Artificial intelligence has fascinated the world for over a decade. The global artificial intelligence market was valued at $65.48 billion in 2020 and is likely to reach $1,581.70 billion by 2030. And as it continues to evolve and drive disruption in the world of technology, we’re at the edge of our seats – watching closely as AI revolutionizes our digital existence. The future of humanity will be defined by smart devices delivering insightful digital services catering to the Web3 industry. And therefore, it becomes important for marketers to understand the key Web3 marketing trends to stay on top of their game.
In 2018 David Cearley, the Distinguished Vice President Analyst at Gartner, called it the ‘Intelligent Digital Mesh’. In other words, a world where AI-powered technological solutions blend the physical and digital worlds to create an immersive new reality. A world where we get the advantage of our connections with expanding sets of people, businesses, devices, content, and services.
Last month, McKinsey Global Institute predicted that AI and ML would generate $1.4 to $2.6 trillion in value by solving Web3 marketing problems in just the next three years. Furthermore, a study by Gartner has determined that almost 40% of data science tasks will be automated soon. We believe that the most exciting aspect of the AI revolution is its relationship with Web3 and the impact of AI on Web3 marketing strategies.
The Role of Artificial Intelligence in Setting Web3 Marketing Trends
Web 3.0, the decentralized web, refers to the next generation of the internet that aims to revolutionize how we interact, share information, and conduct transactions online. Unlike older versions, Web 3.0 will incorporate decentralized technologies like blockchain, peer-to-peer networks, and smart contracts. Web 3.0 envisions a more open, transparent, and user-centric internet experience. It aims to shift control from centralized authorities to users, empowering individuals to have greater ownership and control over their data and digital identities.
The advent of Web3 has brought about a new era of decentralized technologies and enhanced user experiences. As businesses navigate this rapidly evolving landscape, they increasingly use artificial intelligence (AI) to bolster their marketing strategies. AI has emerged as a powerful tool, enabling companies to leverage vast amounts of data, improve customer engagement, and deliver personalized experiences like never before.
In Web3 marketing, AI is pivotal in deciphering complex user behaviour patterns and preferences. By analyzing data collected from various sources, including blockchain transactions, social media interactions, and browsing habits, AI algorithms can generate actionable insights for marketers. These insights help businesses understand their target audience better, refine their marketing campaigns, and optimize content distribution across decentralized platforms.
Moreover, AI-powered chatbots and virtual assistants are revolutionizing customer support by providing real-time assistance and resolving queries efficiently. In August 2022, even before the current AI boom, a Salesforce survey found that 90% of marketers were using AI to automate customer interactions. Natural Language Processing (NLP) capabilities enable these AI systems to accurately understand and respond to user inquiries, creating seamless and personalized interactions.
In this article, we will delve deeper into the multifaceted role of AI in Web3 marketing and explore how it enhances customer engagement, personalization, and overall marketing effectiveness in the decentralized digital landscape.
AI-Powered Marketing Strategy Example: Coca-Cola
The Coca-Cola brand has adopted an AI-centric strategy in the past year, calling its effects significant, practical and long-lasting for the industry. Four days ago, Coca-Cola’s creative strategy head Pratik Thakar made waves in the media by making a definitive statement about AI in marketing. The global beverage company collaborated with OpenAI and Bain & Company to leverage the power of AI in their Web3 marketing strategy and to enhance their creative potential.
Their successful AI campaign titled “Create Real Magic” combined the potential of Web3 marketing with AI’s engaging and interactive capabilities to show the true transformative power of AI in marketing. The campaign enabled Coca-Cola to expand its engagement with the younger demographic using AI’s transformative power in Web3 marketing.
Benefits of AI in Web3 Marketing
One of the most vital aspects of Web3 is its decentralized and user-centric nature. The next generation of the internet aims to build a digital environment where users control their own data and interactions. The concept is grounded in using blockchain technology and decentralized networks, giving rise to decentralized applications (dApps), smart contracts, and autonomous organizations (DAOs).
And Web3 marketing refers to the marketing strategies and tools used to promote brands, services, and products within the Web3 environment – built on decentralized networks and blockchain technology. Experts believe that Web3 marketing has much to gain by integrating AI to improve creative output, enhance efficiency and expedite the Web3 marketing cycle.
Here is a look at the basic benefits of artificial intelligence in Web3 marketing –
- Advanced Analytics
Marketers have always used advanced analytics to understand their target audience better. However, Web3 offers vast data regarding specific customer behaviour, personalized content consumption, preferences, engagement, and marketing campaigns. AI algorithms can efficiently analyze this data in real-time to provide valuable insights humans cannot derive independently.
A Web3 marketing report by Salesforce proclaims that marketers who use AI for advanced analytics are experiencing a 50% increase in marketing qualified leads and a 54% increase in customer engagement.
- Predictive Modelling
In Web3 marketing, developing a deeper understanding of your customer behaviour is vital and predictive modelling based on AI-powered advanced analytics can make a significant difference. Companies that use AI for predictive modelling are witnessing a 10-20% increase in revenue, as reported by Gartner.
Analytical capabilities of AI algorithms can help marketers build more accurate and reliable prediction models. Better predictive modelling is the pathway to effective targeting in marketing campaigns and improvement in overall conversion rates on Web3.
- Scalability
AI tools can help marketing teams deliver quick results and turnarounds by optimizing the marketing strategy. The scalability of the technology ensures easy expansion of Web3 marketing efforts.
- Personalization
Web3 is about decentralizing the online experience and enabling greater personalization for users worldwide. Marketers can benefit by enhancing their personalization efforts using artificial intelligence. Marketing campaigns can be tailored according to your targeted customers’ content and behaviour preferences.
- Automation
Automation is perhaps the most vital benefit of integrating artificial intelligence into Web3 marketing efforts. Routine tasks such as social media posting, content creation, and email marketing should be automated to free up resources for strategic tasks. Automation in Web3 marketing can increase productivity and efficiency by 10-30%. AI-powered chatbots are An important AI automation element in Web3 marketing. They automate customer support functions to improve customer satisfaction and reduce the response times of customer service teams.
- Customer Experience
Artificial intelligence can help you create personalized interactive experiences and content recommendations for your customers. The strategic use of AI in marketing can help you respond to customers in real time and create an immersive customer experience. Research has shown that up to 63% of customers are willing to share their data with marketers if it ensures they have access to a better customer experience.
Top AI-powered Trends in Web3 Marketing
- Use of Generative AI
Last year, Web3 marketing witnessed a transformative event with the generative AI tool ChatGPT launch. Introduced by OpenAI, a renowned artificial intelligence research firm, ChatGPT is a pathbreaking tool for content creation. It enables anyone to create online autonomous and high-quality content, thus redefining marketing on a decentralized web.
This trend emphasizes the relevance of generative AI in creating innovative and immersive Web3 marketing strategies. After the launch of ChatGPT, various other AI tools have emerged in this space including Google’s Bard AI, Copy.ai DALL-E 2, Midjourney, and Jasper. The aforementioned ‘Create Real Magic’ campaign by Coca-Cola was also powered by a similar generative AI tool.
The global value of generative AI as a component in Web 3 marketing is expected to surpass $126.5 billion by 2031.
- Enhancing Personalized Customer Experiences Through Predictive Analysis
Artificial intelligence in Web3 marketing has allowed marketers to personalize the customer experience at the utmost granular level. AI enables marketers to place relevant touchpoints along the customer journey by synthesizing a wide array of customer data previously impossible. Some examples of strategic use of AI in personalizing customer experience include the following –
- Spotify – Creating customized playlists based on their ‘likes’ and usage history. Thus introducing them to emerging artists and current hits.
- Starbucks – Working with a real-time personalization engine that integrates customer data with data from their mobile app and contextual data to create a comprehensive predictive analysis of customer preferences. It helped Starbucks improve customer interaction by 150%.
- Amazon – Suggesting new products to customers based on their purchase history and browsing history – using an AI-powered predictive analysis model.
Faster Speech Recognition & Natural Language Processing
Natural language processing is the ability of a computer to process information in human language and respond in the same way. Using artificial intelligence to empower Web3 applications with speech recognition and language processing can help marketers build effective virtual assistants. AI can create virtual assistants interact seamlessly with customers to offer an immersive brand experience.
- Smart Contracts
Web3 marketing enables businesses to promote their products or services through smart contracts. Smart contracts are self-executing agreements with the terms and conditions of the contract directly written into code. They automatically execute predefined actions when certain conditions are met, ensuring trust, transparency and transaction efficiency. By incorporating AI into smart contracts, they can handle more complex decision-making processes that require data analysis, pattern recognition or predictions. Web3 marketers leverage AI’s ability to process and analyze large amounts of data to create smart contracts to coordinate and manage these intricate processes more efficiently, ultimately reducing human intervention, errors, and potential disputes.
- Security & Privacy
AI in Web3 marketing offers significant potential for enhancing security and privacy in the decentralized digital landscape. By leveraging AI-powered security systems, businesses can proactively identify and mitigate potential risks, protecting user data and maintaining the integrity of decentralized platforms.
AI algorithms can analyze vast amounts of data, including blockchain transactions and user behaviour, to identify patterns and detect suspicious activities that may indicate security threats. Additionally, AI can aid in implementing privacy-enhancing measures such as anonymization techniques and differential privacy, allowing marketers to deliver personalized experiences while safeguarding user privacy.
Combining AI and Web3 technologies strengthens security measures and preserves user trust in the decentralized ecosystem.
Conclusion
Integrating artificial intelligence into Web3 marketing strategies may define the new digital marketing era. The unique decentralized nature of Web3 calls for innovation in marketing and content creation. Artificial intelligence can empower marketing efforts to create transparent, engaging, and effective marketing tools for the Web3 era.
As the Web3 industry evolves and progresses towards an exciting future, Web3 marketers should do their best to harness the potential of AI in Web3 marketing. Empowering marketers with AI-enabled tools like ChatGPT allows them to create diverse content while accelerating the content creation process to make agile marketing efforts in the Web3 industry. It can help us create an efficient and more user-centric ecosystem online.