NFTs and blockchain technology are still in their infancy, but some companies are already starting to explore how they can generate real engagement. Due to the increasing number of marketers looking for new ways to gain a competitive advantage, blockchain and NFTs are becoming more prevalent.
This year, the digital landscape has also expanded to include 3D AR and VR. When exploring new digital platforms and methods, marketers should set clear expectations and goals.
Identity Benefits of Blockchain
The advantages of blockchain, such as its decentralized nature and immutability, have been known to address ad fraud and security. They can also help brands gain valuable first-party data.
Due to the decentralized nature of blockchain, consumers are more informed about their data’s origins. This is also beneficial for businesses as they can store and manage their data in various ways.
The transparency of customer data is key to building trust with customers. This is because the data is not being shared with a third party without their permission. This eliminates the possibility that the information is being used inappropriately. If businesses gain more trust from their consumers through blockchain technology, this will allow them to acquire more first-party data.
NFTs Being Used in the Metaverse
NFTs are digital objects that are unique due to their use of blockchain technology. Individuals who own them can prove their ownership through the public ledger. This is also important since the NFT’s visual representation can be copied and used with a computer screen.
For brands, an NFT can generate various ways to increase brand awareness and value. However, as a virtual souvenir, it becomes more significant to the consumers when it’s presented on the blockchain.
Although NFTs are already being used in virtual reality, they can still be tracked by their users wherever they go. This makes them valuable to the development of the VR metaverse.
NFT Responsibilities
Unfortunately, several blockchain technologies are known to consume a high amount of energy. To avoid this, many blockchain vendors have pledged their support for a sustainable future.
When it comes to promoting NFTs, marketers must make sure they are being responsible for the environment. Due to the carbon footprint associated with NFTs, consumers must be informed about the environmental impacts of these digital tokens.
Marketing in the Metaverse
According to Stephen Hoelper, head of North America at Doceree, marketers are starting to explore the opportunities presented by the metaverse. The rise of the metaverse is putting brands on notice. According to Sanjay Mehta, e-commerce company Lucidworks’ Head of Industry, brands are being put on notice to prepare for the possibilities presented by the new medium.
For retailers, the potential of the metaverse is enormous. However, according to Mehta, those with clear intentions and goals can successfully implement their plans in the future. We are still in the early stages of the metaverse. Interoperability is key to the success of the project, as it must be interconnected across various virtual worlds.
Worries Over Brand Theft in the Metaverse
Although the metaverse is still in its early stages, it is already known that many of the strategies and logic used in traditional channels may not work in it. One of the most critical differences between the real world and the metaverse is the ownership of the intellectual property (IP) involved. For instance, if a pair of shoes from Hong Kong is authentic, then it should be considered an authentic product.
According to Smith, keeping track of the ownership of an NFT in the metaverse can be very challenging due to the uncertainty of the ownership. As the metaverse’s more connected users become more sophisticated, a cat and mouse game could develop.
