What is Web3 and How Will it Change Marketing?

In a nutshell, Web3 seems to have been built on the fundamental principles of “Openness, Trustless and Permissionless” networks. Think of what’s conjured to your mind when you think of the internet, you’re probably going to think of Google or Facebook. These are third parties acting on behalf of their users but with a growing mistrust of corporations due to exploitations of data privacy – decentralized data networks are going mainstream. Imagine, an internet where you truly control and own the fruits of your time and information. Blockchain protocol allows for this. Internet users are properly rewarded for their work and can share content without the need for a third party. The consequences of which mean less censoring, monitoring and moderation - paving the path towards an internet that’s user-centric and privacy-preserving. That’s a win for internet users and a loss for Big Tech. There are many implications of this change. There are going to be arising ethical and logistical issues regarding the lack of regulation but what are the marketing implications?

What Are the Marketing Implications of Web3?

What is the newfound sovereignty of internet users going to change about the marketing industries? This decentralization is going to change the way we transact altogether.

Decentralized finance in the form of NFTs (a cryptographic token) is already disrupting the world and if you’re new to the game, let me fill you in. Imagine being able to engage in transactions without the need for a commercial or central bank. Funds and assets can change hands in an automatic and trustless system. Without the need for a third party, there is little scope for hackers to threaten the interaction. Everything is automatically verified and NFT owners can sell their NFTs to others, allowing the buyers to access the features of the NFT.

The NFT market is yet to become saturated and, therefore, there is a lot of scope for eager marketers. Non-fungible essentially means unique and is, therefore, proof of ownership. A few celebrities and companies have already created their own NFTs with Lindsay Lohan releasing her first NFT termed “Lightning” which rose from $1,000 to $63,000 within a single hour. NFTs are slowly becoming mainstream and while they’re currently associated with digital artworks and virtual video game goods, there are instances of them being offered as a payment option for things like tickets and baseball cards. The possibilities are being explored and there are no limits. Marketers should understand the new landscape and determine how their brand can leverage this new revolution. Since this market is still in its beginnings, getting started can bring some valuable press to your brand since investors and keen enthusiasts are particularly vocal nowadays with the surge of interest surrounding crypto. NFT value is mainly based on the concept of scarcity and a good marketer has already started exploring what their brands can offer.

There’s also much to say regarding whether virtual reality goes mainstream through Facebook’s rebrand as the Metaverse. Virtual reality would allow for an entirely new immersive platform for customers to interact with brands in whole new ways. As the boundaries between real life and the online become less distinct, customers will be able to transact goods and services on an entirely new platform. Imagine, you could virtually try on clothes and shoes and order them within a virtual online shop for your goods to arrive at your real-life doorstep the very next day.

Watch This Space...

Web3 will not just be a fad, this is a new phase in society where there are real interactions, profits, and buzz being made. Brands will interact with their customers in fundamentally different ways and will need to have a deep think about what unique space they can occupy in the market. Nowadays, a good marketer needs the propensity to adapt. Web3 might sound scary and foreign, but the digital landscape is changing every day and not being up to date means one day waking up and wondering where everyone’s gone.

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