As Web3 continues to take shape around us, it’s becoming increasingly difficult (and unadvisable) for brands, companies — anyone with an audience they’re trying to reach — to ignore the opportunities it offers. While Web3 technology is still in its relatively early stages, it’s developing quickly and is already enabling brands to offer their customers added value and connect with them in new ways.
One company embracing Web3 is LG, which recently announced a partnership with Web3 strategy company FR0NTIER X. The partnership will see the latter’s software integrated with LG digital signage running on WebOS, allowing customers to browse, purchase, display and interact with NFTs on LG screens.
FR0NTIER X was co-founded by brand strategist and Web3 expert Zak Manhire and was built around the idea that people shouldn’t even realize that they’re interacting and engaging with Web3, but rather that it can seamlessly be a part of their life.
XLIVE recently caught up with Manhire to discuss the benefits and challenges that Web3 presents for brands and how FR0NTIER X is helping them make the transition.
XL: What are some of the biggest opportunities for brands in Web3?
ZM: There's huge opportunities for them: incremental revenue, a new type of consumer and audience, rewarding customer loyalty, activating coupons, doing things in a totally aligned manner — not a fragmented manner, controlling their own data, and attracting a new type of consumer as well.
XL: What is a common misconception that people/brands have about NFTs and Web3 in general?
ZM: That it's a scam. Everyone thinks that there's a scam going on. Everyone thinks, why would you pay 100,000 bucks for Bored Ape, etc. without truly understanding what NFTs are and what the capabilities of blockchain technology are. You don't have to use the buzzwords or acronyms — you don't need to even say NFT or wallet connection. It can just be a digital fan space within a Web 2.0 domain, and they can utilize that to hold different assets that they can collect, which gives them different rewards or access to things that they never had before.
For mass adoption, integration needs to be seamless. Mass adoption will happen, undoubtedly. I think a lot of this will be free — I can't see that many brands jumping in and charging huge amounts of money for NFTs unless there’s a huge amount of utility. At the minute, the brands don’t really understand the utility and that by using the digital, you can enhance anything in the physical. NFTs are a perfect example — especially if it's proof of participation or proof of attendance — of driving people back into brick and mortar. You can really drive targeted engagement to ensure that people go to stores for product launches, etc. In return, they get proof of attendance, which might act as a loyalty or reward. Or they might get airdropped something of value, like a coupon.
XL: What are some of the biggest obstacles that are facing brands looking to transition to Web3?
ZM: Too many touchpoints. Too much tech that isn't in one service or solution (which is why we developed ours). Brands will not touch Discord. It's very Web3 native, but brands will never own their own Discord — it's too risky. It's just a real sticky barrier to entry. Then there’s also the element of losing the trust of that consumer. If you were to take Coca Cola as an example, unless the activation is driven through Coca Cola’s website, there just simply isn’t the same trust from the consumer when being redirected to a third-party website. These are particularly sticky points.
XL: When you say Discord is too risky, is that from a security perspective?
ZM: Security and brand equity. If anything goes on there, the brand would be liable. They can't control it. I'll be astonished if Discord is around, unless it changes dramatically, in two years. Part of our application is a token gated chat and announcements, which takes away the need for brands to operate and run a Discord to build their community. And then if you layer on top of that and include proof of attendance or participation — which can do, and we can cross reference that against social channels if people provide their handles — what you've got is this incredible, powerful platform where you can build a Web3 community.
XL: What are some of the steps that brands should take if they're interested in Web3, but not sure where to start?
ZM: First define your goals and objectives, and view this as a five-year strategy minimum in terms of the milestones. Understand that this is not an easy way of making a quick buck anymore, but it's a phenomenal way of building a long-term strategic marketing piece and consumer engagement piece.
XL: What are your thoughts on some of the more metaverse-based brand activations, in Roblox, for example?
ZM: It’s interesting. Roblox is different to me. I'm almost tempted to say that it’s a gaming social platform. I definitely wouldn’t categorize it as being in the metaverse. When we talk about metaverse plays, I think it's nonsense for brands. I have no idea why anyone would want to go to an Apple store in the metaverse. It just doesn't make sense. Digital mirroring doesn't make sense to me. I just don’t think it’s a great Web3 play. The metaverse won’t be here for a number of years yet, where there’s full interoperability, Triple A graphics, etc. Mixed reality will probably come before the metaverse. We're years away from anything like Ready Player One, and what currently exists, I think, is pointless for brands. Roblox is a different play — I think just having a presence in these places is subliminal. As a marketing piece, working with gaming and social platforms like Roblox and Fortnite is a good move. Activating in Decentraland or Sandbox is not a good move.
XL: How do you think this technology will continue to evolve?
ZM: I think NFTs and blockchain and the infrastructure will be integrated en masse. I just don't think it will be announced in the same way. I think there will be a very much Web3 community that understands it and looks at the different types of use cases and terminology, and then there will just be general everyday people, where it’s all integrated and they seamlessly interact with it on a daily basis, and there's many touchpoints on chain that they don't even realize. It will probably start with loyalty and rewards and coupons, and it will quickly go into sales and marketing and activation. There's a lot to come. The pace of the industry is phenomenal, and the pace of pace of innovation is frightening. It's only a matter of time before the infrastructure starts to get really sticky. And once it's within the organizations and the businesses, it’s very hard to get rid of it.