Despite the setbacks caused by the crypto crash of 2022, Web3 continues to intrigue marketers, especially in the activewear and luxury brands sectors.
Based on the principles of decentralized applications and blockchain technology, Web3 offers ownership of data and digital assets, opening up new opportunities for innovative initiatives from different brands.
In a recent interview with Insider said Byron SorrellsCEO and co-founder of Senda platform that enables hassle-free purchases across a variety of digital experiences, said the 2022 crash provided a much-needed distinction between speculation and the actual usefulness of Web3 technology.
Sorrells claimed that he sees Web3 as a technology that complements existing practices rather than completely replacing them.
“It’s a shame it took major events for that to happen, but you do start to see that what’s been preserved are some real use cases,” he said.
“Web3 isn’t just a big replacement for what we used to do. It’s just new technology that can improve on the things we’ve always done.”
However, CMOs face the challenge of navigating the plethora of technologies available.
Marija Zivanovic-Smithup the CMO IEX grouphas indicated that there is a need for Web3 providers to address specific business issues facing brands and marketers, rather than simply offering technology solutions.
Zivanovic-Smith emphasized the importance of addressing issues such as the declining accuracy of targeting algorithms due to changes such as Apple’s removal of cookies.
“It’s a solution for increasing digital loyalty, solving the problems we faced with the loss of 30% accuracy in targeting algorithms when Apple got rid of cookies,” said Zivanovic-Smith.
Web3 adoption is slowing down
Matt Mooredirector and analyst Gartnernoted that Web3 adoption is slowing down compared to the peak of the metaverse hype 12 to 18 months ago.
Ongoing crypto volatility and concerns about inflation have led marketers to approach Web3 with caution and focus on use cases where the technology can add value to their organizations.
“It doesn’t mean Web3 is dead,” said Moorut.
Marketers are still interested, “but instead of rushing it, they are wiser and trying to unravel those use cases where Web3 technologies are still valuable to the organization.”
Moorut pointed out that activewear and luxury brands are at the forefront of Web3 adoption.
Companies like Nike and Adidas were early adopters, integrating blockchain technology into loyalty programs and building communities around it.
Launching in November 2022, Nike’s .Swoosh community allows members to participate in online and real-world activations, interact with Nike athletes and creatives, and use virtual Nike gear in games.
Nike’s Our Force 1 virtual collection, developed in collaboration with the community, was launched in April 2023.
Despite these brand successes, consumer engagement in Web3 efforts remains relatively low, attracting primarily a young, affluent, and male audience.
Moorut noted that the number of consumers using NFTs or owning crypto wallets is still limited compared to the total population.
“Until there’s a big change in consumer adoption, it’s going to be kind of an edge case for a marketer, versus the core of most retailers,” he added.