For decades digital marketing had a defined path to success on Web2 platforms, and marketers had strategies for measuring the impact of online advertising on sales.
Sure, there were technological tweaks and algorithm turns along the way, but on the whole performance marketing (campaigns that lead to clicks, leads, and sales) was fairly consistent in delivering a return on investment.
Sadly sticking with the same approach that successfully generated ROI just a few short years ago will not cut it today. Too many things, both technologically and economically, have changed.
At a time when the global economic outlook and markets are anything but predictable, and with consumer spending power in decline (World Economic Forum), focusing on longer-term activities that establish brand awareness, trust, and value, are the marathon moves that give brands the staying power to convert ROI.
Seeing past short-term speculation and striving for sustainable growth is the goal of Web3 founders and marketers scaling projects with value and tokens with real utility. Here, in the vision for the next iteration of the internet, building strong brands and communities through brand advocacy, word-of-mouth marketing, and community engagement are essential.
In other words, the marketing norms of Web3 are becoming increasingly agnostic and categorically necessary for surviving the technological shifts in digital marketing, along with the unpredictability of today’s economy. They are also opening up job opportunities in the gig economy. From user-generated content (UGC) creators to content authenticators, and content curators, alternative revenue streams are giving individuals the opportunity to future-proof incomes without solely depending on the traditional jobs market and its potential AI disruption.
The Decline in ROI of Traditional Marketing
In 2021 Apple changed the course of performance marketing by launching its iOS 14 operating system (Apple). The major privacy change gave users significantly more control over apps using their data, and marketers significantly less control over their ability to track and attribute advertising (Digiday).
Even if key Web2 platforms, such as Amazon, Meta, and Google, reported a surge in digital advertising revenue growth at the peak of the pandemic (The Wall Street Journal), that growth has since slowed. Today, the combination of economic instability and rising inflation have put ad spend under scrutiny and marketers under pressure to pause activities that no longer justify the cost.
On the surface, a looming recession might look like the right time to increase marketing spend on sale-driving tactics, but when consumers are more cautious, and the tools are less effective, that’s simply not the case.
According to research by Analytic Partners, the wiser approach is to allocate at least 50% of marketing spend towards brand-building and community (Analytics Partners, 2022).
The Rise in Community-Driven Word-of-Mouth Marketing
Brand and community-based marketing are all about building relationships with customers and involving them in the marketing process and this is especially prevalent in Web3. The intention isn’t simply “buy this”, but rather “get to know us, get to understand who we are, what we are about, and why we do what we do.” In order to do this, brands need to establish communities and create a space for collaborative storytelling, and for this, they have social media platforms, influencers, and user-generated content. These communities, in turn, become brand advocates and help spread the word. This kind of community-driven word-of-mouth marketing is fuelling the growth of Web3.
Word of mouth has taken many iterations through its journey online and into Web3 influencer marketing, but long before any of this even the most influential advertisers of the 20th century, including the “father of advertising”, David Ogilvy, famously called word of mouth the best advertising method (International Journal of Economic Sciences and Applied Research, 2010). In more recent years a 2020 study found that 60% of respondents believed influencer marketing, which is vital for spreading word of mouth, had a better return on investment than traditional advertising (Statista).
The Emergence of New Job Segments
Beyond disrupting traditional marketing, Web3 is also creating new job segments in the gig economy. UGC creators, for instance, are individuals who create content about products or services they have used and shared on social media platforms. These individuals are paid by brands to create authentic content that resonates with their audience.
Content authenticators, on the other hand, are responsible for verifying the authenticity of UGC content, ensuring that it meets the brand’s guidelines. Content curators, meanwhile, are responsible for organizing and managing UGC content and presenting it in a way that aligns with the brand’s messaging.
According to a report by Mastercard, the gig economy is expected to generate $455bn in global revenue by 2023 (Mastercard, 2019), and Statista estimates that more than half of US workers will participate by 2027 (Forbes). Renowned gig worker, Dylan Ogline, explains this through a mix of the pandemic pushing people into diversifying incomes, older generations beginning to join in, and people no longer wanting to return to the office as they search for greater professional autonomy (Forbes). This is where Web3, with its opportunities for people to work autonomously across multiple chosen sources of income, is gaining appeal.
Transitioning from Traditional Jobs
At a time when unfettered automation and AI could threaten many traditional jobs, Web3 marketing offers individuals an opportunity to transition into emerging Web3 job segments. People can be paid to consume products or services and market their experiences to others. This shift towards community-based marketing allows brands to focus on product innovation rather than creating a marketing narrative. This leads to better products that people need and love.
Following the Marketing North Star
Web3 community-based marketing strategies have become the north star of marketing, creating new job opportunities in the gig economy. There is a growing need for individuals with specialized skills in Web3 marketing. As we continue to move towards a more Decentralised and community-driven economy, Web3 marketing will likely become an essential tool for brands to connect with audiences and drive ROI.