How Digital Marketers are Harnessing Web3 to Enhance Customer Engagement

Toju Ometoruwa · July 24, 2023
How Digital Marketers are Harnessing Web3 to Enhance Customer Engagement

Web3 technologies are radically transforming the digital marketing landscape, introducing new strategies and tactics that are reshaping how businesses interact with their audiences. In this weeks #LearnWeb3, we delve into the impact of web3 technologies on digital marketing, highlighting the key trends and strategies that businesses should consider to stay ahead of the curve.

Web3, also known as the decentralized web, is a new generation of internet technologies that leverage blockchain and other decentralized technologies to create a more open, transparent, and user-centric online environment. This shift towards decentralization is having a profound impact on digital marketing, as it introduces new ways for businesses to engage with their audiences and deliver value.

#Community-Centric Approach to Marketing

One of the key impacts of web3 technologies on digital marketing is the shift towards community-building. In the web3 ecosystem, users have full ownership and control over their personal data and content. This is a stark contrast to the traditional web2 model, where service providers often act as the custodians of user data. In web3, users are no longer passive consumers of content; instead, they are active participants who contribute to the creation and distribution of content. This shift in user roles is fostering a more community-centric approach to marketing. Community-centric marketing in the web3 context is about building meaningful relationships with audiences. It's not just about selling products or services; it's about engaging with users, understanding their needs and preferences, and creating value that benefits the entire community. This approach requires businesses to be more transparent and accountable in their marketing practices, as they are dealing directly with their users, who are also their data custodians. Moreover, community-centric marketing in web3 also involves creating partnerships that benefit everyone involved. 

This could involve collaborations with other businesses or entities in the web3 space, or partnerships with users themselves. For instance, businesses could collaborate with users to co-create content, or they could reward users for their contributions to the community, such as providing valuable feedback or promoting the brand within their networks. The community-centric approach in web3 marketing also extends to the way businesses handle user data. With users owning their data, businesses need to respect user privacy and obtain explicit consent before using user data for marketing purposes. This not only fosters trust and goodwill with users, but also ensures compliance with data protection regulations.

#dApps & DAOs: Core Tools for Digital Marketing 

Another significant impact of web3 technologies on digital marketing is the rise of decentralized applications (dApps) and decentralized autonomous organizations (DAOs). dApps, which are applications built on blockchain technology, offer a new way for businesses to interact with their customers. Unlike traditional apps, dApps are not controlled by a single entity. Instead, they operate on a peer-to-peer network, which means they are more transparent, secure, and resistant to censorship. This decentralized nature of dApps allows businesses to create more immersive and personalized experiences for their customers. For instance, a business could create a dApp that allows customers to explore its products in a virtual reality environment, or a dApp that uses gamification to engage customers and encourage them to interact with the brand.  dApps can also be used to create decentralized marketplaces, where customers can buy and sell products directly with each other, without the need for a middleman. This not only reduces costs for customers, but also fosters a sense of community, as customers are directly involved in the marketplace. 

On the other hand, DAOs are loosely organized communities that are run on smart contracts on the blockchain, with decisions made by members of the community rather than a central authority. This democratic approach to decision-making can be leveraged by businesses to engage their audiences in a more meaningful way. For example, a business could create a DAO for its loyal customers, allowing them to vote on new product features or marketing strategies. This not only fosters a sense of ownership among customers, but also provides businesses with valuable insights into their customers' preferences. Furthermore, DAOs can also be used to create incentive structures that reward customers for their engagement and loyalty. For instance, a business could distribute tokens to members of its DAO, which can be used to vote on decisions or redeemed for products or services. This not only incentivizes customers to engage with the business, but also creates a sense of community and loyalty. To learn more about creating web3 loyalty programs visit our other article: How to Build a Brand NFT Loyalty Program: A Comprehensive Guide.

#Leveraging On-Chain Data

Web3 technologies are also enabling businesses to leverage on-chain data for more effective user attribution.  On-chain data refers to the information that is stored directly on the blockchain. This includes transaction data, smart contract interactions, and other activities that occur on the blockchain. Unlike traditional data sources, on-chain data is transparent, immutable, and publicly accessible, making it a valuable resource for businesses.

By leveraging on-chain data, businesses can eliminate the need for third-party data brokers, who often collect and sell user data without explicit consent. Instead, businesses can source data directly from the blockchain, ensuring that the data is accurate, up-to-date, and reliable. This direct access to data allows businesses to gain deeper insights into their audiences, such as their transaction behaviors, interactions with smart contracts, and participation in DAOs. These insights can then be used to craft more targeted and effective marketing strategies, such as personalized promotions or tailored content, that resonate with their audiences.

Moreover, the use of on-chain data also enables businesses to track the effectiveness of their marketing campaigns in real-time. For instance, a business could track how many users interact with a promotional dApp, or how many tokens are redeemed as part of a loyalty program. This real-time tracking allows businesses to quickly adjust their marketing strategies based on performance, ensuring that their efforts are always optimized for the best results.

In addition to leveraging on-chain data, web3 technologies are also driving a shift towards more transparent and accountable marketing practices. 

With blockchain-based systems, all transactions and interactions are recorded on the blockchain, creating a transparent and verifiable record of activities. This transparency is crucial in the web3 space, where trust and credibility are key to building and maintaining a strong community. For instance, a business could use blockchain technology to create a transparent advertising platform, where users can see exactly how their data is being used and how ads are targeted. This transparency not only fosters trust with users, but also holds businesses accountable for their marketing practices, ensuring that they are always acting in the best interests of their audiences.

#Challenges with Web3 Marketing

Web3 technologies, while offering a plethora of opportunities for digital marketing, also bring forth a set of unique challenges. One of the most significant challenges is the technical complexity associated with web3 technologies. The concepts of blockchain, dApps, DAOs, and cryptocurrencies can be daunting for many users, especially those who are new to the web3 space. This complexity can act as a barrier to adoption, hindering the reach and effectiveness of digital marketing efforts in the web3 ecosystem. 

To overcome this challenge, businesses need to focus on making their web3 products and services more accessible and user-friendly to traditional web2 audiences. This involves simplifying the user interface and user experience of their web3 offerings, making it easier for users to navigate and interact with these technologies. To achieve this, businesses should emphasize replicating the user experience of web2 apps, including using web2 terminology such as “User Account” instead of “Wallet address” or “Login/Password” instead of  “Private Key/Seed Phrase”. This ensures that the user experience remains straightforward and intuitive for non-crypto native users. 

In addition to improving accessibility and user-friendliness, businesses also need to highlight the benefits of using web3 technologies where relevant. This could involve emphasizing the increased control and ownership that users have over their data in the web3 space, or highlighting the potential for earning rewards through participation in DAOs or interaction with dApps. By focusing on these benefits, web2 businesses can easily differentiate themselves from competitors that are built on standard centralized protocols


The advent of web3 has set the stage for a transformative shift in digital marketing strategies. By empowering users with ownership and control over their data, fostering a sense of community through participatory roles, leveraging the capabilities of dApps and DAOs, and utilizing transparent on-chain data, businesses can unlock a myriad of opportunities for enhanced customer engagement and loyalty. However, it's important to navigate the inherent technical complexities and ensure these technologies are accessible and beneficial to users. Businesses should underscore the value of web3's principles and streamline user experience by incorporating familiar designers and terminology for less technical users. As the decentralized web continues to evolve, those able to adapt their digital marketing approaches to these new paradigms will be well-positioned to engage deeply with their audience, creating long-lasting relationships built on transparency, collaboration, and shared value. ⁠ ⁠⁠Subscribe for More Web3 Insights to Boost Your Customer Engagement.

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