The entrance of social media platforms into the NFT market
The creator economy never fails to impressively grow with each passing day, and it isn’t uncommon anymore to hear careers as a content creator skyrocket. Now, with attractive new monetization opportunities being offered by social media platforms and companies to content creators; we are expecting these 3 industry trends that we’ll be introducing over the next few weeks to boom…
Trend 1: The usage of NFTs by social media platforms
Make way for NFTs: a trailblazer connecting social media platforms and companies with content creators like never before. 2021 proves to be the best year yet if you happen to have a career as an established or an up-and-coming content creator. An innovative and unique monetization opportunity is nowhere to encourage creator presence – the competition between platforms commences.
An NFT (non-fungible token) is a unique and non-interchangeable unit of data stored on blockchain technology. They are associated with easily-reproducible items such as photos, videos, and audio – to name a few. An increasing number of social media platforms, along with various creator economy companies are now offering NFT services to support creators’ revenue streams. Now, creators and their many fans can easily sell & purchase exclusive digital content.
“There has also been more overlap this year between creator economy startups and a sector generating even louder buzz on Wall Street and Silicon Valley: crypto. At least 10 startups that allow creators to make money through the sale of digital collectibles known as NFTs have raised $250 million from venture capitalists this year.” – The Information
Overwhelming attention to the trend has garnered big names in social media and startups alike. Companies like Eternal, Bubblehouse, and Unlock which aim to assist individual content creators in profit, now realise the importance of content monetization in the creator economy through NFTs.
Roblox: The popular online gaming platform has unveiled plans to offer NFT-like digital collectibles, in response to criticism they’ve received about making monetization difficult for its game creators.
Reddit: The online messaging board platform plans to establish its own NFTs in the face of exponential interest in purchasing digital goods to support its creators.
“Fans of today’s biggest creators and brands are now flocking to buy digital goods directly from them – to support them, to gain exclusive access, and to feel a greater sense of connection with them.” – Reddit
It is electrifying to see how power dynamics have shifted from social media platforms and companies to now the influencers calling the shots. Moving forward, NFTs will continue to establish themselves as the way creators connect with their loyal fanbases: through the selling and purchasing of idolized, one-of-a-kind, digital commodities.
Stay tuned for when we discuss trend 2: the development of creator marketplaces and how the perfect influencer-brand sponsorship adds fuel to monetization.