Virtual production and the metaverse: Latest buzzwords or the future of our industry?

In the media buzzword Olympics, the term 'virtual production' just won silver, coming a close second to 'metaverse’, which just bagged the gold. 

Both buzzwords are clearly having a moment, but what do they actually mean? How are they relevant and applicable to advertising today? And how will they influence the future of our industry?

Real time 3D

First, we should give special mention to the technology that is driving innovation across multiple industries and which is at the heart of both virtual production and the metaverse promise. Real time 3D, or real-time rendering, is a form of computer graphics that has been pioneered by the gaming sector which enables increasingly photo-realistic graphics and animation to be rendered instantly. 

Epic Games and Unity Technologies have unleashed a new dawn of creativity, productivity and efficiency.

Gaming behemoths Epic Games and Unity Technologies, through the development and advancements of their real-time 3D render engines, have unleashed a new dawn of creativity, productivity and efficiency. Over the last few years we have seen rapid improvements in the quality and realism of experiences across the gaming, interactive and animation sectors, and it’s all thanks to advancements in real-time 3D.

Above: Disney+'s The Mandalorian is one of the most well-known uses of a virtual production set-up. 

Virtual production 

Virtual production (brought to the world’s attention via The Mandalorian) is a relatively new filmmaking technique that harnesses game engine technology and which is justifiably receiving a lot of attention currently. In basic terms, virtual production merges live-action and post production into a single process. So, instead of shooting something against green screen and then developing the post production and VFX after the fact, filmmakers can now visualise the entire scene live using screen backdrops powered and rendered in real-time. So, a director can essentially direct their live-action actor, 3D character and environment all in-camera. This not only removes the need for extensive post/VFX, but also removes the need to shoot across multiple locations. For filmmaking, this is a game changer.

For filmmaking, this is a game changer.

It doesn’t take long, however, for technologies used by Hollywood to trickle down. The advertising industry is now starting to adopt this technique, as seen recently with commercials for Resorts World Las Vegas and this recent carbon neutral production by London’s first virtual production studio. These productions not only solve the many difficulties presented by the pandemic, but are also infinitely better for the environment when considering the removal or avoidance of travel to, potentially, multiple locations.

When applied to social media and e-commerce, virtual production can go one step further and completely remove the need for any type of physical production whatsoever. 3dctrl (of which I am the Co-Founder, for full transparency) is a cloud based virtual production studio designed to make these technologies accessible and applicable for digital media. 

It’s safe to say that Facebook/Apple/Google etc are all involved in a not-so-secret arms race to invent this revolutionary, post-smartphone device.

Instead of shooting thousands of products a year for e-commerce and social media channels, 3dctrl enables users to quickly and easily create professional, photo-real quality 3D stills and video - all within the browser. No photography, no film shoots - just real-time 3D technology recreating the production process, increasing creative control and flexibility whilst saving time and money. 

Above: A commercial for Resort Worlds Las Vegas used virtual production.

The metaverse

The metaverse is a term used to describe a future where a digital, real time 3D world is effectively mapped and augmented on top of our own, allowing us to permanently access information and experiences from everyday objects and places. The metaverse is ‘hardware dependant’, so relies on the development of devices that can seamlessly merge the physical and digital worlds into one experience. It’s safe to say that Facebook/Apple/Google etc are all involved in a not-so-secret arms race to invent this revolutionary post-smartphone device. Facebook are supposedly launching a Ray Ban smart glasses collaboration imminently! 

Since 2020, retailers using AR are seeing nearly 20% increase in engagement rates, with conversion rates increasing by 90%.

For now, however, the smartphone is the most accessible means of experiencing the metaverse - through Augmented Reality (AR) experiences (the most successful and famous of which remains Pokemon Go). Outside of entertainment, however, AR (and webAR) have the potential to transform commerce, increasing customer engagement and purchase conversion. Since 2020, retailers using AR are seeing nearly 20% increase in engagement rates, with conversion rates increasing by 90% for consumers engaging with AR. [Source: Retail Customer Experience].

If NFT’s and virtual items are going to become more valuable than tangible ones, then brands might need to start considering an entirely new virtual business model.

Meanwhile pre-metaverse virtual worlds, such as Fortnite and Roblox, enable brands the opportunity to engage and connect with valuable and elusive communities. The Gucci Garden experience on Roblox achieved nearly 20 million visits, and a virtual Gucci bag just sold for over $4,000 (more than the physical version). If NFT’s and virtual items are going to become more valuable than tangible ones, then brands might need to start considering an entirely new virtual business model.