Marketing during the previous NFT Bull Market was focused mainly on selling a limited number of NFTs and increasing trading volume and FP on the secondary market. And the Success or failure was determined by FP and Volume.

However, as actual product is released and Web3 (NFT, tokens, etc.) is integrated as an infrastructure layer, I believe that the main goal in Web3 marketing in the future will be about acquiring new users and the product growth.

In other words, shifting from an NFT-focused perspective to a product-focused perspective requires a rethinking of Web3 marketing strategies. Rather than focusing on increasing FP and volume, the focus should be on building an LTV>CAC structure (growth perspective).

LTV: Life Time Value, which refers to the total amount of payment a customer makes during the period they remain a customer.

CAC: Customer Acquisition Cost, which refers to the cost incurred to acquire customers.

Under this view, various marketing solutions for the growth of Web3 products and VCs' thesis on this topic are emerging nowadays.

In this article, let’s identify the problems of current Web3 marketing and introduce some primitives to move forward.

First of all, what is marketing?

The best definition of marketing by far is as follows (Personal opinion):

• Understanding customer needs and desires

• Communicating the benefits of products & services

• Leading potential customers to take action, such as making a purchase or achieving a specific goal

There’s various of actions that marketer tries to achieve, and the marketing funnel visualizes these actions. In the digital marketing environment, user behavior can be measured by the funnel, and marketing strategies are optimized through the data.

Same Framework, Different Approach

Marketing in Web3 is fundamentally same as traditional marketing. The process of creating growth by repeating the Fly wheel below is same.

However, marketing strategy is different from traditional Web2 marketing strategy as new attempts are being made.

• A relationship-based marketing strategy through community building, KOL & Influencer management is used instead of media buy like paid ads, SEO

• Interactive marketing channels such as Discord and Twitter are being utilized

• User-centric marketing campaigns such as Airdrop, Collab & Partnership, Loyalty Program are being used

From a marketing perspective, community building is a process of creating a pool of potential customers that can be converted and is one of the axes of marketing strategy. Building a high loyalty community is more important than any other marketing strategy as it can acquire high LTV customers at a lower cost.

However, a question arises here.

• Why is Web3's marketing strategy user-centric and the importance of relationship building increased?

• Are the traditional Web2 marketing strategies unable to be used or not used?

Through understanding the characteristics derived from the difference in infrastructure can give you the answer. There’s an opportunities and limitation of current Web3 marketing to be utilized due to this difference.

Web3 works on a blockchain where all transactions are transparently disclosed and transaction executed based on psudonym wallets. In contrast, Web2 is an environment where user behavior data is measured, collected, and identity is verified.

This fundamental difference of infrastructure has shaken the existing marketing grammar which was utilized through cookies and platform user data.

Marketers face situations where they know the payment history of wallets, but they don’t know who made this payment in this pseudonymous world(absence of behavioral data).

Absence of behavioral data makes targeting impossible where marketers face limitations on planning, executing, and optimizing marketing strategies as below;

• How to reach? -> Impossible to Target

  • Web3 advertising is difficult due to Web2 platform policies

  • Web3 native social networks have low traffic = Insufficient ad network and advertising channels

  • In this situation, community building, KOL, and influencer channels that focus on relationships are the only way

• How to track? -> Difficulty in performance measurement

  • When user acquisition occurs in Web2 channels executing ads and purchase conversion happens in Web3, it is difficult to know if the target user converted (web2, web3 identity fragmentation)

  • As a result, it is difficult to measure LTV and CAC, where it’s impossible to optimize

• How to retain? -> Lack of personalized user experience (CRM)

  • In a situation where there is no wallet data of users within the community, personalized messaging is impossible, making it difficult to make re-targeting or re-engagement.

  • There is a lack of wallet to wallet messaging channel.

As mentioned earlier, various marketing solutions and VC thesis are emerging to address the issues of Web3 marketing.

Would like to introduce some primitives that solve the three problems mentioned above.

• How to reach? → Web3 Ad Network

  • Web3 native ad network → Slise

  • Web2 & Web3 Hybrid solution → Addressable

• How to track? → Wallet Attribution

  • Conversion tracking and improvement through wallet-based attribution → Spindl

• How to retain → Wallet messaging & customization

  • CRM through messaging channel diversification and personalization → Dialog

• Slise connects advertisers and publishers (DApp)

• It is difficult to expect performance since the traffic of Web3 products is not significant yet and the user behavior data on-chain is not accumulated enough to target and create cohort

• However, synergy can be created as on-chain data and in-app data accumulate which will enable sophisticated targeting

• The biggest advantage of Web3 native ads is that the ads can generate conversions directly → Enabling Cost Per Transaction ads model which is more advertiser friendly than CPC or CPI.

• Addressable creates a TA (Target Audience) database based on on-chain data, enabling targeted marketing on Twitter and various web2 advertising channels.

• It holds a TA database that matches 2M+ EVM wallet addresses and Twitter account information.

• It proposes the most visible solution among current Ad networks by delivering messages to a larger target than Web3 native ad networks.

• Since advertising costs are incurred on Web2 channels, it may be financially burdensome for small sized projects to use.

• Spindl provides an attribution solution that can analyze inflow and conversion by channel.

• It is possible to measure conversions from Web2 channels to On-chain, and segmented funnel analysis is possible through Magic links that adopt the UTM method.

• In Web3 marketing, most urgent sector that needs improvement is marketing analytics. This enables the ground of marketing optimization. Personally think that Spindl provides most sharp and necessary solution at the moment

• Dialog is a wallet messaging solution that allows personalized messages based on On-chain data and First party data.

• Various CTA message pop-ups can be sent to each segment, and Re-engagement and Retention can be captured by utilizing existing 1st party data.

• The limitations of Discord and Twitter are information overload, volatility, and the inability to provide a customized experience, which makes CRM difficult. Dialog proposes a highly useful solution that can diversify personalized messaging channels and create CTAs integrated into the product, which is highly effective.

Most of the tools are still at the demo version and insufficient to be actively implemented. However, considering the trend mentioned above, growth will inevitably be required for Web3 marketing, and performance measurement and optimization will be necessary in the process. Which will eventually increase the adoption of those tools in near future.

Finally, I would like to conclude by posing some questions that can help determine if you, as a marketer, are prepared for these changes.

Cheers 🍻

• How is the marketing funnel of the project defined and measured?

• Can I distinguish Paid vs Organic UA?

• How do I collect and manage 1st party data? How is CRM executed based on this data?

• Is marketing cost being executed in an LTV > CAC structure?

Marketing during the previous NFT Bull Market was focused mainly on selling a limited number of NFTs and increasing trading volume and FP on the secondary market. And the Success or failure was determined by FP and Volume.

However, as actual product is released and Web3 (NFT, tokens, etc.) is integrated as an infrastructure layer, I believe that the main goal in Web3 marketing in the future will be about acquiring new users and the product growth.

In other words, shifting from an NFT-focused perspective to a product-focused perspective requires a rethinking of Web3 marketing strategies. Rather than focusing on increasing FP and volume, the focus should be on building an LTV>CAC structure (growth perspective).

LTV: Life Time Value, which refers to the total amount of payment a customer makes during the period they remain a customer.

CAC: Customer Acquisition Cost, which refers to the cost incurred to acquire customers.

Under this view, various marketing solutions for the growth of Web3 products and VCs' thesis on this topic are emerging nowadays.

In this article, let’s identify the problems of current Web3 marketing and introduce some primitives to move forward.

First of all, what is marketing?

The best definition of marketing by far is as follows (Personal opinion):

• Understanding customer needs and desires

• Communicating the benefits of products & services

• Leading potential customers to take action, such as making a purchase or achieving a specific goal

There’s various of actions that marketer tries to achieve, and the marketing funnel visualizes these actions. In the digital marketing environment, user behavior can be measured by the funnel, and marketing strategies are optimized through the data.

Same Framework, Different Approach

Marketing in Web3 is fundamentally same as traditional marketing. The process of creating growth by repeating the Fly wheel below is same.

However, marketing strategy is different from traditional Web2 marketing strategy as new attempts are being made.

• A relationship-based marketing strategy through community building, KOL & Influencer management is used instead of media buy like paid ads, SEO

• Interactive marketing channels such as Discord and Twitter are being utilized

• User-centric marketing campaigns such as Airdrop, Collab & Partnership, Loyalty Program are being used

From a marketing perspective, community building is a process of creating a pool of potential customers that can be converted and is one of the axes of marketing strategy. Building a high loyalty community is more important than any other marketing strategy as it can acquire high LTV customers at a lower cost.

However, a question arises here.

• Why is Web3's marketing strategy user-centric and the importance of relationship building increased?

• Are the traditional Web2 marketing strategies unable to be used or not used?

Through understanding the characteristics derived from the difference in infrastructure can give you the answer. There’s an opportunities and limitation of current Web3 marketing to be utilized due to this difference.

Web3 works on a blockchain where all transactions are transparently disclosed and transaction executed based on psudonym wallets. In contrast, Web2 is an environment where user behavior data is measured, collected, and identity is verified.

This fundamental difference of infrastructure has shaken the existing marketing grammar which was utilized through cookies and platform user data.

Marketers face situations where they know the payment history of wallets, but they don’t know who made this payment in this pseudonymous world(absence of behavioral data).

Absence of behavioral data makes targeting impossible where marketers face limitations on planning, executing, and optimizing marketing strategies as below;

• How to reach? -> Impossible to Target

  • Web3 advertising is difficult due to Web2 platform policies

  • Web3 native social networks have low traffic = Insufficient ad network and advertising channels

  • In this situation, community building, KOL, and influencer channels that focus on relationships are the only way

• How to track? -> Difficulty in performance measurement

  • When user acquisition occurs in Web2 channels executing ads and purchase conversion happens in Web3, it is difficult to know if the target user converted (web2, web3 identity fragmentation)

  • As a result, it is difficult to measure LTV and CAC, where it’s impossible to optimize

• How to retain? -> Lack of personalized user experience (CRM)

  • In a situation where there is no wallet data of users within the community, personalized messaging is impossible, making it difficult to make re-targeting or re-engagement.

  • There is a lack of wallet to wallet messaging channel.

As mentioned earlier, various marketing solutions and VC thesis are emerging to address the issues of Web3 marketing.

Would like to introduce some primitives that solve the three problems mentioned above.

• How to reach? → Web3 Ad Network

  • Web3 native ad network → Slise

  • Web2 & Web3 Hybrid solution → Addressable

• How to track? → Wallet Attribution

  • Conversion tracking and improvement through wallet-based attribution → Spindl

• How to retain → Wallet messaging & customization

  • CRM through messaging channel diversification and personalization → Dialog

• Slise connects advertisers and publishers (DApp)

• It is difficult to expect performance since the traffic of Web3 products is not significant yet and the user behavior data on-chain is not accumulated enough to target and create cohort

• However, synergy can be created as on-chain data and in-app data accumulate which will enable sophisticated targeting

• The biggest advantage of Web3 native ads is that the ads can generate conversions directly → Enabling Cost Per Transaction ads model which is more advertiser friendly than CPC or CPI.

• Addressable creates a TA (Target Audience) database based on on-chain data, enabling targeted marketing on Twitter and various web2 advertising channels.

• It holds a TA database that matches 2M+ EVM wallet addresses and Twitter account information.

• It proposes the most visible solution among current Ad networks by delivering messages to a larger target than Web3 native ad networks.

• Since advertising costs are incurred on Web2 channels, it may be financially burdensome for small sized projects to use.

• Spindl provides an attribution solution that can analyze inflow and conversion by channel.

• It is possible to measure conversions from Web2 channels to On-chain, and segmented funnel analysis is possible through Magic links that adopt the UTM method.

• In Web3 marketing, most urgent sector that needs improvement is marketing analytics. This enables the ground of marketing optimization. Personally think that Spindl provides most sharp and necessary solution at the moment

• Dialog is a wallet messaging solution that allows personalized messages based on On-chain data and First party data.

• Various CTA message pop-ups can be sent to each segment, and Re-engagement and Retention can be captured by utilizing existing 1st party data.

• The limitations of Discord and Twitter are information overload, volatility, and the inability to provide a customized experience, which makes CRM difficult. Dialog proposes a highly useful solution that can diversify personalized messaging channels and create CTAs integrated into the product, which is highly effective.

Most of the tools are still at the demo version and insufficient to be actively implemented. However, considering the trend mentioned above, growth will inevitably be required for Web3 marketing, and performance measurement and optimization will be necessary in the process. Which will eventually increase the adoption of those tools in near future.

Finally, I would like to conclude by posing some questions that can help determine if you, as a marketer, are prepared for these changes.

Cheers 🍻

• How is the marketing funnel of the project defined and measured?

• Can I distinguish Paid vs Organic UA?

• How do I collect and manage 1st party data? How is CRM executed based on this data?

• Is marketing cost being executed in an LTV > CAC structure?