Web3 is the evolution of the internet beyond the walls of social media. Web3 is where brands and content creators produce and own their content and can monetize their successes through fractional ownership and future royalties of their digital assets. In Web3, the tokenization of digital and real-world assets of popular brands and successful content creators will disrupt the financial brokerage industry and give birth to the decentralized ownership of the internet. Michael Winn, president and CEO of RBOA, explains how brands can prepare for the web3 token shift by building a loyal digital community and shifting away from the target audience model. How did we get from Web1 to Web3?
Web1: Society reads content on the internet
Web1 is defined by the era (1990 – 2005) that belonged to the code builders and the first digital content creators. Their code provided the infrastructure for mass distribution of content (websites) to anyone who had access to the internet. This .com ecosystem began the disruption of traditional advertising and print media empires because now any brand or individual could “publish content” for consumption on the internet., However, something was missing; a network to share this digital content as email had its limitations. Websites began to sell inventory to advertisers and earn revenue based on readers (traffic) of the internet.
Web1 was the digitization of consumer goods (content) and the foundation of the power of data.
Web2: Society reads and creates content (social media) on the internet, but does not own the content
Web2, the story goes, was the next phase of the internet, beginning around 2005 Web2 is characterized by social media behemoths like Facebook, Twitter, and YouTube. In web2 (or Web 2.0, as it was usually called then), people began creating and posting their own content, actively participating in the internet rather than passively reading content. However, most of that activity was distributed and monetized by big companies, which kept most, if not all, of the money and control for themselves.
Social media influencers are the evolution of Web2 and are the precursor to web3 because they have figured out how to leverage content and audience to earn money, but they still don’t own their content because it lives on the Web2 platform. They are also susceptible to fake accounts. Digital identity is an essential part of a web3 ecosystem so users can prove ownership of their content.
Web3: Society reads, creates, and owns the content and earns revenue (blockchain and tokens) on the internet
The writer Katie Parrott sketched the web3 vision this way: “If the pre-internet/web1 era favored publishers, and the web2 era favored the platforms, the next generation of innovations — collectively known as web3 — is all about tilting the scales of power and ownership back toward creators and users.
Web3 platforms could give creators and users a way to monetize their activity and contributions in a way that today’s mega-platforms don’t. Today, for example, Facebook makes money by aggregating user data and selling targeted ads. A web3 version of Facebook could allow users to monetize their own data, or even earn crypto “tips” from other users for posting interesting content. A web3 Spotify could allow fans to buy “stakes” in up-and-coming artists, effectively becoming their patrons in exchange for a percentage of their streaming royalties. A web3 Uber could be owned by the drivers on the network.
Understand the role of NFTs and Smart Contracts in Web3
NFTs, or Non-Fungible Tokens, are unique digital assets that prove ownership or authenticity of items like art, music, or collectibles using blockchain technology. Unlike cryptocurrencies, which are interchangeable, NFTs are one-of-a-kind and cannot be replaced. They are accompanied by Smart Contracts, self-executing programs on the blockchain that enforce the rules of the NFT, such as ownership rights, resale royalties, and access to exclusive content. Together, NFTs and Smart Contracts empower creators and collectors with transparent, decentralized control over digital assets.
In the Web3 ecosystem, NFTs and Smart Contracts revolutionize digital ownership and innovation. They eliminate intermediaries, enabling creators to directly monetize their work while giving users verifiable control over their assets. Smart Contracts automate processes like royalty payments and access permissions, enhancing trust and efficiency. Beyond art and collectibles, NFTs are being integrated into gaming, metaverses, identity verification, and decentralized finance, highlighting their transformative potential in creating a more user-focused, decentralized internet.
How to prepare and launch a Web3 Strategy
Explain everything about NFTs and how your brand will use them. Define how your brand can benefit from an NFT campaign with long-term ROI. Outline your plan and the uses of the NFT so that a 5-year-old can understand it.
Evaluate how you will disseminate and educate your community. If you don’t have a community you need to back up and rethink your plan.
Build Your Community
How can your fans ignite brand passion?
- Facebook Group, Discord Server, Mighty, BuddyPress for WordPress
- Identify your brand ambassadors, and empower them to lead and give them special recognition in the community
Create Your Media Communication Schedule
- Website, Email Marketing, Social Media, On-location (if applicable), Media Outlets (local, regional)
- Identify any partners that might be involved in the NFT program (City of Miami) and plan on how to engage their community to maximize reach
- Review metrics for engagement and adapt as needed
- Continue Web3 education with the community through feedback
The Wrap
The transition from Web1 to Web3 represents a fundamental shift in how we engage with the internet, moving from a one-way content consumption model to a decentralized, user-owned ecosystem. With the rise of NFTs and smart contracts, creators and brands now have the opportunity to regain control over their content and monetize it in new and innovative ways. As Michael emphasizes, the key to thriving in this new era lies in building a loyal digital community and moving away from traditional audience targeting. The evolution to Web3 will reshape industries, empower creators, and democratize ownership on the internet, ultimately fostering a more inclusive and equitable online environment. To prepare for this shift, brands must embrace these changes and begin laying the groundwork today, ensuring they are well-positioned for the future of the internet.
RBOA is a digital marketing agency with a 40-year legacy of creativity, smart strategy, and fresh thinking that delivers award-winning communications and successful results. We provide clients with a unique, omnichannel blend of advertising, social media, digital marketing, and web design services.
If you are interested in learning more about digital marketing for your organization, we hope you will reach out to RBOA to schedule an exploratory call.