Why Web3 Marketing Fails.
And How We’re Changing the Game
What is Effect3?
Ξffect3 provide comprehensive AI-powered Web3 marketing services that include on-chain and off-chain data analysis, deep data analytics, and a complete marketing roadmap for Web3 brands.
We believe there is a significant gap in the market for tailored Web3 marketing strategies. Many existing marketing agencies lack an understanding of the unique dynamics of the Web3 space, particularly the importance of integrating on-chain data with off-chain social signals to create effective marketing strategies. Their goal is to fill this gap by offering specialized, data-driven marketing solutions.
The Hidden Challenges in Web3 Marketing?
‘Major Problem:’ Geotargeting market reach, Blockchain Users Data analysis, ensuring sustained engagement, AI-powered chatbot systems, on-chain and Social data, who bought competitors' tokens, participated in their drops, engaged in activities or campaigns, user experience levels, transaction behaviour
There isn't much web3 awareness The traditional marketing does not work, no strong branding, a lack of a marketing mindset, and unrealistic ROI expectations.
Web3 Challenges and Problems in Marketing
On-Chain & Off-Chain Accurate Data: Brands often struggle to combine on-chain and off-chain data, which is essential for proper analysis and creating an effective marketing roadmap for their projects. This combination helps them determine how to launch, build awareness, and plan their next steps. Having data from both sources provides the necessary insights for making informed marketing decisions.
Trends: The Trends are crucial in Web3, and engaging with the audience is a challenging task for projects. Many DeFi and GameFi projects are seeing declining trends due to a lack of engaging activities or new launches that connect with their target audience.
Decentralized Technology Awareness There is often a lack of awareness and understanding of decentralized technologies among the general public. This makes it challenging for Web3 projects to educate potential users about the benefits and workings of their platforms.
Targeting Audiences Due to the decentralized nature of Web3, targeting specific audiences and maintaining genuine engagement can be difficult. This limits traditional marketing strategies that rely on centralized data sources and precise targeting methods.
Interoperability Interoperability issues between decentralized platforms create technical challenges, making it difficult to implement cohesive marketing strategies that span multiple platforms seamlessly.
Tokenomics Challenges Tokenomics, or the design and implementation of token-based economies, presents its own challenges. Implementing tokenomics as part of a marketing strategy requires careful planning, as missteps can harm user trust or create an unsustainable economic model.
Hype Over Substance Web3 marketing can sometimes focus too much on hype, especially during bull runs. Projects may distribute their marketing budgets to anyone who engages with social media posts (e.g., liking or following on Twitter), which can lead to inflated engagement metrics due to bots and inauthentic followers, rather than attracting real users.
Attribution Challenges Measuring the success of marketing efforts in Web3 is a significant challenge. It is often difficult to link marketing campaigns directly to on-chain transactions, making it hard to calculate ROI and allocate resources effectively.
Advertising Limitations Major platforms like Google, Facebook, and TikTok have imposed restrictions on crypto-related ads due to concerns about fraud. This limits the reach of Web3 projects on mainstream ad networks and forces marketers to explore alternative platforms for visibility.
Sustaining Engagement Keeping users engaged over the long term is another challenge in Web3. Many users engage with a project only for short-term rewards and quickly disengage once they have completed tasks. Maintaining continuous engagement requires strategic planning and a consistent stream of value.
Geotargeting and Market Reach Web3 projects often struggle to reach specific geographic audiences due to the global and decentralized nature of the ecosystem. Solutions like geotargeting can help by enabling brands to create localized campaigns visible to users in particular regions.
ChatBot Issues Chatbot engagement is a major issue in Web3, particularly on questing platforms. Skewed metrics due to bots can reduce authenticity and distort marketing insights. AI-powered solutions that verify user authenticity can help address this problem, ensuring more reliable engagement data.
How We're Fixing It?
At Effect3, we are building a one-of-a-kind platform designed to revolutionize how Web3 companies approach marketing. By combining AI-driven data analytics with on-chain and off-chain data, we offer a comprehensive suite of services aimed at addressing the key challenges Web3 projects face in today’s decentralized ecosystem.
(Addressing the Core Challenges in Web3 Marketing)
Combining On-Chain and Off-Chain Data for Better Analysis
One of the biggest issues brands face is the inability to integrate on-chain data (like blockchain transactions) with off-chain data (such as social media engagement). By analyzing data from both sources, we help brands create an effective marketing roadmap, determining how to launch their products, create awareness, and plan their next steps.
Targeting Audiences in a Decentralized World
Targeting specific audiences is challenging in the decentralized Web3 space. Effect3 uses a blend of on-chain analytics and off-chain user data to overcome this issue, enabling more effective user segmentation and personalized marketing efforts. Our AI tools identify the right demographics, behaviours, and engagement patterns to tailor campaigns with precision.
Solving Attribution and ROI Tracking
Traditional marketing struggles with measuring ROI and attributing success to specific campaigns, especially in Web3, where blockchain transactions complicate the process. Our AI-based analytics tools are designed to provide a clear picture of how on-chain transactions correlate with marketing efforts, allowing brands to measure the ROI of each campaign accurately.
Overcoming Advertising Restrictions
With major ad platforms banning crypto ads, Web3 brands need to find new ways to reach their audience. Effect3 helps brands navigate this limitation by providing alternative advertising solutions, including targeted campaigns through decentralized platforms, partnerships, influencer collaborations, and AI-enhanced content strategies.
Engagement Longevity
In Web3, where users often engage briefly for rewards, keeping long-term engagement can be difficult. Effect3’s approach focuses on building sustained engagement by creating ongoing campaigns, launches, and community-building initiatives that ensure users remain connected with the brand beyond the initial interaction.
Chatbot Building & Integration
As user interaction shifts towards automation, our custom-built AI chatbots enhance user engagement by providing real-time support, community management, and reward systems. These chatbots are seamlessly integrated into Web3 platforms, enabling users to interact more effectively, thereby fostering better brand loyalty and engagement.
On-Chain Analytics - User Targeting
Our on-chain analytics dive deep into blockchain data to track user behaviour, transactions, and wallet activities. This allows us to segment users based on their on-chain actions, helping brands target their audience more accurately. Knowing exactly who is interacting with the project on-chain, along with their activity levels, enables precise targeting for marketing initiatives.
Demographics and User Behavior Insights
By combining on-chain data with off-chain metrics (like social media engagement), we build detailed demographic profiles and understand user behavior across various platforms. This enables brands to target not just random users but the right users. We provide insights into who your audience is, where they are most active, and what content resonates with them, leading to better, data-informed marketing strategies.
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