Traditional marketing has a conversion problem, and Web3 holds the key to fixing it.
The shortcomings of Web2-style digital marketing originate from the lack of a meaningful two-way interaction with the user. Despite the massive interaction opportunities introduced by social media, traditional marketing efforts still put the user at the end of the communication chain — hence the name ‘end user.’
Plagued by ineffective targeting, over 95% of digital marketing efforts see no conversion, which then results in almost $240 billion of marketing budget wasted on inefficient ads. For a business that’s expected to surpass $689 billion by 2028, that’s a significant amount of money thrown into the void.
Global digital marketing is expected to surpass $689 by 2028. Source: Research and Markets
Overcoming the lack of conversion by better targeting requires transparency, traceability and superior analytics —features that resonate well with blockchain. This is why, marketing has become a huge trend within the Web3 space that’s based on the same technology.
As decentralized finance (DeFi) dramatically simplified issuing a new digital asset, creating its own token turned into a standard practice for numerous projects active in the Web3 scene. Those tokens then became a vital part of building a two-way interaction bridge with the community, giving birth to what’s today called MarketingFi. In a time frame that felt like overnight, degen-friendly terms like airdrops and social farming have become an essential part of life for many Web3 users.
Social farming in Web3
Web3 startups saw — and still see — airdrop as an easy way to attract new users and potential investors. Derived from the same mindset, social farming (also known as bounty airdrop) adds unique tasks and gamification to the mix — such as connecting social network accounts or taking specific actions on X (formerly Twitter), Discord or Telegram.
Pulling off a successful airdrop campaign
Web3-based projects found clever ways to utilize airdrops and social farming to boost community engagement. Using token mentions on X, projects like BlockGames (BLOCK) and Portal Coin (PORTAL) hit a home run with their marketing campaigns.
By initiating token airdrops for tweets, retweets, quotes, replies and likes on posts mentioning their tokens, those two projects succeeded in keeping the community actively engaged. As a result, the PORTAL token surged to 68 times its initial value, while Block Games amassed almost a million followers on X, emphasizing the effectiveness of the social farming model.
However, as Web3 airdrops are gaining popularity through word of mouth and successful campaigns, they are also attracting bad actors. Farm accounts and bot-powered Sybil attacks continue to harm the efficiency of Web3 marketing campaigns.
Despite social farming’s potential, bad actors exploit the system through minimal engagement or bots, undermining the support genuine users provide. This dilutes the value intended for deserving community members and stifles project growth.
So, how can Web3 marketing campaigns minimize bot attacks and token farming while encouraging meaningful engagement from the community?
AI-powered Web3 marketing
Emerging as a game changer for virtually all industries that operate in the digital realm, artificial intelligence (AI) holds the key to building better MarketingFi dynamics. Combining AI with Web3 data and wallet analytics has the potential to prevent bots and token farmers who have no interest in the project from impacting the related airdrop campaign.
One such project using AI-powered analytics to incentivize genuine community interaction is Cookie3, an AI data layer designed for the MarketingFi space.
Cookie3 is a strategic partner of Cookie DAO, a collective of MarketingFi enthusiasts banded together to bolster decentralization through innovative blockchain solutions. Issued by Cookie DAO, the COOKIE3 token finds its utility in the AI-powered MarketingFi ecosystem built by Cookie3.
The Cookie3 ecosystem aims to deliver a transparent marketing economy by adding an AI data layer to MarketingFi campaigns, unlocking value for stakeholders — users, creators and businesses — of the Web3 ecosystem.
Cookie3 seeks to deliver value for businesses, creators and users in MarketingFi campaigns. Source: Cookie3
Taking a cue from the success of recent Web3 campaigns, Cookie3 aims to become a cornerstone in the evolution of MarketingFi by combining the elements of social farming (or rather engagement since the project puts emphasis on sparking and rewarding quality conversations, giving no place for mindless farming and spamming) with referrals, key opinion leader (KOL) engagement, analytics and AI data layer to promote the airdrop for the Cookie DAO and COOKIE, the upcoming native token of the Cookie ecosystem.
Conducted by the Cookie DAO, the COOKIE token airdrop will leverage Cookie3’s MarketingFi Score, a comprehensive scoring system that assesses user behavior both off and on-chain to gauge user value. The system effectively filters out bots and malicious actors, enabling projects to reward quality users with access to airdrops, specialized campaigns and exclusive events.
Establishing new standards for Web3
Building a streamlined social farming ecosystem has paid off for Cookie3 and Cookie DAO, as the COOKIE token airdrop campaign attracted over 100,000 participants in less than a week. “The COOKIE Airdrop conducted by Cookie DAO builds upon the learning and success of Portal coin’s and Block Game’s social farming campaigns,” said Filip Wielanier, CEO and co-founder of Cookie3.
How AI and MarketingFi create a value cycle between users, projects and creators. Source: Cookie3
He added that the airdrop utilizes Cookie3 analytics and AI technology to create a viral marketing phenomenon. The main goal is to become the new airdrop and social farming standard. “It’s not just about spreading awareness but cultivating a community where every interaction counts,” Wielanier summarized.
Web3 enhances user engagement by leveraging blockchain’s transparency and traceability, transforming how community interactions are valued. By utilizing AI to score both on- and off-chain actions, rewards are more effectively directed to genuinely engaged users. This shift emphasizes meaningful engagement over mere participation, promising a future where active, value-creating community members are prioritized in the digital landscape.
Please note that some functionalities of Cookie3 are still under development and not yet live.
Disclaimer: The objective of this article is for informational purposes only. The information laid out herein (I) may not be complete, (II) does not imply a contractual relationship and (III) may be subject to changes.
The authors of this article are not your broker, intermediary, agent or legal adviser and have no obligation to you with respect to your decisions. No communication or information provided in this article intends as or shall be considered or construed as, the solicitation of an offer to buy, investment advice, financial advice, legal advice or any other sort of advice. Before engaging in any of the activities mentioned in the article, you should consult with your independent financial, legal or tax professionals.
Please be informed, that the prices of blockchain assets are extremely volatile. Fluctuations in the price of all kinds of virtual assets could materially and adversely affect the value of the COOKIE token in the future. We cannot guarantee that any holders of the COOKIE token will gain any income related directly to the purchase/ acquisition of the COOKIE token.
Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you with all important information that we could obtain in this sponsored article, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.