Web3 and cryptocurrency have revolutionized the tech industry in recent years, bringing about a wave of innovation and new possibilities. With numerous companies working in this space, focusing on areas such as L1/L2 chains, NFT projects, infrastructure, metaverses, DAOs, centralized exchanges, and decentralized exchanges, the growth potential is immense.
However, despite the rapid development of new use cases, Web3 and crypto are yet to achieve mainstream status. The prevalence of scams and frauds associated with cryptocurrency has raised concerns among governments and major organizations, leading to cautious approaches and making it challenging to run advertisements on platforms like Facebook, Google, and Instagram.
Additionally, the emphasis on privacy and data ownership in the Web3 space presents another obstacle for marketers. Collecting email addresses and phone numbers, which are essential for traditional marketing strategies, becomes more difficult. This necessitates the development of innovative playbooks and techniques to effectively engage users within the Web3 ecosystem, whether through on-chain interactions or alternative channels.
Web3 marketing capitalizes on decentralized technologies and token economics to pioneer novel methods of user engagement. Several techniques have emerged as potent tools for marketers operating in the Web3 space:
1. Tokenization and airdrops: Tokens lie at the core of decentralization and Web3 protocols. Brands have leveraged the hype surrounding airdrops, where tokens are distributed to users, to acquire new users and stimulate activity on their platforms. By providing individuals with a stake in the platform’s success, tokens foster a sense of ownership.
2. Community building and engagement: Communities are the driving force behind Web3, forming the foundation of every product within the ecosystem. Brands are actively establishing communities around their products or specific themes. This practice holds particular significance for decentralized protocols, as they rely on community support for product operations. Additionally, communities contribute to word-of-mouth advertising and product development, especially in the context of NFT projects.
3. Content and social media marketing: SEO efforts in the Web3 space have been relatively overlooked until recently. Brands are now recognizing the importance of search engine optimization as search queries related to Web3 increase. Content marketing, in the form of in-depth blog posts, tweets, and social media updates, has proven highly effective in acquiring users. Leveraging platforms like X (formerly Twitter), where a significant portion of Web3 users are present, is crucial.
4. Gamified retention and quests: Marketers frequently employ quests and gamified tasks to increase user acquisition and retention, offering tokens or financial rewards as incentives. While quests can be effective, they also attract bounty hunters and airdrop farmers who inflate user numbers but may not contribute to long-term engagement. Therefore, the use of quests should be carefully managed.
5. Events, hackathons, and grants: Blockchains and developer tooling companies often organize large-scale events, hackathons, and provide grants to encourage the adoption of their protocols and tools. These events offer excellent opportunities for companies to showcase their products, attract developers through side events, and incentivize developers to build using their tools. Active participation in these events is crucial for Web3 marketers and business development professionals to secure new users and partnerships.
Web3 marketing represents a paradigm shift in how businesses engage with users and drive growth. By embracing decentralization, token economics, and the power of community, new playbooks are emerging. Furthermore, there is a cultural shift in how brands are perceived, with the use of memes, slang, and “vibes” becoming prominent in Web3 marketing. As this space continues to evolve, it will be fascinating to witness the development of new models and growth strategies that are unique to Web3 brands.
