Web3 Marketing As Community Building
Delivering Trusted Web3 Business Strategies Straight to Your Inbox
There are many ways that web3 breaks from the traditional ways of doing business. But perhaps one of the biggest changes has to do with the ways businesses approach marketing.
Since the birth of web2, the focus of most internet marketing dollars has been on clicks and conversions. Nowhere is this better personified than in everyone’s least favorite marketing platform, Google’s AdSense, an auction-based system designed to enrich the search giant by extracting maximum value from advertisers.
Google’s methods of monetization depend on scarcity – there’s limited space in a browser to display ads, and users only have so much attention. Rarely does anyone get to the second page of search results. Contrasted to web2’s scarcity model, web3 focuses on abundance, and nowhere is this more true than in the ways in which web3 marketers approach their work.
Greg Patenaude is a seasoned community builder, and he’s convinced that web3 marketing is all about building healthy communities. And the keys to building a great community are to focus on alignment, culture, and engagement. When these mechanisms are combined with blockchain-based technologies, brands can not only market to their customers, they can help their customers market to each other.
This new way of looking at marketing, this focus on building vibrant communities, is the key insight that many businesses need to understand about web3. “A web3 marketer is a storyteller with a revolutionary tool belt. A web3 marketer is out to change the world by changing the culture…If you are in web3, you are a marketer.” Let’s tighten that toolbelt and “start working together to build the better future we know is possible.”
Web3 Marketing As Community Building
Author: Greg Patenaude
Let’s face it, crypto has a marketing problem. I remember early in my crypto writing career having discussions that we were going to stop using the word ‘crypto’ in our newsletters and focus on using ‘web3’. Everyone already knows what they think about crypto — it’s full of scammers, criminals, and other degenerates. Words have power, and we thought by changing the words we used we could change the perception. What we realized is that we had a marketing problem.
Crypto has a marketing problem because we know that decentralized finance and blockchain technology can replace many of the broken systems that we currently use. We know this technology can be used to build a better future for everyone. We know it, but we have yet to convince anyone that it’s true.
If you see a way to make things better, you now have a marketing problem.
Web3 marketing isn’t about your logo, paid advertising, or vanity metrics. Web3 marketing is about creating the change we seek to make. The best way to create change is to change the culture. And the best way to change the culture is by building healthy communities.
Web3 marketing is community building.
Building Healthy Communities
Perhaps the biggest difference between traditional marketing and web3 marketing is the importance of building a healthy community. A healthy community is subjective and likely to vary from one brand to another, but there are some shared principles:
Alignment is required
Culture matters
Engagement is more important than growth
Alignment Is Required
Alignment is critical for any community. A shared purpose serves as a guide for community members who actively work together towards fulfilling that purpose. In the context of web3, that often means members participate directly in the project rather than as spectators.
Alignment not only depends on values alignment but also on shared incentives. When community members share incentives, they are more likely to work together towards a common goal. This can lead to better decision making and drive individual actions that benefit the community.
Nike recently launched an NFT collection that involved the community in the design process. They were able to align the community behind their mission and goals by giving members a sense of ownership and belonging.
A community aligned behind a shared purpose creates a sense of belonging and fosters collaboration. As members become more invested in the community, they are more willing to contribute their time and skills to achieve its purpose. Alignment also promotes trust and accountability among community members, leading to the next principle: culture.
Culture Matters
DAOs and web3 communities survive because of local culture. The community is a place where people want to be. Web3 tech allows brands to create accessible and inclusive experiences in ways that traditional marketers could only dream of. NFTs and digital assets can offer a range of diverse benefits and be made available to a much wider audience. These assets can represent not only value but also utility, unlocking exclusive benefits, content, and experiences, all of which serve to encourage community health and growth.
Building a diverse and inclusive community is important for creating a sense of belonging among all members. This may involve actively seeking out and welcoming people from different backgrounds and experiences, and ensuring that all members feel valued and included. When a community is diverse, it brings together a variety of perspectives, experiences, and talents, which can lead to more creative and effective solutions.
Here’s the thing about a strong culture. It spreads. Culture is a lever for creating the change we seek to make. Change the culture, change the world.
Engagement Is More Important Than Growth
While traditional marketing chases followers, likes, and conversions, web3 marketing prioritizes engagement. It is better to have 100 highly engaged and mission-aligned members than to have 1,000 members who are waiting to be told what to do next.
Engaged members who actively participate in the community, provide feedback, and contribute to the community’s goals help create a sense of belonging and shared ownership. By encouraging and providing ownership opportunities and a voice in the decision-making process, brands can empower members to contribute ideas, feedback, and even design new solutions. This sense of engagement and ownership creates deeper connections and fosters long-term loyalty.
We Are All Marketers Now
In the web2 world, platforms like Facebook, Google, and Apple had all the power. In web3, communities and their members are imbued with that power. Web3 marketing involves using the tools and technology we have available in innovative ways to build vibrant communities. Brands with strong communities are better able to connect with audiences, enhance value, and drive revenue as a downstream benefit.
A web3 marketer is a storyteller with a revolutionary tool belt. A web3 marketer is out to change the world by changing the culture, working to build the better future we know is possible. If you are in web3, you are a marketer. And if you are not in web3, there’s never been a better time to learn that we are all marketers now.
Greg Patenaude is a content manager and consultant at Bankless Consulting focused on using blockchain technology for real world impact. Follow him on Twitter @0xSiddhearta.
🎙️ Early Podcast
A Podcast About Web3 Business from Bankless Consulting
10. Adz: Will DAOs Revolutionize Human Behavior?
DSide's guest this week is Adz, a management and brand strategy consultant with a wealth of experience working for major tradcos, as well as her own startups. While at Diageo, she was the Global Marketing Manager for the Captain Morgan rum brand. She has also founded and exited two talent search firms.
More recently, she is an L2 contributor at BanklessDAO, including with the Marketing Office at Bankless Consulting. Adz has executed marketing and media visibility strategy projects for projects ranging from DeFi protocols to Philanthropy DAOs, with experience executing across social media, events, and public relations. She is currently the Director of Marketing and Partnerships at Catapult - building better infrastructure for digital communities in Web3.
DSide and Adz discuss DAO involvement, governance, talent coordination, and networking in web3. While Adz is of the opinion that DAOs and web3 may not be as decentralized as they ought to be, she is convinced of the need for tooling and systems that will inch us closer to that reality. Adz is an avid reader and a go-getter who is indeed optimistic about the future of web3.
Marvel Studios Founder Unveils New NFT Collection From Mythos Studios
Author: Katherine Ross
🔑 Insights: Mythos Studios, an entertainment studio founded by Marvel Studios, is launching a 1-of-1 digital art collection, which includes 1/1 published colored art and 1/1 new pieces from classic Marvel comics and films, the Pop Art movement, Marvel's iconic black light posters of the 70s, the neon lights of Broadway, and the art and energy of web3. The NFT collection allows for direct interaction with the community, including:
Creating fan ownership: As David Maisel, founder of Marvel Studios pointed out, web3 allows for more direct interaction with the community and fanbase.
Increased revenue potential: NFTs have the potential to generate significant revenue for businesses by monetizing intellectual property for art collectors and fans.
Greater control over intellectual property: NFTs provide a way for businesses to assert greater control over their intellectual property. With the 1-of-1 digital art collection, Mythos Studios can ensure that each piece is unique and cannot be duplicated or copied.
“Web3 allows more direct interaction with the community, the fanbase, and also a sense of psychological and actual ownership.”
David Maisel, Founder of Marvel Studios.
Starbucks Drops ‘First Store’ NFT Collection
Author: James Cirrone
🔑 Insights: Starbucks is launching its First Store Collection of NFTs, modeled after the original Starbucks storefront that opened in Seattle. The company is also planning to integrate its rewards program and NFT drops with Starbucks Odyssey, an upcoming Web3 rewards platform, where users can earn points through ordering at Starbucks. The points can then be redeemed for exclusive digital collectibles. Starbucks is using the NFT collection to:
Create buzz around its brand and generate interest among customers and collectors
Increase revenue potential with the sale of limited-edition NFTs
Integrate the collection with its existing rewards program to incentivize customer engagement and build customer loyalty
Mattel Marketplace Lets You Trade Barbie and Hot Wheels NFTs Peer-to-Peer
Author: James Cirrone
🔑 Insights: Mattel, the toy manufacturer, is launching a Rarible-powered peer-to-peer marketplace on its virtual collectibles platform, enabling users to buy and sell their NFTs directly. Mattel will be releasing the fifth series of its Hot Wheels NFT Garage and users who acquire rare makes of the collection will be eligible to receive a physical die-cast version. With the launch of its NFT platform, Mattel aims to create an unrivaled experience for the fans of its iconic brands. Mattel is using the NFT platform to:
Create a new revenue stream through the sale of collectibles, with the peer-to-peer marketplace creating a secondary market that can drive up prices
Promote the release of new collections of NFTs and incentivize fans to participate, offering a new way to engage with customers
Build a connection between the digital and physical worlds for Mattel's various brands and products
Establishing itself as an early mover in web3 and creating a unique selling point for its brand
Designing a new ecosystem for fans and collectors to meet, creating new opportunities for collaboration and community-building
“[We created the Mattel Creations Virtual Collectibles] with the intention of creating an unrivaled, best-in-class experience for the fans of Mattel’s iconic brands.”
Ron Friedman, Vice President at Mattel Future Lab
Nike Unveils First .Swoosh NFT Digital Sneaker Drop
Author: Sander Lutz
🔑 Insights: Nike is launching a collection of virtual sneaker NFTs, “Our Force 1”, paying tribute to the iconic Nike Air Force 1 sneaker, with hundreds of thousands of virtual pairs potentially available on Polygon. The collection consists of two types: Classic Remix sneaker boxes, containing virtual kicks inspired by Air Force 1 shoes released between 1982 and 2006, and New Wave boxes, featuring pairs designed in 2007 and later. In February, Nike announced that four virtual shoe designs created by .Swoosh members were selected for the drop and worked with those designers to bring their ideas to life on the blockchain. The digital collectible offering has several unique benefits:
Accessible: Nike is offering the NFTs at a low price point to make them accessible to a wider audience.
Community creation: Nike is creating a sense of ownership and community around the brand by involving the community in the design process.
Utility: The OF1 boxes can unlock additional utilities and benefits for holders, including access to exclusive physical products and experiences, creating added value for consumers.
Authenticity: By creating unique virtual sneakers registered on the blockchain, Nike can protect its brand and intellectual property from duplication.
“We are exploring new ways to tell stories and create relationships while removing the barriers and limitations of physical product.”
Ron Faris, GM of Nike Virtual Studios.
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