PPPParty Like It's 2009: Four P's (#199)
The Next Phase of Marketing with Tokens, A.I., and the Potential of Pseudonymity
The stage is set. The platforms are in place. The floor is yours.
We've given you the keys to the car. The canvas to create.
It's time to pass the torch.
(...Or whatever metaphor with which you most identify.)
The tech is ready and the next phase of innovation in Web3 must now be led by brand marketers, executives, agencies, and consultancies.
SOMETHING PROFESSIONAL: Future at (Proof of) Stake
As a longtime agency leader, I'm more than a little jealous of those in a position to push this next phase of progress. You have an opportunity, née, an obligation to build for the next generation of consumer affinity, engagement, benefit, loyalty, and identity. So what will you do next in this pivotal moment in time? Time to get comfortable navigating where there are no roads.
This will happen at two levels:
C-Suite execs seeing opportunities to leverage blockchain to solve business challenges (revenue/profitability, data, infrastructure)
Brand and marketing leads (community, content, commerce)
The wondrous technologies that Facebook and YouTube pioneered were built before they achieved mass adoption. It took individual affinity and creativity to show us the way, but business leads, brands, and professional marketers truly put Web 2.0 social platforms on the map.
So not only do you have a map, but you have trailblazers to follow, as well:
Starbucks: In developing its loyalty ecosystem on the blockchain with NFTs, the #Odyssey program will be a canary in the coal mine for mainstream #Web3 adoption. Brands that have already had a "cup of coffee" with NFTs, as well as those watching from the sidelines are all watching. More than just for marketing reasons, Starbucks is defending against broader business challenges by moving towards an OnChain model.
Nars Cosmetics: In announcing their new beauty ambassadors, the Power Players, these fully virtual avatars bring together the innovation of AI and human creativity.
Mars-Wrigley: The Cannes Lions Grand Prix-winning campaign for Sheba Cat food has evolved into Web3 this fall, with "living" NFTs that adapt and grow based on consumer involvement. They also have the added benefit of improving the health of our oceans.
Mattel: Whereas early creators benefit from a centralized marketplace and exchange, brand success will evolve through the creation of their marketplaces. You see Barbie and Hot Wheels hosting their collections without the need for crypto.
The more tokens you collect and own, the better the experience over time. Why? Open proof of ownership will improve CRM (Customer Relationship Management) and evolve into the next phase of Wallet Relationship Management.
SOMETHING PRACTICAL: Running INTO the Fire
With the “Crypto Winter” in full effect and the speculative value of digital tokens ("NFT 1.0") in retreat, many have been scared to use the term "NFT" lately. With consumers, I totally get this. Lead with the benefits, remove the barriers to entry, and make it unavoidable and worthwhile to engage.
But for the B2B set - including technologists, marketers, agency creatives, even brand reps -- understanding and embracing the technology is crucial.
NFTs are currently best known (for better or worse) for their use in the world of art and collectibles, but they have the potential to revolutionize a wide range of industries and applications. By enabling individuals to take ownership of their data and other assets, NFTs are democratizing access to information and value and empowering people to control their own digital lives. Why?
Most important things are non-fungible: Something is fungible if it is interchangeable with other items of the same type. I usually point to a $5 bill and tell people that trading one bill for another is a fungible transaction. It can be replaced by another identical item without any loss of value. Non-fungible items are unique: your house, your car, your fingerprints, your friendships or love life, even a cup of coffee. They are unique, and cannot be replaced by an "identical" equivalent. Most flat white coffees start the same, but once you've had your first sip, its value changes.
Non-fungible assets are useful: Digital records are not new. Proofs of purchase, medical histories, email exchanges. More and more businesses see the value of digital representations of non-fungible things. Spotify, YouTube, Netflix, and AirBnB all use data to make more informed consumer suggestions. Facebook and Twitter map relationships to populate feeds. These digital representations allow platforms to provide services based on user data, but they don’t allow the user to leverage that data directly. This favors the platform, not the consumer. Furthermore, the data isn't useful because it isn't standardized or portable. They’re different from provider to provider and incompatible with other services. This is why we talk about ownership and interoperability with Web3 (see, you get it now!)
Decentralizing non-fungible assets benefits consumers: Decentralization gives users control over their data, which creates ownership. It removes barriers to data access imposed by centralized platforms, which allows for connection across ecosystems of data-driven businesses. No one controls an NFT except its owner. The other word we use - composability- means that NFTs can be combined to enable use cases that are impossible when data is siloed.
SOMETHING PERSONAL: Personality of Artificial Intelligence
When I downloaded the Lensa app a few months ago, I would be lying if I told you I predicted it to blow up as it has in the past few weeks. The potential of A.I. to write our tweets and blog posts (this is all me, folks) or modify our profile pictures is fun. But generative A.I. has been around for awhile and is one of the contributors to the early success of NFT projects (see: Apes and Punks).
But to take the technology much, much further, representations of our style and physical form can personalize shopping experiences. NFTs of our calendars, tastes, locations, and relationships can be combined to auto-plan personalized events for every group, or schedule dates. Data about belongings can be used to surface qualified services and add-ons, like insurance or integrations. Credentials, schedules, and interests can be used to identify professional or educational opportunities across platforms.
User-owned data also unlocks new applications of AI. AI needs to process user data to generate user-specific solutions. Lensa requires a user to upload multiple photos of their face to generate a gallery of artistic portraits – without access to that data, it can’t generate accurate, enticing images.
In recent years, the rise of blockchain technology and the development of virtual reality environments often referred to as the "metaverse," have given rise to a new era of online interactions. One of the key features of this new era is the ability for users to maintain a high degree of anonymity in their online interactions. Yet with open blockchains, we're seeing more pseudonymity than anonymity. This has several implications for both the individual user and for society as a whole.
On the one hand, you can be anyone you want to be. Want to be a superhero? An alien? The president of the United States? No problem. The meta-worlds are your oyster. But on the other hand, pseudonymity (and anonymity) can lead to some pretty ridiculous situations. For example, imagine logging into your virtual reality world only to find that your avatar has been replaced by a giant talking banana. Or maybe you're having a nice virtual picnic with your friends and suddenly, out of nowhere, a giant pink unicorn appears and starts spraying virtual champagne all over the place.
SOMETHING POLITICAL: Nothing Artificial About It
On an individual level, pseudonymity allows users to explore new ideas and express themselves without fear of retribution. In a broader world where online reputations have real-world consequences, pseudonymity can provide a sense of safety and freedom for users to express themselves without fear of being judged or ostracized. This can be especially important for marginalized communities, who may face discrimination or harassment if their identities were known.
However, pseudonymity also has its downsides. Without the ability to easily identify users, it can be difficult to hold individuals accountable for their actions. This can create a breeding ground for bad behavior, such as trolling, cyberbullying, and other forms of online harassment. It can also make it difficult for users to build trust with one another, as they have no way of verifying the identities of those they interact with.
Regulation will be key (cue the Boo Birds). In the context of metaverse environments, pseudonymity has the potential to blur the lines between the virtual and the real world. As virtual reality environments become more realistic and immersive, users may begin to treat their online interactions as if they were happening in the real world. This could lead to a situation where individuals feel free to engage in illegal or unethical behavior without fear of being caught.
Social implications are huge. The potential political implications of this technology are also significant. One potential impact of AI is on the job market. As AI becomes more sophisticated and capable of performing a wider range of tasks, it is likely to displace many jobs currently held by humans. This could lead to widespread unemployment, potentially leading to social and economic instability. Governments will need to find ways to mitigate this impact and provide support for those affected by job loss due to AI.
Is anyone talking about AI's impact on privacy and surveillance? As the tech becomes more advanced, it may be used by governments and other organizations for surveillance and monitoring of individuals. This could lead to concerns about loss of privacy and potential abuses of power. It will be important for governments to ensure that appropriate regulations are in place to protect individuals' privacy and prevent abuses of AI technology for surveillance purposes.
Now imagine what happens when judges use ChatGPT to write their judicial rulings... or legislators write new policies for law enforcement. If AI is used to make decisions that affect individuals' lives, such as determining sentences in criminal cases or identifying potential terrorists, there is a risk of bias and partiality. It will be important for governments to ensure that AI systems used in these contexts are transparent and accountable, and that appropriate safeguards are in place to prevent bias and ensure fair treatment for all individuals.
But for now, the potential for AI to make its way into every aspect of our lives is exciting. As it becomes increasingly advanced, the need for standardized user data is essential to create bespoke solutions tailored specifically to individual users' needs. From customized recipes catered around one's health ambitions to wardrobe suggestions adjusted according to size preference, there is no limit! So many possibilities are now at play as startups explore ways they can further develop these use case ideas.
At the end of the day, it's all about finding the balance between being able to express yourself freely and not being a total weirdo. So go forth, my virtual friends, and enjoy the pseudonymity. Just remember to use it responsibly. After all, nobody wants to be the guy who gets kicked out of the metaverse for being a giant talking banana!