Popping into the metaverse (or selling a branded NFT) isn’t headline worthy anymore

In recent years, the metaverse and NFTs have permeated the cultural zeitgeist, catalyzing grand visions of capturing hearts, headlines (and money). While some marketers have made these visions a reality, expectations have begun to wane as the realities of consumer adoption and valuable marketing applications become clearer. The past few weeks have been dominated by doom and gloom headlines surrounding metaverse layoffs from big names like Disney and Amazon, but with NFT.NYC on the back burner, now is a good time to reflect on why the waning interest may be beneficial and what insights we can see from what is happening in the market.

Why Fizzle is actually a good thing

New technology is intoxicating, but all that excitement and potential can cloud judgment. As the buzz begins to die down, it forces marketers to think beyond FOMO, put down the glass of metaphorical “cooling aid” and make a clearer assessment of what emerging technology can offer.

The problem lies in the tendency to overlook the crucial first chapter of marketing – understanding the underlying business or consumer problem to be solved – and instead jump right to promoting technology as the ultimate solution. Why bother analyzing and solving a problem when we can just throw some new technology at it?

The ‘technology first’ mindset rarely considers how the average user perceives or interacts with the technology and prioritizes marketing applications above all else. The not-so-distant past is full of “next big things” that marketers thought would revolutionize the market – think Google Glass and iBeacons. However, reality has shown the ultimate fate of these innovations: failure, or at best a re-brand for a completely different application than the one originally popularized (as we have already started to see with NFTs – but more on that later ).

Beyond the Hype

When the hype inevitably wears off and the next big thing arrives, we’re left with the same old marketing basics that we seem to toss aside whenever a new and exciting gadget catches our eye. It’s like they say, old habits die hard (even in the age of the latest and greatest). So what’s left to do? Go back to basics. Create a good old-fashioned brief that answers some basic questions such as:

1. What business problem are you trying to solve?

2. What is the consumer’s goal and what is the barrier to achieving it?

3. What role should this brand play in the consumer’s life?

Knowing the answers will set the stage with the right context to unlock an insight, ultimately revealing whether technology X is indeed the right solution or whether we need to steer clear of the shiny object in favor of (dare I say) something more traditional .

What will be next

The truth about what’s next exists somewhere between the sensational headlines “NFTs are dead” and “NFTs will change the world as we know it.” While we don’t expect NFTs (or metaverse or Generative AI) to disappear anytime soon, we can expect their utility to evolve. NFTs, for example, will continue to regroup under the guise of utility vs. collectability, speculation and investment. Starbucks is leading the way, already leaning towards tokens as keys to experiences versus things themselves.

A way forward

Exploring new technologies should be considered an important component when building a modern marketing strategy. By incorporating innovative technologies, brands can differentiate themselves from the competition, gain insight into consumer preferences and create unique experiences that reach new audiences. However, to maximize the benefits of these breakthrough technologies, it is important to understand the underlying business or consumer problems, as well as consumer goals and obstacles. This approach helps to prevent succumbing to the lure of “shiny object syndrome” and ensures that ideas have a high chance of success. As the saying goes, “To predict the future, the best action is to create it.”