There are around 5.03 billion internet users globally. With this many people online, you need to make sure your business has a strong online presence if you want it to grow and succeed. As we move into the world of Web3, some changes are happening that will affect how businesses need to perform online.
To develop the best digital marketing strategy, you need to know how customers will react to the changes that Web3 brings. For a rundown on how Web3 technology will affect future consumer trends, keep reading.
What Is Web3?
Even though most of us use the internet every day, many people still don’t know about the different web iterations. Web 1.0 was the first stage, mostly consisting of static pages from which people could consume content. Web 2.0 is the stage most people know well, consisting of things like social media platforms and content creation.
One of the main principles of Web3 that separates it from Web 2.0 is decentralization. While most of the power has previously belonged to large companies like Apple and Google, Web3 intends to put the power into the hands of consumers.
Web3 is built on blockchain technology, allowing it to be more accessible for people while also being private and secure. For a long time, ownership of data has been a controversial issue online.
In the past, when uploading or creating content, the platform used has often had ownership rights. With Web3, people will own their data. A user can mint content using a decentralized app, and retain ownership of it forever (or until they decide to sell it).
Overall, the idea is that Web3 is the next evolutionary step for the internet, giving more control to users. While it’s still early, companies should already be thinking about how things will change going forward.
How Web3 Relates to Customers
Web3 will change the way people use the internet and interact with brands. To be prepared for the coming changes, you should be aware of how Web3 will relate to consumers.
The Foundation of Decentralized Finance
Cryptocurrency use is growing every year, and Web3 could be a key component in the foundations of a digital economy. Crypto and Web3 both utilize blockchain technology, and they both have the goal of giving power to the users. In terms of crypto, this means allowing people to control their money using a digital wallet, rather than a bank or another financial institution.
Many brands already accept crypto payments, with more adopting it every year. Web3 and crypto go hand in hand, so it’s likely that as one grows, so will the other.
More People Buying NFTs
NFTs (non-fungible tokens) have seen an explosion in popularity in the last few years. They’re digital assets that can be bought, sold, and traded using blockchain technology.
Many people in the consumer market still don’t fully understand NFTs, but as their popularity increases, so do the possibilities. While most people are only aware of the digital images that often serve little purpose, there’s a lot of potential for NFTs to provide value in various industries. The music, gaming, and fashion industries have all begun to implement NFTs in various ways.
As the adoption of NFTs increases, traditional online shopping will change. People are less likely to use Google, for example, as they begin to use more decentralized marketplaces or gated apps that don’t show up in search engine results.
Trust and Reduced Prices
As Web3 provides more security and increased privacy, people will naturally trust it more. People can be happy knowing their data is theirs, and not being given away to various corporations.
Consumers will be able to shop directly with retailers and producers. They can then skip any intermediaries, leading to increased trust between buyers and sellers. On top of this, it could reduce fees, meaning lower prices for shoppers.
The Volatility of Crypto
While there are some clear advantages, there are also some concerns with the coming changes. One reason that some people are wary of crypto is because of how volatile it is. The value of cryptocurrencies can change very rapidly, which is an appeal for some people if they’re looking to invest to make profits.
For others, however, this risk puts them off from investing in crypto. As traditional fiat currencies can’t be used on blockchains, this could limit the number of people shopping through Web3.
Many people also find the Web3 purchasing process confusing. This is understandable, as it’s more complicated than normal online shopping. If people don’t understand how to shop on Web3, and don’t want to take the time to learn, they’ll probably stick to the methods they know.
Another drawback of cryptocurrencies is the fees associated with them. All crypto transactions incur a gas fee (similar to a processing fee) and these vary between different blockchains. On some, gas fees are generally less than a cent, but with others, they can sometimes be thousands of dollars if the network is busy.
Fortunately, people can see how busy networks are to get an idea of how high gas fees will be, and when making a purchase, their crypto wallet will provide an estimate before a user approves a transaction. This way, they can decide whether or not a purchase is ultimately worth it.
How Brands Can Leverage Web3
With these changes in mind, it’s important for brands to know what they can do to make the most of Web3 and its effect on consumers. Understanding all of these things sooner will help you develop a digital marketing strategy that will give your brand an edge over your competitors.
NFT Leveraging to Build Relationships
While NFTs are still new to many people, some big brands have started selling their own. Nike, for example, sells NFTs of branded sneakers to users of the virtual world Roblox. Players can have their avatars wear these shoes, and they’re able to sell them to other users at any point.
Patrón also launched an NFT project in January 2022, with 150 NFTs available. The buyers of these NFTs also gained ownership rights to a physical bottle of their Charman’s Reserve. With only 150 of these bottles being made (1 for each NFT) they’re considered very rare, and these NFTs each had a price of 1.5 ETH – around $4,500 at the time.
NFTs are like a certificate that validates ownership, reducing the risk of fraudulent sales. This also allows customers to interact directly with brands, helping build stronger relationships.
Customer Engagement in the Metaverse
For many brands, marketing data is one of the most important things for understanding how a business is doing. With that being said, another great way to get consumer insights is to talk to customers directly.
A Metaverse is a 3D virtual world where people can interact with each other. By establishing a presence here, a company can engage directly with its customers. This can present a very effective way to get feedback from users so that you can see where your company is doing well, and where it needs improvement.
Web3, crypto, and blockchain technology are all very new. This makes it difficult to say exactly where things will go in the future. With that being said, it’s possible to look at current trends to get an idea of how consumers are behaving, and what they may do in the coming years.
In 2021, the number of cryptocurrency owners worldwide almost doubled. This shows that, despite the concerns that many people have, it’s still a rapidly growing technology.
This increase in adoption isn’t just among retail investors. A Bitstamp survey concluded that 88% of institutional investors believe crypto will be adopted by the mainstream within the next 10 years.
As more people take an interest in crypto and blockchain technology, the possibilities will grow. Keeping up with the latest marketing trends is one of the best ways to make sure your brand can take advantage of Web3 and everything it has to offer.
Building Your Digital Marketing Strategy
With all of these advancements in mind, it’s important to think about what your brand needs to do to keep up with consumer trends. You need to have a digital marketing strategy in place that will work well with what customers want to see.
At Elite Digital, we specialize in digital strategies, web design, SEO, and more. We’ll create a plan based on your goals, and execute it while being in constant communication with your team. Once everything is in place, we can provide real-time analytics to determine how successful your campaign is, and identify any areas for improvement.
If you have any questions for us or want to find out more about our services, click here to contact us today.