The Rise of Community-Driven Marketing in Web3

Nonfungible tokens (NFTs), blockchain, and web3 have captured the attention of marketers and brands worldwide, as they seek to unlock the untapped marketing potential of these emerging technologies. According to Verified Market Research, the NFT market could be worth $231 billion by 2030 (Verified Market Research, 2022), indicating the enormous growth potential of these nascent technologies. Yet, many marketers remain stuck in their web2 ways of thinking, limiting their ability to take full advantage of the web3 ecosystem.

Shifting Collecting Marketing Mindset to Web3

Marketing expert Robert Cole recently highlighted the core difference between web2 and web3 marketing: “Web2 marketing was all about getting people to buy”, he said, whereas “web3 marketing is about getting people to buy in”. In other words, web3 projects are built around the concept of community, which has become essential for gaining and maintaining attention in the digital space. This community-driven approach is a significant departure from traditional marketing, which focuses on demand generation and customer acquisition.

One of the primary drivers of community-driven marketing in web3 is the rise of decentralized autonomous organizations (DAOs). These entities are essentially digital communities that operate autonomously, without the need for central authorities. DAOs have become an essential tool for web3 projects, enabling community members to have a say in the development and direction of the project. This level of community involvement is unprecedented in traditional marketing, where brands have typically dictated their messaging and marketing strategies.

NFTs Build Community Ecosystems

The power of community-driven marketing is further evidenced by the growth of NFT marketplaces like OpenSea and Rarible, which have become go-to platforms for creators and collectors to buy and sell digital assets. These marketplaces are built around the concept of community, with buyers and sellers able to interact directly, share feedback, and build reputations. This level of engagement has created a thriving ecosystem of buyers and sellers who are passionate about NFTs, driving significant growth in the market.

Statistics show that the growth of community-driven marketing in web3 is not just a trend but a fundamental shift in the marketing landscape. The number of daily active users on Ethereum-based decentralized applications (dApps) grew by 639% between Q1 2021 and Q4 2021, indicating a significant increase in the adoption of web3 technologies (DappRadar). Additionally, the total value locked (TVL) in decentralized finance (DeFi) protocols grew from $20 billion in January 2021 to over $200 billion in December 2021, indicating a significant increase in the use of decentralized financial services (Bitcoin.com).

Community-Driven Marketing In The Web3 Era

In web3 the strength of a brand is determined by the engagement and involvement of its community members. The rise of DAOs, NFT marketplaces, and decentralized applications has created a thriving ecosystem of passionate users, driving significant growth in the Web3 market. As the statistics show, the growth of Web3 is not just a passing trend but a fundamental shift in the marketing landscape that will shape the future of digital marketing.