Introduction
Despite sluggish macro-economic conditions blockchain revolution and the rise of Web3 technologies continue to disrupt reshape industries in the 2020s with the same ferocity that the dotcom boom did to businesses in the 1990s.
Supercharged by upcoming technologies like AI and cryptocurrencies, new use cases for web3 technologies are emerging to cater to the needs of marketing companies transitioning from the web2 to the web3 ecosystem. Where being second to market can mean the difference between multiplying income or closing shop, Web3 marketing companies need to utilize current crypto and web3 strategies to propel forward and stay connected to their customers.
These tools and strategies include using cryptocurrencies for payments and supply chain management, NFTs for tokenizing assets and products, and stores in the Metaverse to promote an immersive virtual experience for trying out new products before purchase.
In this article, we’ll explore top crypto strategies for web3 marketing and how they can improve various aspects of marketing.
What is Web3 Marketing?
First, let’s understand what Web3 marketing is.
Web3 marketing is a marketing concept that explores the use of Web3 technologies for marketing. It leverages a new type of Internet with features where users can read, write and own content (this last one is Web3’s special sauce) and experience a new virtual immersive way of interacting with content.
What industries comprise Web3?
The building blocks of Web3 include young industries that use decentralized, peer-to-peer technology, such as:
- Blockchain (a type of distributed ledger technology, or DLT)
- Cryptocurrencies (blockchain network incentives for users that help to maintain it)
- Non-fungible tokens, or NFTs (digital immutable certificates of asset ownership)
- Metaverse applications (immersive virtual environments)
- Decentralized Finance, or DeFi in short (crypto-powered financial applications)
- Linked Data (machine-readable and interlinked information)
- the Internet of Things (aka IoT, think smart home devices)
- Generative artificial intelligence or AI (see ChatGPT and Midjourney), the Semantic Web (reusing and linking data across websites)
Together, these technologies are creating a new infrastructure for the web that is more decentralized, secure, private, and user-focused.
Businesses are exploring these technologies for business and marketing purposes in order to get an edge on their competition and guarantee their survival, by lowering costs while boosting the quality of their products and services.
How does the strategic use of cryptocurrencies fit into all this though and influence the growth of web3 marketing? Cryptocurrencies and the blockchain tech they are built upon have unique use cases which are viable solutions to the majority of web2 marketing problems.
4 Essential Web3 Marketing Tools for Businesses in 2023
1. NFTs For Product And Asset Tokenization
Product and asset tokenization involves representing physical or digital goods and assets, such as real estate, artwork, or intellectual property, as NFTs on the blockchain. The reasons for tokenization are plenty and its untapped potential is often touted as one of the biggest bull cases for the crypto sector to continue its incredible growth trajectory in recent years:
- improved accessibility
- fractional ownership
- automated compliance and enhanced liquidity
You can create new revenue streams, engage customers through token-based loyalty programs, and enable peer-to-peer (P2P) trading of products and assets using NFTs.
Product or asset tokenization is a crucial part of crypto supply chain management systems; it is, in fact, the main ingredient in the process. It facilitates tradeability and secure ownership records among trading parties.
Web3 marketers can leverage product and asset tokenization to attract customers, investors, and partners. They can highlight the benefits of tokenization, such as increased accessibility, transparency, and the potential for financial gains. Marketing efforts involve educating the target audience about the advantages of NFTs in business and showcasing successful case studies or partnerships.
It’s important to note that product and asset tokenization regulations and legal considerations may vary across jurisdictions. Therefore, Web3 businesses should ensure compliance with local laws and consult legal professionals when implementing tokenization strategies.
2. Metaverse Marketing
Metaverse marketing was heavily hyped at the top of the 2021 bull cycle, for good reason, but still has a lot of building blocks to put into position before it can fulfil its potential. This type of interactive Web3 marketing promotes brands, products, or services within the Metaverse, a virtual, augmented, or mixed reality space where users can interact with the digital content they create and other metaverse users. It involves creating immersive experiences, leveraging virtual reality technology, and engaging with users in virtual environments.
Research firms such as McKinsey continue to see the future value in promoting your brand in the metaverse and see it as only a matter of time, and so do more and more retailers.
In 2022, Gucci became one of the first brands to launch a fully functional store in the sandbox metaverse called The Gucci Vault. In this online concept store, select fashion items designed by Gucci will be available for people to virtually try on, buy, own, and use in their Sandbox experience.
It is a fundamental concept that will work well in advertising products in a new way. When customers know they can virtually try on these products before purchase, it’s something strong enough to draw their attention (and credit cards).
Metaverse marketing for web3 aims to reach and engage with users in decentralized and immersive digital spaces.
3. Crypto payment gateways
Crypto payment gateways can be very effective for Web3 marketers and businesses using web3 technologies. One of the main targets of a Web3 business is to be decentralized and to make everything from advertising to purchasing simple for the customers.
Crypto payments are fast, reliable, cost far less, and borderless. They make cross-border payments across countries and continents simple and nearly instant as no centralized authorities control the system. Every computer logging in to the blockchain can serve as a node and become a part of the decentralized community.
Using cryptocurrencies for digital payments will facilitate the growth of a web3 business because the business can access a global customer network that doesn’t have to pay unnecessary fees for transactions like in centralized payment systems.
A statistical report on Bitcoin for e-commerce by Triple-a shows that:
- Over 85% of US stores and business owners view crypto-enabled payments as a top priority.
- Businesses and e-commerce platforms that accepted Bitcoin and other crypto payments saw an ROI increment of 327% and an increment of 40% in new customers.
These numbers underscore how beneficial crypto payment gateways are to web3 businesses.
4. Supply Chain Management Systems
As the crypto landscape evolves, blockchain and cryptocurrencies have the potential to revolutionize supply chain management through increased transparency, security, and efficiency.
Supply chain management involves overseeing a company’s supply-side operations to improve customer satisfaction, and thereby can be viewed as an extension of marketing.
Traditional supply chain management includes planning, sourcing, manufacturing, delivering, and after-sales service. Modern supply chain management utilizes AI, robotics, blockchain, and cryptocurrencies to optimize processes.
Blockchain technology plays a crucial role in enhancing supply chain management. It creates a digital supply network by combining data from various sources, improving traceability and transparency and its decentralized nature ensures that transaction records are updated automatically, enabling real-time tracking of products. T his helps in pinpointing product locations and improving control over custody.
Blockchain also enables asset tokenization, turning tangible products into digital assets, facilitating tradeability, and securing ownership records. Smart contracts powered by blockchain streamline transactions and reduce reimbursement time.
Modern-day supply management companies now make use of blockchain for supply management because of its highly secure, fast, and transparent channel and use cryptocurrencies for internal and external payments because of its speed and transparency (the public ledger of all transactions)
The demand for blockchain-based supply chains arises from the need for transparency and ethical sourcing. Blockchain provides a decentralized, immutable record of transactions, allowing customers to track products from manufacturing to delivery. This fosters greater trust and creates a more visible and accountable supply chain.
Conclusion
Web3 continues to be a work in progress, just like Web2 and Web1 before it built on their predecessors and took a while to hit critical mass and become self-sustainable. The fact remains that in the long run the benefits of using Web3, blockchain, and cryptocurrencies for business will far outweigh the disadvantages. Soon, Web3 tools will be fully incorporated into specifically marketing, and the experience will likely be so seamless that you won’t even know you’re using the decentralized web.