In the metaverse and NFT 2.0, marketers should focus on utility and community

As we enter the NFT 2.0 technology space, we see a more innovative and accessible approach to creating a user-centric experience where participants can benefit from utility. Web3 marketers are also looking at how brands can position themselves to continue driving profits from NFT businesses while adding value to their products. However, for NFTs to thrive in the Web3 ecosystem, consumers need storytelling and value proposition, especially in an environment where technology is constantly changing.

Web3 marketing agencies have carefully implemented brands in the metaverse to build brand awareness and real usefulness for the consumers they interact with. However, for a brand to be loyal to its fanbase, its digital assets must incorporate audience and community engagement to create an engaging experience and retain consumers.

The metaverse offers brands a landscape to reinvent themselves. What they deliver in the real world doesn’t have to be exactly what they deliver in the metaverse. That said, brands that have successfully entered the metaverse are sticking to their core business while finding ways to express it a little differently. For example, Under Armour’s Curry brand was able to launch an exclusive digital shoe metaverse campaign that went beyond just buying virtual shoes. The digital assets were released continuously during the 2022 NBA playoffs and are dependent on Steph Curry’s performance. It gave fans a new way to engage with every NBA game they watched and allowed Under Armor to reach new audiences while growing its digital footprint in tandem.

A campaign like this illustrates the work that needs to be done behind the scenes by the brand, creative agencies, and marketing agencies to develop meaningful activation. When creating an NFT or metaverse campaign, a brand should look beyond profit and towards the community as the focal point. The metaverse is now in its raw state, but will be shaped in the future by what brands are doing right now. There is no status quo, no standards for consumer expectations, and as more companies offer valuable digital assets to their customers, they will have a much deeper competitive advantage as this new market is consolidating.

Build a transparent NFT 2.0 ecosystem with value creation

NFTs have been the subject of much discussion over the past year, but NFT 2.0 has the opportunity to create much more potential for a wider audience by integrating more utility into the existing infrastructure. These assets may include digital artwork, game items that can be used in different games, music, and other collectibles. On a small scale, an artist could develop a shirt design for a virtual avatar, sell it as NFTs for individual users, and use blockchain to track sales. By expanding on this idea, a major brand could push forward a similar illustration concept with their brand logo and track thousands of unique NFT purchases.

When you look at successful NFT/Web3 communities, a lot of their success comes down to one thing: they have provided opportunities for their holders/users. Much of this opportunity has been financial gains for users as they take advantage of market fluctuations, but thriving communities also provide those who are looking at the project from a long-term perspective, such as buying a digital property in the metaverse. Another example of a long-term opportunity is when community members interact and create content for other members, or even create exclusive channels, like a Discord community, for networking and partnership opportunities.

Brands can’t force people to commit to their digital endeavors, but engaging a small group of consumers, individuals who see long-term value in a project, creates the potential to build a community that will stick around. . So, when building an NFT community, everyone should consider what opportunities and utility they can provide to holders besides quick financial gain.

The Future of Brand Positioning in Web3 and the Metaverse

The bear market that NFTs and crypto have been in throughout 2022 is a hurdle for brands looking to show leadership in this space. On the other hand, there are still plenty of brands launching activations, despite market value, indicating how much potential brands will see once the market picks up. As brands develop their next marketing plans, they should include NFT or metaverse activation that creates value and interoperability. Examples could be a cool design that can apply to different games; branded artwork for display on social media platforms; or even inspire small artists or musicians to create something in a branding contest for a prize. Generating engagement, promoting interoperability and creating value will be the three main components of the brand’s future positioning.

There has also recently been a significant increase in the creation of Mint Passes, which provide utility to holders over a long period of time. It’s probably because people are starting to be less interested in profile picture projects that aren’t useful until later. This indicates that brands trying to enter the NFT space should be willing to tap into their real-world resources and products and translate them directly to the Web3 community, quickly and fairly.

The potential for brands in the metaverse and NFT activations is limitless, but as this market continues to grow, their efforts need to be done right, with community building as a primary element. It’s exciting to see how much growth there has been over the past year and it should continue in the near future.

Jack Cameron is co-founder and COO of Insomnia Labs.