With 2023 around the corner, there is a lot to look forward to when it comes to Web3. For both individuals and businesses, 2023 will provide an opportunity to experiment with Web3-related technologies and put down roots in the growing ecosystem.
While several aspects of this emerging technology will come into the spotlight in 2023, this article focuses specifically on Web3 marketing and how it directly impacts adoption. Here, we will highlight some of the Web3 marketing strategies that you should try in 2023.
But first, let us define Web3 and why it is important to consider marketing strategies tailor-made for the Web3 ecosystem.
What is Web3?
Web3 is the emerging iteration of the internet that focuses on three key factors:
- Decentralization: Users do not need permission from a centralized entity to post or access content on the internet. Web3 is also trustless, meaning that there are no intermediaries or third parties facilitating interactions.
- Privacy: Web3 users have full autonomy over their personal data and can decide how and with whom it is shared.
- Optimal content monetization: Web3 users have more say on how their personal data and content are shared. Hence, advertisers and service providers incentivize users to acquire permission to access personal data. Also, content creators who drive traffic can claim a significant share of ad revenue.
In contrast, Web2, which is still the most dominant Web iteration, promotes user-generated content but establishes service providers as gatekeepers.
The prevalence of Web2 gatekeepers often leads to content censorship, unauthorized monetization of users' personal data, incessant privacy breaches and unfair distribution of ad revenue.
Simply put, Web3 looks to do away with Web2's centralized framework so that users have more control over their personal data and content.
Due to the disparities between Web2 and Web3, it is no surprise that Web2 marketing strategies are increasingly becoming obsolete in the Web3 space. In light of this, businesses must evolve accordingly and implement tools and concepts that are compatible with the user-centric model of the Web3 market, which is expected to generate $23.3 billion in revenue by 2028, up from $2.9 billion in 2021.
Web3 marketing strategies ideal for 2023
1. Focus on building a community
Because users own their personal data and content on Web3, they replace service providers as the custodians of data on the decentralized internet.
Therefore, in 2023 brands need to go the extra mile to build a trust-driven relationship with users in order to attract engagement and ultimately access users' personal data. One way to do this is to promote a community-based business model that gives users a sense of belonging. The main factor to consider when building communities is what your brand can do for its users. The goal is to become the glue that connects like-minded individuals. Brands can achieve this by providing a platform that promotes conversations that resonate with individuals who make up their target audience. For instance, a decentralized alternative to social media platforms like Twitter and Facebook need to focus on content and conversations that appeal to an audience critical of censorship which prohibits free speech.
2. Implement a reward and privilege-based economy
Considering that community building is the focal point for Web3 marketing, brands that offer special privileges to users are at an advantage. Users tend to go all-out to promote a brand when active engagements yield rewards.
For instance, brands should consider creating a token and distributing it among users based on their levels of participation. This is similar to how Reddit distributes digital avatars to selected Redditors.
3. Provide immersive virtual experience
The growing appeal of the metaverse, which incorporates virtual reality (VR), augmented reality (AR) and the internet, is one of the major talking points in the Web3 space. Experts believe that it will be at the center of the next phase in the evolution of social networking. If this is the case, brands must stay on top of this trend to remain relevant.
In light of this, it is advisable to start experimenting with the 3D marketing possibilities that the metaverse provides. Below are some of the ways to create awareness via the metaverse.
- Buy virtual lands: Brands can start by purchasing virtual lands in the metaverse and building 3D properties.
- Host events in the metaverse: Brands can also create awareness by hosting virtual events in the metaverse.
- Launch NFTs on the metaverse: It is possible to create 3D-based models of products and make them available as NFTs in the metaverse. For example, a shoe brand can create virtual shoes that can be used to accessorize avatars in the metaverse.
4. Do away with Web3 complexities
When Reddit launched its Collectible Avatars, it intentionally avoided using terms "NFT" and "crypto" to describe its products, even though the avatars are non-fungible tokens. Although it is impossible to accurately measure the impact of this strategy, the success of Reddit avatars shows that simplicity (and in this case using language that users are already familiar with) breeds adoption.
Hence, when marketing your Web3 project, try to do away with crypto jargon and focus on familiar terms and processes. This strategy is particularly essential for brands targeting an audience that has yet to fully grasp the essence of the Web3 movement.
5. Capitalize on-chain data
Data is critical to the success of Web3 marketing strategies. It eliminates the need for brands to rely on data brokers. Instead, they can source data directly from the blockchain. Armed with users' on-chain data, it becomes easier to implement effective Web3 marketing strategies.
For instance, a sports brand can connect to its target audience by distributing free tokens to addresses that hold sport-related NFTs or coins. This initiative allows the company to prioritize users who have shown interest in sports via their crypto interactions. Additionally, the company can require owners of these addresses to complete promotional tasks, like following the company's social media accounts, to become eligible to claim the free tokens.
Learn more about Web3 marketing at Consensus 2023
Web3 is transforming the way brands grow new audiences and deepen their connections with existing customers. Join us at Consensus 2023 to learn more about influential brands and agencies leading the way for Web3 marketing. At the Web3 Creator and Brand Summit you will learn of more influential artists, entrepreneurs and companies that have successfully integrated Web3 technologies into their business.
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