Targeted User Acquisition in Web3 Marketing
Marketing and advertising for Web3 brands have been a difficult and limited process for many years. With the emergence of blockchain and decentralized technologies, there is a growing need for new marketing strategies to reach potential customers and drive adoption.
Addressable is a super targeted user acquisition platform that uses on-chain data and AI to help Web3 brands reach their target audiences more efficiently and effectively. Tomer Sharoni, the CEO and co-founder of Addressable, shares his insights on the current state of marketing in the Web3 space.
Breaking Beyond The Limits of Community Growth
Word of mouth marketing and organic community is often a core component to many Web3 projects’ success. While this is beneficial, it also has its limitations, as it relies heavily on the existing network and may not reach potential users outside of that circle. Getting that momentum early on can be difficult, and even for the more established projects, it can be challenging to continuously grow and expand their user base.
"You have a product, you have a community, you have great people that use the product, how can you get a 10x over 2 years."
Tomer Sharoni, CEO of Addressable
Tomer and his team are looking to address this challenge by leveraging on-chain data to target users with high potential for conversion. By analyzing user behavior and transactions on the blockchain, Addressable is able to identify and reach out to users who are most likely to be interested in a particular Web3 project. This not only helps with user acquisition, but also improves the overall ROI for marketing efforts.
Although that base layer of dedicated brand advocates is crucial, it should not be the only focus for a successful growth strategy. Scalability requires expanding beyond the existing community and reaching new users. With Addressable, Web3 projects have a way to break through that barrier and expand their reach to potential users who may not have been exposed to their project before.
The Importance of Targeting in Web3 Marketing
In traditional marketing, targeting is a commonly used strategy to reach specific demographics and increase the chances of conversion. This concept is just as important, if not more so, in the world of Web3 marketing. With a constantly evolving landscape and a wide range of users with varying levels of knowledge and interest in the space, it’s crucial for projects to have a targeted approach in order to effectively reach their intended audience.
By addressing people where they are, Tomer Sharoni explains that in the digital life, we hang out on social networks, mobile apps and games. So, when brands are attempting to capture the attention of their ideal users and customers, going directly to these platforms is much more practical than on-chain as it is more likely to reach a wider audience beyond the developers and proficient Web3 users.
This is where targeting becomes crucial; being able to strategically place ads or content on these platforms can greatly increase the chances of reaching potential users in a manner that they are used to from the Web2 model. With over 75 clients, Tomer shares that although the technology and culture has developed, nothing has changed in terms of where people spend their time. The only thing that changes is how we reach them, and the strategies for targeting have evolved along with the technology.
Traditional online advertising platforms typically only segment their audience into general Web3 terms such as ‘Crypto’ or ‘Blockchain’ and fail to capture the nuances and complexities of the space. A DEX user for example may not be interested in a Web3 gaming ecosystem. As such, traditional Web2 marketing and advertising strategies may not be as effective in this decentralized landscape where Web3 begins to attract all sorts of users, not just the general term ‘crypto enthusiasts’.
Addressing Privacy Regulations and Concerns
Online advertisers have found that the attribution of ads and tracking user behavior through cookies is becoming increasingly difficult due to privacy regulations such as GDPR, CCPA and other data protection laws. These regulations restrict the use of personal data by companies, making it harder to track user behavior for targeted advertising.
Addressable takes an alternative approach by matching the hash of a social media I.D and matching it with their wallet behavior. This identifier lets the network target the specific audience effectively. Using just the metadata without the Twitter (X) data for example, the Advertiser would not know which social media account was tied to a specific wallet address. This alternative approach allows for targeted advertising without violating user privacy.
By respecting the culture and ethos of Web3, Addressable aims to create a more transparent and ethical advertising experience for both users and advertisers alike. With the rise of privacy concerns and regulations, this approach may become increasingly important in the future. Yet, Addressable still empowers brands and businesses to reach their target audience effectively, growing the potential of the Web3 ecosystem.
Analytics and Accurate Measurements
Web3 marketing teams need to know the ROI of their campaigns. When it comes to direct ads, the cost per user acquisition and other metrics are crucial to measure the effectiveness of an ad campaign. Addressable offers a real-time analytics dashboard that tracks and reports these metrics, allowing marketing teams to accurately measure the success of their campaigns.
Clients can trace audiences’ journey from an initial engagement, such as a Tweet or a Discord message, right through their on-chain interactions, including actions like NFT purchases, DEX swaps, or in-game transactions. This step-by-step visibility gives businesses a comprehensive picture of their marketing funnel and helps them make informed decisions for future campaigns.
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