How would marketing in a web3-enabled internet differ from today?

In traditional marketing, cookies are used as the primary tool for tracking user behavior, enabling a somewhat invasive yet effective method of targeted advertising. Third-party cookies are small text files used for tracking  web browsing behavior. These cookies, often set by domains other than the visited website, allowed tech giants to build detailed user profiles, subsequently monetizing this data through selling targeted advertising opportunities. This process, generally occurring without explicit user consent, is considered invasive as it delves into personal browsing histories without clear transparency. Users are often unaware of the extent to which they are being tracked, as third-party cookies operate in the background. Many users do not fully understand how their data is being used, who has access to it, and for what purposes. Web3, however, replaces this with wallet-based identification, offering both anonymity and traceability.

Anonymity in this context means that while a user's transactions and interactions are recorded on the blockchain and are traceable, their personal Anonymity in this context means that while a user's transactions and interactions are recorded on the blockchain and are traceable, their personal  identity (like their real name or physical address) is not directly linked to these transactions. Users are identified by their wallet addresses, which act as pseudonyms. This setup provides a degree of privacy since it is non trivial to connect the wallet address to the actual individual behind it. Web3 marketing thrives on direct, transparent interactions. Traditional methods often relied on intermediaries, obscuring the path from advertisement to purchase. Web3, conversely, streamlines this process. Transactions and interactions are recorded on the blockchain, offering clear, verifiable data trails. This transparency not only builds trust but also enhances the efficacy of marketing strategies, allowing for more precise targeting and attribution, which in turn helps in better optimising the cost of acquisitionCAC. This is in contrast to Web2 channels where its hard to understand the purchasing behaviour of a  user since traditional attribution systems are more prone to dropping events in the middle of the funnel.

Wallets also help users control their data. Picture this: what if the details in a cookie were in an encrypted Non-Fungible Token NFT? Each app could have an NFT for each user. When these NFTs are sold, the user, app, and maybe others share the profits. Users could choose who buys their data. We share data all the time; we should get paid for it.

Messaging - Web3's missing piece

Current Web3 applications utilize external but community-driven social networks like Twitter, Telegram, and Discord for user interactions. These platforms, however, are not a built-in component of the Web3 infrastructure. This disconnect means that a user?s social identity, say on Telegram, is not inherently linked to their Web3 identity, such as a wallet address. This separation poses a unique challenge, especially when verifying if the person engaged in a chat is the same individual who made a transaction, like purchasing an NFT.

This communication gap affects more than marketing. It limits customer interaction and service. For example, telling users about updates, providing support, and allowing messaging in Web3 apps are all harder. To help, products like Blaze link communication systems to wallet addresses or use machine learning to match identities across platforms. These methods have boosted engagement for Web3 projects and might become key for advertising and user acquisition. But we still need solutions that tackle the root problem.

The lack of a native messaging protocol in Web3 is analogous to attempting to market and engage in a landscape without a common language. It's not just about the inability to send messages; it's about the missed opportunities for deeper engagement, community building, and personalized marketing that a unified messaging system could provide. This deficiency underscores a broader challenge in the Web3 ecosystem: the need for infrastructure that aligns with its decentralized, user-centric ethos.

We are currently seeing various attempts to solve this issue, Push Protocol helps dapps provide push notifications through a popular wallet service called metamask, XMTP enables wallet to wallet communication and also has an integration with coinbase. However, a widespread adoption of these infrastructures is yet to be seen and it would be interesting to see whether these protocols can shift focus from broad, impersonal campaigns to more tailored, community-centric approaches.

Criticisms

There are a few criticisms regarding the technology and the marketing aspects of it that we have discussed so far. First, Web3's blockchain technology makes transaction data visible to everyone. This is part of its design. It aims for transparency and to stop any one group from having too much control. Users know about this openness when they join. They accept it for a fairer system. In a world where wallets do end up replacing cookies, to keep their privacy, users can use different wallets – one for looking at NFTs and another for buying. This way, they keep their personal and buying activities separate. Secondly, companies like Blaze linking wallet identities across platforms might seem too nosy, but it's needed now. This link is crucial for connecting the new Web3 world with older platforms. It helps Web3 projects grow and last. Also, reaching out to users on well-known Web2 platforms is key to bringing more people into Web3.

Wallets in Web3 aren't just a tech upgrade; they're a user empowerment tool. Unlike the opaque cookie tracking, wallets offer a transparent, user-controlled experience. Here, your digital identity and transactions are yours to manage, not a secret dossier in some tech giant's database. It's about shifting the power balance. Web3 wallets give users the keys to what is theirs— privacy, control, and a fair share in the data economy. They're not just a better option; they're the future we should all be backing.

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