• Global marketing expenditure exceeded $1 trillion in 2022, despite the threat of recession.
• The current digital media landscape is fragmented, leaving brands reliant on third-party platforms and data.
• Non-fungible token-based experiences can empower connection between brands, creators and fan communities, enabling them to remunerate creators and give communities a stake in what they love.
The marketing industry is in the midst of a digital revolution, with brands spending an estimated $297.5 billion on marketing in the U.S. alone in 2022. Globally, advertisers spent over $1 trillion, with the prospect of recession looming large. Yet, many marketers expect their budgets to continue increasing in 2023.
The digital media landscape has evolved rapidly in recent years, but it is still fundamentally broken for brands, artists and fan communities. Fragmentation is a major problem; a typical media mix for a major advertiser typically includes influencer campaigns, paid social, short-form video, TV ads, email, performance marketing, and more. Even when brands find their target communities, their relationship with them is mediated by third-party platforms and limited by third-party data.
It is unsurprising, then, that even amidst market upheaval, major brands entered the non-fungible token (NFT) space for the first time in 2022. To date, over 100 brands have released NFTs, from Pepsi to Adidas to McDonald’s. Straith Schreder, the executive creative director at Palm NFT Studio, believes that Web3 offers an alternative to the current digital media landscape. NFT-based experiences are empowering, as they allow creators to encode rights that can remunerate them, and give communities a stake in what they love.
With NFTs, brands can create pieces that point to what’s possible with art and technology; pieces that live, breathe, and react to the moment. Fans can see themselves in a generative collection that renders comic canon uniquely personal, or an editioned series that forces them to confront their own values. By connecting brands, creators and fan communities, NFTs offer a more meaningful relationship between them.
The marketing industry is undergoing a digital revolution, and the future of marketing lies in the ability to connect with and empower fan communities. Non-fungible token-based experiences are enabling brands to do just that, giving them the opportunity to create pieces that are personalised, interactive, and meaningful. It is this connection that will drive future marketing success, and brands must embrace Web3 in order to capitalise on it.