Exploring the Digital Human Economy: How NFTs are Transforming Business Models

How NFTs are Changing Business Models in the Digital Human Economy

In today’s digital economy, emerging technologies such as NFTs and AIGC are changing the way brand marketing works. NFTs, as representatives of digital ownership, have become the trading standard for digital commodities such as digital artwork and virtual game props. AIGC can help companies achieve more efficient, innovative, and personalized content creation and promotion in digital marketing. So, what interesting chemical reactions can occur when NFTs and AIGC are combined? This article will explore how the two can promote innovation and development in brand marketing in the digital economy.

AIGC + Brand Marketing = Digital Human Economy

The digital human economy is a new economic model that uses digital technology to transform human behavior, language, imagery, and other elements into digital form to achieve the goal of creating value. The core of the digital human economy is the digital human, which is a personalized digital image based on artificial intelligence technology that can simulate human behavior, language, expression, voice, etc., and can realize interaction between humans and the digital world.

Applying the digital human economy to the field of brand marketing can achieve 24-hour live streaming without time and space limitations. Traditional anchors have relatively fixed work and rest times, but digital humans can broadcast around the clock, quickly increasing brand exposure and marketing effectiveness. However, even excellent digital humans cannot completely replace the need for real anchors to interact with potential customers, so online live streaming data can become an important basis for companies to choose anchors, and better arrange offline activities and displays based on their product features and anchor settings to achieve twice the result with half the effort.

Classic quote in the advertising industry: I know at least half the advertising budget is wasted, but I don’t know which half!

The high cost and delayed feedback of advertising are important inducements for the development of the digital human economy. In the digital human economy, companies can use virtual characters or digital images to represent their brands or products. 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, companies can create more personalized and interactive digital experiences for their brands and products, attract more consumers, and reduce their dependence on traditional advertising.

Another way to help businesses reduce advertising costs is through social media and user-generated content (UGC) marketing strategies. Companies 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 companies 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 companies identify and analyze patterns and trends in advertising effectiveness data. Brands can adjust their strategies and products in a timely manner, quickly adapting to market demand and changes based on this feedback.

We want to make better “wheels”

Remember the popular question when entering the blockchain industry: do we want to reinvent the wheel or make a better one? Obviously, NFTs have an answer to this question. The fact tells us that even world-renowned companies like Porsche cannot guarantee the acceptance of users by issuing NFTs out of thin air. If NFTs only have the meaning of hype, they will inevitably face high-pressure regulation. Over time, the public will think that NFTs are IQ taxes. The premium generated by continuous turnover is only temporary, and it will not be the road to the healthy development of NFTs.

Let NFT return to its original intention

Let’s take a look at what kind of chemical reaction will occur after joining NFT in the digital human economy. NFTs are essentially tokens and smart contracts. Why not let them return to their original intention-smart contracts? Companies value the anchor’s ability to sell goods, but they cannot quickly understand the compatibility between the anchor and their products in the first cooperation. Rapid trial and error and ultimately determining the right candidate are key to accurate marketing for companies in the next round of e-commerce wars.

In the scenario of cooperation between companies and anchors, NFT can be an ideal tool for iterative traditional contract processes. Companies can take the anchor’s ability to sell goods as a digital asset. The characteristic of NFT itself is that it can record the ownership and transaction history of digital assets, which brings more transparency and trust to the cooperation between anchors and companies. According to the “Online Litigation Rules of the People’s Court” issued by the Supreme People’s Court on June 17, 2021, electronic materials (including electronic data stored through blockchain technology) can be legally determined to be true, legal, and relevant after being proven and cross-examined, so chain data has a legal basis.

The regression contract itself allows both labor and management to set related cooperation terms and conditions in the NFT. The anchor and the company can automatically execute these terms and conditions through smart contracts, thereby achieving rapid trial and error and precise marketing. In addition, NFTs can be divided and transferred, providing anchors and companies with more flexibility and choice.

Assuming that a company wants to cooperate with an anchor to promote its products, the anchor’s ability to bring goods can be converted into NFTs, and cooperation terms and conditions can be set, such as the anchor and its digital person need to introduce the company’s products to their fans within a certain period of time and reach a certain sales amount. The MCN company can assist the anchor to write these terms and conditions into smart contracts and embed them in NFTs. Once the company accepts the cooperation invitation and mints the NFT, the smart contract will automatically execute the cooperation terms and conditions. For example, if the anchor meets the sales requirements within the specified time, the smart contract will automatically issue a certain amount of rewards to the anchor. In addition, the company can inject a certain amount of preferential quotas into the NFT, and the anchor can freely divide and distribute these quotas to fans, promote and stimulate sales at the same time. With the management of NFT smart contracts, companies can more accurately evaluate and select suitable anchors, and can also quickly trial and optimize promotion strategies to improve marketing effectiveness and sales.

In this article, we explored the application of NFTs in real scenarios. With the increasing maturity of blockchain technology, NFTs, as a new form of assets, 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 carrier for the digital economy. By reconstructing the traditional membership system, NFTs provide a more transparent and sustainable point management method, which is expected to reshape the interaction between consumers and enterprises.