What is an NFT? pt. 8 - NFTs for Advertising in the Metaverse
Did you know NFTs can play a part in advertising?
NFTs for Advertising
This is post number 8 in my "What is an NFT?" series here in the LBI world. If you wanna learn more about NFT technology and some of the use cases, I encourage you to take a peak at the official Learn Crypto Stuff index. It's a full index of all the posts in this series along with other crypto educational series that I'm working on.
As always, the goal here is to highlight some things that can be done with NFTs aside from just profile picture JPEGs. The technology has a ton of use cases that are being overlooked by people trying to get rich flipping over-hyped collectibles. Today, we're here to look at how NFTs could be used in advertising within metaverses.
The term "metaverse" gets tossed around a lot in the NFT and crypto space like crazy. I think a lot of people fail to realize what an actual metaverse is. This is not something new, and it's not something revolutionary on its own. Basically what a metaverse is is a virtual world. That's it. It doesn't really have anything to do with NFTs directly and as I said, it's not something new. Think back to being a kid (if you're around my age) and you'll remember these online chat rooms like Habbo Hotel and Club Penguin. These were essentially their own metaverses where you walk around as an avatar and you can do whatever.
Fast forward to the past year and you have everyone and their mom talking about building their own metaverses. We've got the big ones like Decentraland and The Sandbox, but then there's tons of smaller companies building these things. It really makes you think about it though... Why? Well, the simple answer is money. If you can create limited virtual land and drive demand to it... You've essentially made 100% profit on the virtual land asset because it didn't take any physical resources to produce.
The other side of it is advertising. With more and more companies shifting their focus to metaverse paltfroms like Meta, there's going to be more and more people walking around in these virtual spaces. This means there's an opportunity to access an untapped market - advertising in the metaverse. Yes, virtual billboards just like you see in the real world, but you might see it while driving your NFT lambo around in Decentraland.
This is also not a new concept, at least not super new. The minute metaverses started being popular, companies were looking for ways to cash in on it. I've covered quite a few of these instances over on my page like when Samsung built a virtual store in Decentraland, or when Miller Lite built a virtual bar in Decentraland. It's all about that advertising revenue, baby. They're making money from literally nothing by building (or paying someone to build) a virtual space for people to explore.
So for virtual land owners, comes an opportunity to monetize their assets. Companies like VenVuu are creating dynamic NFTs that enable virtual land owners to get a share of advertising revenue by displaying NFTs on their land. These NFTs would hold a sort of feed of different ads and the land owner would get a share of revenue by hosting that NFT on their virtual land.
Think of this as a kind of virtual billboard that changes constantly like the ones you see driving in the real world. Companies pay X amount of money per month to have their ads placed inside these NFTs, and virtual land owners can purchase the NFT to display to earn ad revenue. Tired of the ads or not earning as much as you want? No worries because it's an NFT you can just list it for sale on OpenSea or whatever marketplace for another land owner to purchase.
I think this is something we're going to see more and more of as more companies start shifting to a digital-first mindset. Why do you think land in The Sandbox is so insanely expensive? Or even in Splinterlands where it can't even be used yet? We're talking floor prices in The Sandbox for land being over 1 ETH and growing. Virtual real estate is a growing market and it feels almost irresponsible to not get involved with the way things are evolving. Hell, a piece of Splinterlands land even sold for like $700,000 so there's definitely demand for virtual real estate. This means that there's going to be a lot of demand coming for advertising within these virtual spaces. NFT technology can make that an easy reality.
Can you see this growing more over time? What are your thoughts?
Post written by: @l337m45732 aka NiftyPhill.
Posted Using LeoFinance Beta
