What’s the one word that describes technology?
Evolution
Web3 is a quintessential example of technological evolution. We started with web1 and have today reached the space of semantic web that most people know as web3. And it’s going to change the way the world works completely. Let me explain.
If we go back in time, the evolution of web1 into web2 greatly impacted every sphere of human existence. It’s not an exaggeration. It truly did.
Web1 was all about static pages, lists and content. Then came web2, which introduced User Generated Content or UGC. The social media space, including Twitter and Facebook, where user interaction was prominent, became the new norm. It changed content consumption and business operations. More specifically, the marketing strategies.
Now another shift is happening. And it will inevitably change the way content is consumed and, in turn, how marketers think and operate. So, how revolutionary will this change be? Let’s have a look.
Growth Marketing in Web3: What Has Changed?
Data drives marketing in web2. Since the primary focus of web2 is users, their data is the most valuable asset for any marketing strategy. In fact, the entire marketing landscape that we know today branched out of Web 2.
With user interactivity came the concept of data collection, which in turn resulted in marketing targeted to a niche audience. This includes growth marketing tactics involving email campaigns, advertisements, experiments, etc., that are all a way to gather consumer data. It is then analyzed to ensure the best way to increase consumer retention, revenue, and overall growth.
One thing that stands out in the entire discussion is user data collection. Aware users today even debate the ethicality of collecting user data. In fact, according to a survey, 76% of consumers needed clarification about why and how companies are using their data. The continuous debates on the topic are one of the primary reasons web3 came into existence.
Web3 creates a new structural base for all web apps using the power of blockchain, cryptography and other emerging technologies. So, what does this new structure change?
It changes the entire process of data collection and, therefore, marketing.
Unlike web2, where big companies like Google and Facebook have easy access to user data, Web3 eliminated such accessibility. Web3 provides data ownership to the users and gives them complete discretion to decide whether to share their data. And this changes everything.
With businesses needing access to consumer data, marketing can no longer work the traditional way. It requires innovation.
What Can Brands Do?
Web3 indeed presents a challenge for marketers. With limited data to target their campaigns, how does marketing work?
The answer is innovation and progressive strategies.
This goes without saying that brands must be proactive in adopting web3 technologies and keep up with the trends. The scope of marketing will increase as NFT, metaverse, crypto, blockchain and all platforms related to these niches will have a marketing potential for businesses. With web3 enabling direct interaction with users, marketing will become more personalized and targeted.
While web3 is still at its prime, a few tactics can be implemented for web3 marketing.
Also know: Benefits Of Owning A Mobile App For Business
Optimize Business for Web3
It goes without saying that if web2 is evolving into web3, businesses cannot afford to remain outdated. They must be optimized to be efficient in the web3 era.
Following the first rule of Lean Six Sigma strategy, implement the changes that deliver the best user experience. This includes integrating blockchain, digital wallets, AI and machine learning to your platform.
Since web3 will shift from fiat money to cryptocurrencies, businesses can play smart and follow the crypto trends before choosing the currency for their platform. This research will help understand the community of a currency and its current market share to gain the maximum customer attraction and ultimately, profit. All these factors will help your platform become immersive and fit like a glove in the web3 space.
What more can you do? Consult a web3 development company to figure out the technical aspects associated with optimizing your business for web3.
Build Communities
Community marketing will evolve in the web3 era. For instance, businesses can build communities to create hype around a new launch or update. This would require skills in social media marketing, content marketing and influencer marketing. Platforms like Discord and Telegram are well-known places to build a thriving community.
These communities will help businesses promote a launch to a more targeted audience without having to make many efforts. The leaders of such communities will do all the work and set the foundation for a rewarding launch.
Referral programs can also be utillized in web3 marketing as an effective tool for building communities. Let your loyal customers earn and do the marketing for you. Build a program that utilizes referrals in the best way possible to not only retain customers but also get more traction.
Incentivize Users With Exclusivity
Any marketing guru will agree that creating urgency is one of the best marketing strategies. Web3 businesses can utilize it too via NFTs.
Non-Fungible Tokens saw a growth of 21000% since 2020. That’s enough proof of their profit potential in web3. By integrating NFTs, a business gains the attention of its niche market, as well as of an audience that is looking for a new way to invest. With the added feature of ‘limited edition’, brands spread the idea of exclusivity and urgency among users.
And how do you market these NFTs? Press releases, influencer marketing, and communities. You can explore multiple strategies to market NFTs on Discord and other community platforms.
Also know: Best Cheapest NFT Projects to Buy in 2023
Build Immersive Experiences
With web3 revolutionizing the virtual world, marketers need to utilize it for their gain. One of the most effective strategies could be virtual launches. Companies can create an immersive experience through digital events and launches where users can directly interact with the brand or business.
This can further extend to creating content, whether in the form of a video or a Tweet where the power of community can be used to drive engagement and spread the brand’s message.
Improve User Entry Points
With web3 in the picture, growth marketing will take a major shift to build better experiences for the user. As a result, businesses and brands will have to reflect and improve every entry point of the user.
It starts with better web3 platforms that are well-equipped to be immersive, three-dimensional, and user-friendly. With the help of AR, VR, and AI, brands can attract and retain users.
The next entry point involves interaction with the business. By incorporating AI chatbots, brands will not only improve their responsiveness but also provide quick solutions to users. Such proactiveness will reflect in the brand’s reliability and user experience.
Focus on Content Marketing
Web2 growth marketing tactics can still be employed in the semantic web. Content marketing is one of them. It can be used to lead the users to the first stage of the sales funnel, i.e, awareness.
Content created to educate the users or raise their awareness to a community will become prominent in web3. Consequently, SEO will remain relevant and necessary to complement all content marketing strategies.
Web3 Marketing Unlocks New Benefits
For a layman, web3 will not ring any bells. A regular internet user does not understand the difference between web1, web2 and web3. But, for a business, this transition may turn into a booming success.
At the moment, the volatility of cryptocurrency is clear. The market fluctuates which creates a hesitation in both business owners and users. But, despite the market volatility, the web3 developer activity spiked in the 4th quarter of 2022 by as much as 453%.
The reasoning is simple, web3 has a high scope.
In the case of marketing, while web3 closes some doors, it unlocks new benefits too.
Personalized Marketing and Services
Web3 functions on digital wallets that store user information associated with digital identities, certifications, digital assets, etc. If the user provides companies access to their data, marketing campaigns become more personalized to the consumer.
Since consumers provide consent to businesses to access their data, they have all the reason to keep the data updated. This further enhances marketing and improves products and services.
Better Direct-to-Consumer Relationships
Web3 is decentralized. No intermediaries or Big Techs hovering over the users. What does this mean?
In this case, it means better relationships. Consumers can directly connect with businesses and avail services. By removing the middlemen, prices reduce as all additional costs associated with banks and other intermediaries are eliminated.
At the end, direct-to-consumer relationships will flourish and benefit both the buyers and the merchants.
High Revenue Opportunities
Web3 opens doors for NFTs, cryptocurrencies, and other digital assets. So, in addition to converting consumers into purchasing your products and services, businesses can also generate revenue from digital assets.
For instance, NFTs created by businesses bring passive income in the form of royalty whenever they are sold on secondary marketplaces. Additionally, every time the ownership of NFT is transferred, it helps create awareness of the brand to new users and thus promotes the brand or business.
So, where do you stand? Having gone through all the intricacies of web3 marketing, what do you think, will it be a revolutionary change?
