In recent times, lofty eyes rest on the new rising star of the digital era – Web3. The intriguing facets of decentralized applications and principles of blockchain technology are finding an audience among marketers, particularly those from the activewear and luxury brand sectors. A prominent example of this interest lies in Dispatch, a venture co-founded by Byron Sorrells. The platform has set its aim to streamline purchases in a multitude of digital experiences.
Sorrells, in a poignant foray into the workings of this domain, had some interesting insights to share, post the 2022 crypto crash. He emphasized the heralding of genuine use cases of Web3 technology that surfaced following the events. “Web3,” he claimed, “is not merely a colossal alternative to precedented practices, but rather, a novel tech that merely seeks to enhance the things we’ve always done.”
Yet, the path of digital innovation is not without hurdles. The crucial task before CMOs is to chart through an expanse of technological options. An apt illustration of this perspective is Marija Zivanovic-Smith at IEX Group. Addressing the need for Web3 providers to deliver specific solutions to brand and marketing issues rather than merely peddling technology is what she considers essential.
However, Web3 adoption doesn’t seem to be keeping pace with the promise it holds. Matt Moorut, a hotshot analyst at Gartner, reveals a slow-moving scenario in Web3 adoption as opposed to the metaverse hype approximately a year back. A combined effect of fluctuating crypto market and inflation worries have compelled marketers to tread carefully, focusing on viable use cases where Web3 could be of added value.
The journey for Web3 is just beginning. While early adopters like Nike and Adidas have integrated blockchain technology into loyalty programs, the consumer engagement with Web3 initiatives remains considerably low, drawing primarily a niche crowd of young, affluent males. The number of consumers dabbling in NFTs or owning crypto wallets is rather limited compared to the larger population.
Brands are venturing into the realm of Web3, seeking to harness the potential of this innovative technology. However, until a significant shift occurs in consumer adoption, it remains an untapped resource for many. Moorut adds a sobering note that for now, it’s “kind of an edge case for a marketer, versus the core of most retailers’ business.”
Source: Cryptonews
