With the era of Web3 approaching, we are seeing large enterprises test the waters by exploring potential use cases for their customers (e.g. reward-based ecosystems). We take a closer look at what they have created in the Web3 space and how they are looking to expand their work further. To start off, we must understand the importance of Web3 and what it offers enterprises, individuals, and its impacts on the future of the internet.
Why is Web3 important?
Web3 introduced a layer of ownership that enables value sharing. New models of monetization appeared that take advantage of existing platforms, websites, and applications and connecting them to blockchains. This makes it easer to incentivise people to create and share content by enabling a way for users to support the content creators by funding them and donating to them using cryptocurrency.
Web3 doesn’t stop there, with the innovations in the crypto industry and the creation of Non-Fungible Tokens (NFTs) along with different use-cases for the Metaverse, Web3 has expanded to also allow companies, individuals, and enterprises to use innovative ways to reward their customer base using these tools.
Case studies of Web3 Enterprises Ventures
Web3 has no limits, thus proving to be an open field that enterprises can explore in all directions. Adidas activated their brand in the Web3 space through NFTs and Metaverse, introducing their collection of “Into the Metaverse (Phase 1 & 2)”. Their NFT collection of 30,000 NFTs represents the brand’s willingness to explore innovation and reward holders of the NFT’s unique custom-made physical outfits, shoes, and accessories. Moreover, Adidas efforts didn’t stop here, with the recent success of the first NFT collection “Into the Metaverse”, Adidas is now looking to drop a new collection “Adidas Originals: Capsule Collection” exploring more utilities provided by the NFTs & Metaverse.
Adidas managed to raise over $22 million from the initial NFT drop, they also added a 10% royalty on all the secondary market sales making this NFT drop a sustainable revenue model that is added to Adidas balance sheet. With the 10% royalty they have made over 4k+ ETH which is equivalent to $6+ million as per the price of ETH today. Granted this amount of money is small for a company at this scale, however, it is a successful proof-of-concept that others can learn from and implement onto their brands.
Being the closest competitor to Adidas in the sports attire industry, Nike also took their shoot and entered the Metaverse. However, Nike did it in a different way starting with the acquisition of one of the biggest NFT creation labs – RTFKT Studios the company behind creating augmented reality digital shoes. With this acquisition, Nike managed to create multiple successful collections and pave its way into the Web3 space. Nike is also looking to create a sports Metaverse that will act as the hub for all sports around the world.
Nike’s decision to acquire RTFT Studios in December 2021 was a jackpot as they managed to generate over $185.3 million in revenue this is ahead of all the other brands that entered the Web3 space. However, they are yet to breakeven, as the acquisition cost was $1 billion which is the highest amount to be spent in the crypto space.
Jack Dorsey former CEO of Twitter has been a leading voice in the Web3 community enabling users on Twitter to monetize their content and integrate blockchain solutions onto the platform to empower individuals. Twitter integrated Hexagon profile icons that are enabled by using your NFT as a profile picture and verifying it through the blockchain, while also adding a mechanism for people to pay their favorite influencers through direct donations. These simple use-cases, yet powerful ones use the large reach and impact of social media to also have a positive impact on the livelihoods of millions of users on the platform. Twitter is now positioned as the main marketing channel for Crypto, NFTs, and Web3 projects and continues to focus on acquiring more market share through new innovations.
With the recent talks of Elon Musk acquiring Twitter there has been a strong debate about the future of the platform. Elon Musk is known as a forward-thinking and innovative entrepreneur with a positive opinion on the future of blockchain technologies. He previously founded PayPal which was a financial innovation introducing digital banking and transactions which explains his passion towards blockchain technologies and their ability to decentralise the financial industry.
Companies don’t need to change their existing business model and risk losing customers to activate their brands in the Web3 space. Their activation program can work alongside the existing business. Please read the fundamental guide to brand activation with NFTs.