Here’s how projects tackle key Web3 marketing challenges to ensure authentic interactions and better conversion rates.
Traditional marketing has a conversion problem, and Web3 holds the key to fixing it.
The shortcomings of Web2-style digital marketing originate from the lack of a meaningful two-way interaction with the user. Despite the massive interaction opportunities introduced by social media, traditional marketing efforts still put the user at the end of the communication chain — hence the name ‘end user.’
Plagued by ineffective targeting, over 95% of digital marketing efforts see no conversion, which then results in almost $240 billion of marketing budget wasted on inefficient ads. For a business that’s expected to surpass $689 billion by 2028, that’s a significant amount of money thrown into the void.
Overcoming the lack of conversion by better targeting requires transparency, traceability and superior analytics —features that resonate well with blockchain. This is why, marketing has become a huge trend within the Web3 space that’s based on the same technology.
As decentralized finance (DeFi) dramatically simplified issuing a new digital asset, creating its own token turned into a standard practice for numerous projects active in the Web3 scene. Those tokens then became a vital part of building a two-way interaction bridge with the community, giving birth to what’s today called MarketingFi. In a time frame that felt like overnight, degen-friendly terms like airdrops and social farming have become an essential part of life for many Web3 users.
Social farming in Web3
Web3 startups saw — and still see — airdrop as an easy way to attract new users and potential investors. Derived from the same mindset, social farming (also known as bounty airdrop) adds unique tasks and gamification to the mix — such as connecting social network accounts or taking specific actions on X (formerly Twitter), Discord or Telegram.
Using Web3 wallets for signups, MarketingFi looked like it almost solved the ineffective targeting issue in digital marketing. Taking only a tiny portion of digital marketing with a modest $1.3 billion market size in 2022, MarketingFi is expected to hit $45 billion in ten years, enjoying a 46% compound annual growth rate.
Pulling off a successful airdrop campaign
Web3-based projects found clever ways to utilize airdrops and social farming to boost community engagement. Using token mentions on X, projects like BlockGames (BLOCK) and Portal Coin (PORTAL) hit a home run with their marketing campaigns.
By initiating token airdrops for tweets, retweets, quotes, replies and likes on posts mentioning their tokens, those two projects succeeded in keeping the community actively engaged. As a result, the PORTAL token surged to 68 times its initial value, while Block Games amassed almost a million followers on X, emphasizing the effectiveness of the social farming model.
Content Courtesy – Coin Telegraph
