Exploring the Potential of Web3 in the Marketing Industry
Despite the setbacks caused by the 2022 crypto crash, the concept of Web3 continues to captivate marketers across various sectors, including activewear and luxury brands. Web3, built on decentralized applications and blockchain technology, offers a unique proposition of data and digital asset ownership, leading to new opportunities for innovative initiatives by different brands.
Web3’s Real Utility and Distinction from Speculation
In a recent interview with Insider, Byron Sorrells, CEO and co-founder of Dispatch, a platform facilitating friction-free purchases in various digital experiences, emphasized the significance of the 2022 crash in distinguishing between speculation and the real utility of Web3 technology. Sorrells views Web3 as a technology that enhances existing practices rather than completely replacing them. He mentioned, “It’s a shame it took these big events for that to happen, but you do start to see that what’s survived are some genuine use cases.”
“It’s a shame it took these big events for that to happen, but you do start to see that what’s survived are some genuine use cases.” – Byron Sorrells
Addressing Business Problems and Enhancing Digital Loyalty
The abundance of available technologies poses a challenge for CMOs who want to explore Web3. Marija Zivanovic-Smith, the CMO at IEX Group, believes that Web3 providers need to focus on addressing specific business problems faced by brands and marketers instead of just offering technology solutions. One of the main issues she highlighted is the declining accuracy in targeting algorithms due to changes like Apple’s removal of cookies. She stated, “It’s solving for increasing digital loyalty, solving for the problems that we’re facing with losing 30% accuracy on targeting algorithms when Apple did away with cookies.”
“It’s solving for increasing digital loyalty, solving for the problems that we’re facing with losing 30% accuracy on targeting algorithms when Apple did away with cookies.” – Marija Zivanovic-Smith
According to Matt Moorut, a director and analyst at Gartner, Web3 adoption is not progressing as rapidly as during the peak of metaverse hype 12 to 18 months ago. Concerns about ongoing crypto volatility and inflation have made marketers more cautious, focusing on use cases where Web3 technology can bring significant value to their organizations. Moorut stated, “It’s not to say Web3 is dead. Marketers are still interested, but rather than rushing forward with it, they’re being more sensible and trying to unpick those use cases where Web3 technologies are still valuable for the organization.”
“It’s not to say Web3 is dead. Marketers are still interested, but rather than rushing forward with it, they’re being more sensible and trying to unpick those use cases where Web3 technologies are still valuable for the organization.” – Matt Moorut
Activewear and Luxury Brands Leading the Way
Despite the cautious approach towards Web3, activewear and luxury brands have been at the forefront of its adoption. Companies like Nike and Adidas have been early adopters, integrating blockchain technology into their loyalty programs and building communities around it. For instance, Nike’s .Swoosh community, launched in November 2022, allows members to engage in online and real-world activities, interact with Nike athletes and creatives, and even use virtual Nike gear in games. Nike’s Our Force 1 virtual collection, co-created with the community, was introduced in April 2023.
However, consumer engagement with Web3 endeavors still remains relatively low, primarily attracting a young, affluent, and male demographic. Moorut highlighted the limited number of consumers using NFTs or owning crypto wallets compared to the total population. He added, “Until there’s a big sea change in consumer adoption, it’s going to be kind of an edge case for a marketer, versus the core of most retailers’ business.”
“Until there’s a big sea change in consumer adoption, it’s going to be kind of an edge case for a marketer, versus the core of most retailers’ business.” – Matt Moorut
