A recent report from KPMG has projected that, by 2030, the demand for luxury items within the Metaverse could reach a staggering $50 Billion USD. With this new blockchain-driven internet emerging, entities of fashion are entering into the fray; promising customers an array of trendy product offerings and innovative Web3 experiences - but can these companies truly deliver on their promises? As everyone speculates what may come with this digital platform's evolution, only time will tell if brands can meet public expectations.
Web 1.0 to 3.0
The history of branding in the digital world began with basic HTML pages on web 1.0. Web 2.0 arrived with a more interactive approach, introducing blogs, video streaming sites and social media channels like Facebook and Instagram for businesses to leverage their brand presence online.
With Web3, the focus shifts from purely visual branding to an experiential layer of engagement between companies and consumers in virtual realms – what marketers call building “Brand Experiences” (BX). Brand Experiences can be realised through gamification elements or artificial intelligence tools that enable users to interact with companies in creative ways. This opens up new opportunities for branding and storytelling, allowing companies to show their personality within the virtual world.
NFT Content Creation
Branding in the digital age has been revolutionized by web3 and its utilization of tokens, assets, content and NFTs to spark engagement from customers. This incredible new technology also allows brands to generate substantial revenue through selling collectables based on their company's industry and image. Furthermore, with these tools, there is potential for building a cohesive community of loyal followers that will foster lasting support for your brand!
DApps
Thanks to social media marketing, brands now have a greater connection with their customer base than ever before. However, the emergence of decentralized applications (DApps) on web3 has taken that relationship to an entirely new level of trust and transparency. As consumers interact and transact through these apps without the need for any centralized authority overseeing data, both parties benefit from this newfound bond between brand and customer.
Defi
Decentralized finance, commerce, and network open the door to a secure customer experience with no third-party controllers of data. Eliminating banks while facilitating peer-to-peer transactions is both convenient and efficient. Plus, with Defi you can rest assured that your safety, privacy, and data security are all guaranteed! As if this weren't enough of an incentive already - decentralized finance also allows for brand marketing transactions through tokenization.
The Metaverse
The relationship between media and branding has been a longstanding one, and the World Wide Web serves as an ideal platform to showcase it. Ever since web1 came into existence, brands have utilized the internet for growth purposes. We are currently in the midst of another evolution: web 3 – where investors, consumers and brands converge in unprecedented ways.
Opportunity for brands
By using this new approach, we have uncovered the following important insights:
1. Branding should be agile and creative – traditional methodologies don’t apply here;
2. Brand Experiences need to be more immersive, engaging customers with interactive tools;
3. Brand stories need to be consistent across different channels to build a strong online presence;
4. Companies must leverage web3 technologies to tell their story and communicate a unique brand experience through innovative tools like Augmented Reality (AR), Virtual Reality (VR) or Artificial Intelligence (AI).
Best practices for web3 branding include:
- Developing Brand Experiences through innovative tools such as AR, VR, or AI;
- Leveraging web3 tech for customer engagement and storytelling;
- Creating a consistent brand story across all channels;
- Developing an agile strategy that responds to the changing digital landscape.
Best practices
The Gucci Garden on Roblox is the perfect example of how virtual worlds can be used to build a unique environment. By creating multiple themed rooms that pay homage to Gucci campaigns, visitors can enter an immersive world of self-expression and creativity. Upon entering the lobby, avatars have access to products from digital versions of the renowned fashion house before being transformed into genderless humanoid mannequins - quite different from your standard Roblox figure! As they progress through each space in this magical garden, users absorb all its visual elements while engaging with this transformative experience.
Another nice example of AR technology in use is Nike's GO FlyEase shoes. Customers can not only view how the shoes look on their feet before buying, but also take a virtual 'walk' for an even more immersive experience. This creative approach to shopping has resulted in customers making quicker and more informed decisions when it comes to selecting footwear.
Unveiled on April 8, 2021 to honour the 200th birthday of Louis Vuitton's founder, "Louis: The Game" is a revolutionary collaboration between luxury fashion house Louis Vuitton and digital art pioneer Beeple. Players join Vivienne - LV's mascot - as they travel through an in-game world searching for 200 collectable candles while collecting 30 unique NFTs along the way. Though these exclusive tokens are not able to be resold, players can still grab their own piece of history by downloading this innovative game from either the Google Play store or Apple app.
In conclusion
Web3 has opened up a world of potential for brands to create Brand Experiences that are more immersive and engaging than ever before. It allows companies to leverage innovative technologies like AR, VR or AI to tell their story interactively and build meaningful relationships with customers. Web3 can also be used effectively to reach younger audiences who prefer virtual engagement over traditional methods. With the right strategies in place, businesses can tap into this new digital landscape and reap great rewards from it. If you’re looking for help creating Brand Experiences on web3, our team at Brand Agency is here to assist you every step of the way!
