In 2022, brands spent $297.5 billion on marketing in the US. Advertisers spend more than $1 trillion worldwide. Despite the prospect of a looming recession, many marketers expect their budgets to increase in 2023. Reaching the public is challenging on Web2.
Despite the rapidly evolving digital media landscape, it still needs to be fixed for brands, artists and fan bases. Brands face fragmentation. Today, a typical media mix for a major advertiser includes influencer campaigns, paid social media, short videos, TV spots, emails, performance marketing and more. Once you find your community in this fractured ecosystem, your relationship with them is mediated. They rely on third-party platforms and are constrained by third-party data.
And while digital fan communities are more influential than ever, they need more ability and incentive to meaningfully participate in a brand’s story online. A post can be liked, but it can never indeed be yours. Web3 offers an alternative. Experiences based on empowerment are, above all, the connection. You can encrypt the rights so that the authors are rewarded.
You can give communities a share of what they love. You can make pieces that hint at what is possible with art and technology; Let them live, breathe and react now. Most importantly, you can create something that fans will find themselves in, whether it’s a generative collection that makes comic canon unique and personal or an edited series that pushes you to confront your value system. Not surprisingly, even amidst the market turmoil, big brands entered the pace for the first time in 2022.
To date, more than 100 brands have started Web3 projects. Direct sales to Avatar became a $54 billion market. Nike announced a new home for co-created virtual goods) to reward coffee drinkers. And DC’s growing Web3 platform gives collectors the power to unlock comics and shape the canon.
Generative art will center successful brand design
As marketers expand their online presence, NFTs become the technology standard for digital fan engagement. Just as every brand today needs a social media strategy to achieve reach, tomorrow, every brand needs a Web3 strategy for a deep, vertical community. Building NFT becomes the most natural way to create and share things we love. Amidst a landscape challenged by complexity and speculation, NFTs offer something transformative for brands: connection. This visceral connection is encoded in each project.
Your commitment to fans becomes more than just a mission statement. It becomes a contract: shared ownership and shared space. NFTs will fundamentally change the way online marketing works. From radical customization to community-generated lore, the future of branding begins on Web3.
The continued growth of generative arts NFTs will impact how marketers approach experience design. As generative artist Tyler Hobbs said, “The value of a collection revolves around the collector and their contribution. Seeing yourself in a work of art is powerful – 78% of consumers are more likely to buy from brands than they offer personalized experiences. Generativity will shape the structure of branded content NFTs as projects increasingly reflect the diverse perspectives of the collecting communities who participate in them.
Tokens will replace ticketing on and offline
From Cognac tastings to Comic-Con screenings, NFTs became the entry point for cultural events in 2022. They soon become synonymous with live entertainment. More than five million Ticketmaster NFTs were minted in-stream in a six-month pilot. But you don’t need an arena tour to incorporate token gating. Gated community experiences allow fans to dig deeper: and create a brand-new channel for distribution, world storytelling, and impactful discussions.
Every object will have a digital twin
to your carry-on. It’s a sweater, your pajamas, basically anything you have. Several initiatives have looked at the area between virtual and actual worlds throughout the past year.
In turn, they’ve created a powerful new lever to bring new audiences to Web3: it can’t just be a JPEG if it’s also a literal painting. Emerging brand projects will be visceral; they offer objects you can touch through the screen and experiences that reflect the feeling of collecting in the real world.
Frictionless platforms will accelerate the adoption
This is a challenging time in cryptography. (This is a challenging moment, period.) Web3 is in the early stages of its inception, which means chaos, complexity, and opportunity. When the big brands enter the room, a door opens behind them. The innovation we’ll see over the next year will make it easy for new fan communities to find their home on Web3.
Buying an NFT is as simple as any Web2 transaction. The way we build culture starts in the chain.