Entering the Metaverse: What It Is, How It Works, and What UK Businesses Should Know

The metaverse has been one of the most hyped and most misunderstood concepts in digital marketing over the past five years. It has attracted billions in investment, triggered a corporate rebrand, and generated more confusion than almost any technology since the early days of the web. It has also, since 2022, run headlong into commercial reality: Meta’s Reality Labs has reported cumulative losses exceeding $50 billion since 2020, Microsoft shut its industrial metaverse division in 2023, and a number of high-profile virtual world launches quietly failed to attract the audiences projected.

That context matters. This article explains what the metaverse actually is, how businesses are using it right now, and what UK SMEs should consider before allocating budget or attention to it. We’ll cover the technology infrastructure, the genuine use cases that are working, and the regulatory environment UK brands need to understand.

What Is the Metaverse?

The metaverse is a network of persistent, shared virtual spaces where users can interact, work, shop, and socialise through digital representations of themselves. It is not one product or platform. Roblox, Meta Horizon Worlds, Decentraland, and Fortnite’s Creative mode are all, in different ways, expressions of the same idea: an internet you move through rather than scroll through.

The term itself was coined by author Neal Stephenson in his 1992 science fiction novel Snow Crash, where users navigated a shared virtual reality through avatars. Second Life, launched by Linden Lab in 2003, brought a version of that vision to life: user-built environments, persistent identity, and a functioning virtual economy. The modern push began in earnest in 2021 when Facebook rebranded to Meta, signalling a corporate bet on immersive computing as the successor to the smartphone.

What distinguishes a metaverse environment from a conventional website or game comes down to a few consistent characteristics. Persistence means the world continues to exist and evolve when you log off. Interoperability, in theory, means your identity and assets carry across platforms. User-generated content means the environments themselves are shaped by the people who inhabit them. And real-time social interaction means you are sharing the space with other people, not just browsing content they left behind.

Not all of these characteristics are fully realised across current platforms. True cross-platform asset portability remains technically limited. The “open metaverse” that Web3 advocates described in 2021 and 2022 hasn’t arrived on the timeline predicted.

How Do You Actually Enter the Metaverse?

You don’t need a VR headset to access the metaverse. Most platforms are accessible through a standard web browser or downloadable app on desktop or mobile. The experience varies significantly depending on the device.

Browser and mobile access is available on platforms like Decentraland, Spatial, and Meta Horizon Worlds (via Meta’s website on desktop). This is how the majority of current users access these spaces. Performance and visual fidelity are lower than headset-based access, but the barrier to entry is minimal.

VR headset access produces an immersive, first-person experience. Meta Quest 3 (from approximately £499) and the Apple Vision Pro (from £3,499) are the current primary consumer devices in the UK. Headset adoption remains low by consumer electronics standards: an estimated 8 to 10 million Meta Quest units had been sold globally as of late 2024, compared to 1.3 billion active iPhones.

Mobile AR access represents the most widely used form of immersive technology by volume. Snapchat, Instagram, and TikTok AR filters, Google Maps’ Live View, and IKEA Place are all augmented reality applications running on standard smartphones. For most businesses, this is the more practical starting point. You can read more about how this technology applies to marketing in our guide to augmented reality in marketing.

Step-by-step: entering a metaverse platform for the first time

1. Choose a platform suited to your purpose (Roblox for social/brand experiences; Horizon Worlds for VR; Decentraland for blockchain-based ownership; Spatial for virtual meetings)
2. Create an account and build your avatar
3. If using Decentraland or a Web3 platform, set up a compatible crypto wallet (MetaMask is the standard option)
4. On desktop or mobile: open the browser version and load into the default spawn point
5. Use navigation controls to move through the space and interact with other users or objects

The entry process varies by platform but takes under 15 minutes for most browser-based environments.

The Technology Behind Immersive Virtual Worlds

A functioning metaverse experience draws on several layers of infrastructure simultaneously. Understanding these layers helps businesses evaluate where investment is sensible and where it is premature.

Hardware

VR headsets (the Meta Quest series, HTC Vive, PlayStation VR2) create fully immersive digital environments through high-definition displays, spatial audio, and motion-tracking sensors. AR glasses like Microsoft HoloLens overlay digital content onto the physical world. Standard computers with capable graphics cards handle desktop-based access. For most UK SMEs, the relevant hardware consideration is not headsets but smartphones: the AR capabilities built into iOS and Android devices are already in customers’ pockets.

Software and development platforms

Game engines, primarily Unity and Unreal Engine, form the foundation for most metaverse environment development. 3D modelling tools like Blender and Maya handle asset creation. For brands looking to build branded experiences, this is where development costs sit: creating a quality virtual space in a platform like Roblox or Spatial requires specialist development skills. Understanding how web development principles translate to these environments is part of the broader question of web design and digital experience.

Network infrastructure

Low-latency, high-bandwidth connectivity is non-negotiable for real-time shared environments. 5G networks and fibre-optic broadband are the relevant infrastructure. In Northern Ireland, NISEP (Northern Ireland Superfast Broadband Programme) and continued investment in 5G coverage have improved the baseline, though rural connectivity gaps remain.

Cloud computing handles the computational load that consumer devices cannot carry locally. Most metaverse platforms are cloud-hosted, which also introduces data residency questions relevant under UK GDPR.

Blockchain and digital ownership

In Web3 metaverse platforms, blockchain enables verifiable ownership of digital assets, including virtual land, wearables, and art. NFTs (non-fungible tokens) serve as the ownership record. The practical adoption of this model has been slower than 2021 projections suggested: NFT trading volumes fell by more than 97% between their January 2022 peak and mid-2023, according to data from DappRadar. Businesses considering blockchain-based metaverse investment should factor this context into their projections.

Where the Metaverse Is Actually Working

Despite the headline setbacks, specific applications of metaverse and extended reality technology are generating measurable commercial value.

Brand experiences and virtual events

Consumer brands, including Nike (Nikeland on Roblox), Gucci (Gucci Garden), and Coca-Cola, have used metaverse platforms to run limited-time branded experiences. These are primarily awareness plays targeting younger demographics already active on those platforms. The metrics that matter here are dwell time, social sharing, and earned media, not direct conversion. Our detailed analysis of this area covers brand experiences in the metaverse in depth.

Virtual retail and product visualisation

Furniture retailers, fashion brands, and automotive companies have found practical application in AR product visualisation. IKEA’s Place app, Warby Parker’s virtual try-on, and BMW’s AR configurator are examples that have driven measurable purchase intent. This form of metaverse-adjacent technology is available to smaller businesses through Shopify’s AR product features and third-party plugins.

Corporate training and simulation

Healthcare, engineering, aviation, and defence sectors use VR simulation for training in complex or high-risk environments. The training value is well-evidenced: research from PwC in 2020 found VR-trained employees completed training four times faster and were 275% more confident to apply skills. For businesses with intensive safety or compliance training needs, this represents a practical ROI case independent of the broader metaverse hype cycle.

Virtual conferencing and collaboration

Tools like Spatial and Virbela offer virtual office environments for distributed teams. Adoption spiked during the pandemic and has declined since, but a segment of remote-first companies continues to use these platforms for events and team connection. Microsoft’s closure of its industrial metaverse division in 2023 reflected the limits of the enterprise market at this stage, not the end of virtual collaboration tools.

Entering the Metaverse as a UK Business: What You Need to Know

UK businesses face specific regulatory considerations that US-centric guides do not address.

GDPR and data collection in virtual spaces

Metaverse platforms collect significant personal data: behavioural patterns, biometric data from headset sensors, purchase history, and, in some cases, voice recordings. Under UK GDPR, businesses operating branded spaces on these platforms, or building their own, must have a lawful basis for collecting and processing this data. The ICO (Information Commissioner’s Office) published guidance in 2023 on immersive technology and privacy, noting that biometric data collected through VR headsets constitutes special category data requiring explicit consent.

Any UK business running a branded metaverse experience should conduct a Data Protection Impact Assessment (DPIA) before launch, regardless of platform.

ASA advertising standards

The Advertising Standards Authority (ASA) applies its CAP Code to advertising within virtual environments. If a metaverse experience is promotional, disclosure requirements apply. Virtual influencers and avatar-based endorsements must be identified as advertising where payment is involved. The ASA updated its virtual influencer guidance in 2023 to clarify this.

Online Safety Act implications

The Online Safety Act, which received Royal Assent in October 2023, places obligations on user-to-user services and search platforms. Businesses operating or contributing to social virtual spaces accessible to UK users may fall within scope depending on the nature of user interaction. Legal advice is appropriate before launching any platform with user-generated interaction features accessible to minors.

What UK SMEs Should Actually Do

Ciaran Connolly, founder of ProfileTree, has a direct view on this: “Most UK SMEs don’t need to build in the metaverse right now. What they do need is to understand which parts of extended reality are commercially mature, particularly AR on mobile, and start building capability there. The businesses that will benefit most from fully immersive virtual worlds are the ones already comfortable running digital campaigns, using video content effectively, and tracking results. Get those foundations right first.”

That framing reflects where the evidence sits. The most accessible entry points for SMEs are:

Social media AR filters: Instagram, Snapchat, and TikTok all support branded AR effects. Development costs range from a few hundred to a few thousand pounds depending on complexity. These run on platforms your audience is already using, with built-in distribution. Effective social media marketing already incorporates AR as a creative format.

Product visualisation: If you sell physical products, AR try-on or placement tools have documented impact on purchase confidence and return rates. Shopify’s native AR features make this accessible without bespoke development.

Video and immersive content: 360-degree video, interactive video, and VR documentary content are forms of immersive media that require less infrastructure than full metaverse development. For brands in tourism, property, education, and hospitality, these formats offer genuine differentiation. Video marketing strategy should consider where these formats fit the content plan.

Digital skills development: Understanding metaverse, AR, and Web3 concepts is increasingly relevant for marketing managers and business owners, even where direct deployment is not yet appropriate. Digital training programmes that cover extended reality give teams the vocabulary to evaluate opportunities as they develop.

For businesses considering AI-powered tools alongside immersive technology, the combination of AI in marketing and AR is where some of the most practical near-term applications are emerging: personalised product recommendations rendered in AR, conversational AI avatars in virtual retail, and AI-generated virtual environments for product photography.

ProfileTree’s digital strategy team works with Northern Ireland and UK businesses to assess where emerging technologies fit their commercial context. An honest assessment of readiness, audience behaviour, and budget is always the starting point.

Use Cases Across Sectors

Education and training: Virtual classrooms and high-risk environment simulation are the most evidenced applications. Medical training, aviation safety, and engineering inductions have well-documented ROI in VR format.

Healthcare: Exposure therapy for phobias and PTSD, surgical simulation for training, and remote consultation in avatar form are all in active deployment. The UK’s NHS has trialled VR pain management and anxiety reduction programmes.

Tourism and property: Virtual property tours and destination previews reduce wasted viewings and extend geographic reach. Several Northern Ireland estate agents use 3D Matterport scans, which represent a commercially mature and cost-effective form of immersive content.

Retail: Virtual showrooms and AR try-on are the two formats with clearest commercial evidence. The highest-volume application remains AR on mobile, not VR headset retail environments.

Events: Hybrid event formats combining physical attendance with virtual participation have become standard for conferences. Full virtual events, popular during the pandemic, have largely returned to in-person or hybrid format, though virtual components remain for global reach.

Challenges the Metaverse Still Has to Solve

The gap between the metaverse as described by its advocates and the metaverse as it currently exists is significant. Honest planning requires acknowledging the constraints.

Hardware adoption remains the primary barrier. Until VR headsets become cheaper, lighter, and more comfortable, the total addressable audience for fully immersive experiences is limited. Apple Vision Pro’s £3,499 price point confirms that premium immersive computing isn’t yet a mass consumer product in the UK.

Interoperability is still largely theoretical. Moving assets between platforms, maintaining consistent identity, and transferring value across ecosystems all require technical standardisation that has not yet arrived. Standards bodies including the Metaverse Standards Forum are working on this, but implementation timelines are measured in years.

Content quality and moderation in user-generated virtual environments remain contested. The open nature of platforms like Decentraland means experiences vary enormously. For brand safety, this matters: a branded virtual space sits alongside content the brand does not control.

Privacy and security concerns extend beyond GDPR compliance. Virtual spaces generate behavioural data at a granularity that exceeds most digital marketing tools. Biometric data collection, the potential for harassment in social VR, and digital identity fraud are all active issues rather than theoretical risks.

The digital divide applies in virtual environments as in the broader internet. Advanced hardware is not equally accessible. Content built primarily for headset users excludes the majority of potential participants. Designing for the widest access (browser first, mobile first) is both an ethical and a practical consideration.

A Realistic Assessment of Where Things Stand

The metaverse concept is real. The technology is functional. The commercial case for most UK SMEs deploying fully immersive virtual experiences right now is not strong. What is strong is the case for building familiarity with the adjacent technologies: AR on mobile, immersive video, virtual showrooms, and AI-powered interactive content. These are commercially mature, measurable, and accessible without specialist infrastructure.

The brands that will transition most smoothly into whatever the metaverse becomes in five years are the ones investing in content marketing with a clear strategy, building digital skills across their teams through structured digital training, and using SEO so they appear when their audience searches for what they offer. Those fundamentals do not change because the interface shifts from a flat screen to a headset.

Frequently Asked Questions