Can Web3 change digital marketing forever?
Although Web3 has not yet been implemented to the extent envisioned, examples from practice prove that the "decentralized online ecosystem based on blockchain" has potential. And not only that: its application could forever change everything we knew so far, not only about digital marketing but also about brand building.
Namely, an increasing number of brands are ready to experiment with new technologies, especially NFTs, in which they have seen an opportunity to reach new customers but also to maintain and strengthen the connection with existing ones in a more complex and significant way, creating a community that is much more than just fans of their products or services. Not only can NFTs be bought, but they can also be received as gifts after a certain purchase, and the brands that have embarked on this "adventure" also provide their customers, the owners of their NFTs, with a reward for loyalty in the form of exclusive benefits or experiences that no one else gets.
Web3 overcomes the current biggest limitations of digital marketing
Although it involves digital tokens, NFTs can also be connected to physical products, i.e., goods from the real world, and as such, they confirm their authenticity or serve as possible replacements or modifications.
It is believed that this and other Web3 technologies have great potential for digital marketing in the future, given that they overcome some of the biggest limitations it currently faces. A stricter privacy policy and data protection are not the only challenges; it is increasingly difficult and expensive to reach a new audience, and in the vast amount of content on social networks, it is almost impossible to stand out in the desired way.
NFTs may seem exclusive, but they don't have to be that way. As time goes on and their influence on marketing becomes stronger, changes in favor of more customers are bound to happen. But, in that case, will the outcome be similar to the current state of the market? Possibly, making something new and unknown mainstream is a double-edged sword.
Currently, this topic is still in its infancy. The user experience is still not great, and NFT buyers are more interested in how they can earn. That's why, before we write the elaboration of this story, we should evaluate whether and in what exact way NFTs can contribute to bringing the brand closer to new customers and further building relationships with them.
Digital marketing experts are optimistic and believe that in an age when attention needs to be earned, and not bought cheaply on social networks, brands should step into the "new" and use the opportunity for easier communication in this digital world.
There are examples of good practice that can serve as inspiration
German brand adidas was the first in the fashion world to embrace NFTs and partnered with influential web3 names such as Bored Ape Yacht Club, Gmoney, and Punks Comic. In December 2021, it released the "Into the Metaverse" collection of 30,000 tokens, priced at $800 at the time. As the brand emphasized at the time, profit was not the primary reason for such a move, but the gathering of a new community.
It is interesting that adidas NFT owners received exclusive physical products (tracksuits and caps), but also a much greater privilege - the opportunity to become creators-collaborators and thus participate in the creation of new products. Time has shown that all this was a great idea and a more than successful initiative.
The Italian brand PRADA is another example of the successful application of NFTs. Unlike adidas, PRADA is giving away NFTs to customers who purchase physical pieces from their limited edition collections that will be available online for a short time. The ability to attend fashion shows or other similar benefits that are truly special contributes to strengthening brand loyalty.
This approach to nurturing relationships with customers after the first contact, i.e., purchase, is made, proves that the brand really takes care of those who trust it. And if it's true that you have to give to get something in return, then there's no doubt that this is a tactic that can bring a lot to brands in the future. Due to the limited amount of data available about their interests and activities on the Internet, the inclusion of NFTs is valuable for creating further strategies. Users consciously decide to share their data with the brand without fear of misuse because they want to be part of the community and take advantage of all the benefits that are available to them for that reason.
Still new and underdeveloped, users will not forgive failures that spoil their experience and will not hesitate to react violently if this happens. They uncompromisingly want to own NFTs.
Text written for the Netokracija website by: Ivana Tomić, smartpoint adria Brand Specialist
Photo: Unsplash