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  • Pascal Hügli

All you need to know about Web3 as a CMO


What exactly do you need to know about Web 3.0 as a CMO? Find all your answers in this piece. With our Web3 for dummies blog article, we'll teach you all you need to know. Let's begin with a quick overview of Web3.


What is Web3?

Web3 is an overall concept that represents the internet's future. Now, is Web3 blockchain? Blockchains serve as the foundation for Web 3.0's decentralized data structure. Blockchain-based technologies, particularly cryptocurrencies, dApps, NFTs, DAOs, and smart contracts, are set to play significant roles in the highly user-centric, more customized online experience of Web3.


Digital transformation is happening

Digital transformation is the most pressing and important theme in today’s business world. Therefore, as CMOs, you should be aware of the increasing buzz around all the trends when it comes to digitization and digital transformation. Within this field, Web3 is making waves. Around $8 trillion in additional economic activity is being generated by Web3. From developers and app makers to investors and agencies, businesses of all sizes are seeking ways to become involved. Web3 is on the rise and that's giving companies access to a whole new world of opportunities. It's an opportunity to investigate novel locations, new goods, novel identities, and novel marketing strategies.


The ascent of Web3

One area that will surely push digitization and digital transformation forward is Web3. Having emerged as a technology trend, Web3 is now entering the business world and thus the field of marketers. So, marketers should care. As marketers, the portal's introduction into Web3 is both exhilarating and terrifying. But, no one is going alone. It's a great chance for the marketing community as a whole to innovate and rethink the brand-consumer connection.


Web3 changes marketing

In a Web 3.0 world, brands' days of command and control are numbered. The brand-consumer interaction is driven by decentralization. Marketers will need to reevaluate what they believe they know about client connections in order to build and maintain communities in Web3. We can put this into context: “Web3 is another touchpoint in your ecosystem. Just like television didn’t kill radio, and the internet didn’t kill television, Web3 will be complementary to your marketing.”


Community ownership is key

Web3 is all about building communities and creating value for those communities. This means that marketing needs to focus on community ownership and engagement. Brands need to find ways to involve their communities in the marketing process, whether it's through user-generated content, co-creation, community events, or token-based incentives. While content was king in Web 2.0, content creators are now king in Web3. In this new setting, users have control over their data, their online profile, and their interactions with companies and colleagues in new online communities.


Greater transparency and trust

Web3 is built on the principles of transparency and trust – two pillars that have been neglected all too often in the previous world of Web 2.0. This means that brands need to be more transparent about their products, services, and marketing practices. Brands that can demonstrate their commitment to transparency and trust are likely to be more successful in the Web3 landscape. “In Web3, users and participants have the power for their voices to be heard. If brands leverage that, they can activate people who already really love their brand by giving them more power and more ownership.” Melanie Plaza, Chief Technology Officer of AE Studios, said.


From Chief Marketing to Chief Trust Officer

With users and communities as the creators of the new platform, the role of a future CMO will likely shift. The co-creators that are part of the new platforms will turn into the new CMOs. As they create the content, they will also promote the platforms – and because they might even be financially aligned through tokens and incentives, they will do so even more.


So yes, the user will be the platform's business drivers. And CMOs become the company's Chief Trust Officers. Their goal will be to guarantee that this community of co-creators, of mini-CMOs, feels secure, that their data is safeguarded, and that they are involved in that community in a very diversified way.


However, this shift in thinking from selling to serving also raises essential concerns for today's CMOs. The question is: Are we truly ready for Web3 and a world where the data of the many can be less monetized by the few? Are companies willing to really decentralize marketing to the people? Well, if you as a CMO like it or not, you will have to adapt. So better be prepared today.


Important points CMOs need to consider:

CMOs must stay informed on what is occurring in Web3. Only this allows them to stay ahead of the game and in Web3. As a result, CMOs should consider the following elements while developing their company's Web3 marketing strategy:


  1. Gain a good grasp of the basic methods of how this technology can be used

  2. Understand the long-term advantages of being a part of the Web 3.0

  3. Get an understanding of the additional value that Web3 will provide to clients

  4. How to experiment with new income models made possible by web3


FAQ:


Why does Web3 matter?

Web3 matters because it is a new and innovative way of thinking the internet that differs from what most people are accustomed to. Web3 is more open, more transparent, more decentralized, and makes things ownable, so anybody may use it and contribute to it instead of being under the authority of a few powerful corporations.


Is Web3 decentralized?

In theory, Web3 strives to be decentralized. In practice, not every project lives up to its promises of full decentralization. After all, decentralization is also to be understood as a spectrum. While many projects are working towards being decentralized, it is not an easy journey that requires utmost care and consideration. However, one of Web3’s long-term goals is to decentralize power away from internet giants back into the hands of individual internet users.


Why utilize Web3?

Why Web3? Throughout the next few years, Web 3.0 will develop and provide new opportunities that CMOs should start thinking about now. Staying ahead in the Web3 revolution requires the use of appropriate technologies. This might entail making investments in blockchain software or implementing cutting-edge innovations like decentralized identification systems and more.


Is Web3 blockchain?

Yes, Web3 is ultimately linked to blockchain technology. Cryptocurrency and blockchain are the building elements of Web3. The decentralized web, however, also depends on technologies like augmented reality, virtual reality, Internet of Things, and others unaffiliated with blockchain or virtual currency. Blockchain and cryptocurrencies provide a more equitable allocation of information and power, which can help make Web3 decentralized. Public distributed ledgers powered by blockchain might be used by Web3 to promote more decentralization and transparency.


 

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