Every company will dive into #web3 – it’s only a matter of time. So it’s crucial to figure out how the marketing approach will need to adjust to reflect this change.
The burgeoning subject of web3 is gaining momentum while development is continuing at breakneck speed.
ChatGPT reached one million users in just two days. This proves that web users are open to new tools and ready for major changes. The revolution has already begun.
Media is moving away from being centrally controlled towards being decentralized. With web3, consumers have control over their data and privacy, rather than being controlled by a data monopoly. As a result of the traditional, monopolistic internet crumbling, marketing is experiencing a seismic transformation.
Web3, known as the decentralized web, holds the promise of a more transparent, open, and secure internet. Thus web3 marketing should focus on building trust and providing added value to customers.
A major part of this shift, in terms of web3 marketing, will be harnessing the power of communities.
The decentralized application ecosystem will be an excellent environment for community marketing. The web3 movement is driving a more relational rather than transactional relationship between users and brands. Many hospitality and fashion brands are using non-fungible tokens (NFTs) to build and maintain relationships with their communities.
Big brands are taking web3 seriously: Adidas has a presence on the Decentraland platform, Nike has acquired the RTFKT NFT studio, Marriott is providing web3 experiences, Hublot is releasing an NFT watch line, and Starbucks has introduced a web3 rewards program.
Key Features of Web3 Marketing
Web3 is often known as a decentralized or semantic web.
Semantic Web (SW)
The Semantic Web, which offers a foundation for information to be reused and reshared more readily among communities, businesses, and programs, is another key feature of web3 in addition to greater personalization.
The semantic web will improve communication between machines and people. To define material in a way that’s machine-readable, the SW will employ metadata.
“The Semantic Web is not a separate Web but an extension of the current one, in which information is given well-defined meaning, better-enabling computers and people to work in cooperation.” – Tim Berners-Lee.
Decentralization is the foundation of this next-generation internet.
So what is decentralization?
In web2, computers use the HTTP protocol to find and identify stored information on servers, which are usually located on a single server.
In web3, information is held in various locations simultaneously rather than being confined to a single location. As a result, there is no centralized facility for data storage.
The decentralized nature of web3 will mean:
No Intermediates ✅
Blockchain technology provides an opportunity for individuals to control their data and exchange value directly with one another, without the need for an intermediary. The centralized nature of most social media platforms makes them susceptible to data breaches and falsification of information.
Having control over your data is crucial to having true freedom on the internet.
No Possibility of Server Failure ✅
With web3 there is no central server to go down, so you don’t have to worry about your document or account being shut down if the server does. Centralized web services such as Google Docs and Facebook are susceptible to server failure. Data decentralization also gives individuals control over their personal information rather than it being sold to advertisers.
No Data Theft ✅
Web2 is notorious for data theft, and if you use the cloud, you are bound to get hacked sooner or later. More and more of our digital lives reside on centralized systems, leaving us susceptible to data being exploited by unscrupulous attackers.
No External Authorization ✅
Without external authorization, users are able to see the data they have stored on the system. This increases security and privacy since they no longer need to share private information with third parties.
Artificial Intelligence (AI)
The use of Natural Language Processing (NLP) technology in web3 will allow computers to understand, interpret, and handle human language better, which will result in faster, more accurate solutions and answers.
The digital era is here
As for brands and how they must adjust their marketing, one example is using the token economy and cryptocurrency-based rewards and incentives. Tokens provide a means to engage customers with the brand’s products and services and may give rise to new advertising models.
For example, fan tokens: these can be dedicated to favorite sports teams and help them to become a part of the fan community.
One such case is Binance sponsoring the BWT Alpine team in F1. The Alpine team has its fan token, and this token allows fans to donate directly to the team. Also, on Binance, owners of ALPINE tokens can access gamification and various merchandise.
But some marketing fundamentals will remain the same. Marketing communication of brands will be still about answering questions: what to tell, who to tell, and how to tell it.
Work is required to master the message to be conveyed, the audience’s psychology, and the power of the medium. In addition to strong writing, editing, collaboration, and curation abilities, we must also possess a solid understanding of decentralized technologies.
It’s crucial for marketers to be aware of blockchain, cryptocurrencies, DAOs, dApps, the metaverse, and NFTs, as well as their applications.
Instead of just the packaging, intent and content will rule. The secret to attracting and retaining clients is to produce high-quality, interesting content.
Only around 15,000 businesses worldwide currently accept cryptocurrency payments, but that number is gradually rising in line with customer demand.
Consumers used Visa’s crypto-linked cards to make $2.5 billion in purchases in the first quarter of 2022, a staggering YoY increase of 500%.
Additionally, we are seeing an increase in the number of crypto payment connections, on-ramp services, and user interfaces (UX) that are intuitive—exactly what we need to enroll mainstream consumers.
New web3 jobs are emerging and every day we’re seeing job offers from web3 projects seeking the best professionals who can quickly adapt their marketing skills from web2 to web3.
Watching the evolution of web3 social networks such as Lens Protocol piques one’s curiosity and provides a fascinating snapshot into the state of web3 today. A new decentralized Facebook, Instagram, or TikTok could be under development at this very moment.
So watch the space closely to profit from the growth of web3 and master the art of marketing to a digitally-native audience that coalesces around this new internet standard.