What is Web3, and how will it transform marketing?
Technology has always had a considerable effect on the way we do business.
When we look at digital marketing, there have been three waves of technological advancement during this time: Web1, Web2, and now Web3.
But what is Web3, and why should it matter to marketers?
This article will explain the following:
What is Web3?
When will Web3 launch?
What is web3 marketing?
How does Web3 impact marketers?
What is Web3?
Web3, or Web 3.0, is essentially the third itineration of the internet.
Since it has not yet been widely adopted, Web3 is a vision of a new, better Internet that places more control into the user's hands instead of enterprise tech companies.
But how did we get there?
Breakdown of the history of the internet
The internet was not simply invented and has existed ever since. The World Wide Web we know today is continually evolving technology and entirely different from when it was envisioned.
Web 1.0
Web1, or Web 1.0, refers to the first generation of the World Wide Web, characterised by static HTML pages and limited user interactivity. Web 1.0 sites were typically used to share information, with little or no user input or interaction.
Web1 was very elementary and not nearly as complex as today.
Users noticed that it mainly consisted of basic fonts, blue hyperlinks and grey buttons. As a result, there was very little interaction between users and little user-generated content (UGC).
Web 2.0
Web2, or Web 2.0, is the second generation of the World Wide Web, characterised by increased interactivity, user-generated content, and social networking features.
Web 2.0 sites are generally interactive, allowing users to comment, post, and share content with other users. Thus, instead of only companies creating websites and sharing content, users can create content and interact with other web users.
Web2 also saw the creation of social media platforms, user data tracking, and new methods of advertising products and services to web users.
Web 3.0
Web 3.0 is a potential next generation of the web characterised by a shift to blockchain technologies for data storage and security. Web 3.0 services typically use wallets, have decentralised components, and offer services and products that are at least theoretically portable to other services.
As the internet continues evolving, more businesses have leveraged consumer data and information to better promote their products and services.
Consumer data tracking has increased privacy concerns about collecting and using user information. This has led to many large tech companies phasing out third-party data collection.
Web3 aims to allow users to own and operate tech platforms instead of entrusting large companies to use their data responsibly.
Let us take a look at the core ideas of Web3:
Web3 is decentralised: Ownership will get distributed between builders and users instead of just centralised entities.
Web3 has equal access: Everyone will have equal access to Web3, and no one will be excluded from accessing content.
Web3 uses tokens as cryptocurrency: Web3 uses cryptocurrency (a token) to send and spend money online instead of relying on larger banks to process payments.
Web3 provides users ownership: Web3 allows users to determine how their data and information are used online. Furthermore, it operates using economic incentives instead of relying on other third parties.
Nevertheless, how does that work?
Web3 will operate using tokens and cryptocurrencies. When owning cryptocurrency, holders will own a piece of the network. The more cryptocurrency they have, the more ownership they will have over the network and the direction it is heading in.
What is Web3 marketing?
Web3 Marketing is a new evolution in digital marketing. It accompanies a shift from Web 2.0's centralised data storage to Web 3.0's decentralised data storage, intended to give users data control.
This shift will require marketers to invest more time and resources in understanding the different web3 customer acquisition channels and develop strategies that cater to their needs.
Traditional media, such as content marketing, SEO, and mobile marketing, will remain relevant. Still, they must work alongside emerging technologies, such as NFTs and tokens, and emerging platforms, such as Discord and Telegram.
Web3 marketing will involve:
Following the latest trends related to web3 and internet native companies and understanding web3 technologies, such as blockchain and NFTs.
Use customer data insights skillfully. Even though there is more privacy, there will likely be some relevant buyer data that can be valuable to marketers.
Optimise user experience for web3 and continually track the performance of your web3 marketing strategies.
When will Web3 launch?
Currently, there is no launch date for Web3. As per the previous version of the internet, it is continually evolving and has yet to reach mass adoption.
Many web3 infrastructures still need to be built before Web3 is widely adopted; there is no timeline for when this will occur.
However, that does not mean you cannot start preparing your Web3 marketing strategy for its arrival, so a brand can stay one step ahead of its competitors when that day finally comes.
Why is Web3 important for marketers?
So, why is Web3 important for marketers?
If you are wondering how the introduction of Web 3.0 can impact your marketing strategies, we have got you covered.
Let us examine how Web3 can impact the future of marketing below:
Web3 limits access to user data
One of Web3's main goals is to give users more control over whom they share their data with and how companies can use it.
When Web3 finally hits mass adoption, marketers will struggle to collect and leverage data from their audience. It also means that companies must be more transparent about collecting and using consumer data.
As a result, brands will need to implement creative strategies to reach a target audience.
Web3 relies on content creators
Today, most large platforms restrict content creators and what they post, with the host platform accumulating the most profits from the content and the content creator themselves.
Web3 will give full ownership to the content creators, so they have complete control over their content and the profits it generates.
As a result, marketers will need to shift how they advertise products and services on popular platforms like YouTube, Twitch, Spotify, and more.
For instance, instead of paying a platform directly for advertising space, users will likely need to reach out to content creators to promote their brand.
Web3 gives consumers more power
Another goal of Web 3 is to give consumers more decision-making over the internet and its content. Consumers can decide what content they wish to see and promote the ideas they like and agree with most.
As a result, any brand will need to focus on creating a solid community with their audience to learn about their interests and the types of content they crave to see. This information will become crucial to implementing marketing messages that resonate with an audience.
Get ready for Web3 with Blu Mint
So, how can you begin preparing for Web3?
Even though there is no launch date for Web 3.0, it is wise to begin investing in Web3 marketing to ensure your marketing strategies will continue to drive business revenue in a more consumer-focused world.
It is worth noting that exactly how web3 looks is still up for grabs. While a lot is appealing about web3, it has not yet proven to be able to displace web2 technologies.
Web3 marketing typically uses new platforms like Discord and Telegram alongside existing traditional advertising and marketing platforms. Web3 marketers need to target both existing web3 believers and those new to web3, so a mix of techniques and channels is essential.
