As Web3 technologies and innovation continue to grow at an exponential rate, it is reimagining how brands will be relevant in the future marketplace.
If we recall the early days of web2, it was difficult for a lot of people to envision how or why people will willingly choose to spend hours online connecting with others or performing activities they could do in their physical environment. However, as we see today, web 2 became even bigger than we dared to imagine.
Brands who innovated first and adapted to the internet evolution gained a strong competitive advantage especially in terms of brand positioning, growing clientele, and boosting corporate reputation.
The same scenario is playing out with web3 that is ushering in a third wave of internet revolution – better put ‘innovation’. New technologies like blockchain and the metaverse have changed the status quo and old brand models are being disrupted. Brands must now re-examine how they connect with their consumers, the information they feed them and the preferred platform(s) consumers would rather use to connect/interact. Platform choice is extremely important due to the generational appeal such as gen z’s preference to platforms like TikTok and Baby boomers to Facebook.
Although the complete shift to decentralised web3 technologies will still take some time, it is imperative that brands begin researching how the move to Web3 will impact their consumers’ mindset. Once that is understood, brands must then align their business model with the consumers’ foreseeable actions to avoid being obsolete.
Take for instance how blockchain is disrupting financial systems, though there is the misconception that blockchain technology is only for cryptocurrency. It encompasses much more than that. It’s a technological advancement that will eventually redefine how transactions are performed globally. Smart contracts, a key component of blockchain technology, strengthen security and ensure transparency and authenticity of digital transactions. From a branding perspective, the insights and transparency from blockchain serve as opportunities to develop more effective and targeted marketing plans, ultimately leading to higher satisfaction levels among consumers.
It is also no news that forward-thinking brands are already purchasing digital assets such as virtual land in form of Non-Fungible Tokens (NFTs) in metaverses like Vault Hill City (VHC). By building their virtual office on these land parcels, they’ll able to connect with consumers on a deeper level. The catch with the metaverse is that it offers a higher realm of connectivity and interaction - people can be fully immersed in a virtual world and sense every movement and every touch on their body in real-time. Rather than just watching a third person on the screen.
Furthermore, how Decentralised autonomous organisations (DAOs) are putting users in total control is another catch of web3. In VHC for example, brands (and individual landowners) who buy land are given a NO CODE builder tool to develop their land however they desire - which is different from what we get in the physical world. This user sovereignty reinforces how businesses must keep up with consumers’ mindset as there will be a plethora of products and services available to them, content they consume, as well as brands whose values they may also share.
For brands to therefore leverage the diverse opportunities in web3, a user-focused approach with a promise to enhance users’ experience through high-quality and engaging content must be top on the corporate agenda.
Additionally, brands must begin building a community because your community is what will determine your relevance in this next phase of internet evolution. Already, there’s heavy reliance on the internet as people spent nearly 4 trillion hours on just their phones in 2021.
This signifies immense potential to build community for the future.
To conclude, web3 is here to stay and brands must adapt quickly to benefit from its limitless possibilities.
Founder and CEO of Vault Hill. Daodu is the brain behind the world’s first human-centric metaverse