Web2 vs Web3 Marketing: What’s the difference?
January 19, 2024
Our team at Take3 specialise in marketing and strategising for Web3 companies, and Web2 companies looking to transition into Web3. One question we receive often is, what’s the difference between Web2 and Web3 marketing? Let’s explore together.
Web2 and Web3 refer to different phases or iterations of the internet, each with its own set of characteristics and technologies. The distinctions between Web2 and Web3 extend to various aspects of business and operations, including marketing. This transition requires marketers to dedicate additional time and resources to comprehend diverse Web3 customer acquisition channels and formulate strategies tailored to their requirements.
While conventional strategies like content marketing and SEO are required in Web3, it’s important that all channels harmonise with emerging blockchain technologies and solutions. This includes NFTs and tokens, as well as burgeoning platforms such as Discord and Telegram.
Here’s a brief overview of the key differences in marketing between Web2 and Web3:
Centralisation vs. Decentralisation:
Web2: Centralised platforms dominate in Web2. Companies like Facebook, Google, and X (formerly Twitter) control user data and interactions, making them the primary channels for digital marketing.
Web3: blockchain technology and decentralisation completely transforms the centralised model of social media and communication channels. This is due to self-custody and data security being more heavily prioritised than data collection and big tech data ownership.
Marketing in Web3 involves understanding and engaging with decentralised applications (dApps), and the control of data is distributed among users through blockchain networks.
Ownership of Data:
Web2: In Web2, user data is typically owned and controlled by centralised platforms. Companies use this data to target advertisements and segment audiences more effectively.
Web3: Web3 aims to give users more control over their data. Users and content creators may have the ability to share or monetise their data directly, changing the dynamics of targeted advertising and agency.
Tokenisation and Cryptocurrency:
Web2: Traditional fiat currency is the standard for transactions. Cryptocurrency and token-based economies are not commonly integrated into Web2 marketing strategies.
Web3: Cryptocurrencies and tokens play a significant role in Web3. Marketing might involve token-based incentives, crypto transactions, and decentralised finance (DeFi) mechanisms.
Smart Contracts:
Web2: Traditional contracts and agreements govern transactions. Automation is limited compared to the capabilities of smart contracts.
Web3: Smart contracts, built on blockchain technology, automate and enforce agreements without the need for intermediaries. This could impact the way marketing contracts and partnerships are executed.
Community Engagement:
Web2: Marketing in Web2 often revolves around building a social media following, creating content, and engaging users on centralised platforms.
Web3: In Web3, marketing often involves building and engaging with communities around decentralised structures and tokens. This community-driven approach can be more decentralised and participatory.
Interoperability:
Web2: Interoperability between platforms is limited. Users often need separate accounts and profiles for different services.
Web3: Interoperability is a key focus. Decentralised identity systems and protocols enable users to have a unified identity across various applications and platforms.
In summary, Web3 marketing is characterised by decentralisation, user empowerment, token economies, smart contracts, and community-driven initiatives. While Web2 focuses on centralised platforms and controlled data, Web3 aims to redefine the internet as a more open and user-centric space.
Web3 is changing the way we conduct business, network, shop, game, consume news and market to the masses in new and exciting ways. We want you to be at the forefront of that change, future-proofing your business to ensure it thrives in this exciting convergence of the real and virtual worlds.
Ready to talk about the future? Reach out to us today to learn more about how we can help you embrace the future of the internet. Together, we can build a better, more connected world.
