As an NFT Evangelist and crypto investor, 2022 has been a difficult year.

In less than nine months, the non-fungible token (NFT) market has declined by 97%, according to Dune Analytics. Crypto didn’t fare much better. At the beginning of January 2022, bitcoin was valued at more than $46,000. That same coin is worth only about $16,800 as of this writing, which is a 63% decrease.

But these numbers don’t tell the whole story, nor do they hint at a much brighter future ahead. Marketers and consumers alike are educating themselves about the potential of NFTs and Web3, which I predict will lead to a second-wave brand renaissance later in 2023.

First NFTs

Let’s get some rough numbers before we start spreading hope. NFT collectibles creator RTFKT generated $3 million in NFT sales in just 6 minutes at its peak, leading Nike to acquire it in 2021. The big crash began in May 2022. For example, the The Nike x RTFKT Monolith collection was worth $500 million. in April (based on purchase activity) but was valued at only $10,500 as of November. Even celebrities got caught up in the hoopla. Justin Bieber spent $1.3 million on the Bored Ape #3001 collection in January, which is currently valued at $95,000, a 93% decrease in value.

The reason for this massive drop, aside from realizing that the market was over hyped, was that most of the NFTs on the market had virtually no utility value. Once early adopters withdrew their investments from the market, leaving the rest of us with the virtual bag, consumers and brands were forced to reassess the market opportunity.

While everyone is equally tired of moving on, I think that mindset will lead to smarter investments that will reignite consumer imaginations and create new value for everyone involved.

NFT 2.0: content, community and commerce

However, there is hope based on new NFT releases from forward-thinking brands. AMC Y the history channel have developed new NFT products that go beyond mere content assets to become influencers and inspirations. NFT’s purchase of these brands allows owners to have greater brand status and influence.

They are also invited to provide input on the plots of future shows and gain additional benefits such as access to actors and directors through the property.

Lastly, NFT owners can collaborate with brands to create their own assets that also provide value to brands.

Of even greater value to NFTs and their associated markets are the communities that owners and brands are building and sustaining. The purchase of an NFT often includes VIP access to online communities (think Discord or Telegram) and events where owners can communicate with each other and collaborate with other creators, artists, and notables. This two-way communication allows brands to learn from their biggest fans and help inform future content. Of course, access can include physical and virtual events in the metaverse. Based on engagement, brands can identify and reward influencers with products, access, and exposure that further fuel the marketing flames.

Perhaps one of the most exciting opportunities for NFTs in 2023 and beyond is the potential for real income. Brands can create (if not co-create) merchandise, limited-edition collectibles, funding for new projects, and even charitable donations that are sustained over time, as charitable contributions can be incorporated into NFT sales.

The concept of “twinning” is also gaining momentum and should become a native vocabulary by the end of 2023, with brands organically creating virtual twins of offline products (such as cougar fashion week) or vice versa with the McLaren Solus GT (who developed a real hypercar based on a video game version).

Last but not least, NFTs provide a unique opportunity to drive customer engagement and engagement in the metaverse. NFTs can act as VIP tickets, providing utility within virtual worlds in the form of skins, weapons, clothing, or accessories.

Web3: Please don’t forget me!

With cryptocurrencies and the metaverse stealing headlines, it’s easy to forget that the underlying infrastructure plays a critical role in the evolution of NFTs and other Web3 technologies. There are three main areas of opportunity within the Web3 universe: extended reality, investment, and omnichannel extension.

The first and most intriguing Web3 trend for 2023 and beyond is the concept of brands engaging consumers in the figital (intersection of the physical and digital world). There are a host of other terms that describe the opportunity for blended real and virtual world experiences, including extended reality and the simulverse. What matters most is understanding the possibilities of hybrid events, such as the Solana Spaces Gallery demonstrated earlier this year.

The second opportunity is the tokenization of hybrid collectibles. Launch of luxury fashion brand Gucci Super Gucci in early 2022, providing opportunities for fans to purchase hybrid collectibles that live in both the physical and virtual worlds. The virtual version of the products naturally traces the provenance and allows monetization as NFT.

The third opportunity is in the extension of omnichannel marketing. Web3 provides marketers with a wealth of channels, assets, and communities, ranging from NFTs and metaverse to augmented reality and gaming. Each of these channels includes multiple platforms, many of which are linked to other channels such as chat rooms and physical events. The biggest hurdle marketers face is cross-platform and channel targeting and tracking, which will be a focus for many brands and ad-tech players in 2023.

Even if you invested in crypto and NFTs at their maximum price over the last 9-12 months, there are still plenty of opportunities to recoup your funds by creating compelling customer and influencer experiences in 2023 through NFTs and Web3 enabling technologies. The only limitations are your imagination and, of course, the cash on hand.

Hopefully, you still have the budget to explore your own Web3 marketing strategies in 2023.

Kent Lewis is Chief Marketing Officer for Anvil/Deksia, where he is responsible for the overall strategic direction of marketing, including evolving messaging and the integration of our combined entity. Kent’s industry recognition includes Marketer of the Year by the AMA Oregon Chapter and Top 100 Digital Marketing Influencers by BuzzSumo.

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