By Sreeram Reddy Vanga
In the post-millennium era, the adage “Change is the only constant” holds true, especially in the context of the transformative influence of the Internet on global functioning. As technology evolves, the internet is undergoing a significant shift with the introduction of Web3. According to Metav.rs, by 2030, Web3 will have reached a market size of $81.5 billion. Referred to as the semantic web, Web3 is marked by decentralisation, ubiquity, and a three-dimensional structure, playing a substantial role in shaping the dynamics of the creator economy.
The creator economy places high value on individuality and self-expression, while Web3 prioritises decentralisation and autonomy. Its amalgamation has the potential to provide new opportunities for creators to connect with their target audience and monetize their content.
Impact of Web3 on Marketers
The emergence of Web2 paved the way for the proliferation of digital marketing. According to a recent Gartner study, a majority of businesses (72%) are planning to boost their spending on Web3 marketing over the next year. The web we used to know evolved into a data-driven, consumer-first, and mobile-oriented one, providing marketers with many tactics to experiment with. However, with the emergence of Web3, the data control will be in the hands of the users rather than private entities. This challenges marketers due to limited access to user data.
Moreover, the new internet also has a community-focused system, which will challenge marketers to create loyal and engaged communities to participate in the data collection and become brand advocates. This is where the creators have a significant role to play.
The Increased Role of Content Creators
Web3 addresses the limitations of Web2 and provides full autonomy to the creators in deciding their content and getting reimbursed for it. The new revenue models will be introduced where the content creators will be in control. The creators will have complete control over their content and its distribution. In addition, Web3 also has the provision to create tokens, which can be used to reward content creators for their work. Moreover, Web3 will also reduce the gap between the creators and their audience, where they can facilitate direct transactions, allowing for a more direct monetization of the content.
Web3 to Empower the Creator Economy
Web3 tends to shift ownership from centralised authorities to communities and individuals. This will empower the creator economy while sparking massive transformations via content creation, contracts, DAOs, and NFTs.
Content creation: The digital world will expand beyond simple marketing campaigns to complete virtual worlds flooded with digital avatars, commodities, and immersive experiences with the help of cutting-edge technologies such as AR and VR.
Contract and ownership: Web3 allows content creators to eliminate intermediaries from the value chain, which allows for the direct exchange of information and goods. The creators can make use of smart contracts, which will make sure all the transactions are conducted in a conflict-free manner in terms of monetization control.
DAOs: Bringing decentralised autonomous organisations, or DAOs, into the creator economy ensures the community holds control. It will make decisions on algorithms, revenue, and functionalities to be developed on the platform.
Non-fungible tokens (NFTs) have already gained ground as they allow the creators to sell directly to customers, eliminating all intermediaries. With the global exposure of Web3, the earning potential of the creators will surge.
Critical Perspectives: Scepticism Surrounding the Web3.0, and NFTs
The NFT market’s recent volatility and correction are viewed differently by observers discussing the fate of Web3. While some interpret it as a potential downfall, others consider it a natural market cycle. According to FinTech, the NFT market faced a meltdown, with floor prices dropping below 30 ether, an 83% decline from an all-time high in 2022. Despite setbacks with projects like Bored Apes Yacht Club and Doodles, NFTs remain innovative, offering opportunities for creators, collectors, and investors. The NFT space is evolving, focusing on long-term adoption strategies and integrating with technologies like generative AI, emphasising its adaptability and resilience within the Web3 ecosystem.
Artificial intelligence quietly became a significant technology trend, with increased accessibility in the latter half of 2022. AI tools like Midjourney are now assisting creatives in the advertising industry to render images and generate ideas quickly. As AI becomes more ingrained in advertising, tools are evolving to analyse and suggest work based on award-winning campaigns. Despite its growing utility, ethical concerns persist.
In my view, the concepts of decentralisation, transparency, and improved data security are still fueling innovation in various ways. While the genuine trajectory of Web3 is yet to be fully unveiled, these foundational principles keep it alive and evolving. As for Web3, it seems to be far from fading in the current landscape, but only time will tell its true direction.
The Way Forward
The technologies showcased at CES 2023 indicate a shift from hype to practical applications. The upcoming year may witness AI’s mainstream adoption as a creative tool in advertising, a more integrated approach to using the metaverse, and improvements in the reliability of blockchain technologies like NFTs and Web3. The unfolding months will serve as a litmus test to determine whether these technologies will genuinely elevate creativity and provide effective solutions for marketers, or if they will encounter challenges reminiscent of a “winter of discontent” in the ever-evolving landscape of technology.
(The author is Sreeram Reddy Vanga – CEO & Co-Founder, Kofluence, and the views expressed in this article are his own)
