This article has been contributed by Zoina Shaikh, Founder, Hodlpr.
Web2 and Web3 marketing share the same fundamental principles, but treating them the same way is a recipe for failure.
Having spent over eight years in both traditional and crypto marketing, I’ve seen both sides firsthand. The difference is massive. Web3’s volatility doesn’t just affect the market; it directly shapes its communities and, in return, marketing strategies. A single wave of FUD or a well-timed KOL endorsement can make or break a project overnight.
In Web3, timing is everything. If you hesitate, you risk getting left behind. While time also matters in Web2, traditional marketers are used to predictable metrics, stable KPIs, and a greater sense of control. In Web3, however, you’re in for a ride.
Some Key Fundamental Differences Between Web3 & Web2 Marketing
As I mentioned earlier, Web2 and Web3 share the same fundamental principles, yet they operate very differently. One of the best ways to understand this difference is through the classic marketing funnel.
In traditional marketing, the funnel typically consists of three major stages:
Awareness → Consideration → Conversion
However, in Web3, this funnel is more complex, with community and engagement playing a major role at every step.
Awareness Stage
In Web2, awareness is primarily driven by strategies like social media marketing (SMM), SEO, and advertisements to attract potential customers. In Web3, however, you need to go beyond traditional methods. This includes airdrops, token incentives, community AMAs, and strategic partnerships with projects & KOLs to generate hype, the key driver of awareness in Web3.
Consideration Stage
In Web2, the consideration stage focuses on driving users to a website, offering product demos, and showcasing reviews. In Web3, however, users go through multiple assurance points before making a decision. These include whitepapers, roadmaps, websites, social media, tokenomics, and, most importantly, an active community. Based on my experience, a strong, engaged community is a key validator that influences the user’s decision to move to the next stage.
Ria Puneyani
Conversion Stage
In Web2, conversion typically means getting the user to sign up, subscribe, or purchase a product/service. In Web3, conversion takes different forms; users might mint an NFT, join a community, stake tokens, or participate in a DAO. Unlike Web2, where users simply buy a product, Web3 users often invest in a project, making them more deeply involved.
Post-Conversion & Loyalty
The loyalty phase in Web2 relies on loyalty programs, email marketing, and retargeting strategies to keep users engaged. In Web3, loyalty is driven by tokenized rewards, governance participation, and on-chain perks, giving users direct incentives to stay involved in the ecosystem.
Optimizing the Web3 Funnel
Optimizing a Web3 funnel is far more complex than it seems, as Web2 top-down approach playbooks don’t work here. The triggers and psychology of Web3 users are highly volatile, and community sentiment plays a massive role in decision-making. Understanding these dynamics is crucial for crafting successful Web3 marketing strategies.
Engagement Channels
Traditional marketing is largely dominated by one-way communication strategies such as TV, radio, social media, SEO, content marketing, and paid ads. In contrast, Web3 marketing builds on these strategies by leveraging decentralized platforms like Discord and Telegram to enable two-way communication. Additionally, Web3 utilizes innovative approaches like meme marketing and community-driven content creation. However, Web3 still faces limitations in utilizing traditional Above The Line (ATL) media like outdoor, radio, and TV ads. This is primarily because global crypto adoption is currently estimated at only 8%, meaning these mass channels are underutilized in Web3 marketing. As adoption increases, we can expect greater usage of these traditional media outlets.
Timing is Key in Web3
Recently, the number of Web3 projects has surpassed 11 million on CoinMarketCap alone. What does this mean? It leads to increased clutter, diluting dwell time and community engagement. On top of that, we see new narratives emerging regularly. In the last cycle, the focus was on the metaverse, and we saw a flood of tokens tied to that trend. Now, the focus has shifted to AI, rendering those past narratives less relevant.
Timing in Web3 is crucial. Unlike in Web2, where you have the luxury of taking time to research, plan, evaluate, and execute, Web3 moves at a much faster pace. The market changes rapidly, and you must adapt. Your campaigns need to be optimized to align with the current sentiment, or you risk falling behind.
Your Competitors Are Not Your Competition
One key difference in Web3 is that we see our competitors as potential collaborators. But how does this help in marketing? Constant collaborations are crucial for community engagement in Web3 and also build goodwill, creating a positive perception in investors’ minds. Continuous collaborations foster growth within the Web3 space by expanding reach, sharing resources, and strengthening relationships.
For example, recently, Injective and Fetch.ai (ASI) partnered to power AI-enabled finance on Injective. How does it aid marketing? This partnership gives both projects access to each other’s communities, generating hype and expanding their reach. It also boosts credibility, as each platform’s innovation and resources are showcased, attracting more attention from investors and users alike. Such collaborations help in creating a buzz, driving adoption, and fueling growth in the ecosystem.
Conclusion: Insights for Brands Looking to Adapt to the Web3 Ecosystem
The difference between Web2 and Web3 is massive. Web3 moves fast, demands adaptability, and is far more community-driven than traditional marketing. It requires a mindset shift from competition to collaboration, from sales to community engagement.
If you’re a traditional marketer looking to adapt to Web3, your best bet is to embrace volatility, listen to your community, and put them at the center of your strategy. Focus on user empowerment, stay ahead of the curve, and act accordingly.
In Web2, the goal is to end with engagement. In Web3, the goal is to start with engagement. I’ll leave it here.
Rishi Mundra
