The Ultimate Web3 Marketing Guide For Every Brand
December 9, 2022
More than 3 billion users worldwide benefit from internet technology every day. The internet that we know today has gone through multiple stages of evolution since 1994. It has evolved from static desktop web pages geared for content consumption to a more interactive experience.
This change was primarily fuelled by three key innovations: smartphones, social media, and cloud storage.
The evolution of the internet
Source: Fabric Ventures
The internet has gone through several stages of evolution since its creation. Static web pages ruled the day in Web 1.0. In addition to providing news and information, some websites allow users to showcase their interests and hobbies. Moreover, to save bandwidth, images and videos were discouraged in Web 1.0.
As the twenty-first century began, Web 1.0 transformed into Web 2.0, a more dynamic, customizable, and user-driven internet. Websites began to become more interactive. In Web 2.0, images and video no longer slowed down websites, and we began sharing them in a matter of a few clicks.
And now it's time for web 2.0 to pave the way for a new and intelligent Web 3.0.
So, what exactly is web 3.0?
The decentralized internet, or Web 3.0, is the next generation of internet technology. It places a high emphasis on artificial intelligence and machine learning. Web 3.0 promises to create a more fair and transparent internet in which anybody can participate without being afraid of losing privacy and security. In many aspects, Web 3.0 is a return to the original web, where no permission from a central authority is required.
Web 3.0 is also called the web of value because it connects the concept of decentralization with human rights, resulting in a collaborative environment in which everyone is equal and delivers actual value to its consumers.
Web 3.0 will impact every industry that uses the internet in some way. However, advertising and marketing will have the most significant positive effects.
Here's a thread in which Chris Dixon, an entrepreneur and general partner at crypto venture a16z explained the significance of Web 3.0.
Key elements of web 3.0
1. Semantic web
The Semantic Web is a web extension that aims to make internet data machine readable. Time Berners Lee, the creator of the World Wide Web, created the term. Berners-Lee stated his concept of the Semantic Web in 1999 as follows:
I have a dream for the Web [in which computers] become capable of analyzing all the data on the Web – the content, links, and transactions between people and computers. A "Semantic Web", which makes this possible, has yet to emerge, but when it does, the day-to-day mechanisms of trade, bureaucracy and our daily lives will be handled by machines talking to machines. The "intelligent agents" people have touted for ages will finally materialize.
According to him, the most important quality of the internet is its "universality," which means that anything must be capable of linking to anything.
The semantic web is an umbrella term for implementing and improving online technologies by enabling internet users to create, share, and link material through search and analysis based on the ability to understand the meaning of words rather than keywords, ultimately allowing a search engine and humans to communicate more efficiently.
2. Decentralized and open-source networks
Web 3.0 is also known as the "decentralized web" since it incorporates open-source and decentralized data networks. The current version of the internet stores data on centralized servers.
Web 3.0 will use decentralization to store data in numerous locations and in a decentralized manner by utilizing peer-to-peer networks. This could get rid of the need for centralized middlemen and cut down on the need for big data farms to store information.
3. Blockchain technology
Blockchain technology will play a critical role in altering traditional ways for storing and managing user data. Web 3.0 apps will be trustless, allowing participants to engage directly without going through a trusted intermediary, and permissionless, allowing everyone to participate without authorization from a governing body.
Cryptocurrencies, NFTs, the Metaverse, and many other innovations have all been made possible by blockchain technology.
4. AI and ML
Through machine learning and artificial intelligence, websites in web 3.0 will be able to filter and give the best quality content for users. In web 3.0, brands can gather user feedback in order to better evaluate the quality of a product or asset.
This data will help machine learning algorithms analyze information in the same way that humans do and give relevant and helpful predictions and decisions.
6. 3D Graphic, AR and VR
By incorporating 3D technologies and virtual experiences through AR and VR, Web 3.0 is already blurring the borders between the actual and virtual worlds. This will enable several industries, like gaming, fashion, health, and real estate, to provide a significantly more dynamic customer experience.
Moreover, platforms such as Roblox, Decentraland, and Sandbox have begun to provide immersive virtual user experiences.
Read more: How are brands embracing marketing in the Metaverse?
How web 3.0 is disrupting the internet we know today
1. New business opportunities have opened up in the metaverse
The Metaverse has the ability to usher in the next great digital revolution. Our internet access is no longer limited to the screen in front of us, but rather to the world around us, thanks to Web 3.0. The metaverse represents a shift away from traditional advertising and toward more engaging and interesting marketing experiences.
Read more: Marketing opportunities in the Metaverse
2. Tokens will be the new currency of web 3.0
In web3, users are rewarded with tokens rather than loyalty points or vouchers. These tokens can be used to vote on the application's future, in addition to being used as payment. The web's value generation will benefit an increasing number of people and corporations, and interoperability between these entities will improve significantly.
Examples of applications of tokens in web 3.0:
- Token-gating: Token holders are given special privileges, such as exclusive access to certain products or content.
- Airdrops: Sending tokens directly to token holders' wallets. These may provide value, or they may just be designed to encourage brand followers to join in more meaningful ways.
- POAPs: With cookies about to vanish, POAPs can become the new tracking parameters of a person's behaviours and interests. However, they can be better than cookies in that tokens can be granted to consumers for both their digital and real-world acts, allowing for a much more thorough understanding.
3. NFTs will reshape the marketing experience
NFTs and Web3 are inextricably linked. You've probably heard of NFTs, which is a method of permanently transferring ownership of a digital asset. As you may have seen, digital works of art ranging from music to doodles are riding the NFT wave right now.
Find out more about NFTs, their uses, and how to market your own NFT project.
How To Build An NFT Loyalty Program For Your Brand
Should Your Next NFT Launch Use The Free-to-mint Model?
NFT for Music - How Musicians Can Use NFTs to Increase Profit?
4. New business opportunities
Web 3.0 has the ability to not only disrupt internet technology but also to create economic opportunities. Entrepreneurs can build new business prospects by leveraging web 3.0's fundamental technology, such as decentralized applications (Dapps), decentralized finance (DeFi) solutions, blockchain-based games, and the launch of decentralized autonomous organizations (DAOs).
NFTs can also be used by artists and content creators to launch their digital assets as non-fungible tokens, giving a new way for them to monetize their work.
Resources to help you learn more about the business opportunities in web3
DAO Use Cases And How To Build A DAO?
DeFi Marketing: 7 Powerful Marketing Strategies To Get More Users
Explaining Play-to-Earn Crypto Games' Business Model in Simple Words
Blockchain Gaming: Best Blockchain Networks To Build Web3 Games
5. Decentralized social media platforms will become a reality
Social media encourages networking, community development, and knowledge sharing. People can use social media to market their businesses, push social and political change, create awareness about key topics, generate donations for people in need, and drive social and political change.
Decentralized social networks run on their own servers rather than on a centralized server owned by a company. Mastodon is one such decentralized social network. It is built on an open-source platform and works similarly to Facebook and Twitter.
6. Web3 Domains
Web3 domains, also known as NFT domains, are the blockchain version of DNS addresses, which are used to access websites like GrowthChain via the internet. These are new web extensions (like .com or .info) that have been deployed as smart contracts on public blockchains like Ethereum or Polygon.
These domains employ blockchain technology to completely on-chain registration of domain names. Users can register unique, easy-to-remember domain names that can be used to substitute wallet addresses and decentralized websites (DWebs).
7. Wallet-based identities
Blockchain-based decentralized wallets are a distributed but secure and reliable method for storing personal information. A decentralized wallet can secure user identity while also allowing a third-party website or platform access to the user data.
Furthermore, data supplied via a wallet connection is likely to be much more comprehensive than that shared via cookies and pixels. This means that a business might gain considerably more meaningful and actionable insights about a person with only one wallet connection than is normally feasible over years of engagement farming as it is currently done.
Digital marketing is also evolving in web 3.0
Marketing has always evolved in conjunction with the evolution of the web. Web 1.0 was the first to adopt "digital marketing" when web-ad banners first appeared on websites in the mid-1990s. Then came Web 2.0, and the era of social media began.
Since then, businesses and organizations have turned to digital marketing and advertising to gain a larger market share and efficiently reach out to their target audience. However, Web 2.0 has some disadvantages, such as a few big corporations controlling the entire internet, the presence of multiple middlemen in the process, a lack of transparency, and the internet being restricted to screens alone.
The move to Web 3.0 provides the necessary ingredients for marketers to efficiently connect brands to consumers. Blockchain technology can increase the data transparency, prevent fraud, and eliminate the need for centralized data collection methods.
In Web 3.0, the emphasis will move from chasing views, resolving errors, and treating people as targets to matching the proper messaging and experience. Web3 allows marketers and advertisers to re-establish trust and reconnect with their consumers by giving them control and ownership over their data and providing actual value to their users.
When it comes to the internet, the longer you wait to get up to speed, the more challenging it will be for you to keep up. Brands are already exploring the Web 3.0 ecosystem.
For instance, Nike has recently acquired RTFKT, an NFT studio. The RTFKT (pronounced artefact) is the driving force behind some of the most popular NFT drops.
Budweiser paid 30 ETH for the beer.eth domain and 8 ETH for the rocket NFT domain in August 2021. It's been nearly impossible to avoid hearing about top brands releasing NFTs in recent months.
Facebook renamed itself to Meta to emphasize its focus on the metaverse and web 3.0. Recently the social media giant also introduced the integration of NFTs on Facebook and Instagram.
Best Web3 marketing strategies
1. Advertising in metaverse
The Metaverse is a one-of-a-kind, interactive virtual experience that is slowly overtaking the internet. There are numerous metaverse marketing opportunities for marketers to experiment with and determine what works best for their company.
There are numerous metaverse platforms available, such as Roblox, Decentraland, Horizon Worlds, and others, and some will be better than others for providing a certain purpose.
2. Utility NFTs
One thing that everyone is soon going to focus on in web3 marketing is using the power of NFTs for providing access to benefits and services to their consumer. Utility NFTs are digital tokens that can be used for token gating and grant NFT holders access to exclusive merchandise, products, services, or anything you can imagine.
While NFTs carry a value in relation to market demand, like fine art, utility NFTs can offer immediate and direct value to the buyer upon purchase by sharing immediate access to specified privileges.
Read more: 7 Best NFT Marketplaces For Artists And Crypto Projects in 2022
3. Decentralized advertising
Blockchain technology is a perfect fit for decentralized advertising. We can dramatically enhance efficiency and transparency, decrease expenses, and prevent ad fraud using blockchains, since they are distributed, immutable, and have a transparent record.
Read more: An Introduction To Decentralised Advertising And Its Benefits
5. User privacy
The inclusion of a decentralized identity will mean that brands don’t have to worry about data capture or audience targeting in the same way. Users who connect their wallets will be able to share a complete view of their past behavioural data right from the start. This will be possible because people will own and control the data themselves. It will not be owned by a 3rd party platform.
The future of marketing has just begun.
Web 3.0 offers advertisers a wonderful opportunity to get back to fundamentals and engage directly with users while providing actual value and experiences. With Web 3.0, we can expect a complete makeover of how we use the web and how we do business online. There is no doubt that there are flaws in how various Web 3.0 features are being adopted right now. Still, there is also a lot of optimism that the issues of Web 2.0 can be rectified with the next phase of the internet, which makes it worth paying attention to, even if it causes its own issues in the process.
Let's prepare your brand for web 3.0
The transition towards Web 3.0 is inevitable, and whoever gets in it earliest will reap the most benefits. We recognize that marketing in Web 3.0 can be overwhelming, especially if you are new to the industry. That is why we are here to assist you in building your audience by managing your brand's marketing strategy in the web 2 and Web 3.0 ecosystems.
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