Marketing has seen a lot ever since the advent of the internet. Marketers have extensively used the world wide web, from clickable ad banners to personalized recommendations. With the onset of newer generations of the web, such as the web3, we have an open sea of opportunities to explore. Web3 marketing covers everything from AI, VR, and decentralization to using entities such as NFT and crypto.
Web3 is being called the future of the internet. Focusing on the decentralization of data, Web3 aims to add a layer of immersive experiences in the digital landscape and improve user privacy by giving individuals more control of their digital communities.
Web3 is based on four core ideas:
Interestingly, these ideas are just one part of Web3. These core concepts are realized by using futuristic technologies such as blockchain, NFTs, and DAOs in combination with existing tech such as artificial intelligence, virtual reality, and augmented reality.
The continuous digitization of people’s lives is changing how consumers live, play, and shop and how brands plan, promote, and sell. We’re witnessing a convergence of media, entertainment, and commerce, which in turn is giving new definitions to marketing and sales. Web3 is bringing new behaviors and economy models into the marketing space.
Web3-based marketing explores the many new, unimaginable ways of advertising products and services to consumers. A Web3 environment aims to enhance the user experience by providing interactive advertisements—which is a blessing for marketers as it allows them to deliver more targeted ads.
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Web3 is focused on improving the backend of the internet. What happens now (in Web2) is that corporate giants own user data and singlehandedly decide how that data will be shared with advertisers. Marketing professionals, in this case, only need to deal with the platform to access the data and create strategies to acquire, retain, and engage their customers.
With Web3, however, it will be the private citizens controlling the data. Instead of a centralized location, data will be stored in a distributed network with no single owner, giving users control of their data. Users can decide where and how to share it.
Marketing professionals will have more stakeholders to market to, engage with, and retain. That is to say, Web3 will pave the way for the evolution of community marketing, where brands will have to focus on building loyal and engaged communities who wilfully share their data and become brand advocates.
To truly understand the marketing strategies and tactics that will fly in Web3, we need to take a closer look at some of the essential marketing elements in web3.
Decentralization is the core theme of Web3. That is to say, information in Web3 will be stored in various locations worldwide. Therefore, there would be no center for data storage. But how will this be beneficial? With decentralization, there would be no intermediates, no risk of server failure, no data theft, and external authorization.
The Web3 environment is bound to enable numerous improvements in the AI sector. With distributed ledger technology, AI will be able to crawl data instantly, which will enhance their learning process. Together with the Natural Language Processing technology, computers in Web3 will have a more human-like ability to understand the data provided, leading to more accurate and quick responses and solutions.
VR is an unquestionably essential component of Web3. The marketing sector in Web3 is getting a whole new set of opportunities thanks to virtual reality environments. Many corporate giants, including Meta, Ikea, Gucci, and Nike, have started developing their virtual brand empires. With VR, marketers can tap into immersive strategies, dynamic and creative visuals, and gamification that benefit customer acquisition and retention.
It is interesting to note that the strategies and trends marketers use in Web3 also double as tools in the space. NFTs, virtual reality, artificial intelligence, decentralized applications, and consumer incentivization–are all means that brands can utilize to market their products and services and build an engaged and loyal customer base.
NFTs are a foundational tool applied in Web3-based marketing strategy for businesses. Brands can use NFTs to generate unique digital identifications. Web3 presents exciting opportunities for businesses to integrate NFTs into their influencer marketing strategy. Investing in NFTs can help businesses reduce their upfront investment since the new compensation structure would involve NFT profits. Brands can start exploring the potential of NFTs in three ways:
i) Converting existing content to NFTs,
ii) Creating unique and new content for NFTs
iii) Linking NFTs with other existing products and services.
Most Web3-based marketing strategies will thrive on the contributions of content creators. Web3 is inherently creator-focused and community-driven. It allows content creators to ditch the centralized, rent-seeking platforms and directly interact with users. Businesses can collaborate with content creators in a way that benefits all stakeholders.
The social, environmental, and governance benefits of Proof-of-Stake solutions in Web3 can help marketers drive campaigns that advocate sustainability—a concept that is an increasing concern among consumers. Blockchain provides various advantages, such as consumer data privacy and protection, transparency in advertising/marketing, and aids in legitimate lead generation. Blockchain technology has diversified from its application in the financial sector to increasingly being demanded by digital marketers.
Web3 landscape can power virtual communities that help people connect with others users and brands on a more personalized level and give them better control and autonomy. Web3-based marketing strategies will likely focus on active participation in virtual channels to ensure relevant connections with consumers.
Keeping these strategies in mind, we have compiled a list of 10 Web3-based marketing tactics that brands can customize for their businesses.
Decentralized apps: dApps are digital applications that run on the blockchain. It provides benefits such as user privacy, lack of censorship, flexibility of development, etc.
Using smart contracts: Smart contracts simplify trade among parties while eliminating the middleman. It scales down on formality and costs associated with legacy methods while building trust, authenticity, and credibility.
Virtual selling: It allows sales representatives to overcome several challenges and bring stakeholders together regardless of location.
Limited edition content: Creating a limited edition NFT, for instance, with extra rewards, can help brands engage customers and build a loyal audience base.
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Replace web forms with NFT ownership: NFT provides owners with legitimate representation of ownership with which they become eligible to instantly access content. This helps the brand connect with the customers on a personalized level, making the latter feel valued, thus building trust and loyalty in them.
Creator coins as rewards: Using creator coins to reward creators of all kinds creates a win-win situation for the creator and their followers. Using creator coins inherently tied with numerous benefits, brands can attract more customers and creators.
NFTs as VIP access tokens: Instead of selling tickets to their event, a brand can issue NFTs that give people VIP access to the event along with access to online content, early product releases, and similar benefits. This is a long-term investment as the user can hold on to the NFT. Brands can continue marketing new products and services to make the most of profits.
Host an event in the metaverse: If you haven’t already, consider hosting your customers with 3D virtual spaces offering them all kinds of experiences.
Sell NFTs for charity: Taco Bell received a lot of attention by selling a limited number of NFTacos on Rarible to raise money for Live Más Scholarships. There are a plethora of opportunities there that businesses can tap on. Not only will it give a boost to their business, but it will also help them contribute to a good cause.
Pay people to consume your content: brands can reward users for downloading or engaging with their content. The rewards can be cryptocurrency, an NFT, or a token.
There are a few things you should keep in mind when choosing a Web3 marketing agency. Here are 4 of them:
Well-informed: An exceptional Web3 marketing agency should constantly be acquainted with the most recent events in the crypto universe. The agency you choose should have a strong reputation and a track record of reliability.
Highest-quality services: Web3-based marketing strategies often rely on an extensive grasp of economic fundamentals. Therefore, your Web3 marketing agency should be experienced and knowledgeable of these concepts. In addition, the agency you choose should have access to and be well-versed with the right technologies. It will improve the chances of your brand’s success. With the help of the highest quality services, your brand will benefit from tracking KPIs and metrics and using the necessary technological tools.
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Impeccable track record: In addition to looking at how long an agency has existed, also focus on their client list to see if they have successfully promoted blockchain businesses in the past. It helps to read about the different kinds of projects they’ve worked on and understand their methods and ROIs.
Communication & Transparency: Any Web3 marketing agency should be highly transparent and skilled in interpersonal communication. The simplest way to test this is to chat with them and observe how they respond. An excellent agency will listen to all your requirements and ask further questions to learn about your business. Then, they will design a customized marketing plan that considers everything from your goals and target audience to your finances.
It is only logical to see a new kind of internet bring a new kind of marketing. While the decentralization and privatization of data is a real challenge for marketing professionals, it does offer unimaginable opportunities for brands to position themselves strongly on the internet of the future.
What we know for sure is that Web3-based marketing will focus on consumers and their preferences. This gives brands a unique opportunity to build personalized relationships with consumers and retain their loyalty, thereby creating a name for themselves. Though Web3 is still in its infancy, many revolutionary concepts will surely be seen in the coming time. And brands can only prepare themselves to be savvy enough to adapt to the changing trends.
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