cloud computing played in building a single source of truth throughout its entire organization, joining online consumer behavior with data from over 400 brick-and-mortar locations. Check out the episode of IMO to learn how a strong data foundation helped the brand adapt at speed.

Speaking of data foundations, emerging technologies like Web3 offer new ways of connecting with consumers and strengthening relationships. In an episode of Meet Me in the Metaverse, Ashley Muscumeci, our Director, Go-to-Market, sat down with Jordan Cuddy, Chief Client Officer at Jam3, and Avanthika Ramesh, Senior Product Manager, NFT Cloud at Salesforce, to explore how building a resilient data foundation will help brands get a head-start into the Web3 future. One key insight: despite being a new space, the same rules apply when it comes to user consent. “Even if you are bridging Web3 and Web2 data to bring all these identifiers about a consumer together, it’s really important that the user opts in and provides consent to merge these identities,” says Ramesh.

Commerce goes social and creators go virtual.

In recent years, creators have expanded their digital footprint into new spaces—like gaming and social audio—and have even adopted new content ventures to translate audience engagement into revenue for brands. So, what does the intersection of content, commerce and entertainment look like today? The Social Innovation Lab launched a report earlier this year, The Year of Digital Creators, to explore the state of the creator economy in depth, available in English, Spanish and Portuguese.

One example of how creators have transformed the consumer journey is through the rise of live commerce, the subject of a recently released Social Bite from the Social Innovation Lab. Live commerce blends communities and real-time connection to offer entertaining, interactive and personalized experiences for audiences, and the short deck offers a glimpse into the live commerce journey and how brands can activate audiences every step of the way.

What’s next in the realm of digital creators? Expect more and more virtual influencers in the form of CGI-rendered fictional characters or avatar alter-egos of real people. With the rise of the metaverse and more accessible motion capture technology, virtual influencers are primed to become a more common presence in brands’ influencer marketing strategies—and if you’re curious about the role one could play in your own marketing, check out another Social Bite about how virtual influencers are coming alive.

Here's to a new year of innovating!

With so much innovation in the last year spanning experiences, content creation and optimization through data, there’s a lot to celebrate as we cap off 2022. Looking ahead into the new year, these trends will continue to shape brands’ strategies as they seek to engage with hyper connected audiences in the new digital era.

Where will you begin? Reach out to start your 2023 journey with confidence.

In this Labs report, we tap into the unique tech, perspectives and potential of the region and share some use cases that brands and marketers can apply anywhere in the world.

In this report, you will learn:

• The most influential technologies of each region
• Regional and local trends
• Attitudes toward adopting tech and innovation in the region
• How APAC relates to the rest of the world
• Takeaways to help with brand success

Zepeto Prototype: The Metaverse Reloaded

APAC’s hunger for tech and virtual innovation create an ideal set of circumstances to build a revolutionary new platform. To showcase this, we created an experience hub in APAC’s biggest metaverse platform: Zepeto.

Rushali and I are both Creative Technologists on the Labs.Monks team, which gives us the opportunity to explore and play with some of the latest digital innovations. A lot of our work is focused on not just exploring emerging technology’s potential, but also making it more accessible and understandable for audiences at all skill levels. As much as we are developers, we’re creatives and creators, too. Because of that, our podcast aims to “scrap the manual” by challenging pre-existing notions of what creativity and technology looks like and can be. You can listen to our first two episodes here.

Since we want to scrap the manual in all senses of the term, our goal is to keep  things informal and fun, because we already have enough seriousness in our lives considering the past two years have taken the world on a ride. Scrap the Manual is the podcast you listen to when you’re up for learning something new but also want some levity in your day. We’ll still be asking the tough questions—no doubt—but we’ll make sure that it’s still easy to listen to and feels like you’re right there in the room with us.

And with that, let me introduce our first two episodes with you to give you a taste of what’s to come—maybe with a dash of FOMO to encourage you to give them a listen. 

Diving Head-First into Industry Challenges

Our first episode follows our “Challenge the Hosts” format, where Rushali and I call on our customized randomizer, a tool that pairs an industry with a challenge, live. Once we have an industry and challenge, we brainstorm solutions on the fly about what we could do to improve it. No pre-scripted material for this one; it’s a 100% off-the-cuff discussion. If you’ve ever wanted to be a fly on the wall observing an R&D team in the heart of a brainstorm, this is the closest you’ll get besides working with us.

During this episode, the randomizer landed on a combo that couldn’t be more relevant as we tackle yet another stage of lockdowns worldwide: COVID-19 (challenge) and art (industry). In this discussion, we explore how the pandemic influenced art throughout the last couple of years, and how it will move forward, too. This was the perfect opportunity for us both to align our shared passion for creativity and technology as the world of fine arts—including museums, art galleries and experiential activations—quickly pivoted and adapted to emerging technology that until now has been waiting for its moment. From exploring NFTs to some of our favorite hybrid installations throughout the past year, we cover a lot of ground in our first episode.

Giving an Inside Look into the Lab

Our second episode takes a different approach, expanding on our recent Labs Report about the metaverse. As we roll out new reports, expect more episodes that dive deeper into some of the concepts explored within. The idea isn’t to repeat ourselves; these episodes instead serve as a companion to the reports by digging in a little deeper.

For the metaverse report, Rushali and I open up on the process (and some comical missteps) in creating a prototype in Roblox that demonstrates the metaverse concept of interoperability. To illustrate what the metaverse could look like if embedded into our daily lives, we built a series of spaces: an admin area to manage one’s personal details and assets; a social environment where you can engage with others or see what they’re up to; and a shopping world where you can try on and buy both physical and virtual goods.

Since we as a team always want to push technology to its limits, we always run into surprising challenges during our prototyping process. Episode two gives listeners an inside look into some of the quirks of the Roblox platform as well as its developer culture—and because Roblox is viewed as a pioneer in the metaverse landscape, our process may give you some insight into what to consider when building your own metaverse experiences.

So, where did we run into some trouble? It turns out we got trolled by young developers more than once… but you’ll have to listen to the episode to find out how. (On that note, you’ll also hear about Rushali’s deep-seated fear of teens—sorry Gen Z, we still love you).

What’s Next?

That’s all for now, but you can look forward to more episodes every other month. In addition to the two formats already mentioned, look forward to our third format: “How do we do this?” where our audience (that means you!) submits ideas to Rushali and I and we put our brains together to figure out how we can make it real. If you already have an idea in mind that you’re just aching to make possible, feel free to email us.

Rushali and I had a lot of fun sitting down to talk about all things creative tech, and we’re just getting started. Remember: this is a podcast for anyone interested in tech—whether you’re a passionate tech evangelist, a creative looking to learn more, or someone who simply wants a behind-the-scenes look into what the Labs.Monks are doing and thinking about. I hope you enjoy our first couple episodes and let us know what you think. Stay tuned for more!

First, let’s just talk about the elephant in the room: everyone is incredibly excited about the metaverse, and you’ll find that it’s a running theme throughout many (but not all) of the trends our team has highlighted. So if you’re looking for more ways to understand what “the metaverse” means beyond simply being a virtual world, consider this a nice way to get up to speed with many of the metaverse-adjacent technologies that are sure to mature in the near future. Now, without further ado, let’s dive in!

10. Fashion Gets a New (Virtual) Look

One of the earlier topics we explored this year, in collaboration with our fashion and luxury team FLUX, was the virtualization of fashion. The report anticipated many of the conversations that are now closing out the year—namely, the role of personalized avatars and digital assets within the metaverse. “If there ever was one timely trend we managed to point out and detail, it would be this one,” says Sander van der Vegte, Head of the Labs.Monks. One takeaway that Sander finds especially compelling about the virtualization of fashion is the opportunity that it opens up for a more sustainable industry. “I think sustainability is going to make a big step in 2022,” he says.

9. Digital Humans Come Alive

As a corollary to virtual fashion, digital humans were another trend we explored at the very start of the year that has gained new relevance in recent months. By casting a spotlight on Vtubers (content creators who represent themselves in the form of a virtual avatar), virtual influencers, AI-powered agents and more, our report examined how our perception of what it means to be human may be shifting.

Again, virtual agents and avatars in the metaverse will only accelerate the adoption and acceptance of virtual humans, especially as technology closes the uncanny valley. Andrei Ungureanu, Creative Tech Intern, says: “The digital humans lab report really opened my eyes to how much technology has evolved in breaking the uncanny valley. I always viewed this stuff as gimmicks for attracting attention to games or brands, but by seeing all of the applications I see more value in this area.”

8. Extended Reality Gets its Moment

Extended reality isn’t new; consumer VR headsets were made available as early as the 90s, and social media users have enjoyed AR lenses for years. But neither technology has reached its true potential—though that may quickly change in the next year thanks to lowered device costs and increased adoption throughout the pandemic. “I think the biggest trend for the next and coming years is that expensive and hard-to-use tools will become more easily accessible for the typical user,” says Lennart Croese, Creative Tech Intern, who mentions not only virtual reality headsets but also other emerging technologies like deep fakes.

7. Mirror Worlds Emerge

As extended reality becomes more accessible and palatable to end consumers, AR cloud technology—essentially a 3D spatial map overlaying the real world—is set to give way to a “mirrorworld” that doubles our own. Innovation Director Geert Eichhorn notes that many of the major players in AR are already working towards this goal, with Niantic’s Lightship platform, Google’s Cloud Anchors API and Snap’s acquisition of 3D mapping developer Pixel8Earth each serving as key examples. The benefit? More locally relevant, multi-user experiences. “AR Cloud may start to emerge finally, which will allow us to create very precise experiences and gather technologies together,” adds Luis Guajardo Diaz, Creative Technologist.

6. Motion Capture Captures Consumer Attention

Augmented reality and mirror worlds aren’t the only technologies that will bring the virtual and physical worlds together. With a desire to seamlessly interact with virtual objects and spaces, motion capture technology—with the use of suits or even digitally, like the Oculus Quest’s built-in hand tracking—will become an important link.

Once reserved for film and video game production, motion capture suits may soon make their way into everyday users’ hands with consumer-level versions—providing more precise motion tracking than purely software-driven solutions like computer vision. With Vtubers gaining in popularity, it’s easy to spot the demand for more natural and 1:1 movements. “To embody ourselves in virtual worlds, we’re going to need more accessible ways to represent and visualize ourselves,” says Javier Sancho Rodriguez, Project Manager.

5. Healthcare Gets a Digital Checkup

The pandemic prompted mass adoption of telehealth and other innovations in healthcare—but not without contention. “Healthcare is one of those industries that is influenced by social, political, economic and technological opinions and affects us all so personally, and yet there is so little we can do individually,” says Rushali Paratey, Creative Technologist. “Any innovation or prototype in this field is looked at under the microscope, which makes it extremely tricky to get something into the wheel of the system—but I like thinking about difficult things!” She speaks from experience: as part of our report on how to heal healthcare, Rushali helped the team develop a prototype that translates medical jargon into plain English that anyone can understand, demonstrating digital technology’s power to empower patients.

“Our report hinted at how innovation powered by data could revolutionize the way we see and improve health,” says Geert. “This could have global implications when it comes to identifying new diseases, patterns and cures. DeepMind’s recent breakthrough in determining a protein’s 3D shape from its amino-acid sequence is a strong example.”

4. Game Engines Level-Up Content Production

Game engines—a software framework that includes several tools and features to aid in video game development—aren’t just for games anymore. Unreal Engine, developed by Fortnite developer Epic Games, has been famously used in shows like Westworld and the Mandalorian, not to mention several other films and series. And as the metaverse drives demand for immersive worlds and digital assets, game engines will become crucial in the development of digital experiences now and into the near future.

3. We Break Some Rules–And Write New Ones

One undercurrent running behind many of the trends of the last year is a desire to break free from convention and old ways of doing—an attitude that drives our team’s thirst for innovation. There’s probably no better example of this in action than enthusiasm around the blockchain and NFTs, which can transform everything from how we shop online to how we pay content creators and much more. All this is to say: expect more disruption as users continue to shake up power structures and democratize their communities.

“I think the biggest innovations will be the ones that satisfy our collective need to break out of restrictions,” says Rushali. “The pandemic caused a lot of restrictions, so we are going to break out of those in the digital world: cryptocurrencies run by decentralized autonomous organizations or maybe even communities governed by them on platforms like Discord or Clubhouse, where people can connect under their own rules.”

2. Crypto Goes Mainstream

Speaking of crypto, many brands took the opportunity to experiment with NFTs and virtual assets throughout 2021. Yet for many, discussion surrounding NFTs remains focused on market speculation and quickly cashing in on hype, detracting from the more revolutionary and utilitarian purposes of the technology. Javier shares his wish for 2022: “We’re already seeing crypto-based products and metaverse as part of our mainstream discourse, but it is very polarized and motivated by a lot of wrong reasons. My hope is that this will settle down into a more nuanced discourse and we can use these opportunities to do good.”

1. Self-Expression and Identity Evolve

The internet has long been a liberating place where people can represent themselves on their own terms. And while anonymity has slowly faded through real-name registration rules on some platforms, metaverse worlds—like Roblox and VRChat—reinforce the utopian vision that you can be anyone online.

In addition to that, the ability to adopt different personas can have profound implications for brand building and storytelling. “There’s added pressure to not just deliver any type of content, but content that makes us feel something, be someone and challenges us to think differently.” Angelica adds.