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In the previous edition, we discussed how memes have become a main tool for communication for many brands.

These quick, catchy bits go way beyond the “fun” part. They’ve turned into a key part of how many companies – from thriving start-ups to global powerhouses – connect with audiences, specially in Web3.

Today I invite you to jump from memes to the broader scene of marketing in Web3 – or, in other words, how the “traditional”/Web2 marketing is transitioning to this new era.

So if you love to hate (or hate to love) things like “KPI”, “Metric”, “user engagement”, and “CAC”, you are in the right place.

I couldn’t miss another revolution. What about you?

When it comes to “finding a career”, I was fortunate enough to dive into the marketing world early in my career – more specifically, right in my first job, nearly 20 years ago.

Throughout this journey, I’ve worked with major brands, each experience honing my understanding of the craft.

Fast forward to 2021, transitioning into Web3 was a natural progression of my passion for exploring “what’s new”. Something I always say on podcasts and live events is that I was too young to understand/join the internet explosion, but would not let this new revolution pass by.

This shift brought with it a blend of familiar strategies and uncharted territories. I had (and still have) to fusion old-school tactics with the cutting-edge tech of Web3 – and I must say it has been a thrilling challenge.

As we keep exploring Web3, it’s clear that the tools and metrics we use need to evolve – and new ones must be crafted.

So, let’s dive into this together and discover how Web3 is reshaping the world of marketing.

Gaming platforms x Marketing:
The untapped potential

Let’s start by jumping into something that’s got me super stoked – Roblox as a branding powerhouse!

At my first job, most of our projects were related to eSports, so whenever I see Gaming and Marketing coming together, I can’t help but being delighted.

I see this as a new world for marketers. With over 40 million games (HOLY F*CK) available by early 2023, this platform is full of opportunities to engage with a diverse audience.

As of November 2023, the top game, “Adopt Me!”, has clocked in over 34.5 billion visits. That’s some serious digital foot traffic!

Why Roblox is a game-changer (pun intended) for brands

Roblox opens doors to a unique form of storytelling and brand engagement, far beyond traditional ads. It’s an immersive experience, a space where your brand narrative can live and breathe. Imagine crafting your brand’s story in a digital universe, engaging with users in a setting that’s both fun and interactive.

Take NARS Cosmetics, for example. They smartly integrated their Roblox presence with YouTube and TikTok, leading to millions of views. Their Roblox games, “NARS Sweet Rush” and “NARS Color Quest,” attracted lifetime visits of 9.5 million and 41 million, respectively. We’re talking about strategically embedding your brand in the virtual world.

I see Roblox as a creative sandbox. Brands can let their imagination run wild, building unique experiences that resonate with users. It’s about weaving narratives and journeys that make people feel part of something special.

Not convinced? Still think Youtube and TikTok are the best media to reach younger audiences?

Sauce: “Stepping into Roblox as a Brand” report by Exclusible

Let’s dive into the specifics:

🎮️ Engagement beyond the norm: Users on Roblox are deeply engaged, offering brands a unique opportunity to connect.

🎮️ Creativity unleashed: The platform allows for imaginative and impactful brand storytelling.

🎮️Diverse audience reach: With its ever-growing user base, Roblox provides access to a wide and varied audience.

🎮️Interactive user experience: Engagement on Roblox is active, making brands a significant part of users’ digital lives.

🎮️Rich data insights: The platform offers detailed analytics on user behavior and preferences, a vital tool for refining marketing strategies.

🎮️Youth engagement: 67% of Roblox users are under 16, offering brands a chance to connect with younger demographics in their digital habitat.

If you want to dive deeper into what Roblox is doing, click here.

So no, Roblox is not just gaming platform (what wouldn’t be a problem by the way); It’s a space where brands can authentically engage and leave a lasting impression.

It’s up to us, as advisors, marketers, and decision-makers, to keep evolving and exploring the best ways to create and foster communities in this new environment.

Marketing evolved: Adapting to Web3’s world

In traditional marketing, we were accustomed to casting a wide net – targeting demographics like age or location. Metrics like clicks, views, and basic engagement are the benchmarks of success, painting a broad, somewhat blurry picture of our audience.

One of the main changes when it comes to Marketing in Web3 is that we no longer just talking about who your audience is; it’s about how they interact with your brand – we have just talked about this in the previous section, right?

Web3 facilitates a more profound, nuanced approach to marketing, where the quality of interactions speaks louder than the sheer numbers of impressions.

This evolution is a fundamental shift in mindset. Web3 marketing transcends traditional metrics, moving towards a deeper understanding of customer behavior.

Here’s where it gets really interesting: Web3 intertwines deep insights with an emphasis on privacy. It’s a unique blend of transparency and discretion that Web2 tools could hardly match.

Here are some key contrasts between Web2 and Web3 marketing:

→ Data focus: Web2 relies on basic data like age and shopping preferences, while Web3 delves into on-chain behavior and wallet interactions.

→ Privacy paradigm: Web2 often treats privacy as an afterthought; Web3 makes it a cornerstone of user interaction.

→ Connection vs. Impression: Web2 counted views and clicks; Web3 seeks to build genuine connections and understand deeper motivations.

→ Marketing dynamics: Web2 was about broadcasting messages; Web3 is about fostering community and shared experiences.

→ Engagement quality: In Web2, engagement was a numbers game; Web3 prioritizes meaningful and mutually beneficial interactions.

My favorite visual for Web3 – You’ll see it many times 😄 

No, I’m not saying “traditional marketing doesn’t work anymore” – this would be wrong in many different levels.

What I’m saying is that Web3 marketing presents a world of opportunities, but it also demands a new approach.

So it’s not about discarding everything we learned in Web2. Instead, we must adapt and enhance those strategies to fit the unique dynamics of this new space, filled with new types of audiences.

And speaking of “adapt”, I believe that one of the most promissing and exciting new marketing tools is the “quest-based rewards”.

Long story short, the users must complete different “missions”, generally envolving exploring a new product or feature, and at the end – besides being familiar with whatever the brand is building – may be eligible for prizes and/or collectibles.

But don’t worry → I am preparing a whole edition about this 😎.

And this evolution we have been talking about also includes new ways to measure results:

New metrics and concepts in Web3 Marketing

Web3’s marketing toolbox comes with its own set of tools and metrics and terms, offering deeper insights into things like on-chain activities and wallet interactions.

These new concepts provide a clearer picture of audience engagement and brand interaction in the digital space. So here’s a list of some of these things you – as a marketer – should pay attention to:

Number of active wallets: This measures the number of wallets that actively own and interact with your brand’s NFTs or digital assets. It’s a direct indicator of your community’s size and engagement level.

Market cap of digital assets: Understanding the total value of all digital assets in circulation can help gauge the size and impact of your marketing campaign relative to others in the space.

Holding length: How long are your digital assets held before being resold/traded? This KPI helps you understand the longevity and perceived value of your digital offerings.

Cost per wallet connected: A crucial Web3-specific metric, it measures the cost incurred for each wallet that connects to your campaign or platform, offering a direct insight into the effectiveness of your engagement strategies.

Later on in this edition, we’ll explore a company that offers solutions to better understand and visualize different metrics.

But before that: Another crucial aspect of Marketing in Web3 is about how customers’ data is gathered (and then used).

3, 2, 1… 0: Embracing first-party data in Web3 marketing

I am pretty sure most of you reading this are already familiar with the importance of data for companies. They can use information about us to craft personalized offers, offer dynamic prices, do their CRM stuff, and so on.

However, according to a Mckinsey research, only around one third of customers believe companies are using their data responsably. Check this out:

So what? Another reason for companies and professionals to focus on first-party data.

According to the same research, “marketers and companies that do not figure out a strategy to maintain – and even grow – their access to first-party data may have to spend 10 to 20 percent more on marketing and sales to generate the same returns”.

This data type, sourced directly from the audience, includes everything from purchase histories to social media interactions. It gives brands a direct line to what customers think, want, and do. By leveraging this, they can tailor marketing strategies to hit the nail on the head, every single time.

Second-party and third-party data have been the go-to for ages, but they often miss the mark. Second-party data, traded between businesses, can sometimes lead to a game of broken telephone – it’s not always what it seems. And third-party data, gathered from broad online activities, tends to offer a not-so-precise view, leading decision-makers to target marketing efforts based on sometimes inaccurate assumptions.

With Web3, we’re entering an era of transparent, direct interactions. Think about it: brands can now connect with audiences in a more honest, trust-building way, thanks to blockchain’s nature.

And let’s not forget about open loyalty – our edition #10 covered this. After all, we need a better way to make reward programs work, right?

In short, first-party data in Web3 isn’t just a bunch of numbers and stats. It’s the key to unlocking a new level of customer connection and driving our marketing strategies forward with precision.

“But my boss wants to see the money!”

I got you: According to research by Think With Google and Boston Consulting Group, brands utilizing first-party data in key marketing functions achieved up to a 2.9x increase in revenue and a 1.5x increase in cost savings. Not bad, right?

But wait, there’s more to the data story in Web3:
Zero-party data. Yes, the rabbit hole goes deeper! 😄

Zero-party data is what customers voluntarily share with companies. It’s like they’re saying, “Here, take this info about my preferences, needs, and desires”.

So here are the bullets you can add on your next PPT presentation about marketing data:

First-party data: Your audience is willingly sharing their details – think names, emails, likes, dislikes – directly with you. This type of data help personalizing their experience and making your marketing really resonate.

Second-party data: Imagine two companies swapping data. It’s all above board (hopefully!), and it’s about sharpening those ad campaigns and getting smarter with predictions. Best scenario, it envolves user consent.

Third-party data: This is the data that’s gathered without direct user involvement. We’re talking about the digital breadcrumbs left behind from web surfing, social media habits, and what they’re buying. It’s like piecing together clues to understand the audience better.

Zero-party data: This is gold – users straight-up telling you what they want, need, and expect. They’re not just dropping hints; they’re spelling it out for you. This data is all about deepening that trust and connection because they’re choosing to share it with you.

A quick example of zero-party data application comes from Sephora. In summary, their customers fill out a “beauty profile”, detailing specifics like skin type, hair texture, eye color, and general preferences.

The company then connects the dots between what customers share and the products they suggest, clearly explaining why each item is a good fit.

It’s a great way to showcase transparency, building trust with customers and encouraging them to keep their profiles current for the most personalized experience. Sephora turns zero-party data into a powerful tool for connection and customization.

But perhaps, even knowing all this, you and your brand may want to partner up with someone specialized in managing data in Web3.

Next section it’s going to be about a company offering exactly this knowledge.

Spotlight: Cookie3

Redefining Web3 marketing with data-driven insights

As any other growing space, Web3 has witnessed the surge of MANY tools. There’s new stuff emerging EVERY SINGLE DAY.

I obviously haven’t had the chance to explore or try many of them, but among the ones I did get to know, Cookie3 has something really intriguing going on.

What’s cool about Cookie3 is how it digs into the “whys” of user actions in Web3. You know, understanding the journey from the moment someone discovers your brand up to the point they’re fully engaged.

Here’s the deal: Cookie3 helps you/your company see what’s working.

“But Diego, I already have this tool that shows me where my traffic is coming from”.

Patience, young padawan.

Cookie3 stands out with its unique approach to unraveling the complexities of user behavior. Their solutions don’t just count clicks. Instead (or on top of that), it reveals the entire narrative behind each interaction with your brand, from discovery to deep engagement.

What really caught my attention is their capability to provide meaningful insights into your marketing channels. They delve into the efficacy and impact of each strategy, making it easier to understanding what motivates users and how they connect with your brand in the Web3 ecosystem.

“Well, internet cookies do this”.

Not exactly the same. You are able to have a complete view of the user journey.

It’s a deep dive into on-chain activities, capturing nuances like user experience levels and their preferences in wallets and dApps. This level of detail is crucial for crafting personalized and effective marketing strategies.

Cookie3 shines a light on key metrics such as user retention, engagement, and Lifetime Value (LTV). In the Web3 world, where community and long-term relationships are vital, these insights are invaluable for refining your approach and ensuring your approach resonate with your audience.

So, in short, these are the key aspects of Cookie3 as a marketing solution:

🍪 Comprehensive user journey mapping: Tracks every stage of user interaction, from initial curiosity to loyal engagement.

🍪 Effective channel identification: Discerns which marketing efforts are truly connecting with and converting audiences.

🍪 On-chain activity clarity: Offers detailed insights into users’ on-chain actions and preferences.

🍪 Data-driven engagement: Enables the creation of highly personalized and impactful marketing initiatives.

🍪 Metrics that matter: Focuses on the metrics that drive long-term growth and community building in Web3.

Cookie3 transforms the way we approach marketing in Web3. It helps unlock the stories behind the data, providing a clearer understanding of your audience. For both emerging projects and established players, Cookie3 is definitely a platoform to check out.

As usual, transparency: I have no ties with them. As I said at the beginning of this section, among the many tools popping up in Web3, Cookie3 has something really interesting going on.

AGENDA:
WEBINAR ALERT 🚨

Accelerate customer loyalty & engagement with immersive experiences

Journee (we talked about them in edition #11) is hosting an incredible event where I’ll share my insights into the challenges of traditional loyalty programs and their evolution in today’s digital landscape.

I’ll also talk about how a branded immersive online experiences and Open Loyalty, a blockchain-based approach will transcends typical transactional models and create more value to brand and customer relationships.

WHEN: December 7th, 2023, at 3 PM CET.

WHERE/HOW: Click here

Join us FOR FREE.

(Mental note: suggest a short name for the next events 😆)

Shout-out: Amanda Cassatt

In case you are looking for extra resources on the “Marketing in Web3” subject, I recommed you check out “Web3 Marketing”, by Amanda Cassatt, who’s also the founder of Serotonin.

For clarity: I haven’t read her book yet, but considering what she’s been doing in Web3, it’s an easy call.

PINK BEANIE’S ACTIONABLE GUIDE:
Leveraging Web3 for your marketing strategy (part 1)

Based on everything we’ve discussed so far, and drawing insights from previous editions where we explored things like immersive experiences and open loyalty, I’ve prepared a quick guide for you.

It will help you identify some of the ways Web3 can take your projects to the next level.

Part 2 will be available in the next edition of The Wild West of Web3.

So, let’s get into it:

1) Utilizing NFTs for customer engagement

Why? NFTs offer unique experiences and value, providing a new medium for customer engagement – and might become a new revenue stream for the company
How? Integrate NFTs into your marketing strategies to create novel forms of engagement and enhance customer loyalty.

2) Go-to-Community strategy

Why? This approach emphasizes value creation and deeper engagement within specific communities.
How? Focus on building and nurturing communities around your brand, using Web3 technologies to facilitate interaction and collaboration.

3) Personalized engagement through Digital Identity

Why? Web3 enables more personalized and meaningful brand interactions.
How? Leverage digital identities to tailor marketing strategies, offering individualized experiences based on user data.

4) Impact of Zero-Party data on marketing

Why? Zero-party data leads to more accurate and effective marketing strategies.
How? Encourage customers to share information voluntarily and use this data to refine and personalize your marketing efforts.

5) Shift from Audience to Protagonist in Marketing

Why? Recognizing customers as protagonists creates more impactful experiences.
How? Empower customers by making them central characters in your marketing narratives.

In addition to my own experience in advising Fortune 500 brands navigate the Web3 space, some inspiration for this guide has come from edition #13 of Justin Peyton’s newsletter: BRAND N3XT.

Justin’s content is a goldmine for anyone looking to understand and leverage Web3 for marketing success. I highly recommend giving him a follow.

That’s it for today, fam.

But before we say goodbye:

A few weeks/editions ago I said I’d be travelling to Costa Rica for a Keynote at Blockchain Jungle.

And now that I’m back: WHAT A BLAAAAAAAAST, COSTA RICA!

Over 3,000 people attended the event, filling every room and available space.

Super humbled and really stoked. Thanks for having me.

I’m really fired up to see this ecosystem develop in Central America and push the region forward!

#LFGrow
Diego Borgo

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