How NFTs are Revolutionizing Business Models in the Digital Human Economy

In today’s digital economy, emerging technologies such as NFTs and AIGC are changing the face of brand marketing. NFTs, representing digital ownership, have become the standard for transactions of digital goods such as artwork and virtual game items. On the other hand, AIGC (Artificial Intelligence Generated Content) can help businesses achieve more efficient, innovative, and personalized content creation and promotion in digital marketing. So, when NFTs and AIGC are combined, what interesting chemical reactions can they bring to the table? This article explores how the fusion of these two technologies in the digital economy can drive innovation and development in brand marketing.

AIGC + Brand Marketing = Digital Human Economy.

Digital Human Economy is a new economic model that leverages digital technology to transform human behavior, language, appearance, and other elements into digital forms for replication and reproduction in the digital world to create value. The core of the Digital Human Economy is the digital human, a personality-based digital image developed based on artificial intelligence technology that can simulate human behavior, language, facial expressions, voices, etc., to enable interaction between humans and the digital world.

Applying the Digital Human Economy to the field of brand marketing enables 24/7 live streaming without time or space limitations. Traditional anchors have relatively fixed schedules, but digital humans can live stream around the clock, rapidly increasing brand exposure and marketing effectiveness. However, even the most exceptional digital humans cannot fully replace the need for live interaction between human anchors and potential customers. Therefore, online live streaming data can serve as an important basis for enterprises to choose anchors based on the characteristics of their products and the desired persona, better planning offline events and displays to achieve twice the effect with half the effort.

The classic quote in the advertising industry: “I know that at least half of my advertising budget is wasted, but I’m not sure which half!”

The high cost and delayed feedback of advertising are important drivers of the development of the Digital Human Economy. In the Digital Human Economy, businesses can use virtual characters or digital images to represent their brand or product. These digital images can be displayed and promoted on various digital platforms, such as social media, games, virtual reality, and augmented reality. By using digital characters or images, businesses can create more personalized and interactive digital experiences for their brands and products, attracting more consumers and reducing reliance on traditional advertising.

Another way to help businesses reduce advertising costs is through social media and user-generated content (UGC) marketing strategies. Businesses can interact with consumers through social media accounts or online communities related to digital characters or images, and encourage them to share UGC related to the digital image. This UGC marketing strategy can help businesses save advertising costs while increasing brand awareness and user engagement.Digital humans can also use artificial intelligence technology to analyze large amounts of user data and feedback to help businesses identify and analyze patterns and trends in advertising effectiveness data. Brands can use this feedback to quickly adjust their strategies and products, adapting to market demand and changes in a timely manner.

We need to build better ‘Wheels’

I remember when the question was popular in the blockchain industry: do we want to reinvent the wheel, or build a better one? Clearly, NFTs now have an answer to that question. The fact is, even a world-famous brand like Porsche can’t guarantee user acceptance if they issue NFTs out of thin air. If NFTs only have speculative value, they will surely face high regulatory pressure and be seen by the public as a tax on intelligence in the long run. The premium generated by constant trading is short-lived and not the road to a healthy development of NFTs.

Let NFT get back to its original aspiration.

Let’s take a look at the chemical reactions that occur when NFT is added to the Digital Human Economy. NFTs are essentially smart contracts, and why not let them return to their original purpose — intelligent contracts. Companies value the ability of hosts to sell products, but when cooperating for the first time, they cannot quickly determine the compatibility between the host and their own products. Rapid trial and error and ultimately finalizing the appropriate candidate will be the key for enterprises to conduct accurate marketing in the next round of e-commerce battle.

In the scenario where enterprises cooperate with hosts, NFT can be an ideal tool for iterating traditional contract processes. Companies can treat the ability of hosts to sell products as a digital asset. The nature of NFT is that it can record ownership and transaction history of digital assets, bringing more transparency and trust to the cooperation between hosts and enterprises. Many countries have enacted laws that recognize the legality of electronic documents (including electronic data stored on the blockchain) after they have been proven and certified, whereby their authenticity, legality, and relevance can legally be acknowledged. Therefore, data on the blockchain has legal standing.

Returning to the contract itself, both labor and capital can set related cooperation terms and conditions in NFT. Hosts and enterprises can automatically execute these terms and conditions through smart contracts, enabling rapid trial and error and accurate marketing. In addition, NFTs can be split and transferred, providing hosts and enterprises with more flexibility and choices.

Suppose a company wants to collaborate with a host to promote its products. The host’s product-selling ability can be converted into NFT, and cooperation terms and conditions can be set, such as the host and their digital persona need to introduce the company’s products to their fans within a certain time frame and achieve a certain sales target. An MCN company can help the host write these terms and conditions into a smart contract and embed them into the NFT. Once the company accepts the collaboration invitation and mints the NFT, the smart contract will automatically execute the collaboration terms and conditions. For example, if the host meets the sales target within the specified time, the smart contract will automatically issue a certain amount of rewards to the host. In addition, the company can also inject a certain amount of preferential quota into the NFT, and the host can freely split and issue them to fans, promoting sales while promoting the product. With the management of smart contracts in NFT, companies can more accurately evaluate and select suitable hosts, quickly trial and optimize promotional strategies, and improve marketing effectiveness and sales.

In this article, we explore the practical applications of NFTs in real-world scenarios. With the increasing maturity of blockchain technology, NFTs as a new form of asset are playing an increasingly important role in the digital world. From digital artworks to virtual land, NFTs provide a more flexible, secure, and decentralized value vehicle for the digital economy. Through a reconstruction of traditional membership systems, NFTs provide a more transparent and sustainable way of managing points, which is expected to reshape the interaction between consumers and businesses.