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Brands’ metaverse leads: where are they now?

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By Webb Wright 

Until recently, many prominent brands including Disney, H&M and Coca-Cola were all-in on the metaverse. Now, times have changed and so have the business models within (some of) those companies.

Remember the metaverse?

Not so long ago, many brands were thoroughly fixated on this vague virtual world, a space that comprised both online gaming and virtual reality (VR) and that was typically conflated with blockchain-based web3 technologies such as NFTs and cryptocurrency. Though the concept of the metaverse has been around for decades, it was catapulted into the public psyche after Facebook changed its name to Meta – thereby signaling its pivot from being a social media-first company to being a metaverse-first company – in October 2021. Mark Zuckerberg, the metaverse’s most devoted proselytizer, painted his vision for the future of the virtual world as being one in which the humanity of the not-so-distant future would work, play, date and do just about everything else.

Many brands, captivated by the notion that there could soon be a virtual realm populated by throngs of (mostly young) consumers, were quick to drink the metaverse Kool-Aid. Wendy’s opened up a ‘Wendyverse’ in Meta’s Horizon Worlds; Miller Lite hosted a virtual bar in Decentraland; Playboy built a ‘MetaMansion’ in The Sandbox and so on. Every other day, it seemed, some new brand was eagerly staking its claim in what seemed to be a virtual gold rush.

Then, almost as quickly as it had materialized, the bubble popped.

Following a sharp decline in the crypto market, a general lack of popular enthusiasm for virtual reality-based ‘experiences’ such as Meta’s Horizon Worlds and a surge of popular interest around artificial intelligence, some brands that had previously seemed so enthusiastic about the metaverse dropped it like a bad habit. Others appear to be tentatively treating it as a phenomenon that, like a child’s forlorn toy, has been temporarily abandoned by the culture but might one day be embraced again.

“Many brands were excited about the metaverse … [and] their shift in attention makes sense with the current acceleration and adoption of generative AI,” says author and futurist Cathy Hackl, who has come to be known as the “godmother of the metaverse.”

Hackl believes that although the term ’metaverse’ has fallen into disfavour, it still points to some very real and ongoing technological trends. “It comes down to evolutionary and revolutionary technologies,” she says. “Generative AI went from evolutionary to revolutionary in the last year, and other technology sectors like spatial computing are still in their evolutionary phase. There’s [going to be] a future after the smartphone and a new version of the web will replace the current mobile internet; whether or not we’ll choose to call it ’the metaverse’ remains to be seen. The headlines have moved on from the term but the future has yet to be determined.”

Formerly the chief metaverse officer of Journey, a company that she founded, Hackl’s current job title is chief futurist. “The chief metaverse officer [title] was starting to limit me in some ways and was putting me in a box,” she says. “I felt the need to branch out further since my work encompasses so much more.”

Hackl changing her job title is also perhaps a reflection of a broader trend of tech and marketing experts who are shying away from the terms ’metaverse’ and ’web3.’ To explore this trend a bit further, let’s take a look at the recent career arcs of (in some cases former) metaverse leads within some prominent companies.

Mike White (Disney)

In February 2022, when metaverse fever was starting to heat up across the marketing landscape, Disney tapped Mike White to lead its in-house metaverse initiatives as the company’s executive vice-president of next-generation storytelling and consumer experiences. White had been with Disney by that point for more than 10 years.

The company’s metaverse division was dissolved under the newly reinstated Bob Iger in March and White was let go from the company earlier this month. Disney now seems to be shifting its technological focus to AI.

Pratik Thakar (Coca-Cola)

During his time as the Coca-Cola Company’s head of global creative strategy and content – a position he was first appointed to in January 2021– Pratik Thakar was, like so many marketers, excited about the metaverse. The brand moved quickly in its efforts to establish itself as a pioneer in the web3 space; it launched an NFT campaign way back in July 2021 and a little under a year later released a soda aimed at the gaming community, which it alleged to contain “the flavor of pixels.”

Today, Thakar is still with Coca-Cola as the company’s global head of generative AI.

Robert Triefus (Gucci)

Fashion industry veteran Robert Triefus, who first joined Gucci back in 2008, was appointed as the company’s chief executive of Vault (the company’s online concept store) and metaverse ventures last September. He parted ways with the company about six months later to “pursue another career opportunity,” according to a statement that Gucci provided to multiple outlets at the time. He’s now the CEO of the Moncler-owned fashion brand Stone Island.

Max Heirbaut (H&M)

Sparked by what seemed to be a surge in the market for digital fashion, H&M was another big-name brand that was quick to capitalize on the metaverse. In January, the fashion brand launched Loooptopia, a branded virtual experience hosted on Roblox that emphasized educating users about circularity, or the recycling and reuse of clothing.

Back in May 2022, H&M hired Max Heirbaut to spearhead the brand’s web3 and metaverse efforts as global head of brand experience. Heirbaut still occupies that role, according to his LinkedIn page, and the company as a whole still appears to be committed to building its presence in the metaverse. (“The metaverse offers a new way to look at personal style and the potential of ever-evolving, limitless wardrobes,” the brand wrote on its website earlier this month.)

However, it isn’t the only brand that’s still moving forward with its metaverse and web3 plans. And Heirbaut isn’t the only metaverse lead within a well-known brand who has retained their role, despite the broader cultural shunning of the metaverse; LVMH’s Nelly Mensah, for example, who was named as the company’s global head of web3 and metaverse in January 2022, still appears to be occupying that role, as does L’Oréal’s Camille Kroelly (chief metaverse and web3 officer) and Nike’s Eric Redmond (head of Metaverse Studio).

Feature Image Credit: Adobe Stock

By Webb Wright 

Sourced from The Drum

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Why Advertisers and Marketers Should Tap into Web3 and Metaverse?

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By Paromita Gupta 

While Metaverse and Web3 will take a few years to take their full form, advertisers and marketers need to be prepared and get going on it.

Web3 is touted to have the potential to change the way systems work globally. And the world of marketing and advertising is and will not be privy to it. Much like how marketing took the form of digital marketing, it will now have to embrace the possibility of becoming decentralized in nature and adapt to the technologies of Web3 and Metaverse.

While Metaverse and Web3 will take a few years to take their full form, advertisers and marketers need to be prepared and get going on it.

Why the need to adapt?

Brands such as Nike, Hyundai, Adidas, Gucci, Louis Vuitton, and Samsung have embraced the virtual world and made it work for them. Demand Sage shared that the majority of revenue earned by the Metaverse came from advertising and made USD 114.93 billion in 2021.

Thoughtworks, in April, announced the purchase of its digital land in Jump.trade’sDX Racing Metaverse to leverage innovative ways and broadcast their brand and message. In March, Maggi announced the launch of its NFTs on OneRare Foodverse for reaching out to their fans and foodies in an all-new avatar. Puma announced Black Station 2 as an experimental 3D spatial playground for users to explore the virtual experience offered and/or mint NFTs by connecting their wallets.

“Brands should consider Web3 and Metaverse advertising and marketing over traditional methods due to the unparalleled potential for immersive and interactive experiences. By embracing these innovative approaches, brands can enhance their brand awareness, foster customer loyalty, and drive meaningful connections with their target audience. More importantly they no longer are constrained by geography and can sell to/engage customers anywhere literally,” shares Piyush Gupta, CEO, VOSMOS, a Web3 and Metaverse-oriented marketing company,

The user base will expand

Long story short, the user base for Web3 and Metaverse platforms will keep on increasing. The key reason for it is the control over data and the increase in privacy and security. Metaverse is reported to currently have 400 million monthly users as of 2023 and is expected to reach 800 billion users by 2028.

Users are and will be drawn to the virtual and decentralized world because of features such as ownership and control of digital assets, data and identity, transparency and trust, and enhanced privacy and security.

“With this strategy, brands may capitalize on the expanding trend of digital innovation while forging closer ties with their target market and staying ahead of the competition,” shares Hiren Shah, Founder & Chairman, Vertoz.

Why marketers and advertisers should tap into it

User engagement, direct communication, data ownership, and tokenization are the main reason why marketers and advertisers should tap into Web3 and Metaverse.

  • Tokenization- Tokenization lies at the centre of Web3 as a concept. With cryptocurrency and NFTs, brands can create an incentive system for users upon engaging with the brand content. The users can be rewarded with tokens which in turn can be utilized with the brand.
  • User engagement– Web3 will bring transparency to the table for the two parties. The relationships on this platform will be built on direct communication and trust. Marketers and advertisers will be able to learn the likes and dislikes of their target audience and how they engage with a brand publicly.
  • No middleman involved– The concept of tokenization and smart contracts will help remove intermediaries and middlemen from the process. Marketers and advertisers will be able to directly incentivize users to engage with them without any platform or ad networks coming in between. When it comes to marketers and advertisers, and influencers, the two can strike a deal with the need of any intermediaries, such as talent agencies or influencer marketing platforms.
  • Data ownership- Users will have more control over their data and will have more privacy and security. The data can be monetized by the user at will. A possible aspect of Web3 can be focused on enforcing data confidentiality and integrity on each transaction by having the owner of the wallet ‘sign it’. This concept can see advertisers and companies seeking permission from the user to access and use their data and have the user be compensated accordingly.

When should a brand think of using Metaverse and Web3?

“Firstly, understanding their target audience’s presence and engagement within these platforms is crucial. Secondly, brands should ensure their messaging and experiences align with their core values and resonate with the audience in the virtual space. Lastly, brands need to evaluate their technological readiness and capacity to provide immersive experiences,” shares Shah.

“There needs to be clarity on why the brand is getting into metaverse and what the short and long-term goals are. For example many brands are not there for sales but to reinforce and deliver a more immersive brand experience to their consumers. Second is ensuring readiness in terms of scalability and accessibility, in order to deliver a consistent and effective experience to a diverse and global audience, before taking the plunge. Half-hearted attempts simply backfire and do more harm than good. Last, look at aspects like security since web3/metaverse needs to be seamlessly integrated into the company’s existing systems/channels and that poses a potential threat if not well protected,” adds Gupta on being asked the question.

Feature Image Credit: Freepik

By Paromita Gupta 

Covering news and trends in AI and Metaverse segments. An avid book reader running her personal blog on the side. You may reach me at paromita@entrepreneurindia.com.

Sourced from Entrepreneur India

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Branding: The layer-1 of a successful Web3 marketing strategy

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By German Ramirez

Building on a blockchain follows similar fundamental principles to building in real life.

Building on a blockchain follows similar fundamental principles to building in real life. First, you establish the foundations, then you can start laying the bricks, and only once it’s built can someone begin experiencing the building’s purpose. With blockchain, establishing a foundation involves selecting (or even designing) a first layer. Laying the bricks is akin to writing the platform code, and only then the user experience can begin.

So why, if we know the process involved in building a successful, sustainable structure from scratch, do we ignore it when it comes to our crypto marketing efforts?

The naïve crypto founder’s marketing checklist

Building a Web3 project from scratch? Here’s a typical marketing checklist for starry-eyed founders:

  • Have a logo: something from a freelancer will do to start
  • Create a whitepaper: this is a must-have for VCs
  • Have a website and social media accounts
  • Create a blog (remember: SEO matters)
  • Engage a PR agency and issue lots of press releases ahead of launch
  • Use influencers (more followers = more reach)
  • Use paid placements to establish authority
  • Participate in sponsorships and time on stage at big events

Even if a project manages to survive the next crash, it’ll invariably end up rinsing and repeating this list with endless newer and more exciting features, products and services, with little return on its marketing spend.

The problem is, when everyone is doing the same thing, nobody stands out. And during the bear markets, what’s left? All of the above costs time and money, but none of it buys loyalty.

All entrepreneurs building on blockchain understand the importance of building from the foundations up — starting with layer-1. Layer-1 underpins everything.

What are the characteristics you seek from layer-1?

  • Decentralization with distributed shared ownership
  • Immutability
  • Transparency
  • Longevity

Nothing in the extensive founder’s marketing checklist shares these non-negotiable properties.

Your brand is your layer-1 of your marketing  

Successful marketing starts with its own layer-1 — building the brand. Your layer-1 is the keystone on which your entire platform is built, and your brand is the keystone on which your entire marketing strategy should be constructed.

Your brand isn’t a logo or a catchy slogan. It’s first and foremost a memorable, relevant, credible, unique, concise and consistent brand positioning and promise. Ideally, it’s supported by a clear set of values, ideas, narratives and visuals that pull everything else together.

Your brand is what makes people recognize you. It’s what invokes what your business is known for. And it’s the only part of your marketing toolkit that creates a truly emotional tie between you and your target audience.

Remember, your brand is the only asset that you can derive from your marketing spend. However much you pay a PR or marketing agency, no matter how much they talk about ROI — without a brand, it’s all just talk. Your brand is your layer-1.

That’s not to say that all the other stuff isn’t important. Your socials, blog and PR campaigns all matter. But they are your layer-2 — your touchpoints. If we take the blockchain analogy, your layer-2 marketing activities and touchpoints are like your dApps. They’re your presence — your voice to the world.

Layer-3 is where the magic happens. Layer-3 is the experience, where your brand, product and story come together to create traction, impact and enduring value. This is why people will come back and what will propel you through the toughest of bear markets and financial hardships.

But without layer-1 — your brand — you’ll never reach layer-3 based on a foundation of layer-2 alone. It would be like trying to launch a dApp without a blockchain.

Retrofitting works

Hang on, you may be thinking. I’ve already started my business, and I didn’t build a brand before I started. I already have my website, socials, blog and campaigns set up, but without a brand. Is it all now doomed to fail?

It’s not a problem.

Unlike dApps, which can’t run without blockchains, it is possible to retroactively build your brand. In fact, the chances are that in the process of building your layer-2, you’ve already started creating an impression that can help to form the basis of your brand.

What are you good at? Why does your community come to you above the competition? Why is your offering relevant?

Arguably, if you have already started, you’re in an even stronger position to build a brand retroactively because you already have enough data and input to be able to answer these questions. Those touchpoints you set up are a valuable trove of feedback from people who have engaged with your product and formed an impression. Listen to what they have to say.

Once you know what you’re good at, and how you’re being perceived, you have the ingredients to create your brand. The rest is pure science.

By German Ramirez

German is co-founder and chief relevance officer of THE RELEVANCE HOUSE, a branding, marketing and growth agency focused on blockchain and Web3.

Sourced from COINTELEGRAPH

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Three simple ways brands can get ahead with Web3 in 2023

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This will be the year that brands start to get serious about integrating Web3 (aka blockchains and cryptocurrencies) into the mass marketing ecosystem; mark my words.In 2023 there are three things that will change the brand experience landscape: marketing spend, hiring and metaverse brand open source standards (which I’ll explain later).

Want to get ahead? Here are three simple steps.

1. Allocate marketing spend.

Despite sitting on the precipice of a recession, the uncertainty around cryptocurrency value and safety of blockchain, and the admittedly confusing use of language in Web3 – for example, “NFTs, or non-fungible tokens,” really just means digital asset ownership – we’re about to see a major shift in how brands interact with customers.

According to data from Sitecore and Statista, some 80 per cent of brands plan to spend almost a third of their marketing budget (30 per cent) in Web3 in 2023. Web3 for brands is a world in which sales go much further for the consumer in terms of value – you can read specific examples of what this looks like and how Web3 will impact consumers across virtual worlds here.

By Haifa Barbari

Haifa Barbari is a contributor to the Evening Standard. She is EVP of strategy and resident futurist at tech, gaming and metaverse agency Dialect.

Sourced from Evening Standard

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Web 2.0 vs. Web3: What’s your next marketing move?

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By Marija Zivanovic-Smith

As marketers navigate the convergence of Web 2.0 and what many are calling Web3, we sit at an important inflection point. Many may be wondering, “Where do we go next?”

Let me first take a moment to define Web 2.0 and Web3.

Web 2.0: The current state of the internet and a digital universe of user-generated content that gave rise to e-commerce, social media, and search engines. It allowed companies to benefit from the collection and monetization of data from individuals.

Web3: The next iteration of the web with token-based commerce, blockchain technology, and its own language and communications. It’s given rise to decentralization and placing ownership of data in the hands of users versus a central authority or large companies.

Just as Web 2.0 brought a kaleidoscope of new opportunities from smartphones to social networks, Web3 is bringing the next wave of tools and innovations.

WILL WEB 2.0 DISAPPEAR?

Everywhere you go, you are exposed to marketing. Billboards, print mailers, and signage still thrive. The rise of Web 2.0 added channels, like email, Twitter, and LinkedIn, increased diversification, and marketing saturation. Enter Web3, where digital assets and digital wallets are another playing field.

According to Smart Insights, as of February 2022, the average email open rate was 16.97%. That reflects a drop from what marketers generally saw at 24% from 2015 to 2018. It is clear that individuals are already not responding to email marketing as frequently. Messaging apps and the ability to make connections and transactions via social platforms have been on the rise. That said, email still holds significant power as a marketing tool with 4 billion daily email users—a number that continues to rise—and an impressive ROI of $36 for every $1 spent, according to Hubspot. Email marketing revenue is estimated to reach $11 billion by the end of 2023, according to Statista.

Just like direct mailers are often still part of a marketing strategy, it is likely email and social media are here to stay. While the ideals and dynamic economies available via social tokens in Web3 are something to strive for, I believe we will not see a disappearance of what we have in Web 2.0 but rather a modernization and democratization.

HOW SHOULD MARKETERS BE THINKING ABOUT WEB3?

Data is quickly becoming the world’s most prized resource. In Web3, all user data is public (generally speaking). However, what is NOT public is the identity of the individual, unless they choose to make it so. Users will have more control over their privacy and likely will use their data as an ownership asset—meaning as a marketer, you will need to have a direct relationship with consumers who share their preferences. This represents a redistribution of power and a new level of privacy, transparency, and control for the average consumer. It also means utility is king and that marketers have to provide the right tools to the right users.

I believe audience expectations will shift, especially when it comes to the channel, frequency, and confidentiality of communications. Communities—not corporations—move to centre stage.

KEY STRATEGIES

With that in mind, here are a few key strategies to help marketers make the transition to Web3 more successful:

1. Focus on authenticity. Digital wallets are public and contain things of value (tokens), whereas email or social media accounts can’t be characterized in the same way. They are free to create—including content, clicks, and likes. This has given way to scams and security issues. I’ve found consumers are increasingly becoming leery of being a part of online platforms or making online purchases. This can provide brands with an opportunity to leverage Web3 technology that offers a level of authenticity and trust as they integrate technology into their own platforms.

2. Be willing to experiment and get messy. We’re sitting on the cusp of Web3 without it being fully here. If you wait for Web3 to be fully established before you “dive in,” you could risk meeting the same fate as companies that waited too long to get on board with Web 2.0.

This is the time to try strategies that may or may not work. I believe the most successful NFT projects so far have offered something creative and original. Tiffany’s NFTiff collection is a good case study of a brand navigating a Web3 marketing campaign. Financially, the limited-edition collection was a success, with the 250 NFTs selling out in 22 minutes at 30 ETH (around $50,000) each. While the NFTiff collection netted Tiffany & Co. the equivalent of $12.5 million, the release and resulting community response also serve as an important lesson for using Web3 as a marketing channel.

3. Take a community-first approach. In an increasingly digital world, people are craving communities that share their ideals, goals, and aesthetics. One of the biggest values in the Web3 space is access to that community. In my experience, belonging is becoming the main driver of loyalty, with the product being secondary. From a marketing perspective, lean more on building and nurturing strong communities. The NFTiff collection was born out of a tweet from Tiffany’s EVP of Product and Communications, who shared images of his custom CryptoPunk pendant. The response drove the storied brand to take its first step into Web3.

4. Create new value. Look at Web3 as an opportunity to envision and create new value for consumers and reconnect to company values. People are seeking fresh ideas, creativity, and innovation. In turn, art and technology intersect. Creativity is no longer viewed through a one-dimensional lens. Consumers expect brands to create and live value.

Ultimately, marketers should take calculated risks and keep in mind that Web3 opportunities are uncharted waters of both risk and innovation. That makes it especially important to work with trusted brands and services with a track record of protecting their users and doing right by customers.

As a marketing leader, the question to ask yourself shouldn’t be “What do I need to start/stop doing?” but “How do I start evolving my strategy so Web 2.0 and Web3 work together to benefit our brand?”

Feature Image Credit: luckybusiness/Adobe Stock] 

By Marija Zivanovic-Smith

Marija Zivanovic-Smith is IEX‘s Chief Marketing & Communications Officer, helping drive growth as we enter the digital asset space.

Sourced from Fast Company

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How Web3 Will Change Marketing Landscape Forever

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Web1 was the introduction of the Internet, where users could ‘see’ the revolution of communication, and Web2 allowed users to experience and interact with the revolution. Now we have Web3, in which we will be allowed to immerse ourselves in the experience, and for the very first time, users will be able to own the revolution.

At the beginning of the Internet, users relied on multiple software and services to accomplish a single task. To play a video game, you had to purchase an online game and connect with your friends via IRC (Internet Relay Chat) and Ventrollo. This is Web1 — a decentralized platform operating in a pluralistic framework. Now, all of the tasks mentioned can be accomplished on Twitch and Discord — this is Web2. Web2 enabled giants like Meta and Alphabet to consolidate crucial auxiliary objectives such as gaining followers, sharing updates, promoting products, and building an online persona into a single website/application.

Welcome to Web3

Web3, also known as ‘the new internet’ is a term used for a brand new rendition of the internet that presents the option of decentralization. You’ve surely read and heard about this brand new Internet, but how does Web3 embed into our properties? It’s pretty simple: through user behaviour.

Although it sounds like a succession — something like 3G, 4G, and 5G — Web3 is not an upgrade from Web2. Instead, it exists simultaneously and is supported by the Web2 frameworks. You don’t have to upgrade from Web3 to Web3.

The Need for Web3

Instagram is a great place to build your platform and gain followers, but it comes with its own cons. Web2 companies like Meta collect plenty of data on the backs of consumers. On the parallel side, these companies have now consolidated the platform and have a monopoly in the market.

The need for Web3 comes from people realizing the dangers of BigTech overreach. People are now interested in building tools that give the power back to the users. Context: for every dollar that YouTube advertising generates, creators get only 55%. Couple this with the risk of losing your entire work at the whim of a YouTube executive. Web3 is the solution to this precarious system. Instead of channelling money through centralized platforms, creators will now deal directly with the users.

Every time you stumble upon the Internet, sites like Facebook and YouTube get a hold of your data. This data is then sold to other companies. While Advertising isn’t entirely harmless, it is not the only space that gets a hold of your data. Here are some very scary examples:

· Ancentry.com retains the DNA of more than 26 million people

· Twitter fined for selling user data

· Apple sells data to Google

The strive for Web3 goes beyond privacy. It’s actually about what we can control. Not distributing our data to monopolistic companies has been a major point of infliction in the quest toward Web3. Just like a slippery slope can turn into an avalanche in mere seconds, giving a tremendous amount of power to a single entity can take an ugly turn in quick succession.

Why Web3?

Blockchain and Web3 is the emerging choice for the next generation of Internet users. Here are the main reasons why:

1. Privacy & Security: Web3 is an improved version of the web, built through the best cryptographic technologies that ensure that Internet users are able to secure their data from hackers and prying companies.

2. Storage Decentralization: The IPFS (InterPlanetary File System) is designed to store data in multiple devices to deter any breaching efforts. Each file storage has its own security and the system operates simultaneously around the globe.

3. Anonymity: Users can choose to remain anonymous and operate in seclusion, all the while high-stake businesses and social media reputations.

Key Features of Digital Marketing in Web3

1. Artificial Intelligence

Web3 operates on Natural Language Processing (NLP) and interprets data in a much more reliable form. This opens pathways for a more linear and consistent reading of data sets. AI is beautifully woven through the entire structure of Web3, and it bodes perfectly well with digital marketing campaigns that rely on human behaviour to target audiences.

2. Decentralization

The primary feature of Web3 is decentralization. In this realm, the data isn’t held by a giant database. Decentralization ditches the use of HTTP protocol to find pre-stored information on servers. In Web3, information is not restricted to a single location — instead, it is intentionally spread out.

3. No middlemen

Web3 allows individuals to take control of their data. Through this, individuals can directly exchange value with each other and require no meddling of an intermediator. We’ve grown used to operating on highly centralised platforms such as Meta and Google. Although they come with their own perks, they also leave users privy to security breaches and information manipulation. Web3 opens pathways to data ownership, which is an essential step to achieving complete freedom on the web.

4. No external authorization

Users on Web3 no longer have to rely on third-party authorization to view data. Imagine not having to share your information (and biometrics) with third parties for authorization. the removal of obstruction increases the chances of user security and privacy.

The Impact of Web3 on Digital Marketing

The buzz around Web3, NFTs, and Metaverse is seemingly inescapable now. I am constantly fielding questions on what it means for digital marketing and social media-based promotional campaigns.

Web3 is being marketed as its predecessors’ smarter, more sophisticated version. The new and immersive technology is targeted toward users who want to interact with brands and have a first-hand experience of distinct products.

Digital Marketing in the Metaverse

The Metaverse is here to create a surrounding and immersive space for consumers. The unbounded access is the luxury of this space and is a fun and personalized way of interacting with people far away from you. Yet the space comes with challenges of its own.

You no longer have to imagine being in an alternative space where space and geopoints dictate the level of access and communication. We are already there. Metaverse combines the marketing lessons of Web1 and Web2 to create a mature, more sophisticated experience on the Internet for users.

Marketing via Tokens

Marketing is all about engaging with people and delivering your message. The gist of old-school marketing is to be relatable, likeable, and authentic. The future of a brand’s marketing lies heavily on the authenticity of the marketing campaign. Tokens and Web3 marketing take it up a notch by ensuring that users can have an equal stake in the engagement, buying, and selling of products.

Summing Up

Blockchain and Crypto went from pipe dreams to billion-dollar innovations because they were able to gear the market toward universal ownership and direct linkage. Brands are discovering NFT markets and establishing unique bonds with their base based on their will to build authentic communities. While we may have been introduced to the platform, we’re still conflicted on the road to marketing on Web3. I think it will be a fascinating journey with space for many trials and errors. Regardless, I can faithfully predict that the biggest net gainer of the process will be the user.

Feature Image Credit: Pexels

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Sourced from Entrepreneur

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Web3 101 for brands: here’s your cheat sheet

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By Lauren Griewski

Web3 could revolutionize the relationship between brands and their customers. Here’s an introduction to what marketers need to know.

When the internet first went live, publishers would create content and users would consume it – a period known as web1. A decade or so later, web2 took over with the emergence of web apps and social networks, which made it easy for everyone to create, share and engage with content.

Fast forward to today, and the novelty of web2 has largely worn off. Some of the most impactful web2 companies – such as Meta (Facebook), Google and Apple – have made a killing by leveraging user-generated content (UGC) to engage consumers and create unique profiles for each of them, only to turn around and ultimately sell that data to third parties for advertising purposes.

The worst part? The vast majority of those users had no idea this was taking place – and none of them gave their permission to allow it to happen.

If advertisers want to rebuild trust with consumers, they need to take an open, transparent approach and ask their audiences for their permission to collect data. And this is exactly what the web3 opportunity – a new era of the internet characterized by decentralization, transparency and autonomy – enables.

What are the core principles of web3?

Ask 10 people to define web3, and you might get 10 different answers. But at a high level, web3 is a new iteration of the internet powered by blockchain technology and token-based economics, and it’s also governed by three central tenets:

  • Decentralization. In web2, companies own platforms. In web3, platforms are decentralized. No organization has control over any content; users do
  • Transparency. Thanks to blockchain technology, all users on peer-to-peer networks and decentralized apps (dApps) will share open, unalterable databases that they can verify with their own eyes
  • Autonomy. Ultimately, users will be able to control their own digital destiny and have the final say in whether their data is collected and how it’s used

According to a recent study, 96% of consumers don’t trust advertisers. This is exactly why brands should be incredibly excited about the web3 moment.

With the right approach, digital advertisers can rebuild the trust they’ve lost during the web2 era – connecting with consumers on a meaningful level and in an open and honest way.

Web3 is here – it’s time to prepare for the tectonic shift

Though we’re still early, the web3 moment has already arrived. Unfortunately, advertisers that wait to adapt to this reality will learn the lesson the hard way.

In the not-too-distant future, users will demand a cut of the revenue generated from the data they create. As an internet-native currency that is incredibly divisible, crypto is the easiest mechanism to deliver incentives that users can immediately put to use.

As the world gravitates toward the web3 standard, user data will increasingly be held on the blockchain or in decentralized storage solutions, which will give users more power over their data than ever before. As a result, they will be able to choose exactly which brands they consent to share data with, what data they wish to share, and for how long.

Advertisers that don’t prepare for this tectonic shift and adapt their methods to offer a real value proposition in exchange for interacting with user data will be left behind.

By offering tokenized rewards – whether that’s fungible crypto coins or non-fungible tokens (NFTs), an on-trend, blockchain-based, one-of-a-kind digital asset – advertisers can tap into the web3 ethos while exciting users about what they have to offer. Plus, they get to take advantage of the magnificent properties that come with blockchain technology, such as:

  • Immutability, or the permanent, unalterable nature of a blockchain ledger
  • Validation, or the way in which users can verify transactions are legitimate
  • Disintermediation, or the absence of intermediaries between advertisers and users
  • Profound security, made possible by cryptography and decentralization
  • Ease of transfer, which makes it simple and quick to send and receive tokens

How crypto can help advertisers thrive in web3

One of the easiest ways to reward users when they give their permission to share their personal data or perform specific actions is by issuing crypto rewards. For example, you can give them rewards when they watch videos, view personalized ads and opt to receive content from brands.

By offering an opt-in value exchange – where they’re willing to part with their data or their attention for tokens – advertisers can begin building long-lasting customer relationships and regain trust while ensuring regulatory compliance.

Though cryptocurrency remains in its infancy, adoption continues to increase; today, some 27 million Americans own crypto. With steady growth over the last decade, it’s only a matter of time before crypto usage reaches critical mass. The sooner advertisers embrace the inevitably of crypto, the faster they’ll be in a position to capitalize.

Since the future of digital advertising will be fuelled by permission and digital rewards, brands need to start looking for a purpose-built crypto-rewarded advertising platform that will guide the journey ahead. Strategies that enable aligned incentives – where all participants, including users, advertisers and the platform, benefit from the permissioned sharing of data – will lead to victory in the web3 era.

With the right approach, the lopsided relationship between brands and consumers suddenly evens out, and both parties engaging with each other is more of a partnership than anything else.

Feature Image Credit: Adobe Stock

By Lauren Griewski

Lauren Griewski is chief revenue officer at Permission.io.

Sourced from The Drum

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What Web3 Means for Marketers

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By Alexandra Bower

Bridging the gap between fandom and ownership

Are you curious about what Web3 is and what it encompasses in its early stages? Wondering what the next era of the internet includes? What is an NFT, anyway? How do you get to the metaverse? Avery Akkineni, president of VaynerNFT, Allison Sturges, head of strategic partnerships at Genies and Rachel Webber, chief brand and strategy officer at Playboy, formed a panel at Social Media Week to break down what Web3 means for marketers.

Unlocking a monumental technology shift

According to Webber, deciding to enter Web3 was easy for Playboy. The brand saw several similarities between its mission and the mission of Web3.

“We really saw an intersection of the core values of Playboy around free expression, serving as a platform for artists, anti-censorship, giving people an ability to participate and feel part of a community,” she said.

Playboy entered the space through the art lens for its first NFT drop, a collaboration with the artist SLIMESUNDAY.

“We gave him access to the Playboy archive to create new original work utilizing previous art and typography that we had,” Webber explained. “We loved the ability of NFT drops to reinvent and show the regenerative nature of an archive and the power of art and photography and the ability to turn that into new collectibles and new consumer experiences.”

Webber said Web3 was an instrumental tool in fostering deeper, more meaningful connections between the Playboy brand and fans.

“For us, access to the Playboy archive, access to a Playboy party, are very much getting access to the Playboy lifestyle, and that’s authentic to the type of experiences that we believe Playboy can offer.”

Bridging the gap between old and new

According to the panellists, Web2 and Web3 work together, and they should be used mutually to help bridge the gap between Web2 and Web3.

“With anything within marketing and social media, you have to understand which metrics are living on which platforms,” Sturges said. “For us, we’ve been able to establish the fact that Twitter and Discord are where the NFT natives are spending their time. So, we leverage both of those platforms to build out our platform. Discord has been a way for us to create directly with our users and get product feedback. It’s a great tool for us to connect and build actual relationships with our users.”

According to Sturges, the ethos of Web3 is all around giving back ownership and freedom as marketing bridges the gap between Web2 social and Web3 ownership.

“I think for brands and marketers, finding ways to provide that ownership and freedom for your users, fans, and customers is key,” she said.

“Back in January, Genies announced we would give full ownership to our creators, users, and talent — really allowing them to have full commercialization rights of any of the creations they create within our ecosystem. That really gives a true sense of their identity. They created this; it’s a part of the digital IP they’re building. And they also have that ownership in what they want to do with it and how it can be leveraged. I think that’s really important as we move into the next stage of the internet.”

Feature Image Credit: Sean T. Smith for Adweek

By Alexandra Bower

Sourced from ADWEEK

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What Is Web3?

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By Jeremy Laukkonen

How a blockchain-based decentralized internet can change the world

Web3 is a term describing a future internet built on decentralized blockchains, which are the ledger systems currently used by cryptocurrencies.

What Is Web3 in Simple Terms?

At a very basic level, Web3 is the third stage of internet development. To understand exactly what Web3 is, you first need to have a basic understanding of the first two stages.

The first stage of the internet, Web1, mostly involved users reading static webpages, although forums and message boards did exist. The next stage, Web2, marked the arrival of social media like Facebook and Twitter, and sites based around user-generated content like YouTube. The big difference between Web1 and Web2 is many people transitioned from passively consuming content provided by big companies to creating and sharing their own content, although that sharing is still facilitated by websites owned by big companies.

The basic idea behind Web3 is it will represent a transition from big companies controlling and monetizing content on the internet, to individual creators and consumers sharing content and interacting through decentralized networks. These networks would rely on open protocols, allowing anyone to connect and participate, and shift power away from big companies and toward creators and users.

What Is Web3 and How Does It Work?

Since Web3 isn’t here yet, we don’t know exactly how it will work. Most concepts of Web3 involve the blockchain, an unchangeable ledger system used by cryptocurrencies to keep track of transactions. The appeal of the blockchain for Web3 supporters is that it logs everything in a way that is transparent and impossible to edit or falsify. Each new transaction creates a “block” in the ledger anyone can see.

The main issue of the blockchain is the same as its purported benefit. Because nobody can edit the ledger, and anyone can create as many crypto accounts as they want, it’s hard to address and protect against fraud. Once something exists on the blockchain, it’s impossible to remove.

Some proponents of Web3 have suggested that creators and users could monetize their efforts on the internet through the blockchain, or that users could monetize their own data for targeted advertising purposes the same way Facebook and other companies sell that kind of data today.

Control over decentralized services could also be placed into the hands of users, instead of big companies. Decisions to change rules and regulations, when to ban users, and other choices could be voted on by users of a decentralized service instead of decided unilaterally by the company that owns a website. This would take the power out of the hands of big tech companies and place it in the hands of users.

Are There Any Examples of Web3 Today?

The concept of creators and users being compensated through the blockchain is currently still in its infancy, but there are some examples. The video game Axie Infinity is somewhat similar, in that it runs on the Ethereum blockchain and rewards users with cryptocurrency for achieving goals.

Another example is Helium, which is a crowdsourced wireless network that rewards users with cryptocurrency for sharing their home network connections. This effectively creates a large network of hotspots users can tap into, and the owners of those hotspots are able to receive compensation in the form of crypto tokens.

This “play to earn” setup is one of the most widely talked about features of Web3, as it could have a huge impact on both creators and users. Through the blockchain, Web3 could allow creators to monetize their content without relinquishing control to big tech sites, and users could monetize their activities and even their own data.

What About Decentralization of Web3? 

Proponents of Web3 spend a lot of time talking about the blockchain, but that’s only one part of the larger picture. The other central conceit of Web3 is it will be decentralized in a way that Web2 isn’t. An easy way to think of this is today, Twitter users can communicate with each other, but they can’t communicate with Facebook users or Instagram users. That’s because Twitter owns its website, controls its communication protocols, and keeps everything locked down. The same is true of most other Web2 sites and services.

For Web3 to function, these would need to be replaced by decentralized services. There are actually signs of this today in the form of federated services where multiple Web2 sites are able to communicate using an open protocol. One example is Mastodon, which is free and open-source software that individuals and organizations can use to build their own microblogging platforms that work a lot like Twitter. Users of the original Mastodon site and users of others, like the India-based Tooter, are able to communicate with each other, because both sites use the same open-source protocols.

Is the Metaverse Web3?

The metaverse isn’t Web3. It’s a term used to describe immersive digital worlds, often experienced through VR instead of a computer monitor or phone screen. In this metaverse users can play games, socialize, and communicate. The big connection between the metaverse and Web3 is that various items in the metaverse could be NFTs, like your avatar, virtual real estate, and other items.

The big difference between Web3 and the metaverse is the latter is currently being championed by big tech companies like Facebook, Microsoft, and HTC. Since Web3 is envisioned as being driven by decentralized networks, open protocols, and the blockchain, the metaverse would seem to miss the mark.

Will Web3 Change the World?

It’s impossible to say exactly what Web3 will do, or even precisely what form it will take, since it’s currently still just a set of loose concepts. There is a real potential for Web3 to change the world though, or at least to drastically change the way you use and interact with the internet.

If Web3 does rely heavily on the blockchain, it could present new ways for both creators and general internet users to use the internet, and a shift to decentralized services would completely alter the landscape and potentially big tech as well.

FAQ

  • What does “decentralized” mean?

    In the world of Web3, decentralization means that the internet and every site on it exists across a distributed network instead of companies owning and maintaining the servers. Ideally, this means that the internet doesn’t really “belong” to anyone, but the concept is vague and nobody has made any progress toward achieving it.

  • How does cryptocurrency work?

    Most cryptocurrency uses “proof of work” to distribute tokens, which means that computers have to solve increasingly complex problems to “mine” the currency. Because of this, cryptocurrency uses vast amounts of energy and has driven up the prices of graphics cards. Cryptocurrency is also extremely unstable and vulnerable to fraud, and it hasn’t seen widespread acceptance for retail transactions.

By Jeremy Laukkonen

Sourced from Lifewire

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    Internet 3.0: Revenge of the ETH

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    At the dawn of the internet, in the mid-nineties, people were blown away by the new technology. Message boards, chat rooms, and file-sharing services dominated the space. Eventually, this was called web 1.0. Then, with the advent of social media in the mid-2000s, the internet reached a new level of interconnectivity. The was a shift to user-generated content like never before. For better or worse, anyone could create and share anything, at any time. This became known as web 2.0. Now, with the popularization of blockchain technology, we are approaching a new age; Internet 3.0. But what is web 3.0?

    A whole new world of possibilities

    One of the key appeals of blockchain technology is decentralization. This simply means no single entity can control or govern it. This impacts the internet in a few ways, Firstly, complete transparency in everything, at all times. No more hiding behind a “delete Tweet” button. Blockchain technology chronologically stores every interaction and transaction in a ledger that anyone can see.

    Secondly, it takes a sledgehammer to the proverbial throne of companies like Meta and Google. It’ll put massive databases of information on users, in the hands of users. Theoretically, the two tech titans won’t have a chokehold on your data anymore.

    What’s the catch?

    You know how misinformation, hate speech, and cybercrime run wild on the internet like Hulk Hogan? Well, with decentralization, comes (even more) limited authority to prevent these things. Because data will essentially exist everywhere, it can be traced nowhere. It’ll be nearly impossible for countries to apply sanctions and laws on something that doesn’t exactly exist in that country.

    For example, right now, if cybercrime occurs on a website hosted in the United States, the US government can intervene. But what if that website was hosted on servers across the entire globe?

    What does this mean for us?

    Web 3.0, internet 3.0, or whatever you want to call it, could usher in a new era of globalization like never before. Web 2.0 brought people together for better or for worse with the advent of social media and user-generated content. Now, optimistically, we could see those users come together and redistribute control of the internet through decentralization. Pessimistically, it could get really, really messy and chaotic. Web 3.0 could completely change the way the world interacts with each other all over again. But only time will tell.

    Feature Image Credit: Burst on Pexels.

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