Before we go into what matters for web3 brand building, it is important to outline a single, fundamental principle — brand building in web3 is decentralised. Anyone serious about web3 brand building needs to start here.
At this very point in time, there are stupendous success stories of native, web3 brands and web2 brands transitioning into web3, while on the other hand there are numerous failures. There are brand builders who are getting it right, and equally (if not more) who are getting it completely wrong. So, how do you ensure that your brand is a web3 success?
We will discuss some principles of web3 brand building success, one of which we have already touched upon in the first paragraph. These principles will help you go much beyond just designing a logo, coming up with a slogan or typeface or a set of visual identities. They will be your secret sauce in crafting and implementing a strong and differentiated positioning for your brand.
Firstly, decentralization is not a plain vanilla feature. You need to first ask whether your brand is ready for decentralization. Many brands will find it easier to embrace this dynamic, while many will struggle. This leads to an even bigger question — whether you are ready to enter web3.
If you think you indeed are ready, then decentralisation means building your brand as a shared entity, which is going to be shaped by the users who engage with it. Most traditional firms that have seen web3 success have adopted strategies that allow their brands to be shaped by a community of fans and creators. As it is not plain vanilla, this decentralized approach can take many shapes:
Full decentralization wherein you allow significant creative freedom to fans and creators to build the brand they want (a case of highly malleable IP)
Partial decentralization wherein you keep certain aspects of your brand under control, and allow other aspects to flourish
Limited decentralization, where majority of the branding assets remain unchanged during a web2 to web3 transition, and only very limited elements are set free (for example, get creators to design a communication campaign)
Launching NFTs, however successful they might become, are not examples of full decentralization. Just because an NFT needs to be bought by connecting a wallet to a blockchain, does not mean your brand has become a web3 native. You need to choose the level of decentralization you are comfortable with, but before that you need to assess what fans are looking for.
The first principle already alludes into the second principle, which is your ability to create, nurture and sustain a community of fans and creators. Even before the advent of web3, some brands enjoyed massive communities. Although this sounds like a broken record, Nike’s legions of fans predated even the advent of mass internet. The same is true for any brand that inspired creative expressions from fans (think about the whole Marvel Cinematic Universe and think about the hundreds of fan made trailers you have seen on YouTube).
Let’s say you are a CEO or a senior brand builder in a traditional company or a founder of an entrepreneurial brand. How do you decide whether your brand is ready for web3? Your first proof is the amount and quality of buzz your brand generates. Is your brand talked about, experiences shared, lots of pictures clicked, considered a part of a lifestyle, is a cultural narrative builder, and is considered an influencer? Some of these proof points make your brand more web3 friendly.
If you have seen a community unfolding around your brand organically (with little or no marketing push), then you have a higher chance of success in web3. Communities in web3 have a deeper, more meaningful connection, which is enhanced by the relative ease of sharing and creating ideas. Creators in web3 can build your brand’s next advertising campaign, the next innovation platform, and gazillion forms of creative content. Depending on the level of decentralization awarded, your brand’s community are your brand’s managers, creative directors, campaign coordinators and media planners.
What if your brand is not talked about and does not have a buzz? That does not stop you from entering web3, but then you would need to build a brand around a community. Your brand won’t need a social media manager, but will need a community manager. Another way of creating a community is to become part of an existing one, but it is harder and requires a step-by-step approach of getting accepted and assimilated into the community.
NFTs have now become an ubiquitous source of rewarding communities for their involvement and loyalty. But communities are also looking beyond the benefits unlocked by NFTs. They are looking for shared and collective interests, the joy and freedom of expressing and sharing ideas, gathering feedback from like-minded folks and forming bonds around a common theme. In many cases, this theme is your brand, and you need to know how to nurture and build fan and creator communities in web3.
The final brand building principle is about creating an experience. This is different from experiential branding, as it is amalgamation of ownership with creative exploration. It is about “creating my own brand experience” compared to experiencing something that has been made for me.
Without oversimplifying, it is akin to every fan creating his / her own brand story and relishing it. Nike’s CryotoKicks Dunk Genesis is an example of this highly personalized brand story. The Mutant Apes airdrop for Bored Ape Yacht Club owners is another example of a web3 personalized experience. In sum, web3 is a sense check of your brand’s innovation potential. If your brand’s innovation potential is narrow, it does not mean you cannot enter web3. It just means you need a different strategy to maximize the benefits of decentralization, community and personalized experience.
If you do care about web3 branding, you need to be ready to become an enabler over a controller, an acceptor over being a giver, a lover of freedom over structure, and having the ability to engage thousands over commanding the attention of a few. This is the essence of web3 branding.