Web3 Marketing in a Bear Market - What You Need to Know

A bear market is a prolonged period of price declines in a stock or an entire market, usually 20% or more from recent highs. The crypto market is volatile, and given that it goes through growth phases, market downturns often spell doom for those who have yet to plan their marketing strategies. Web3 projects take each day as a learning experience, so whether it is a bull or bear market, they need to research the best marketing methods to come out on top of the bulls or bears.

A bear market is mainly an unforeseen event, but web3 projects should make decisions and take actions with recovery in mind to capitalize when demand increases. Marketing in a bear market is not only to keep your project afloat during tough times, but it also helps build resilience and agility to reshape your business strategy to thrive now and in the future.

Bull vs. Bear

The terms ‘bull’ and ‘bear’ describe how the markets generally perform – a bull describes market appreciation, while a bear market describes depreciation. Projects should never shy away from marketing themselves during a bear market because investors can get in at any point regardless of directional market movements.

During bull markets, investors believe in the upward trend and will keep investing to maximize their gains. In this scenario, the crypto market is typically strong, and token prices maintain an upward trajectory.

A bear market, by contrast, is where the crypto market is declining and digital asset prices continuously drop, resulting in a downward trajectory. The bear market tends to slow the economy as investors might be skeptical about investing in projects and are worried about their investments.

A downturn should always motivate you to continue marketing your project since there are seasoned investors who understand that the crypto market will always post a positive return regardless of today’s market dynamics.

Our bear survival guide

In a bear market, you should always protect your project’s cash flow by increasing inflow and decreasing outflow. To do this, you can work with an established marketing agency that will protect your cash reserves during tough times while ensuring your project gains the recognition it deserves.

Below are the best marketing approaches for your web3 project during a bear market:

1. Important content concerning the project (Awareness)

During bear market conditions, most investors have many questions concerning the project's future, so you should create content that answers the questions they raise to boost investor confidence in your project.

Since this period calls for funding protection, you can create less expensive content, such as internal article pieces, update your website’s FAQ section, or use your chosen marketing agency to create guides, tutorials, and explainer videos.

Content production also includes regular social media posts that update your investors on what you are working on behind the scenes. Ensuring your project produces content regularly during the bear market establishes yourself as a leader in the space and can generate organic engagement. When things are bear-quiet, good content production is an excellent strategy for helping create influence and establish yourself in the web3 industry for the longer term.

2. Use existing resources to drive growth

Many projects in Web3 overlook one of the most important resources available to them, even in crypto bear markets when marketing budgets are slashed, which are the existing assets of their business. Of the existing assets that all Web3 startups have, these three are of the utmost importance:

Core team: The team is the most valuable asset for your marketing efforts. When you launch a new product, score a new client, or produce content, every team member should be on the front line, helping to appropriately share the information within their social networks and social media.

On-site SEO: Everyone has a website and a blog, but more Web3 projects need to make their websites and apps search-friendly. To ensure the compounding effect of any marketing campaign, optimize your website for proper indexing and user-friendliness. This will have a positive impact on your organic search traffic. Dominate your target keywords during a bear market, and reap the benefits during the next bull run.

3. Advertising

Yes, projects are trying to save funds, but did you know that in a bear market, the advertising rates are lower due to less bidding competition? Well, now you know.

Bear markets bring a slower demand for advertising on platforms such as Reddit, Twitter, CoinGecko, and others. Projects that take up the advertising challenge during these depreciating times can generate more awareness around themselves since the environment is quieter and consumers are not bombarded by multiple advertisements every minute. Ergo, you advertise more cost-effectively, and your content stands out in a quieter space.

4. Competitions, giveaways, and promotions

Promoting engagement during market downturns is the best way to get the most out of your loyal supporters and the larger project community. You can have competitions every Friday so that the community can have something to look forward to once a week, and in doing so, they will help you create hype and attract attention in a bear market.? Getting your community to champion your project also shows investors that you have traction and supporters.

This strategy rewards existing supporters reinforcing their commitment, and attracts new support, helping your web3 project gain traction during declining markets and organic growth.

Summary

You can employ different strategies to help you stay afloat and recover from the bear to be ready when the market rebounds. It is vital for web3 projects must implement best practices, so your business survives tough times and profits from them. Working with an experienced agency like X8C in a bear market will help you communicate your competitive advantage to the larger web3 ecosystem and establish your USP (unique selling proposition) that sets you apart from the crowd and brings investors to your door.