To the casual observer, the Web3 revolution may appear to have slowed in recent months. Though grabbing fewer headlines, development of Web3 continues at full pace; pioneers continue to forge a bridge between the old internet and the new. Consumers are also continuing to explore the possibilities of Web3 tech, with NFTs, the metaverse, and crypto fostering dedicated communities of early adopters. Though currently far from the point of mass-adoption, Web3 technologies and frameworks are grabbing the attention of the world – think of Apple’s new mixed-reality headset.

For marketers, these new environments open up a world of possibilities. Whether blockchain-based loyalty schemes, immersive VR experiences, or community-building gaming events, Web3 offers a wide array of creative choices that advertisers and their agencies can harness to stand out from the pack. With the Web3 market set to be worth $116.51 billion by the year 2033, mass adoption is no longer a question of if, but when.

The staying power of Web3

The emergence of Web3 has come at a confluence of two factors. The first is the maturation of blockchain technology. These decentralised ledgers that Web3 is built on are becoming more efficient and faster, but their core advantage remains the same – immutable public ledgers.

The other side of the coin is the increasing disillusionment in the current structure of online environments. More than half of consumers believe that it has become more centralised, while seven in 10 don’t currently feel in control of how websites use their personal data. This growing distrust is leading to less consumer loyalty and users being overwhelmed with ads – 38% of users would like to see the number of ads they see online reduced.

Web3 offers advertisers a way to overcome these challenges and deliver highly engaging, privacy secure messaging, in formats that go far beyond just banner ads or sponsored posts.

Creative possibilities

To stand out in such a congested market means going above and beyond with creative. Web3 environments allow marketers to unleash their inventiveness and communicate with their audiences in entirely new ways. Let’s examine just how advertisers might go about harnessing Web3 activations:

• NFTs - The meteoric rise of non-fungible tokens in 2021 has opened many creative doors for marketers looking to build closer relationships with their audiences. As well as the potential for raising brand awareness and generating extra revenue through their sale, NFTs can also be used to encourage or reward brand loyalty. Starbuck, for example, launched its Starbucks Odyssey platform which encouraged consumers to collect ‘Journey Stamps’ to unlock exclusive benefits.
• Tokens – In a similar way to NFTs, the rise of crypto currency has allowed brands to create digital assets that enable their audiences to form closer bonds to their chosen brands. Imagine if for every product you bought, you gained a share in that company? Brands could take that a step further by creating decentralised autonomous organisations (DAOs) to encourage their audience to actively participate in decision-making processes – a sneaker manufacturer, for example, could allow loyal customers to choose the colourways of its latest drop. These tokens reward loyal customers or draw in previously unreached audiences, helping to build communities around brands through participation.
• VR, AR and the Metaverse – One of the most instantly visually arresting parts of Web3 has been the rise of metaverse environments, as well as Virtual Reality and Augmented Reality. These highly visual environments, which use various sensors, displays, and computational power to create immersive experiences, allow marketers to create activations that truly absorb consumers and give marketers the ability to flex their creative muscles.

A better model for all

The key advantage of Web3 is not just the unrivalled creativity it unlocks, but in how this creative can more effectively reach target consumers. At the heart of Web3 is a mission to put data back in the hands of internet users through decentralisation.  Rather than viewing this as a setback, brands can harness Web3 marketing techniques to build closer relationships with their audiences, build greater consumer trust, and increase their audiences’ willingness to divulge their data.

Similarly, Web3’s built-in privacy allows for users' identities to be protected, while allowing brands to deliver highly targeted advertising. For instance, a consumer may use their Web3 wallet to purchase a camera from a brand. The brand can identify the purchase and track their wallet, delivering further ads on accessories for the camera. However, the identity of the wallet owner is protected by encryption, allaying any fears around how else the consumer’s data is being used.

The combination of community building and privacy will, ultimately, benefit the entire ad ecosystem. Consumers will see less advertising, while marketers make a greater impact on audiences with their messaging. Couple this with the ever-widening creative possibilities that Web3 offers marketers, and it is clear why these blockchain-based technologies will form the backbone of marketing in the near-future.