Having delved into Jeff Wilser's insightful piece, 'How Web3 Marketing Changes the Game,' I found myself in agreement with several of his points. Notably, we both recognize the inherent flaws in the current state of the Internet. As I previously articulated in my article, 'Web3: A Comprehensive Guide,' the vision of a decentralized web that upholds democratic principles and curbs the proliferation of advertising and spam is undeniably alluring and resonates with a wide audience.
However, it's important to recognize that Web3 is a complex and evolving ecosystem, often twisting in on itself and lacking the killer application necessary to captivate a broader audience beyond early adopters. This complexity can indeed pose a significant barrier to widespread adoption and understanding, a challenge that we all must collectively address.
Interestingly, within Wilser's post lies a crucial insight that highlights both the crux of our noisy, convoluted digital landscape and the potential path forward.
As anyone who has spent much time in Web3 knows, token-holding can build communities and loyalty. (See: WAGMI.) This is mana for brands. As uber-VC Chris Dixon once said, “When somebody owns something and feels skin in the game, they want to go talk about it. They want to evangelize it. How Web3 Marketing Changes the Game
As anyone who has spent much time in Web3 knows, token-holding can build communities and loyalty. (See: WAGMI.) This is mana for brands. As uber-VC Chris Dixon once said, “When somebody owns something and feels skin in the game, they want to go talk about it. They want to evangelize it.
By focusing on token-holding, Web3 developers and advocates can work towards creating a more user-friendly and compelling ecosystem that addresses the shortcomings of the current Internet while delivering on the promise of a decentralized future.
"Token-holding" refers to the process of creating and deploying tokens on a blockchain. These tokens can represent various assets or rights and are typically used within decentralized applications (dApps), decentralized finance (DeFi) platforms, and other blockchain-based projects. Wilser goes on to explain the kind of advocacy token building creates.
As the Web3 landscape continues to evolve, it is crucial to strike a balance between the ideals of decentralization and the practical needs of users. By prioritizing clarity, simplicity, and tangible benefits, Web3 can break through the noise and attract a wider audience, ultimately realizing its potential to reshape the digital world as we know it.
To illustrate the potential of Web3 marketing, Outram gives the contrasting example of a “hamburger coupon” vs. “whiskey ambassador.” In traditional Web2 marketing you might give a customer a $1 coupon for a hamburger. But that’s boring. Not even hamburger lovers would really care. So imagine this model instead… “I like whiskey,” says Outram. “And I can prove that I have a really good sense of what good whiskey is. If you’re a high-end whiskey provider, don’t you want me out there in front of your brand?” So how do you prove you know your whiskey? (Most ways of proving your whiskey palate are decidedly offline.) Thanks to the new tools of Web3, says Outram, perhaps you could show some on-chain proof that you attended a whiskey tasting, or proof that you bought certain barrels. And because this is all privacy-preserving, you’d let brands see it. “I would permit any whiskey brand to see my on-chain customer journey,” says Outram. “I’m signaling to them, ‘hey, come to me.’”
To illustrate the potential of Web3 marketing, Outram gives the contrasting example of a “hamburger coupon” vs. “whiskey ambassador.” In traditional Web2 marketing you might give a customer a $1 coupon for a hamburger. But that’s boring. Not even hamburger lovers would really care. So imagine this model instead…
“I like whiskey,” says Outram. “And I can prove that I have a really good sense of what good whiskey is. If you’re a high-end whiskey provider, don’t you want me out there in front of your brand?” So how do you prove you know your whiskey? (Most ways of proving your whiskey palate are decidedly offline.)
Thanks to the new tools of Web3, says Outram, perhaps you could show some on-chain proof that you attended a whiskey tasting, or proof that you bought certain barrels. And because this is all privacy-preserving, you’d let brands see it. “I would permit any whiskey brand to see my on-chain customer journey,” says Outram. “I’m signaling to them, ‘hey, come to me.’”
Rideology.io exemplifies the power of online communities by giving car ambassadors control over branded silos like Ford and Chevy. This approach tackles two critical issues: content creation and social proof.
No content team can match the size and enthusiasm of a crowd willing to contribute when asked and rewarded. Moreover, reviews are crucial, with a Northwestern study showing a 270% increase in purchase intent for products with at least five reviews. A decentralized website where ambassadors and customers promote your cause, company, brands, and products is ideal.
However, if every marketer sees community as the "new advertising" and encourages customers to play a rewarding game by contributing, only early adopters will have a chance. Consider your own life: you need to be deeply passionate about something to commit to being an ambassador, and there's a limit to how many "ambassadorships" one person can manage.
In our dynamic digital landscape, blockchains are emerging as a potent instrument for establishing social proof. Their unique attributes of transparency, immutability, and decentralization may transform how we verify authenticity, build reputation, and cultivate trust.
Imagine a future where the origins and journeys of products or marketing activities are meticulously documented on blockchains. This could enable consumers to verify the authenticity of luxury items, pharmaceuticals, and food, ensuring their safety and trust. Even digital art and NFTs, previously plagued by concerns over ownership and provenance, could have their legitimacy firmly established through blockchain technology.
Decentralized review and rating systems, underpinned by blockchain, offer a fair and transparent solution to the problem of fake reviews. This technology is not just transforming social media and content platforms but also rewarding users for their valuable contributions. By providing irrefutable evidence of their engagement and value to the community, blockchain technology can foster a more transparent and trustworthy digital environment, where every user's contribution is valued and rewarded.
While blockchains are introducing unprecedented levels of transparency and accountability in crowdfunding and charity, it's important to note that they are not without their challenges. For instance, the technology's reliance on complex algorithms and high energy consumption has raised environmental concerns. However, proponents argue that the benefits, such as the ability for donors to see the direct impact of their contributions and the fostering of trust and social proof for the causes they support, outweigh these challenges.
Blockchain technology is also revolutionizing the realm of education and professional certifications. Educational institutions can issue diplomas and certificates on the blockchain, allowing employers and other organizations to verify the authenticity of credentials easily. Likewise, professional certifications recorded on the blockchain provide indisputable proof of skills and qualifications, streamlining the hiring process and promoting trust in the workforce. This transformation instills confidence in job seekers and assures employers of the authenticity of the qualifications they are considering.
The social proof provided by blockchains is also influencing the world of decentralized finance (DeFi). Users can assess the popularity and trustworthiness of DeFi protocols by observing the total value locked (TVL) within them. The transparent ledger of blockchain enables users to verify the transaction history of these protocols, offering assurance of their operational integrity.
As we navigate this new era of digital trust, the potential applications of blockchains as mutually beneficial marketing tools and social proof are promising and tantalizing. From online marketplaces where the authenticity of handmade crafts is verifiable to transparent supply chains that instill confidence in consumers, the integration of blockchain technology may reshape industries and change how we establish trust and credibility online.
The fusion of decentralized communities and blockchain technology as social proof of an ambassador or member's support may help us address the issues of a broken Internet. The Internet's current state is problematic because it is moving towards the autocratic, one-way communication reminiscent of the era when television had limited channels. Viewers were forced to watch programming, including an overload of mindless advertisements, leaving them feeling passive and powerless.
With the advent of the Internet, control became less centralized as streaming and other web-based options transformed our lives. However, advertisements are now creeping back into every aspect of our digital experience. Earning social proof credits stored on blockchains for buying, advocating, and sharing a brand presents a mutually beneficial relationship between buyers and brands.
As the futurist Faith Popcorn famously stated, we don't simply buy brands; we join them. The outdated approach of bombarding consumers with advertising until they comply feels unintelligent and one-sided. Consumers possess valuable assets that marketers desire. By agreeing to a fair exchange and exploring innovative ways to request and reward the assistance needed to repair a broken Internet, we can foster a more balanced and mutually advantageous relationship between consumers and brands.