Web3, creator economy and influencer marketing. How will the internet celebrity industry change in the future?
- Written by Kristina Rigina
In most influencer marketing industry reviews, the author assumes that we will see a continuation of current trends over the next year. This usually happens in the short term. However, looking at a time span of 10 to 15 years, today’s relevant trends may collapse and be replaced by a whole new relationship between an influencer and the audience.
・Influencer marketing increases its effectiveness with the mass spread of the Web3 concept. Influencers, brands and audiences all win.
・The proliferation of NFTs and cryptocurrencies shows some elements of Web3, but a large-scale transition to Web3 cannot happen so far. However, some services like Substack or Patreon have helped the Web3 concept development to some extent.
・ Instagram CEO Adam Mosseri predicts future cross-platform interactions between influencers and their audiences.
We don't dive into the history of Web3 terminology in this text, but if you want to learn about it, we
recommend the Ethereum team's “Introduction to Web3” article.
We also recommend the "official definition" concept proposed by former Netscape general manager Jason Calacanis.
Web3 is a vital part of the interaction between influencers, audiences, brands and major platforms like YouTube, Instagram,TikTok, Facebook, Twitch, Spotify, Substack, OnlyFans and Patreon.
Subscribers are every creator's most valuable asset. For example, in order to become one of the coolest YouTubers in the world, Mr. Beast spent about a decade updating his account and finding out the secrets of how the algorithm works. His biggest worry right now is that YouTube might delete or block his profile.
This is one of the major drawbacks of Web2, the current stage of Internet development. Content-generating users are too reliant on big tech companies and their services to communicate with their audiences. Although the content is created for the followers of the influencer, YouTube or Instagram only acts as an intermediary to deliver the content.
In theory, the next stage in the evolution of the Internet solves this problem. On Web3, your data lives on the blockchain. If you decide to leave a platform, you can take your reputation with you by plugging it into another interface that is more aligned with your values.
Instagram CEO Adam Mosseri said the same thing. He reiterated that cross-platform interaction between influencers and their audiences is the future. Mosseri said: “As digital assets like cryptocurrency and NFT become more mainstream that creators are uniquely positioned to benefit. These blockchain-enabled technologies could remove the need for a "middleman" in the form of large social media platforms, allowing creators to more freely distribute their work and connect with their audiences”
In other words, ideally, the influence of Big Tech could be replaced by direct communication between the influencer and the audience. The blockchain mechanism will not lose followers, instead, it will help build stronger communities that support influencers directly. For example, social tokens are one of the Web3 tools that provide creators with financial stability and strengthen their connection with their audiences. Generally speaking, these are audience investment toolsf for influencers. However, unlike NFTs that are usually associated with artwork, social tokens are an added bonus for fans.
So, what will happen to influencer marketing?
Of course, we don't know what will happen in a decade. But if the main idea of Web3 is realized, we can safely say that the main result of this new phase of Internet development will be a reduction in the influence of Big Tech. As mentioned above, the principle of dissemination of content that is not strictly constrained by intermediary platforms will ensure greater financial independence for influencers and reduce the amount of advertising that viewers see. Yes, as weird as it sounds, it benefits the entire influencer community and influencer marketing.
The point is that the platform’s algorithms now include additional ad messages sent to users in addition to the ad integrations that the influencers themselves produce. This benefits brands and social networks that generate additional advertising revenue. But it's often tiring for viewers, and overloaded advertising messages have the same effect on the internet as the blindness of banner ads.
This issue is resolved by Web3: the lack of intermediaries, who impose additional advertising messages, increases audience attention to the influencers' advertising integration. As a result, effective influencers will need to improve their ER, which is now between four and five percent.
Where are the assurances that influencers won't stop promoting products at all?
We are confident that the move to Web3 will be beneficial for influencer marketing company. Although the influencers want to get the audience involved in co-funding content development, it's also critical for the audience to have a low entrance barrier. After all, as we stated at the outset, an opinion leader's subscribers are their most valuable resource.
High-priced content will not be profitable for influencers to produce, and the decentralization of money is not eliminated by the Web3 decentralization principle. Finally, Web3 doesn't undermine brand and influencer partnerships; on the contrary, it makes them more successful. The influencers will profit from building and maintaining their team by engaging with companies, regardless of how large the subscriber base is, in order to keep the entry barrier into the "followers family" as low as possible.
Do these ideas still hold true today?
They are to a certain extent. Even Jason Calacanis said that YouTube is edging closer to Web3. Who else could possibly be chosen?
Despite the fact that Patreon helps a lot of influencers, the fact that it is an intermediate platform and goes against the idea of direct interaction between an influencer and their audience prevents it from being considered Web3. The Substack service, one of the influencer-friendly platforms of today, fits this description as well. The company, also known as "Onlyfans for Intellectuals," receives a fee of 10% of the price of a paid subscription in exchange for developing and maintaining text mailings from authors to their audience. It indicates that influencers use the platform for free and collect 90% of audience donations. You have to realize that this scheme is far more honorable than YouTube's.
It's vital to note that no one can foresee the exact date of the switch to Web3. But it will probably go off without a hitch. After that, we will know that we are experiencing a new reality. However, you are not have to wait till then in order to engage in influencer marketing. You can find YouTubers to work with right now with the aid of Hypetrain.
