The world of web3 and decentralised technologies is rapidly evolving and with the evolution comes new challenges and opportunities for marketers and growth specialists.
With the growth in opportunities, there also comes a consideration of being responsible for the users, and their data. On that note, one of the most critical considerations in this new digital ecosystem is the practice of ethical marketing. But before we get into ethical marketing, let us understand the need for it - and why growing projects, communities, and ecosystems need authentic growth measures.
As the use of decentralised systems continues to grow, so too does the importance of trust and transparency. A study by the Cambridge Center for Alternative Finance found that trust and reputation were the top two factors driving the adoption of decentralised systems.
Building trust and transparency is a key aspect of ethical marketing in web3. A survey by PwC found that 72% of consumers are more likely to share their personal data with a company if they trust that company to handle their data responsibly. Additionally, a study by Accenture found that companies that prioritise transparency and trust building are 60% more likely to have increased revenue.
These studies highlight the foundation of WHY decentralised systems are needed in the first place. Also, enhanced transparency offers an adoption incentive - wherein users can move to a less controlled and manipulated system. This concept thus is closely linked with how a project or a community grows - i.e. how projects are marketed.
Are they scam ridden?
Are they ponzi schemes?
Are they cash-grab options?
Herein lies the importance of ethical marketing. Building value while assuring trust & transparency with users and driving growth in the web3 ecosystem.
So what does Ethical marketing entail?
Well, for one, the old-school idea of ‘If you Build, they will come’ still stands. On the flip side, there are aspects that you can cover to improve your project’s growth while being authentic and ethical.
First Adoption
For starters, the main effort that a project or community can delve into is community building.
Pivotal in Ethical Marketing and appeals to the interests and hobbies of your target audience. And while you can incentivise participation to get the initial momentum going, you need to engage, discuss and collaborate with your target users to make sure that they stay hooked.
With the initial user base sorted - you’ll find it easier to expand your project reach.
A study by Deloitte found that companies that prioritise community building have a retention rate that is 3.5 times higher than those that don't. Additionally, a survey by HubSpot found that businesses with a strong community have a retention rate of 89%.
This highlights the importance of focusing on building relationships and engaging with users to build a passionate community.
The Rise of Web3 Storytelling
Authentic storytelling is also crucial in ethical marketing in web3. A study by the Content Marketing Institute found that 91% of B2B marketers use storytelling as a content marketing tactic. Additionally, a survey by the Nielsen Norman Group found that users are 75% more likely to remember information if it is presented in the form of a story.
This highlights the importance of creating authentic and engaging content that tells a compelling story in order to help users understand the value of a product or service.
Build a relationship with your audience. Share your Vision, your purpose, and your mission.
It can be aspirational to trigger a response and start a conversation - but make sure to back it up with active projects and proof. Additionally, you can take a proactive approach to the story-telling and Narrative creation front.
Try building your community as you grow your project. Share growth measures, features, updates, and discussions on Twitter, Discord, and Telegram.
Engage with thought leaders and fanatical Web3 users.
Allow early users to collaborate, add value, share critique, and bring insights. Create an ecosystem complete with intellectual and passionate discussions.
These early users will turn out to be your biggest advocates when you push your project to a larger audience.
Privacy
Protecting users' rights and privacy is essential for building trust in web3. A study by the Center for Digital Democracy found that 90% of consumers are concerned about their online privacy. Additionally, a survey by Accenture found that companies that prioritise protecting user's rights and privacy are 30% more likely to have increased revenue.
Avoiding misleading marketing practices is also crucial in ethical marketing in web3. A study by the CFPB found that misleading marketing practices cost consumers $1.9 billion annually. Additionally, a survey by the FTC found that misleading marketing practices result in a loss of trust in a company, which can lead to a loss of revenue.
Brand & Positioning
Building a strong brand identity is also important in ethical marketing in web3. A study by Forbes found that a strong brand identity can increase revenue by 23%. Additionally, a survey by Inc. found that companies with a strong brand identity are valued at a premium of up to 20%.
In conclusion, ethical marketing is crucial in web3 and decentralised technologies. By prioritising transparency, community building, authentic storytelling, protecting users' rights and privacy, avoiding misleading marketing practices, and building a strong brand identity, you will be well-positioned to succeed in this new digital ecosystem.
Always put your community first, after all, they are the ones who will help your project grow and thrive. These facts, figures, and data demonstrate the importance of ethical marketing in building trust, driving growth, and ultimately, being successful in the web3 ecosystem.
Written in collaboration with Moe Iman, Core Contributor @ Intract community.
Checkout Intract on DecentReviews.