The Web3 marketing landscape is undergoing a paradigm shift in the current bear market, challenging conventional wisdom. While some advocate for discarding paid ads in the spirit of Web3’s decentralisation, transparency, and autonomy, this article contends that paid advertising remains a vital tool for success. As we navigate these changing times, we must reassess the role of paid ads and their potential impact on Web3 marketing strategies.

 

The Changing Dynamics of Web3 Marketing:

The ethos of Web3, with its emphasis on decentralisation and community-driven initiatives, has led to scepticism about the effectiveness of paid advertising. The belief that paid ads embody an outdated Web2 mindset is pervasive, with organic community-building strategies often taking precedence.
Yet, the landscape has evolved; the days when a robust presence on Discord, Twitter, and Telegram guaranteed project success are fading. Hyped projects struggle during the minting phase in the current climate, necessitating a return to fundamental marketing principles.
 

Paid Ads in a Historical Context:

Understanding the evolution of online advertising is crucial to appreciating its relevance in Web3. Online paid advertising gained prominence in 1994 with the appearance of the first banner ad on HotWired, marking the transformative step towards today’s $24 billion online advertising industry. Web2 giants like Facebook built empires on advertising, emphasising the importance of the attention economy.

The Power of Paid Ads in Web3:

In a landscape often swayed by empty hype, paid ads offer a refreshing degree of honesty and effectiveness. Drawing on experiences working with both Web2 companies and over 400 NFT projects, it’s clear that paid ads are a powerful tool to drive engagement, incentivise builders, and introduce new projects and technologies to the Web3 space.

Addressing Common Concerns:

Resistance to paid ads in Web3 is often rooted in misconceptions. Three main arguments against paid ads showing desperation, short-term NFT holding, and generating adverse reactions are addressed with counterarguments.

  1. Desperation Perception:

    • Counterargument: Projects may resort to unconventional means to gain momentum without paid ads. Paid ads offer a transparent path to calculating return on ad spend (ROAS) and contribute to increased floor prices, providing a more sustainable and measurable approach.

  2. Long-Term NFT Holding:

    • Counterargument: Long-term holding is influenced by a project’s real utility, not the means of its promotion. Paid ads and organic reach allow for selective targeting, fostering a stable and invested community.

  3. Negative Reactions:

    • Counterargument: Negative reactions are inevitable in any social media space. Paid ads provide an honest and transparent approach, marked by a “promoted badge,” allowing projects to let their value speak for itself.

Certified Success and Recyclable Revenue:

Platforms like Twitter, Meta, Reddit, and YouTube recognise the efficacy of paid ads for NFTs, providing advanced features for projects with significant ad spend. Achieving an NFT certificate on these platforms is a crucial step, facilitating legitimacy and expanding the reach of paid ads.

Recyclable revenue, exemplified by successful projects like Hangry Hippos, demonstrates that paid ads can contribute to sustained project growth. Projects can achieve sell-out success by recycling revenue through strategic ad campaigns without compromising long-term viability.

While Web2 and Web3 differ in their principles, only some strategies from the past should be discarded. When wielded strategically, paid advertising emerges as a powerful tool for real growth in the Web3 era. As the market continues to evolve, understanding the nuances of paid ads and incorporating them into a comprehensive marketing plan can be the key to success in the dynamic world of Web3.