Difference between Web2 and Web3 marketing

In recent years marketing professionals are more and more interested to make their move and jump into Web3-era. However, almost on daily basis we get asked what are the differences in marketing practices when it comes to Web3 compared to Web2. For example in Quora, these are very common questions so we decided to accept the challenge and provide the answer to the best extend we can.

Recapping current Web2 marketing fundamentals

Traditionally, Web2 marketing has heavily relied on performance marketing techniques to drive advertising campaigns and enhance sales performance. Performance marketing is a comprehensive term for online marketing and advertising programs where advertisers, typically online retailers, measure the cost of marketing based on the performance of specific campaigns. It integrates various channels, such as Search Engine Optimization (SEO), Social Media Marketing (SMM), email marketing, and media advertising, to maximize effectiveness and deliver quantifiable results. 

Measurability of channel effectiveness: Performance marketing allows businesses to measure the effectiveness of different marketing channels accurately. For instance, with Google Analytics, brands can track the number of clicks, conversions, and bounce rates of their SEO and SMM campaigns. According to StatCounter, as of 2021, Google accounted for over 91% of the global search engine market share, emphasizing the significance of SEO in a performance marketing strategy. 

Assessment of business indicators (CPA, ROI, CAC, LTV): Performance marketing relies heavily on Key Performance Indicators (KPIs) like Cost Per Acquisition (CPA), Return on Investment (ROI), Customer Acquisition Cost (CAC), and Customer Lifetime Value (LTV). These indicators provide valuable insights into the cost-effectiveness and profitability of marketing campaigns. For example, a study by WordStream showed that the average CPA in AdWords across all industries is $48.96 for search and $75.51 for display. 

Real-time performance monitoring and optimization: Performance marketing provides real-time data that allows businesses to make immediate adjustments to their campaigns for improved effectiveness. Tools like Google AdWords and Facebook Ads Manager offer real-time performance metrics, enabling marketers to optimize their campaigns continuously. 

Web2 marketing, while effective, primarily emphasizes paid advertising performance and branding, often neglecting the importance of Public Relations (PR) and ideological components. For instance, a report by Gartner showed that in 2020, paid media accounted for a quarter of the average marketing budget, indicating a focus on performance rather than brand-building efforts. However, for a well-rounded marketing strategy, it is vital to align brand, marketing, and sales goals based on a strong ideological foundation. 

The emergence of more advanced Web2 marketing techniques, such as Growth Marketing, introduced technology-driven approaches to achieving results. Growth Marketing extends beyond the top of the marketing funnel and focuses on the entire customer lifecycle, using data-driven strategies to acquire, engage, and retain customers. For instance, Dropbox grew its user base from 100,000 to 4 million within 15 months through a simple referral program, an excellent example of growth marketing. 
 
Account-Based Marketing (ABM) is another significant development in Web2 marketing. ABM is a strategic approach to business marketing where an organization considers and communicates with individual prospect or customer accounts as markets of one. For example, ITSMA, the organization that originally pioneered ABM, reports that 87% of marketers that measure ROI say that ABM outperforms every other marketing investment. 

Furthermore, the advent of Big Data tools has enabled personalized advertising experiences tailored to individual customers. Big Data refers to extremely large data sets that can be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions. According to a study by McKinsey, personalization can reduce acquisition costs by as much as 50%, lift revenues by 5-15%, and increase marketing spend efficiency by 10-30%. 

In essence, by leveraging these technologies, brands can enhance their marketing efforts, create a more engaging customer journey, and ultimately drive growth in the Web2 world. However, the advent of Web3 promises to revolutionize these traditional marketing approaches further, introducing a new era of decentralized, user-centric marketing strategies that could potentially redefine the digital marketing landscape. 

Technologies at the Core of Web3 Marketing

Web3 marketing distinguishes itself from Web2 through the integration of decentralized technologies like blockchain, AI, and IoT. These technologies empower brands to tokenize assets, establish digital identities, and adapt to customers' lifestyles without directly selling products. Key technologies driving Web3 marketing include: 

Blockchain: Blockchain technology enables asset tokenization, decentralized data storage, and creates trustless systems. For instance, Blockchain-based platforms like Ethereum and Binance Smart Chain enable the creation and trading of non-fungible tokens (NFTs). According to NonFungible.com, the NFT market tripled in 2020, reaching more than $250 million in total value traded. 

Artificial Intelligence (AI): AI facilitates personalized experiences and deeper customer understanding. According to a report by Gartner, by 2023, 25% of employee interactions with applications will be via voice, with visual engagement driving customer experiences. 

Internet of Things (IoT): IoT connects devices and expands the scope of decentralized data processing. The global IoT market is expected to reach $1.39 trillion by 2026, according to Mordor Intelligence. 

Web3 marketing not only embraces cutting-edge technologies but also places significant emphasis on growth marketing, PR, and community development. By leveraging these tools, brands can unlock new opportunities for engaging customers and fostering a sense of community. 

Ideology & Storytelling in Web3 

In the era of Web2, ideology and storytelling often took a backseat to conversion-driven digital advertising. However, successful Web3 projects understand the power of ideology, values, and unique experiences. Building a strong brand based on a system of values allows companies to differentiate themselves and cultivate a loyal following. 

Take Ethereum as an example. The Ethereum brand successfully combines well-thought-out ideological and visual components, serving as a guide to the decentralized future. By incorporating ideology and storytelling into their marketing efforts, brands can create a profound impact and captivate audiences. 

Storytelling plays a crucial role in sharing experiences, knowledge, and wisdom. In the Web3 space, platforms like Readl enable storytellers, publishers, and NFT projects to distribute multimedia content on the blockchain. Leveraging these interactive platforms, brands can engage audiences in new and immersive ways. 

Make PR & Creative Great Again! 

In Web2, PR and creative promotion often take a backseat unless the product falls into specific categories like fashion or art. However, in the Web3 realm, PR and the creative component play a pivotal role in promoting projects and attracting investments. Startups need to establish credibility and an essential aspect of their marketing strategy. 

For Web3 projects, PR serves multiple purposes. Firstly, it helps to establish relationships with venture funds and investors. By being featured in trusted media outlets like Bloomberg, Coindesk, and Cointelegraph, projects can generate awareness and gain credibility in the eyes of potential investors. A study by Signal AI found that 81% of senior marketers believe that earned media (e.g., PR) is more effective than paid media. 

Creative promotion also takes center stage in Web3 marketing. Unlike traditional businesses, Web3 projects have access to a wide array of technological tools for creating captivating campaigns and engaging users. Metaverses, for example, offer opportunities to gamify the user experience and deliver emotionally rich interactions. Personalization is heightened through the use of unique 

NFTs and AI algorithms, providing users with tailored experiences. For example, Nike has entered the Metaverse and NFT space by acquiring RTFKT, a brand that creates virtual sneakers and other digital wearables. 

Web2 companies are also recognizing the value of Web3 tools to showcase their technological prowess and stay relevant. Many established brands, like Visa, have already formed blockchain and crypto teams to explore new ways of promoting their brands in the Web3 landscape. By adopting these technologies, they can tap into the growing interest in decentralized solutions and align themselves with the evolving market. 

Social Networks: For Sales or Growth? 

Web2 witnessed the birth and rapid development of social networks, transforming user interactions on the internet. Platforms like Facebook, Instagram, Twitter, and TikTok turned the internet into interactive content hubs, where users not only consume but also create content. Social media became a currency of attention and time. 

In Web2, marketers leverage targeted advertising on social networks to reach specific audiences. However, with the introduction of GDPR policies, targeted advertising has become less effective in distinguishing audiences based on demographic criteria. According to a study by Martech, 90% of consumers will leave a site if it doesn't load quickly enough, emphasizing the importance of personalization and user experience. 

Web3 takes a slightly different approach to social networks. While platforms like Twitter, Discord, Telegram, Reddit, and Steemit are friendly to blockchain projects, decentralized social networks are also emerging. Platforms such as Bluesky Social, Amino, CounterSocial, and Mastodon provide alternatives to centralized social media, emphasizing information sharing and community building. 

For instance, the recently announced decentralized social network, Farcaster, aims to bring back the original purpose of social networks – to inform people. By returning to the core value of information sharing, Web3 social networks offer new opportunities for brands to engage with audiences and foster meaningful connections. 

Community Building and Engagement

Community building is paramount in Web3 marketing, whereas it often takes a backseat in Web2 strategies. In Web3, communities play a pivotal role in driving project success and attracting users. To effectively engage with communities, brands need to develop a unique culture and establish a cult-like identity characterized by shared values and experiences. 

To nurture a thriving community, consider the following strategies: 

• Consistently engage community members with behind-the-scenes updates. 

• Involve the community in decision-making processes related to key features or events. 

• Provide rewards, such as tokens, branded merchandise, or exclusive invitations, for community participation. 

• Create content highlighting team members and foster transparent communication and feedback. 

• Clearly define goals and objectives and communicate them openly. 

• Educate the community through long-form articles, interviews, or videos to maintain transparency and trust. 

• Platforms like Zealy offer community reward systems, making community building more accessible and streamlined. By incentivizing participation and creating a sense of belonging, brands can foster a loyal community that not only consumes but also contributes to their success. 

Developer Relations Marketing in Web3 

In the Web3 landscape, scaling and technological advancement heavily rely on collaborations and partnerships, particularly in the developer community. Developers play a pivotal role in implementing blockchain technology and creating innovative products. Therefore, building strong relationships with developers is crucial for Web3 projects. 

Developer Relations Marketing, or DevRel, focuses on establishing deep and continuous relationships between companies, their products, and external developers. According to a report by Evans Data Corporation, the global developer population is projected to reach 28.7 million people by 2024, highlighting the growing significance of DevRel in the Web3 ecosystem. 

To effectively engage with developers, Web3 projects should consider the following aspects of DevRel: 

Developer Marketing: This involves outreach and engagement activities to raise awareness and encourage developers to use the product. For instance, Ethereum is known for its robust developer marketing, offering extensive resources, tutorials, and community connections to engage developers. 

Developer Education: Providing comprehensive documentation and educational resources to facilitate learning and foster affinity with the product and community. Rust provides an excellent example of developer education, with detailed documentation and learning resources. 

Developer Experience (DX): Creating developer portals, user-friendly documentation, and resources to activate developers with minimal friction. Stripe, for example, has set a high standard for DX with its intuitive API and extensive documentation. 

Developer Success: Nourishing and retaining developers as they build and scale their projects with the product. Microsoft’s Developer Success Center provides resources, tools, and community connections to help developers succeed. 

Community: Nourishing a vibrant community to sustain a thriving developer ecosystem. GitHub, with its extensive community, is a prime example. 

Mutual Promotion: Partnerships in Web3 

Partnerships are highly valued in both Web2 and Web3 marketing, offering opportunities to expand audiences and present products from new perspectives. However, in the Web3 landscape, partnerships are not only based on ideological compatibility but also on technological compatibility, potentially leading to the creation of ecosystems. 

Before proposing partnerships and audience exchanges to other projects, it is essential to ensure the following: 

Technical Excellence: Ensure that your product meets high technical standards and has no reputational issues. Ethereum, for example, is known for its technical excellence and is one of the leading blockchain platforms today. 

Consistent Branding: Align your brand's mission, vision, and visual identity to maintain a cohesive image. Bitcoin's branding, despite its decentralized nature, has remained consistent and widely recognized. 

Resource Availability: Have the resources to sustain long-term communication and scale the project while growing the community. 

Prominent examples of successful partnerships in the Web3 space include 1inch, which collaborates with various trusted blockchain and fintech projects. Similarly, Polygon, a leading Ethereum scaling solution, has formed collaborations with renowned brands like Starbucks, J.P. Morgan, The Walt Disney Company, and Nike. 

Data Collection and Ownership in Web2 and Web3 

In Web2, corporations have extensive access to user data, raising concerns about privacy and manipulation. The unregulated use of user data by companies like Cambridge Analytica led to the manipulation of public opinion through social media platforms. 

Web3 takes a different approach to data collection and ownership. It emphasizes individual control over the data shared on the internet. Projects like Brave Browser tackle data collection concerns by blocking trackers and intrusive ads, prioritizing user privacy. 

Similarly, projects like Iron Fish Network are dedicated to providing easy-to-use privacy-focused solutions. They recognize privacy as a fundamental right and strive to create a secure and user-friendly experience. By placing control back into users' hands, Web3 aims to empower individuals and foster innovation and creativity. 

As marketers navigate the Web3 landscape, it becomes imperative to find new ways of interacting with users while respecting their privacy and data ownership rights. 

Web3 Marketing: Ideology, Storytelling, and Community Building 

The transition to Web3 marketing signifies a significant evolution in the way brands engage with audiences and build meaningful connections. As Web3 technologies such as blockchain, AI, and IoT continue to reshape the digital landscape, marketers must adapt their strategies to leverage the unique opportunities presented. 

Web2 marketing, with its focus on performance and sales, has served its purpose in the past. However, the emergence of Web3 introduces a new era characterized by ideology, storytelling, community building, and developer relations. 

By incorporating ideological frameworks, brands can create a unique identity based on values and principles. This not only differentiates them from competitors but also resonates with audiences seeking authentic and purpose-driven experiences. For example, Ethereum's ideology of decentralization and open access has resonated with a global community of developers and users. 

Storytelling becomes a powerful tool to convey brand messages, captivate audiences, and forge emotional connections. Blockchain projects like Cardano have effectively used storytelling to communicate their vision and the potential of their technology. 

In the Web3 landscape, PR and creative promotion play a vital role in attracting investors and establishing brand credibility. Partnerships and collaborations become avenues for mutual promotion, expanding audiences, and demonstrating technological compatibility. Meanwhile, social networks shift their focus from pure sales to fostering growth and community engagement. 

Community building becomes a central pillar of Web3 marketing, as passionate communities propel projects forward. By nurturing communities through transparency, rewards, and engaging content, brands can create a sense of belonging and encourage active participation. For example, the Dogecoin community is well-known for its active engagement and support of various causes. 

Developer relations marketing gains increasing relevance as developers become key drivers of Web3 innovation. Building strong relationships with developers through education, support, and incentives cultivates a thriving developer ecosystem and ensures the successful implementation of blockchain technology. 

Lastly, Web3 emphasizes individual control over data and privacy. Brands that prioritize data protection and offer personalized experiences without compromising user privacy will gain trust and loyalty from their audience.

At the end it's about taking the action

As the marketing landscape continues to evolve, it is imperative for brands to embrace the transformative power of Web3. By understanding and implementing the principles and strategies outlined in this article, brands can navigate the changing marketing landscape, outrank competitors, and build a strong presence in the Web3 era.

Let's learn & share!

If you found this article insightful, we encourage you to share it on your social media channels and follow us on Twitter, or LinkedIn for more valuable content. At Marketer3, we are dedicated to helping marketers thrive in the Web3 revolution. 

You are welcome to connect and discuss this topic with us on Twitter.

Also, you may find interesting and helpful our blog about how to land a job in Web3 marketing. Check it out!

Have a great day,

Jan