How web3 presents innovative marketing opportunities for brand

Authored by Pradeep Singh, Founder and CEO of Squirrel

Have you ever had an incredible product or service that you know could make a big impact on the world, but nobody seems to know about it? However, as consumers began relying more on the internet, businesses recognized the need for a new marketing approach. Digital marketing emerged as a cost-effective solution that allows businesses to target specific demographics, track user behavior, and measure campaign success in real-time. Consequently, digital marketing became an essential component of modern business strategies, providing a highly effective and efficient way to reach customers and build brand awareness.

However, as digital marketing evolved, several limitations emerged, like privacy concerns, ad fraud, and a lack of transparency. As businesses collect more and more user data, consumers have become increasingly concerned about how that data is being used and shared. Fraudulent websites or bots generated fake clicks or impressions to generate revenue for advertisers leading to wasted ad spend and reduced ROI for businesses. Meanwhile, consumers started becoming increasingly skeptical of marketing messages, and the prevalence of fake news and misinformation, further eroding trust in online content. As per the recent survey done by ‘The CMO’, ROI of digital marketing is declining gradually. Few trends like Google banning third party cookies, Meta and other apps asking for permission for ads tracking, Generative AI like ChatGPT etc is becoming a threat for the Marketers.

As a response to these challenges, web3 marketing popped up. It started providing businesses with a more secure, decentralized, and transparent way of conducting digital marketing by leveraging blockchain technology. It offered a fresh approach to the age-old problem of data privacy and protection that has plagued traditional digital marketing methods and innovative marketing opportunities to brands.

Web3 also offers new opportunities for marketers, such as decentralized social networks, non-fungible tokens (NFTs), and decentralized applications (dApps). These technologies enable marketers to engage with audiences in new and innovative ways, promoting transparency, trust, and authenticity into crucial areas of a brand's operations, such as its supply chains. Wondering how? Walmart, for example, used blockchain technology to improve the traceability and transparency of its food supply network. Customers can now access information about a product's origin, processing, and storage by simply scanning a QR code on the item. This increases customer trust in the product's safety and quality while helping Walmart stand out from its rivals and foster greater collaboration and supplier confidence.

But that's not all! Web3 offers the advantage of direct consumer interaction without the use of intermediaries. Brands can use this technology to mobilize a group around them and forge closer connections with their audience. In the same way, Nike has introduced a virtual shoe collection on the Ethereum blockchain, enabling users to purchase, sell, and trade virtual shoes. As a result, a community is built around the brand, encouraging a feeling of exclusivity and ownership as well as boosting engagement and loyalty.

As a result, web3 is emerging as a new trend in digital marketing, promising to revolutionize the way businesses interact with their customers and promote their products or services. While web3 is still in its early stages, its potential is vast, and it is likely to play a significant role in the future of digital marketing. Businesses that embrace web3 early on are likely to have a competitive advantage, setting themselves apart from those who stick to traditional digital marketing methods. By embracing this technology and exploring its potential, brands can ignite curiosity amongst their customers and stay ahead of the curve in an ever-changing industry. Who knows what kind of innovative marketing opportunities will emerge in the world of Web3 next?