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The digital world is becoming increasingly complex, especially with today’s rapidly evolving technology it’s redefining the ways people communicate, do business and even build rapport.
Over the course of the 21st century, two more terms have been added Web 3.0 and NFTs (non-fungible tokens).
All these new technologies are not only changing the Internet itself and marketing as you know it, but also fundamentally transforming the digital landscape.
Over the past twenty years we have seen the growth of social networking sites, the rise of e-commerce and the control of content streaming sites.
But now there is blockchain, NFT and Web 3.0, the progress in the digital world that we can consider as a leap.
Okay, now let’s look at the details of NFTs and Web 3.0, and how they are revolutionizing marketing.
What are NFTs
NFTs rose to fame in early 2021 when artists, musicians, and even brands started selling digital collectibles worth millions of dollars. But what exactly are they?
An NFT is a sovereign digital asset and is recorded on a blockchain network. Unlike regular cryptocurrencies like Bitcoin or Ethereum, where each token has an equal value, each NFT is different.
There are billions of NFT tokens, and each one is special because it has a set of metadata that makes it different from any other token.
Each of these features makes NFTs useful for proving that you own something or are the rightful owner of a digital asset, such as art, virtual land, music, or even a tweet.
Think of NFT as a subset of digital assets that fall within the category of informational collectibles.
They function similarly to baseball cards that you have bought, sold or otherwise traded but because of blockchain technology, they are now digital tokens.
An important aspect to note is that the appeal of NFTs comes from their transparency, verifiable ownership, and decentralization.
Blockchain technology makes the owner of NFT easily recognizable This allows digital creators to establish ownership rights in a particular asset and sell it directly to customers, without intermediaries.
What is Web 3.0
Now that we understand NFTs, we are moving towards what we know today as Web 3.0.
While NFTs are likely the future of owning unique assets, Web 3.0 is the backbone that allows people to achieve this.
Web 3.0 is called the third generation of the Internet, which brings decentralization, blockchain technology and cryptocurrency.
To understand Web 3.0, it is important to understand the evolution of the Internet.
Web 1.0 static web
The first version of the Internet was like a bulletin board system where information could only be retrieved and not posted. People could read, but there wasn’t much active participation.
Let’s compare this to early websites from the 1990s, where we only had static HTML pages text and images without any interaction.
Web 2.0 dynamic internet
The second generation is what we have in use today more so on the various smart devices.
First, it is interactive and social. Second, it is usually based on the user’s actions and preferences.
Sites like Facebook, X, YouTube and Google rely heavily on user content and participation.
But control and ownership belong to big tech companies that make money from user data.
Web 3.0 centralized internet
The third age of the internet is about decentralizing control and putting the wheel of power back into the hands of the users.
Web 3.0 enables P2P (person-to-person) interactions because it is based on blockchain technology.
Compared to Web 2.0, Web 3.0 is about ownership where users own their data, identity and assets, because of transparency.
At its core, Web 3.0 is about decentralization and people taking ownership of their stuff their assets, information and experiences.
Marketing with NFTs
Marketers and brands have quickly identified the potential for NFTs as exclusive goods for consumer interaction.
It also creates an innovative approach to marketing by using NFTs as a way to offer customers unique experiences and loyalty gifts.
Some of the notable elements that have seen the adoption of NFTs include the digital assets of Nike, Taco Bell, and Coca-Cola.
Loyalty programs
NFTs can be implemented in the form of loyalty programs, where customers receive special access to certain events, a product or service at a lower price, or even merchandise.
A well-known coffee giant has even suggested that it could incorporate NFTs into its loyalty program to retain and incentivize customers.
Collaborations between brands
NFTs also make it possible to incorporate brands in a special way.
For example, one major brand partnered with gaming platform Roblox to deliver virtual accessories designed as NFTs.
Such assets target not only fashion enthusiasts but also players, expanding them to potential audiences.
Web 3.0 in the future of marketing
Web 3.0 is now the future of marketing similar to what social media brought to the marketing world in Web 2.0.
The era of Web 3.0 promises enhanced personalization and sheer brand transparency never seen before.
This is what awaits marketing with Web 3.0.
Decentralized ownership
According to Web 3.0, consumers can maintain their identity and manage their data instead of companies having it.
There is a chance of ‘paid’ data or ‘consent data’, where customers will choose to sell their information to companies or give brands access to specific data they want which is a total paradigm shift from customer acquisition models.
Personalized and targeted advertising
One of the key trends is that Web 3.0 can improve marketing personalization while making advertising less centralized, as is currently the case with Google and Facebook.
Purchasing is realized via blockchain, where consumers have direct access to brands which creates more trust.
DAO-driven marketing
Here, some marketing functions could be taken over by DAOs (decentralized autonomous organizations).
DAOS are organizations controlled by code and by the vote of the communities, allowing consumers to be involved in decisions such as product design, marketing or branding strategies.
Virtual economies
The metaverse has continued to evolve and brands can now place themselves in such virtual worlds by offering virtual goods, clothing and experiences. .
Web 3.0 will enable marketers to bridge the gap between the physical and digital domains so that customers can get a real sense of the brand experiences in the virtual environment.
A digital revolution with Web 3.0 and NFTs
Web 3.0 and NFTs are the technologies driving digital evolution. They point out that their inventions could revolutionize the way users interact with both the content available to them and with other users.
The new Web 3.0 is decentralized so without mediators and private. NFTs introduce ownership to the digital world, allowing creators and consumers to experience new forms of interaction.
That revolution is already happening. For example, applications such as Decentraland and The Sandbox enable the use of NFTs to purchase plots of land in virtual land developing completely new and different markets and economies within digital environments.
The rise of digital art galleries, NFT auctions and virtual stores is just the tip of the iceberg that Web 3.0 and NFTs will enable in the future.
The world is about to witness a revolutionary development with the integration of NFT and Web 3.0, which will fundamentally change the way people view property, privacy and their interactions with the digital world.
Using NFTs, artists retain the ability to monetize their creations, and Web 3.0 focuses on decentralization.
On this occasion, marketing chiefs can find paradigm shifts to reach consumers, build loyalty and even provide an exclusive experience.
Given their continued development, the shift these technologies are bringing to the field of marketing and commerce as well as one’s relationship to the digital world cannot be disputed.
The Internet is no longer just a place to browse the Internet, but is gradually evolving into an area where you can shop, design and evolve.
The future is already here, and it has started with NFTs and Web 3.0 technologies.
Usama Wajeeh is the CEO of Tech stack digitalleading the way in delivering transformative digital strategies and services. He is a successful digital strategist and entrepreneur with ten years of experience supporting global leaders with innovative solutions.
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