Out of Scope Issue 86: Meet you in the metaverse?
Plus: Nonverbal communication in politics and marketing amidst inflation.
This week, Hirsch Leatherwood reflects on consumer trends, from Gen Z subcultures to Amazon’s lackluster Prime Day. We also examine how marketing has found a way into BeReal, a Fat Bear Week scandal, and Van Gogh protesters. Plus, legs.
💡ON OUR MINDS: Gen Z is redefining the brand-consumer relationship
While a new study reveals that 91% of 18-25 year olds agree there is no such thing as “mainstream” pop culture anymore, Gen Z still seems to share a few things in common: they are chronically online, and their discovery algorithms define and unite them.
Accustomed to rabbit holes of highly curated online content and experiences, 64% of Gen Zers want personalized experiences from brands.
But with Gen Z undefined by a singular psychographic and amidst today’s landscape of fast-moving trends, how can brands meaningfully connect with Gen Z consumers?
Start by focusing on subcultures as demographics. Identifying and understanding these niche communities helps to better understand the shared passions and identities that exist within — making the process of tailoring content and experiences less overwhelming.
As Gen Z’s buying power continues to increase, the stakes of brands providing individualized and relevant content at scale will become increasingly critical for success within this consumer demographic.
🏆BRAND FAIL OF THE WEEK: Decentraland
You don’t need to look beyond Mark Zuckerberg to hear about the hype around the metaverse: from declaring Meta will shift to a “metaverse company” to just this week premiering his virtual reality avatar’s “legs,” Zuckerberg seems to be somewhat unilaterally pushing the efforts ahead. It appears, though, that the average tech user is falling way behind.
Decentraland, an Ethereum-based world that allows users to buy and sell virtual real estate, was reported to only have 38 "active users" over a period of 24 hours – despite its $1.2 billion valuation.
Yes, you read that correctly. After what seems like endless amounts of hype for the metaverse, this data demonstrates what many of us have been thinking for a while: how much real-world use does the metaverse actually have?
In response to the shockingly low figures, Decentraland pushed back. "DappRadar doesn't track our users, only people interacting with our contracts," Decentraland's creative director Sam Hamilton told CoinDesk, adding that the platform averages around 8,000 users on an average day.
But as Futurism writes, “it's a perfect example of the kind of massive disparity between market value and actual users that has been plaguing the Web3 world for years, and could also be indicative of a serious slowdown in appetite for virtual real estate and other blockchain-related assets, including cryptocurrencies and NFTs.
📡 ON OUR RADAR
A knack for nonverbal communication might just be the only thing President Joe Biden and North Korean dictator Kim Jong Un have in common. Over the past few weeks, as President Biden has traversed the states he’s increasingly ditched the lectern for a handheld mic in order to be perceived as more authentic, down-to-earth, and an “everyman.” On the other side of the world, against the backdrop of missile tests, Kim Jong Un has unleashed a new “swagger” with his attire, which Bruce Klinger of The Heritage Foundation says is intended as a sign that he’s “bold, proud, and that the tactical nuclear weapons program is his.” You know what they say, a picture says a thousand words.
This past week, Amazon’s Prime Day event returned – but without the huge savings it typically offers shoppers. Research shows how Amazon has been framing price increases as discounts by posting elevated listing prices alongside phony discount claims. In these frequent cases, consumers think they are snagging a deal – but in reality, many are actually paying premiums. This marketing phenomenon is particularly interesting given the rise of inflation. A recent WSJ article describes how during periods of high inflation, Americans tend to actually spend more rather than cut back by trying to “lock in” prices on long-desired items, worried the price will increase by waiting. For people with more money in the bank, this thinking might make sense – but for others, keep an eye out for impulse buys rooted in fear, rather than confidence.
BeReal has yet to enter the world of brand advertising en-masse. As one of the first brands to make a BeReal account, Chipotle is looking for clever ways around that. The brand is hosting a giveaway that asks users to take a BeReal from one of their restaurants on Halloween. The catch? Participants must share their post with Chipotle on Instagram or email to enter. We’re wondering: is it better to be an early adopter even if the tech isn’t quite there or to work within the natural capabilities of the platform?
This week, a leaked recording rocked the Los Angeles political scene. LA City Council President Nury Martinez in conversation with Councilmembers Gil Cedillo and Kevin de León, as well as LA County Federation of Labor President Ron Herrera, was caught on tape making racist remarks regarding Councilmember Mike Bonin’s young son. As the LA Times writes, “along with revealing cruel and racist comments, the leaked audio offered a rare window into the behind-the-scenes machinations of the redistricting process and the bare-knuckled fighting between various groups trying to secure political power.” Martinez has since resigned, with the Council still hanging in turmoil as many call for Cedillo and León’s resignations as well.
🥊QUICK HITS:
In case you missed these stories this week.
TikTok could be dancing its way to meaningful competition with Amazon, announcing plans to open fulfillment centers across the United States.
Fat Bear Week, a beloved bracket competition of the biggest bears at the Katmai National Park in Alaska, was hit with voter fraud attempts this week. Is nothing sacred anymore?
Protesters were arrested after tossing soup can contents at Vincent Van Gogh’s “Sunflowers.” The painting was safe behind glass, but with the uproar over potential damage, their question for onlookers remains: “Are you more concerned about the protection of a painting or the protection of our planet and people?”
Are SNL skits better when they critique culture or rehash it?
We’ll see you here next week! 👋
HL
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This week’s newsletter is brought to you by legs.