Dennie is the Head of Product & Technology at BAIOTEQ. He is also an adjunct professor and researcher on marketing, technology, and Web3.
Web3 is the future of the internet. Over the next few years, the worlds of Web 2.0 and Web3 will merge, revealing blockchain’s mass-market potential. The market for Web3 digital products is growing rapidly, and it is difficult for people to resist. As a result, the number of creators, including social media influencers, experimenting with Web3 digital products has risen. Although several creators have already built multimillion-dollar brands through such digital products, many creators continue to struggle. The market is ripe for innovation, and it is sizable, boasting more than 50 million creators. With the power of Web3, creators can reap enormous benefits from NFTs.
It’s 2022, and we’ve all heard of Web3 and NFTs. However, in this new digital era, how can creators effectively leverage NFTs?
Here are three ways:
1. Convert existing content to NFTs.
2. Create unique and new content for NFTs.
3. Link NFTs with other products and services.
Several prominent creators have already jumped aboard the NFT bandwagon:
• Paris Hilton and Blake Kathyn’s “Iconic Crypto Queen” sold for $1.1 million.
• Singer Grimes’ “War Nymph” collection grossed over $6 million.
• Boxer Logan Paul sold over $3.5 million worth of NFTs in a single day, with his set of Pokemon-inspired collectibles.
While NFTs may appear to be a no-brainer for creators, they are still in their infancy, with a high barrier to entry. Creators must become familiar with Web3, cryptocurrency wallets (like Metamask), NFT marketplaces (like Opensea) and NFT marketing. This may not be a problem for creators who have a strong understanding of technology, but it is a significant challenge for the average social media influencer. While influencers may prefer to work with NFT studios, this convenience comes with a price, as evidenced by the NBA’s multimillion-dollar Top Shot project with Canadian startup Dapper Labs. On the other hand, some new NFT startups, such as Canadian startup Digiphy, offer pro bono services in which they assist underrepresented artists, particularly women and people of color, in developing custom NFT stores that do not require crypto wallets.
Web3 also presents an exciting opportunity for businesses to integrate NFTs into their influencer marketing strategy. Traditionally, the influencer marketing campaign of a company compensates a creator in advance for their collaboration. If the brand continues to use this content in the future, the creator is not compensated. This could change dramatically with the integration of NFTs in influencer marketing. This could also help businesses reduce their upfront investment since the new compensation structure would include NFT profits. NFTs also help eradicate the issue of traceability, as brands can accurately track the impact of the NFT in their influencer marketing strategy.
Regardless of the benefits and drawbacks, our society is already on a path toward the metaverse, and NFTs offer an exciting opportunity for creators and businesses. They can now monetize their audiences through NFTs while providing genuine value to their followers. Web3 platforms offer exciting opportunities to today’s creators. Moreover, our lives are increasingly being lived online, and Web3 enables a more immersive virtual experience, one with a human element. We can create a virtual world where human connection is once again vital with Web3 and NFTs.