Onchain Marketing: The Future of Web3 Growth is Now

Remember when we all giggled at the term 'web2'? Well, it's time to place our bets again as "web3 marketing" nudges its way into our boardroom conversations. Yes, I'm rolling my eyes a tad - but hear me out.

For the uninitiated, web3 refers to the decentralized internet era powered primarily by blockchain technology. Web3 marketing, or as some prefer to elegantly phrase it, "onchain marketing," is not just a fleeting trend—it's redefining how we approach digital marketing as a whole.

Understanding the Web3 Surge

In essence, web3 marketing deviates from the centralized platforms we've grown accustomed to. Instead of relying on the established middlemen like Facebook or Google for digital outreach, businesses are shifting focus to decentralized platforms, where direct, peer-to-peer interactions become the norm.

At least 40% of Interbrand’s top 100 global brands have already entered Web3.

Investments Driving the Web3 Marketing Ecosystem

According to the enlightening Safaryclub report, the web3 growth ecosystem has witnessed significant investments in various domains:

• Web3 startups have secured over $600M in funding, with 71 companies primarily in the preseed or seed stage.
• The top-funded sectors include Messaging, Quests, and Loyalty, each amassing over $100M.
• Analytics and Loyalty sectors are buzzing with activity, boasting over 25 teams each. This is closely followed by Community Tooling and Messaging with over 15 teams each.
• The first half of the year witnessed a surge in the Affiliate/Referrals sector. The number of companies has doubled since the beginning of 2023. However, only a third of these have venture capital backing. It's noteworthy that many teams are either pivoting to this space or adding it to their service repertoire.
• An intriguing subcategory in Attribution/AdTech is on the rise: data unions that assist users in capitalizing on their data by offering it to advertisers.
• With the ascent of web3 attribution and ad technology, Quests and Ad Networks are vying more aggressively for ad revenue.
• While the Discovery sector might appear undercapitalized, companies in this domain could dominate the web3 advertising landscape if they prioritize long-term growth strategies.

Why Brands are Hooked

1. Authentic User Engagement: Web3 fosters direct relationships between brands and users, devoid of third-party interference. For instance, the rise of NFTs allows brands to offer one-of-a-kind digital assets, spurring authentic engagement and unique value propositions.

2. Enhanced Trust & Transparency: Transactions on the blockchain are transparent, giving users a clearer picture of a brand's operations. For the first time in marketing history, users are in control.

3. Customizable User Experiences: Web3 platforms allow brands to craft tailor-made experiences for their users. Through token-gated communities, businesses can offer exclusive content or experiences to loyal consumers, boosting both retention and brand loyalty.

While the above sounds like every marketer's dream, there's also a slight hitch. Web3 marketing requires a mental shift. We're leaving the era of data-driven micro-targeting and entering one of genuine community building. A bit of nostalgia, anyone?

Next Steps in Embracing Web3

To dive into web3, brands need to:

• Educate Themselves: Before leaping, learn. Understand blockchain, familiarize yourself with DApps, and consider how token economics could be integrated into your brand strategy.
• Start Small, Experiment: The decentralized world is vast. Begin with small projects. Maybe launch a limited-edition NFT or engage with a decentralized social platform. Note the response, iterate, and then scale.
• Engage the Community: Web3 is community-driven. It's not just about selling; it's about genuine interactions, value exchanges, and building trust.

For those still skeptical, let me share a personal anecdote. I once doubted the power of social media in marketing. Yes, laugh it up! Now, I see the same potential in web3. The shift is inevitable, and the train, my dear marketers, has left the station.

Wrapping it all up

Web3 marketing is more than just a buzzword—it's the evolution of digital marketing as we know it. The combination of decentralization, direct engagement, and unparalleled transparency makes it an attractive proposition for any forward-thinking brand.

For those who've made it this far, I challenge you: Dive into the world of web3. Educate your teams, launch a small web3 campaign, and gauge the response. I'll wager my limited-edition NFT that you'll be pleasantly surprised.

And if you're ever lost in the vastness of the decentralized web, shoot me a message. I might just have a quirky anecdote or two to share ??

Regenerate