In recent years, the world of digital marketing has been rapidly evolving, and the rise of web3 technologies is making it increasingly important for brands to be present in this space. But what is web3, and why should brands be interested in this new and exciting frontier? In this blog, we’ll cover the basics of how your clients can interact with web3 as well as provide actionable questions for brands to start exploring and taking advantage of these cutting-edge technologies. Whether you’re new to web3 or just looking to deepen your understanding, this overview will help you gain the knowledge and skills you need to successfully navigate the web3 landscape and reach your target audience in new and innovative ways. So, if you’re ready to take your brand or client to the next level, keep reading!
Web3 refers to the next generation of the internet, where users have greater control over their data and online interactions. Consumer safety and data security is remaining exponentially important to younger generations and there are many new methods of security that web3 introduces to reduce the dependency on third-party services. Web3 is built on the principles of decentralization, privacy, and security, and has the potential to revolutionize industries ranging from finance to media to gaming. Web3 represents a new era of the internet, where users are empowered and the traditional power dynamics of the web are re-balanced and a lot of control is put back into the consumer’s hands.
How does web3 become relevant to our brand, values and KPIs? Remember, you don’t have to reinvent your brand to be in web3. Think of it more as a reconnection with your existing customers and a step towards finding new customers as well. The majority of clients interested in entering web3 need to find out which of their existing audience members are active in web3 and what new users show interest to learn about the innovation. Testing the waters of web3 early allows brands to understand what tools can be made available to their business at later stages.
Who is our target audience in the web3 space, and what do they value? Once you find out who in your audience is interested in web3 the learning begins! **These customers may not be very different from your existing target audience! Later in this article, we’ll explore some ways you can apply your brand in web3. See if you see any of your existing customer personas come to life in those descriptions.
What unique value can we offer in the web3 space that sets us apart from our competitors?
What makes you memorable and important to your customers now can go beyond simply yelling into the funnel of the “attention economy.” Brands can now be memorable with intentionality to something unique, personal, and visual and even have the opportunity to be monetized in web3. For example, a well-known brand advertiser, Jack Butcher, released a project worth $8 USD per digital collectible, netting approximately $128k with its initial sale and while accruing $669K in royalties at the time of this writing.
How can we leverage web3 to build a loyal community of customers who are invested in our brand and mission? Good brands build customer loyalty. Great brands build community. By creating a digital connection, you’re ensuring that your community will exist beyond the initial purchase. Allowing communities to have a digital connection allows for interactions and exposure to your consumers on an intimate level, which commerce has yet to experience.
How can we measure the success of our web3 initiatives and make data-driven decisions to continually improve our strategies? Data allows you to make powerful decisions. Set goals and measure your progress so you can quickly pivot towards what matters most. Cake is focused on ensuring your brand has everything you need to report and make necessary decisions about where to invest in your digital community next!
What resources do we need to effectively implement and scale our web3 initiatives, including technical expertise, budget, and partnerships? You’ve already built trust with your existing customers. Ensure that you are partnering with the right organization and activation partner to put your brand’s security, integrity, and unique identity at the forefront of the build. Selecting the right tools that help you navigate the technical complexities of web3 while making it easy to see your business’s goals through the new product launch experience is crucial to giving your team the control they need to handle the launch as if it’s any other product launch they are accustomed to.
What are the potential risks and challenges associated with our use of web3, and how can we mitigate them? Talk to other brands and agencies that have done the work and have seen successful web3 launches. You can learn from their experiences, and you may even end up with a new partnership along the way. The biggest cheat code to launching a product in web3 is trusting and understanding the technical team that will get you over the line!
The way your brand interacts with web3 is as unique as your brand. Here are a few of the most common ways we see organizations onboard into web3 . . . but remember, the experience you can create is essentially limitless.
NFTs (Non-Fungible Tokens): An NFT, or non-fungible token, is a type of digital asset that represents ownership of a unique item or piece of content, such as art, music, videos, or virtual real estate, on a blockchain network. Unlike cryptocurrencies, which are fungible and interchangeable with one another, each NFT is one-of-a-kind and has its own unique value and authenticity. Brands can use NFTs to create unique and collectible digital assets that express their brand identity and values. For example, a fashion brand can create NFTs that represent limited-edition designs or exclusive experiences.
Decentralized Applications (dApps): A DApp, or decentralized application, is a computer application that operates on a decentralized network. DApps are designed to be trustless and have no single point of failure, allowing for a more secure, transparent, and democratic way of running applications. Brands can create or participate in decentralized applications that align with their brand values and mission. For example, a socially responsible brand can create a dApp that encourages sustainable behavior or rewards users for environmentally friendly actions.
Virtual Reality: Virtual reality (VR) is a computer-generated simulation or recreation of a real or imagined environment, which can be experienced through a virtual reality headset or similar device. By creating a fully immersive experience that simulates a physical presence in a virtual world, users can interact with and explore the environment in a way that feels very realistic. Brands can create virtual experiences that immerse users in the brand world, express their brand values, and allow them to interact with their products and services in a new way. For example, a luxury brand can create a virtual showroom where customers can try on clothes and accessories in a virtual fitting room.