There’s no doubt about it – web3 and blockchain technology is poised to become a pillar of our economy in the coming years. But for now, can brands really benefit from web3 technology? The answer is a resounding YES.
Today, we’ll explore some of the ways that brands can leverage web3 to stand out from their competition, increase brand awareness, and engage with customers like never before.
Offering Unique Digital Experiences
Earlier this year Decentraland – one of the world’s largest and most popular metaverse platforms hosted a Metaverse Fashion Week. The event brought together dozens of global brands and thousands of consumers for a series of events including virtual fashion shows, live music sessions, interactive showrooms, talks, and more.
Metaverse Fashion Week is just one example of the unique digital experiences that brands can create and be a part of to gain more exposure. Another example is Pacsun. The American retail clothing brand released a line of Pacsun-branded digital clothing items for sale in the Roblox Avatar Marketplace. This opened the brand to a new form of engagement with their existing customers, as well as tapping into a new digital community focused on identity and self-expression.
This isn’t just about selling digital wearables either. The metaverse allows brands to create immersive experiences that increase engagement and ultimately, lead to more physical product sales.
With the continued adoption of web3 across the global economy, the line between physical and digital experiences is going to continue to blur in the coming years. Brands can use web3 and metaverse platforms to host live online events, release new products/services, create branded games to engage new customers, and so much more.
The sky is the limit. Brands will need to think creatively to explore the best ways to tap into this emerging digital ecosystem.
Leveraging NFTs To Create Exclusivity And Community
NFTs – and more importantly, digital ownership – are the perfect opportunity for brands to create a community around their products and services. After all, humans are cultural, tribal beings and we love being part of a community.
So when a brand launches an NFT collection, anyone who buys that NFT becomes eternally connected to the brand as long as they hold that NFT. And since NFTs are programmable – i.e. they can change and offer new, unique experiences to consumers – they are NOT a static product.
This aligns with a recent Harris Report, which found that 72% of millennials prefer to spend money on experiences than on material things.
Instead, NFTs can function more like a membership card that provides exclusive access to brand events, merchandise, special discounts, or even voting rights that determine the future developments of the brand.
NFTs give consumers significantly more value over time than simply owning a product from a brand. They become an integral part of the ever-evolving brand story. This technology is a huge opportunity for brands to build a highly engaged community around their mission.
And if a brand creates a limited number of NFTs for their collection, and continues to provide value to NFT holders, the value and demand for those NFTs will continue to rise.
Royalties can be built into NFTs as well, so brands receive a percentage of every secondary sale, creating a new stream of revenue as long as the brand exists.
However, many brands are simply using the NFT buzz to flex their PR muscles without providing any real value. If a brand wants to succeed with an NFT project, then it needs to be about community first. The most exciting part of NFTs for consumers is that they get to become an active collaborator that gets to fuel the future vision of the brand.
Some of the more notable brands who made a serious jump into NFTs include Nike, Adidas, Lacoste, Gucci, Louis Vuitton, Ralph Lauren, Budweiser and Coca-Cola.
Increased Brand Awareness And Positioning Advantage
Web3 technology and cryptocurrencies are the tip of the spear when it comes to technological innovation. Younger, tech-savvy consumers aren’t looking to engage with stone-age brands – they want to engage with forward-thinking brands that are evolving along with the rest of the world.
A recent example of this is Tiffany and Co.’s recent move to create $50K diamond-encrusted pendants specifically for CryptoPunk NFT holders. They only created 250 necklaces and it was an exclusive release – you could only buy one if you hold an original CryptoPunk NFT (one of the most popular NFT collections in the world).
Tiffany and Co.’s target audience has typically been women 35-50+. But with this exclusive release, they’re able to tap into a younger market and position themselves as early adopters in the emerging web3 ecosystem.
This crossover with Tiffany and CryptoPunks is just one example of how brands can gain exposure to new markets with web3. The potential for unique partnerships and collaborations in this space is infinite.
Web3 is poised to offer brands the same type of reach and monetization potential that social media did in the early 2010s. The difference is that today, web3’s true value will come from immersive, community-driven experiences that offer true ownership and engagement like we’ve never seen before.
The full scope of how brands can leverage web3, cryptocurrencies, and blockchain technology remains to be seen. But it’s clear that even now, there are tons of new potential revenue streams available in the space.
Web3 technology and metaverse partnerships can create innovative and exciting experiences for both content creators and consumers alike. Marketing professionals and brands need to pay close attention to this space if they want to compete in the coming years.
This is just the beginning, but things are heating up fast.
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