The acceleration of blockchain technology, crypto, smart contracts, NFTs, and metaverse has propelled the buzzword “Web3” into the mainstream, promising an evolution of the static Web1.0 version that will enable people to not only read and write, but also to own their content.
Consisting of decentralized apps (dApps) that are not in control of a single server, the goal is to offer more privacy than what we currently experience, with data encrypted end-to-end. This revolutionary development will enable everyone to manage their data and own it without the involvement of a third party.
This version of the web will give every creator the right to their data and allow them easier monetization of their creation. The transparency that comes with blockchain technology will enable users to interact without any threat.
As we edge closer to this iteration of the web and digital life as we know it, it is no wonder that brands of all sizes, scales and industries are re-examining their marketing strategies to be able to better accommodate for and engage with a new generation of audiences. In fact, big brands like Nike, H&M, Amazon, and SONY have already started embracing NFTs, Crypto, AR, VR, XR, metaverse, and other web3 technologies to resonate better with their target audience.
Let’s look at some of the ways in which companies are redefining their marketing strategies for The Next Web.
Web2 Vs. Web3 Approaches
We transitioned from Web1 marketing which was defined by email marketing, nascent SEO and direct deal advertising placements, to Web2, which focuses on social media and dynamic ads, that are data-driven and target-based.
In a Web3 era, marketers will need to consider NFT, decentralization, AI and tokens. Whereas in web2 a marketer needs to acquire, engage with, and retain customers, web3 marketers will have many stakeholders to keep in mind. The group of stakeholders includes users, developers, and their broader communities.
As Web3 leverages the capabilities afforded by decentralization, the transfer of control and decision-making from a centralized entity (like Facebook, Instagram, or Google) will be to a distributed network, where the data is owned by (no one) users holding their digital identities.
Whereas currently centralized companies own our data and can use that data to inform or optimize their platform for engagement, decentralization will undoubtedly force companies to change their tactics, as no entity or person will own the data shared online.
The founders of MD ADX also say:
“Web3 is all about taking control of your advertising and excluding the middlemen creating a more fairly balanced ecosystem. Brands and publishers need to look into direction of in-house technology adoption, as this way they can establish a P2P connection and thriving for open auction of the ad spaces in multi-channel environments”.
Where Web3 Marketing is Headed?
Upstream’s co-founder Alex Taub explains the transition of communities from web1, to web2 and web3:
“In 1.0, your community is IRL and based on things like where you were born, where you went to school, what sports team you supported, etc.
In 2.0, your community was a URL, where you joined interest-based online groups across Facebook, Reddit, Discord, etc.
In 3.0, the community is all about ownership. Being part of a community means you’re providing funding to run the community and gaining transparency and voting power.”
Some of the current components of marketing that will fit easily into a Web3 strategy include consumer marketing, developer marketing, and community marketing. Generating awareness of a project to consumers, educating them and bringing them into a community will certainly still be relevant, with content marketing and SEO also being highly relevant tactics to employ.
Having said that, community building is already seen and understood as key to the success of NFT, crypto, web3 and blockchain projects, which means that social media marketing, influencer marketing, and content marketing will all become more important, claiming a bigger share of budgets in web3.
As a Marketing Manager at Fiat24, I’ve personally experienced this transition:
“having built the foundations of our marketing strategies for Fiat24 from the ground up, I have definitely learned that Web3 requires a kind of community building which simply doesn’t exist in Web2. The people who are passionate about crypto, blockchain and NFT projects really go one step further – they want to be involved, they want to hear directly from the founders of the project, and, most importantly, they want to share a living, breathing online space with their peers.”
NFTs as a way to bridge from Web2 to Web3
It appears that many of the global brands we have come to love are beginning to dip their toes into the Metaverse and NFTs. Luxury jewellery brand Tiffany confirmed that it’s diving into the world of crypto jpegs with a collection of its own, teaming up with CryptoPunks – one of the most popular and expensive NFT projects on the Ethereum blockchain – to release a limited collection called – wait for it – “NFTiff”.
Some of the ways that brands are already using NFTs include:
- driving brand awareness and extending reach
- creating new ways for consumers to experience brands
- developing opportunities for exclusive access
- driving loyalty and promoting good causes
When incentives are well-aligned between the brand and customer, customers are directly transformed into brand evangelists.
And what causes customers to jump in?
Community, Identity, & Status: Much like the world of traditional branding, people buy NFTs to communicate something about themselves, such as a community they’re a part of, a social group they belong to, or an interest they’re passionate about.
Utility: NFT collections keep their audience engaged by offering tangible uses for holders, such as exclusive merch drops, whitelists to other NFTs, or tickets to events.
These are great steps towards creating a more innovative marketing approaches, however, we should not forget about the key utilities of the NFT that are ownership and tracking.
Looking ahead
While Web3 and decentralisation are still effectively “under construction,” the key tactics and strategies that you should have in your toolkit to be prepared are as follows:
- Community building = a big piece of Web3 is community, defined by being transparent about roadmaps, allowing community members to vote, and gamifying experiences, such as airdrops.
- Memes = seen ubiquitously in the Web3 space, memes are key to making projects more relatable and are a great way to drive engagement and adoption. This is something quite unique to Web3.
- A shift in KPIs = rethinking launch and growth frameworks means that goals, metrics and KPIs will also differ in Web3. For example, the size of communities across Twitter and Discord channels, the engagement of your audience in terms of voting, and floor-price in regards to NFTs.
The evolution of marketing in Web3 is still underway and all the changes remain to be seen. It is, however, possible to already see some of the transformations taking place in crypto, NFT, and blockchain projects, which means that marketers can already start preparing and putting in place the strategies needed for the web3 era.
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