What CMOs need to know now about Web 3, Metaverse, Crypto, digital wallets and NFTs

The digital world is in a deep state of evolution that is both overhyped and underrated. Many of the enabling technologies are not well understood by market leaders, leading to mixed responses to these new capabilities. Is it time to jump in and reallocate marketing resources? Or should I wait while others learn lessons the hard way? Let’s explore the basics of these five technologies and assess their readiness for primetime.

Web 3.0 – The third development of the world wide web is underway. Proponents promise a more democratic approach to this next generation of the web, but development is more organic and less standards-based. This causes many to ask the question “What is Web 3.0”? There is not a definitive answer, but one will evolve over time based on underlying technologies that enhance Web 2. Blockchain features will improve the security and authentication of digital assets and promise individual ownership of one’s identity, information and assets leading the way to cryptocurrency , decentralized finance (DeFi) and non-fungible tokens (NFT). Improvements in 3D graphics and bandwidth speeds will provide more immersive virtual environments. Combined with advances in artificial intelligence (AI) and virtual/augmented/mixed reality capabilities, the foundations of the metaverse will be laid. Web 3 will also connect more digital devices than just PCs and smartphones, including vehicles, home appliances, climate control systems, personal fitness devices, building access systems and just about anything with a digital sensor. Finally, emerging semantic web technologies will add meaning to web pages via machine-interpretable metadata, changing the efficiency of online information retrieval.

Metaverse – The metaverse generally refers to persistent virtual worlds, often accessible with virtual reality headsets or augmented reality glasses. Today, a person usually enters a virtual world as an avatar and can interact with other avatars or other digital objects. Some examples of virtual worlds can be found in gaming platforms such as

Roblox and Fortnight where participants can share experiences with friends. But distinct virtual worlds are not the metaverse. Proponents of the metaverse promise new possibilities beyond gaming, including virtual spaces for brands to set up shop and interact 24/7 with AI-enabled robots that will be able to speak multiple languages. And accessibility via smartphones and other devices for mixed reality experiences. Early marketing experiments in virtual worlds include offering branded outfits for avatars (Gucci, Prada, and Adidas), virtual restaurants (Wendy’s and Chipotle), and virtual locations (Playboy Mansion and Tony Hawk Skate Park). A few brands are even creating unique entertainment themed spaces like The Sandbox to engage with digitally savvy consumers.

However, skeptics believe that the metaverse is still too early for many marketers. Julie Ask, vice president and principal analyst at Forrester, puts it this way: “If generating press is your measure of success, these brands have done a great job. But if we just do old things in new ways in the metaverse, it becomes boring and uninteresting. And I don’t think we know what those things are yet.”

Cryptocurrency – Blockchain technologies have enabled the development of cryptocurrency that can be used to purchase digital assets or pay suppliers that accept crypto. Cryptocurrencies are linked to the level one blockchains from which they were “mined”. Bitcoin, Ethereum and Solana are leading blockchains, each with their respective currencies. The value of the currencies fluctuates based on market conditions and can be bought or sold through exchanges such as Crypto.com, Coinbase and Kracken. The dramatic rise and fall in currency value, compounded by the behavior of lesser-known players in an unregulated industry, has created hesitation for many companies to get involved. However, with federal regulations likely to emerge, issues of cross-chain operations likely to be resolved to be developed, and the ease of doing business with crypto, brands should begin exploring their readiness to accept payments via crypto.

NFTs – The most popular form of NFT today is digital art. But thinking of NFTs as simply digital art would be like thinking of Amazon as an online bookstore. Yes, digital artists create unique pieces to sell, and brands create memorabilia and digital items in the form of NFTs. But Julie Mossler, CMO of Metaplex, the leading platform for creating NFTs on the Solana blockchain, describes NFTs this way. “In reality, an NFT is just a contract. It’s an agreement that you make between a buyer and a seller or between a bunch of bits and bytes behind the scenes. Today it’s illustrated as art, but soon we’ll see music and games.” As programmable smart NFTs evolve, additional applications will also include identity management, digital tickets, and loyalty and rewards cards.

Digital wallets – The term is somewhat misleading in that digital wallets store more than cryptocurrency. They also store digital assets such as NFTs and digital identities of their owners. The latter application is particularly important for marketers to consider. According to Brian Wallace, CMO of Vatom, a platform for building brand experiences in the metaverse, brands should be focused on their digital wallet strategy. He believes brands shouldn’t create proprietary wallets because consumers don’t want to have a wallet for each brand. Instead, they should focus on the evolving capabilities of smart NFTs to serve as loyalty and rewards cards. NFT will connect to the customer’s identity, and provide secure login to digital or physical experiences. Activities can be securely tracked with permissions in the hands of the customer instead of third parties like Facebook or Google. Retailers, health clubs, restaurants and entertainment venues should explore the implications of digital wallets and smart NFTs as next generation loyalty cards.

Conclusion – Web 3.0 will evolve over the next few years and will bring new opportunities that CMOs should consider today. How will consumers and business buyers want to interact with your brand in the metaverse? What new value can you create for them in the metaverse beyond their current experiences? How will these expectations reshape your current website? When will your company accept cryptocurrency as a form of payment? What does an NFT-based identity and loyalty card system mean for your current program? Are there other forms of digital assets that will strengthen the relevance of your brand? The next 18 months will be a time of experimentation. Are you ready to begin your exploration?