Web3 is no longer just a buzzword. Despite setbacks caused by the NFT craze of 2022 and the resulting pump-and-dump scheming of degen traders, Web3 technology is revolutionizing the way brands and audiences interact through personalized communication and meaningful engagement. For traditional marketers, the trick is knowing how to effectively combine Web3 marketing techniques with their Web2 efforts.

Companies that have embraced Web3 technology have unlocked new ways to interact with their target audiences through two-way conversations, high-touch events, immersive gaming, and more. In doing so they have built loyal communities where everyone (the brand and their customers) gets value from the relationship. But what does this look like in practice, and why is it important to incorporate Web3 with traditional marketing strategies?

It’s All About Next Generation Personalization–Without the Cookie Trail

One thing we know in marketing is that personalization works for both brands and consumers. People prefer ads that apply to them rather than the generic commercials of yesteryear. Brands like to know who they are marketing to. But the way we collect that information is changing, and it all has to do with a little thing called cookies.

Cookies are small files generated by websites you visit that are sent to live on the browser you use on your computer or phone. These files contain little pieces of information about your browsing habits: for example, how often you visit the page, the links you click on, and of course, all of your purchasing decisions.

Cookies, specifically third-party cookies, have been the cornerstone of digital marketing for years. They have tracked, gathered, and stored users’ online behavior for many years. The benefit of cookies is that they are said to enhance user experience by remembering preferences and login details, as well as providing personalized content. But preferences change over time. Cookies don’t. They are collected and live on, linked to you forever.

In recent years, cookies have raised significant privacy concerns due to the lack of transparency and control over how personal data is collected and used. Users often aren’t aware they are being tracked, which websites have their information, and how that information is being utilized, leading to widespread discomfort and mistrust.

More critically, cookies are not effective in a multi-device world. They are device-dependent, not person-centric, causing a fragmented and incomplete view of user behavior. We exist in a mobile-first world where people switch devices frequently, significantly diminishing the ability of cookies to provide accurate data.

The future of the internet will be “cookieless” — and this is not a prediction; Google has committed to phasing out the decades-old data tracker by the end of 2024, following suit with Apple’s 2020 Safari update, which blocks all third-party cookies. For more than 30 years, brands have used cookies to generate visitor profiles that enabled them to serve up content that seemingly could read a user’s mind. In a world without this data collection tool, brands will need new solutions to match up and connect with their communities in a much more personalized, meaningful way. Enter Web3, which will enable brands to know their audience and deliver personalized content, without the drawbacks that come with cookies. What does this evolution look like in practice for both brands and consumers?

New regulations such as Europe’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) have also been established to protect user privacy. This is pushing the digital advertising industry towards a cookieless era where privacy-friendly, people-based solutions — enabled by Web3 — will lead the way.

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How Web3 Ties Everything Together

1. Tighter Brand-Consumer Relationships

Web3 is revolutionizing the advertising industry by giving power to the consumer, and it all comes back to the wallet – the digital wallet, that is. Thanks to these connected systems, which can replace third-party cookies, audiences can now opt-in to advertising to receive special offers, event invites, voting opportunities on product decisions, NFTs, and tokens from brands they love. Brands, on the other hand, can track campaign effectiveness, target audiences better, and increase audience engagement and conversion rates. Because wallets are connected to transaction histories, they give advertisers a better sense of a user’s net worth, taking the guesswork out of ad strategies and ensuring a higher ROI from their marketing efforts. And they can use this technology to build their already existing community (like Louis Vuitton) as well as target NEW consumers.

2. Personalized Communication

With Web3, brands can create a flywheel of personalized communication with their audience, creating more authentic connections that feed back into the process and become self-sustaining. Brands can get to know their audience by interacting with them through two-way conversations, gaining insights into what their audience wants and using these insights to determine what messaging resonates the most with them. They can then tailor their offerings to what resonates with their audience, increasing engagement and customer loyalty.

3. Long Dwell Times

The average “dwell time” on any given website is between 2-4 minutes – not a substantial amount of time for meaningful browsing and conversion. Web3 helps brands maintain longer periods of user engagement thanks to wallets, which allow brands to match interests and interact with their audiences. Consumers are motivated to opt-in and share their interests, unlocking special perks and exclusive benefits – similar to loyalty programs, only with deeper engagement and data that benefits both customer and brand – and when they do, they become part of a community. This mutually beneficial relationship unlocks exclusive access for customers while giving brands insights into consumer data that cookies never could.

The Dawn of a New Era of Engagement with Web3

Web3 is set to revolutionize branding and marketing in profound ways. With the extinction of third-party cookies and the growing emphasis on privacy, brands will need to embrace Web3 to create personalized and interactive experiences. For instance, smart contracts can automate marketing processes and transactions, boosting efficiency and cutting costs. Additionally, Web3 can enable the mainstream adoption of Augmented Reality and Virtual Reality in advertising, leading to immersive experiences that surpass traditional methods. Blockchain transparency will help brands establish trust by providing verifiable proof of ethical sourcing and fair trade practices. These initiatives can greatly enhance a brand’s reputation and consumer trust. Web3 has the potential to redefine the relationship between brands and consumers, ushering in an era of trust, transparency, and consumer empowerment. That’s what we call a win-win!

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