Why Traditional Marketing Strategies Fail in Web3 — And What to Do Instead

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The emergence of web3 and crypto has created an entirely new landscape for marketing that many traditional brands and agencies are struggling to navigate. Legacy marketing strategies that have worked for decades are now falling flat in this new decentralized, community-driven environment. Here’s why traditional marketing fails in web3, and what brands should do instead:

The Old Playbook Doesn’t Apply

Much of traditional marketing has relied on interrupting audiences with messages to build awareness and drive conversions. But web3 audiences don’t want to be interrupted or sold to. Pushing generic messaging out to the masses simply does not work in web3. This audience craves authentic engagement, community building, and a brand purpose that aligns with their values.

Overly Corporate Tone and Messaging

The decentralized ethos of web3 is all about empowering individuals, not big corporations. An overly corporate, sales-focused tone will turn off web3 audiences who value transparency and authenticity. Brands can’t just port over the same highly-polished campaigns from web2 without doing the work to understand web3 culture.

Lack of Audience Understanding

Many brands treat web3 audiences like any other target market. But web3 users have a distinct mindset, values and preferences shaped by the world of crypto and decentralized technology. Brands need to deeply understand this audience and what appeals to them before developing web3 strategies. Otherwise, their messaging will ring hollow.

Focus on Transactions Over Relationships

Web3 is founded on community. But many brands take a transactional approach focused on conversions vs building relationships and social capital within web3 networks. This short-term mindset misses the true potential for engaging web3 users as brand partners and advocates.

What Brands Should Do Instead

Immerse in Web3 Culture

The foundation for any web3 strategy must be deeply understanding the culture, tech, values and conversations that matter to this audience. Brands should participate in web3 communities to create authentic connections vs just trying to market at them.

Build for the Community

Rather than pushing a brand message out, focus on building utilities, content and community assets that give real value to the web3 ecosystem. Position the brand as a contributor to web3 advancement vs trying to extract the audience’s attention.

Partner With Web3 Leaders

Collaborate with web3 thought leaders, artists, influencers and web3 marketing agencies to co-create activations that resonate. Give these partners creative license to repurpose the brand in ways that excite web3 audiences.

Take a Decentralized Approach

Rather than controlling everything in a traditional centralized, top-down manner, distribute ownership across community members. Let users participate in shaping the brand experience via user-generated content, tokenized rewards and community governance.

Favor Authenticity Over Polished Perfection

Web3 culture cares more about transparency and authenticity than high production value. Brand communications should feel raw, real and human-centric vs over-produced promotional content.

The web3 landscape demands an entirely new approach to marketing based on decentralized community engagement. Brands that cling to legacy strategies will continue to struggle. But those willing to embrace the mindset, culture and values of web3 can become true community partners in this powerful new medium.