Navigating Web 3 Marketing: Practical Insights and Strategies for Brands

Cryptocurrency and NFTs might not have the best reputation right now, but it’s important to understand the progress towards Web 3 adoption, even on platforms like Reddit where over 7 million users hold a Reddit Collectible Avatar. In this blog, we’ll skip the hype and talk about actual developments in the blockchain space related to advertising and partnership marketing. NFTs are going to be the key in 2023. They’re not just digital art pieces but also a digital version of traditional point or stamp cards that provide benefits and rewards to holders and a way to market new offers to NFT holders. We’ll cover current use-cases of blockchain technology for brands, affiliates, influencers, and social media platforms. To give you an idea of the market size, NFTs for video games alone are estimated to reach a $15 billion market by 2027 and made $3.6 billion in revenue last year. We’ll provide practical insights on how to leverage Web 3 for your partnership program in 2023 and strategies to gain first mover advantages.  

What is Web 3?

Web 3, also known as the decentralized web, refers to the next generation of the internet made possible through blockchain technology that aims to create a more open, transparent, and secure network. It’s like upgrading your phone to a newer model, but instead of just getting better features, the internet itself is getting upgraded. Right now, when you use the internet, you have to trust companies and other organizations to keep your information safe and not misuse it. But with Web 3, you won’t have to rely on these intermediaries because the goal is that everything will be decentralized, meaning that people will be able to interact with each other directly without a middleman. This means that you can be sure that your information is safe and won’t be tampered with. It will also make it possible for new types of apps and websites to be built that are not controlled by any single company or organization, giving you ownership of your data along with more choices and opportunities to participate. Think of Web 3 as a new way of building the internet that puts more power in users’ hands and creates a more equal playing field for everyone. While Web 3 is still in the early stages of development, many projects and initiatives are well underway, and we can expect new technology to continue to evolve and transform the internet in the coming years.  

Innovative ways for brands to market with Web 3 technologies

There are many different innovative ways that brands can leverage Web 3 technologies and Web 2.5 affiliate partnerships to advertise and market their products to a growing audience of users. Some of these strategies include:

1. NFTs Loyalty Programs: Starbucks is a great example of a successful brand using NFTs with their Odyssey reward program. NFTs provide a way to promote your latest product offerings to a loyal audience who will be happy to share their experiences and refer friends. Starbucks even allows digital stamp cards to be bought using conventional credit cards, making it easy for mainstream audiences to adopt.
2. Web 3 & Web 2.5 Affiliate Partnerships: Both Web 3 and Web 2 apps (with features of Web 3) have growing monthly active user bases looking for rewards and discounts. Brands can place ads in specific verticals such as travel and sport or offer learn-to-earn type placements where users are rewarded for learning about a topic related to the brand.

 

Web 3 benefits for affiliates and influencers

From increased data control to new opportunities for partner payments, Web 3 offers exciting potential for those in the marketing industry. Two benefits Web 3 can bring to affiliates and influencers are:

1. Digital identity: Web 3 wallets allow login access to publications without the friction of current and future privacy-related laws. Consumers will have full control of their data permissions and digital wallet identity can be separated from personally identifiable information.
2. Influencer and creator rewards: Smart contracts can be used to reward influencers and content creators for successful sales. Web 3 social platforms and affiliate platforms now have these smart contract capabilities. Also, Browser extensions like Brave can link to Web 3 wallets where users can choose to be rewarded for watching ads and tip content creators with tokens.

When it comes to finding marketing success on Web 3, you’ll need to build a strategy for partner payments through wallets and smart contracts.  

The Web 3 social landscape

Although they’re still developing, Web 3 social platforms like Nostr and the Lens protocol, and available social apps like Lenster or Lenstube, offer several benefits. Users can own their data, monetize their content, and not worry about losing their content or audience due to platform regulations. In Web 3 social, you only need to create one social media handle, then you can use it on any social application you choose to plug into. Most importantly, the social graph for users created on Web 3 can be based on wallet activity and recent purchases, rather than behavior such as likes, which makes connections more meaningful.  

Transforming the future of marketing with Web 3

The emerging Web 3 ecosystem offers exciting opportunities for brands and marketers to enhance user experiences and improve partnership marketing. In particular, Web 3 wallets and Web 3 affiliate and social platforms are two areas with great potential for transformation. Web 3 wallets enable brands to personalize user experiences by allowing them to immediately understand user activity on their wallets, rather than starting from scratch with new users. Users can opt-in to share their wallet data in exchange for product recommendations or discounts, and marketers can even target niche audiences based on their wallet activity. Meanwhile, Web 3 affiliate and social platforms offer significant potential to revolutionize partnership marketing. Blockchain-linked affiliate platforms would increase transparency and speed up payment validation and rewards for partners. While beta-testing is underway for some Web 3 affiliate platforms, it’s possible that social platforms with similar functionality will gain wider adoption first.  

Embracing Web 3: Opportunities for early mover advantages in marketing

The past year has seen a significant shift towards Web 2.5, as businesses operating on Web 2 platforms have started incorporating wallet capabilities. With the advent of blockchain as a service, like WalletConnect, it has become possible to connect Web 3 wallets to Web 2 applications, opening a range of possibilities such as NFT profile picture authentication on Twitter or payments on Shopify or Stripe. As Web 3 apps continue to improve their user experience and offer benefits beyond just investment, we can expect to see greater adoption in the future. At Acceleration Partners (AP), we have been closely monitoring developments in Web 3 since 2018 and have established a tiger team to explore the marketing opportunities available. We are currently testing Web 3 affiliates and partners, and there are clear opportunities for brands seeking early mover advantages in both Web 2.5 and Web 3. As partners approach AP seeking brands that align with their audience, brands can benefit from early acquisition and cost-saving opportunities in newly built reward or placement sections. If you’re interested in learning more about Web 3 marketing, we encourage you to get in touch with us. Don’t miss out on the chance to stay ahead of the curve in this exciting new era of digital marketing.  

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  Author: Babur Moghul