Web3 companies are, in many ways, on the leading edge of the digital revolution. Many of us associate them primarily with organizations that offer a gateway to cryptocurrency. Given that Bitcoin base price, according to Binance, hovers at nearly $70k at the moment, that in itself guarantees some popularity of the term. But the concept of decentralized technologies, which Web3 companies leverage, actually encompasses a much wider ecosystem.
Brief history of decentralized systems
Technological platforms that operate without a central authority or single point of contact didn’t fully take off until around 2008, when Bitcoin and blockchains first made a proper appearance on the digital scene. While packet switching (a method of data transmission) and ARPANET (the first network to implement the kind of TCP/IP protocols we use for the internet) got started in the 1960s, they were the predecessors of the modern decentralized technology but far less advanced in terms of both functionality and potential application.
From 2015 onwards, we see a real expansion of this type of tech: for example, Ethereum introduced smart contracts, which are self-executing and have their terms directly written into code, quite a revolutionary concept in itself. It enabled decentralized applications to grow beyond just cryptocurrencies, so that nowadays we see a wide range of uses such as decentralized finance, decetralized autonomous organizations (DAOs), decentralized storage and identity and many other.
But one aspect where these innovative tech platforms operate in much more conventional ways is, in fact, their own marketing.
Conventional marketing techniques
Social media engagement:
In this respect, Web3 companies are almost no different to any other business of today. Virtually all organisations are to some degree dependent on their social media presence and Web3 companies follow suit in that regard. From X (formerly Twitter) to Discord or Telegram, social media helps them to engage with users in order to build strong, active communities.
Forums and discussion boards
This is another way in which Web3 companies foster a sense of community. Platforms like Reddit are used to discuss projects and gather feedback, creating a common sense of purpose and giving users a chance to interact with each other.
Content marketing
This umbrella term encompasses such a variety of activities that it’s difficult to do them justice in one paragraph, but it can mean anything from educational content (creating blogs, videos and tutorials to teach users about the technology and the broader Web3 ecosystem) through to whitepapers and technical documentation. It may not seem immediately intuitive that education can function as marketing, but in fact, explaining functionality and benefits of their projects helps Web3 companies to promote them.
Influencers
Rapid expansion of social media has created influencers in every industry and tech is no different. Crypto influencers are hugely popular figures who often collaborate with Web3 companies in order to reach a broader audience. This might also include various webinars and ‘Ask Me Anything’ sessions, where they can directly engage with the community.
Tech-based marketing techniques
In addition to the above marketing techniques which are fairly commonplace for almost any industry nowadays, there are also some more niche ones which are directly relevant to the Web3 universe.
Incentives and rewards
While the concept of rewards exists across a range of industries and sectors, when it comes to Web3 companies it takes on a more digital dimension. For example, companies might distribute free tokens to users, which incentivizes them to participate in the ecosystem, or they might offer ‘bounties’, which are rewards for specific tasks such as promoting a project. This could also include rewards for aspects of technical involvement such as finding bugs or contributing code.
Hackathons
These online events encourage developers to build on their platforms, which in turn helps Web3 companies to showcase innovative uses of their technology.
Decentralized governance and voting
This is often undertaken in conjunction with rewards such as tokens, and it might allow token holders to vote on important project decisions. This not only engages the community but also empowers it in quite a democratic way.
Token economics
There are multiple ways for users to handle and manage their tokens, from locking them up – which can give them an opportunity to earn rewards, and benefits Web3 companies by reducing circulating supply and increasing loyalty – through to token burns and buybacks, which also reduce supply of tokens and create scarcity (potentially increasing their value).
Strategic alliances
Web3 companies often form partnerships with other blockchain projects, or even traditional companies. Another possible partner for them are academic institutions which give them extra credibility and help them to expand their reach.
Another marketing technique is the sharing of resources such as detailed roadmaps and providing regular updates and open source contributions; these are all ways to keep the community informed and engaged, and encourage more transparency within the ecosystem.
All companies depend on some form of marketing to promote their products and services. While Web3 companies may have some inventive methods, sometimes these work best when combined with tried and tested techniques applicable to any industry.
