Web3 marketing might sound like a concept from the future. Nevertheless, it is already used by various large companies today: Adidas, Lamborgini, McDonald’s, and many others are leading the way. 

The concept of Web3 marketing is relatively new but very promising. In 2022, the Web3 marketing market was valued at $1.3 billion and is projected to skyrocket to $45.32 billion by 2032. 

That may sound lucrative for those who want to add versatility to their marketing strategy, enlarge the audience, and think that a brand-new Web3 marketing concept could be a “fit” for their company. 

However, diving headfirst into this new concept without careful consideration is a risk few are willing to take, and that’s understandable: The investments are high, and there’s a lack of collective experience in the field since the concept is very new. Apart from that, Web3 marketing is surrounded by myths and misconceptions that can deter newcomers. In this article, we aim to separate fact from fiction and address the concerns that may intimidate those exploring Web3 marketing for the first time.

1. Myth: Web3 Marketing is Only for Tech Companies

This is probably one of the biggest myths about Web3 Marketing. At first sight, it seems that your company and Web3 are entirely incompatible. 

Truth: Web3 marketing is versatile and applicable across industries.

Proof: Let’s take a look at the industry examples. Major non-tech brands like Adidas, McDonald’s, and Gucci have successfully leveraged Web3 marketing through NFTs and blockchain campaigns. As we can see these companies are not related to the tech world and Web3. Nevertheless, they have implemented Web3 into their marketing strategy to stay relevant and adapt to trends. As a result, the brands engaged audiences and boosted their loyalty.

2. Myth: Web3 Marketing is Too Expensive for Small Businesses

After debunking the first myth, one may conclude that those are the large brands and obviously, they have enough resources to spend on the experimental marketing method and get away with it. It may seem that this marketing method is too expensive and not relevant for smaller companies. The industry, however, can disprove these doubts. 

Truth: Web3 marketing can be scalable and cost-effective.

Proof: Web3 has a variety of marketing tools. Some of them do not require an incredible amount of financial investment. For instance, decentralized marketplaces like OpenSea offer minimal setup costs to launch your own NFT. Meanwhile, NFT production itself doesn't require high financial spending as well. 

Other budget options include accepting cryptocurrency payments to attract tech-savvy customers, utilizing decentralizing social platforms like Lens Protocol, and hosting virtual events in the Metaverse using spaces like Decentraland and many others. 

Web3 Marketing: Debunking Myths and Uncovering Truths

3. Myth: My business definitely has no Web3 Audiences

Another concern that may prevent you from considering Web3 marketing is that it won’t find a response among your current audience. 

Truth: As Web3 becomes more user-friendly, businesses across industries, from fashion to real estate, are successfully engaging a broader audience.

Proof: Web3 marketing can not only enlarge your audience by finding new customers in Web3 but also bring your current audience into the Web3 space. 

One remarkable example is the fashion industry. When fashion brands of different sizes (starting from luxurious franchises and ending with independent beginner designers) embraced Web3. By creating Metaverse experiences, NFTs, and virtual clothing, they successfully popularized Web3 concepts among its audience, which, at first glance, has no relation to Web3. 

4. Myth: Web3 Marketing is just a “current thing”

It’s common for new technologies to emerge, quickly gain traction, and become popular among marketers. This trend often continues until the next innovation appears, shifting everyone’s focus once again. This raises doubts: Should one invest in Web3 and dedicate time to it, knowing that a new trend might emerge, requiring you to start all over again?

Truth: Web3 stays for long

Proof: The future of decentralization is inescapable. Even if it loses and gains focus over time, the technology itself will not disappear. 

Investing in Web3 is a long-term commitment—one that will steadily gain traction and value, though not necessarily with immediate returns.

5. Myth: Web3 Marketing is Not Secure

As mentioned, Web3 marketing is a new concept that has yet to gain trust. Moreover, it is often associated with cryptocurrency scams. 

Truth: Web3 marketing can offer enhanced security when implemented correctly.

Proof: Blockchain-based marketing ensures transparency and data integrity, reducing risks of fraud and data manipulation. However, security breaches often occur due to improper implementation or phishing attacks, emphasizing the need for secure practices. 

To ensure Web3 marketing is secure for both businesses and customers, companies should prioritize using thoroughly audited smart contracts and decentralized platforms with strong security records. Clear data usage policies and compliance with privacy standards should be implemented to build trust and safeguard user information. At the same time, businesses must educate their teams on Web3 technologies and security best practices while also providing customers with transparent communication about how their data and assets are managed. Partnering with trusted Web3 experts and leveraging established platforms reduces risks, and proactive measures like multi-factor authentication, regular system updates, and ethical marketing practices help create a secure environment for all stakeholders.

Myths usually appear when people lack trustworthy information. In fact, Web3 marketing, likewise the concept of Web3 itself, was just recently put on the rails. The only way to prevent them is to research and get into the topic. That will help to debunk the misinformation and find the truth. 

Zürich, April 18, 2024—As part of their collaboration, Adello, LAB51 Inc., and Zühlke Group hosted their first hands-on workshop for Immersive Technologies, focusing on the latest developments in Extended and Virtual Reality.

Adello, LAB51 Inc., and Zühlke Group joined forces to host a hands-on seminar exploring the transformative potential of Virtual Reality (VR) and Extended Reality (XR) technologies. The event touched down on their impact across various industries, including hospitality, healthcare, security, and HR, shaping the future for Swiss and international businesses.

Christian Moser's (Zühlke) keynote, "Future with Extended Reality," opened the event, outlining XR's potential and how it can change our lives. Chris Blaser (LAB51) and Mark Forster (Lab51/Adello) compared VR/XR devices, including the Apple Vision Pro, Oculus, and Xreal, showcasing their evolution through real-world applications.

Blaser presented VR/XR use cases in firefighting, healthcare, and the arts, illustrating the broad applicability and impact of these technologies. To make it more tangible, the seminar was closed with a session by Mark Forster that discussed the key factors for success and the cost considerations of using XR and VR devices. Participants enjoyed hands-on XR experiences, networking, and Apéro.

This engaging seminar attracted a diverse group of professionals and business leaders interested in learning about and experiencing the latest in XR and VR technologies firsthand. In the future, Adello and LAB51 Inc. plan to organize more events and exclusive seminars devoted to innovations and are delighted to welcome tech enthusiasts across Switzerland.

About Adello

Adello analyzes human behavior in real-time and combines this with fully automated, self-learning technology to maximize mobile marketing ROI. The technology, protected by various patents and recognized with nearly 20 awards, is ranked among the top 16 in Big Data worldwide by the global market research firm Technavio.

Adello's satisfied clients include hundreds of leading global brands and agencies, such as BMW, Clear Channel, GroupM, McDonald's, SBB, and UBS. Adello has offices in Europe, Asia, and North America and is a portfolio company of Swisscom Ventures. Alongside AI in mobile advertising, the company also focuses on Metaverse projects under the name "Lab5 Inc," utilizing technologies like Blockchain, Unreal Engine 51, and Crypto/NFTs.

For more information, visit adello.com and lab51.io or contact them at

sales@adello.com,

marketing@adello.com,

+41 44 500 31 50.

LAB51, a subsidiary of Adello and Swiss leader in the Metaverse world, recently hosted an exclusive event on the new trends and opportunities of the Metaverse.

ZURICH, SWITZERLAND, February 6, 2023 - LAB51, a subsidiary of Adello and Swiss leader in the Metaverse world, recently hosted an exclusive invite-only event on the new trends and opportunities of the Metaverse. Over 35 attendees gathered for the insightful event, led by Mark Forster, the founder of LAB51 and chairman of the IAB Switzerland Metaverse Focus Group.

During his presentation, Forster showcased the technologies driving the metaverse and explained that we are just at the beginning of a development that is growing faster than the Internet did in the 1990s. Despite the recent controversies surrounding cryptocurrencies, the future of the metaverse is looking bright.

Forster also outlined ten key topics that will shape the future of the metaverse, including Avatars, Virtual Reality, NFTs, AI, and Synthetic Media. He explained that these advancements will lead to "Augmented Humans," people who can understand and utilize AI to be more productive and creative in their work. This will revolutionize not just individuals but entire industries and companies.

Using virtual sneakers as an example, Forster demonstrated the difference between virtual and physical goods and why consumers are willing to spend thousands of dollars on digital NFT sneakers. He concluded his talk by saying that the big technology companies of today need to adapt to the changing landscape of digital worlds and that the opportunities for companies and agencies are just as vast as they were in the 90s with the emergence of the Internet or in the mid-2000s with the advent of mobile.

At the end of the presentation, Forster gave a free NFT to all attendees as a symbol of their journey into the metaverse. The talk was followed by an Apéro and networking party with the members of the expert group, where Martin Radelfinger, President of IAB Switzerland, welcomed the attendees and emphasized the importance of such events and the role of the expert group in educating and showcasing the concrete possibilities of the metaverse.

Contact

Learn more about the Metaverse from LAB51 experts
Get access to other Adello Magazine editions via https://adello.com/adello-magazine-top50-visionaries/
For partnership, contact us via marketing@adello.com
For advertising, contact us via sales@adello.com

Anna Pak
Adello Group

anna.pak@adello.com

LAB51 exclusive event - METAVERSE IN 60 MINUTES

The weekly sales volume of Non-Fungible Tokens has significantly increased from 100 sales in 2017 to an estimated 15,000 or even 50,000 by 2022. You may have heard rumblings about Non-Fungible Tokens (NFTs) recently, and the hype around this technology this year was truly remarkable. Do you remember the wild buying of Bored Appes for tens of thousands of dollars or the tales of those who got rich from buying low-cost NFTs?

However, people, who were investing heavily in NFTs these years, suddenly suffered major losses in NFTs value at the end of 2022. Q3 NFT sales dropped significantly, seeing a 60% decrease compared to the previous quarter. At the beginning of this year, Justin Bieber made headlines for purchasing an NFT from the BAYC collection for 500 ETH, which was around $1.3 million at the time. Later, his investment quickly devalued, with the USD value of his NFT dropping by more than 94%!

Big companies are still trying to close their eyes on the NFT drop and push their Non-Fungible Tokens further. Porsche and BMW are releasing their first NFTs, and Starbucks is announcing its NFT loyalty program, while their customers have growing doubts.

Do you remember at the beginning of the metaverse and NFT hype, different experts were saying it's an overhyped bubble? It seems that now they are giggling and rubbing their hands while reading the latest news. So, were they actually right, and will NFTs be graved in 2023? The short answer is no.

What went wrong?

However, there is a sip of the truth in their words. Due to the swift NFT market decline, it calls into question whether or not this technology can indeed revolutionize the digital world. Or is it used correctly?

This could be a result of a few different factors. One key element could be the high benefits associated with NFTs, which could have attracted investors in an attempt to make quick profits.

A further issue could be the fact that many of the sales going through the NFT market are one-off transactions, which do not create sustainable growth.

The lack of a secondary market is another major issue contributing to the NFT market's downfall. A secondary market could provide liquidity, meaning that a seller could turn their NFT into cash easier. This is uncommon in the NFT market, which keeps prices stagnant and makes it difficult for sellers to make money.

Additionally, the lack of a viable market for NFTs leaves investors unable to assess their asset's value.

The growth of the NFT market has also been attributed to the rise of DeFi tokens. DeFi tokens are taking the spotlight away from NFTs as investors and speculators shift their focus from one asset class to another. This has slowed the growth of NFTs, as investors are quickly moving their money into other investments, like generative AI.

Lastly, recent regulatory decisions have had an impact on the NFT market. Several countries, including China, have begun to issue warnings about the risks associated with NFTs. This has led to some investors losing confidence in the market further.

That is why the attempts of the companies to invest in the NFT look like treading water.

Will NFTs, as they are now, recover, or will they be forgotten - we shall see. Perhaps, we will be more mindful of NFT applications and their value than in the past.

Nevertheless, the decline or change of the NFT does not mean the fall of the metaverse and other Web3 elements.

Metaverse

Why NFT fail will not end Web3 and Metaverse development?

It is unlikely that the failure of NFTs would significantly impact the overall development of Web3 technologies and the metaverse.

NFTs are a type of digital asset that are unique and cannot be exchanged for other assets on a one-to-one basis. They are often used to represent digital art, collectibles, and other types of digital assets and have gained popularity in recent years. While the market for NFTs has grown rapidly, it is still a relatively small part of the overall Web3 ecosystem and the metaverse.

The metaverse is a virtual shared space, created by the convergence of virtually enhanced physical reality and physically persistent virtual space, including the sum of all virtual worlds, augmented reality, and the Internet. It is an emerging concept that encompasses a wide range of technologies and applications, including virtual reality (VR), augmented reality (AR), and other types of immersive digital experiences. The development of the metaverse is being driven by a number of different technologies and trends, including the growth of Web3 technologies and the increasing popularity of immersive digital experiences.

In conclusion, while the success or failure of NFTs may have some impact on the Web3 ecosystem and the metaverse, it is unlikely to significantly impact the overall development of these technologies and trends.

Previously, we reported the metaverse expansion and appearance of whole new worlds and entire cities on the different Web3 platforms. The new meta-buildings are popping up, such as brand shops, fashion stores, offices, playgrounds, and even UAE's Ministry of Economy office. On top of that, more and more companies are creating their offices in the metaverse.

ArentFox Schiff goes to the metaverse

Recently, ArentFox Schiff, an American Law company located in Los Angeles, built their office in the metaverse. That is how the company became the first major US law firm to build and launch an office in this new virtual world.

ArentFox Schiff offers legal solutions "to achieve today's targets and anticipate tomorrow's problems". The main focus of the company is business-oriented legal counsel that helps their customers in order to achieve their commercial goals. Also, ArentFox Schiff is deeply rooted in government service and committed to the administration of justice. The company has clients in various fields. Their clients include Brooklyn Nets, Los Angeles Lakers, Diesel and Ferrari, Warner Bros, Discovery and many others.

The company ArentFox Schiff has always considered itself tech-friendly. On top of that, the Metaverse, Blockchain & Digital Assets team, among the largest in BigLaw, communicate with some world's top companies and help them create the strategies for Web3 adoption. For one, ArentFox Schiff was consulting PwC regarding becoming the first international professional services network to publicly enter the metaverse.

ArentFox Schiff Chairman Anthony V. Lupo, commented on the firm transition to the metaverse:

"The Metaverse stands to disrupt nearly every industry – fashion, sports, real estate, the list goes on – presenting immense possibilities and potential risks. ArentFox Schiff has been helping world-class brands in these sectors enter the metaverse, and now with our new office in Decentraland, we can call each other virtual neighbors."

ArentFox Schiff is located in the Luxury Fashion District in Decentraland.The office is designed by Voxel Architects, a Metaverse digital architecture studio dedicated to building virtual buildings. It has four floors featuring conference rooms and a private meeting space.

Offices in the metaverse

There has been a sharp decline in interest in the keyword "metaverse" in Google searches this year. However, while the excitement may be subsiding, companies are still interested in the virtual world.

In March 2022, companies either launched or revealed plans to build metaverse offices, which will be used for online meetings with international customers, improve working spaces, and optimize communication with users. While some employers may start experimenting with the metaverse, widespread adoption of such a virtual space with digital avatars will still need to wait at least a few more years.

Benefits of the metaverse office

Indeed, offices in the metaverse are not a new thing at all. Now we see how companies establish their offices on the different Web3 platforms. There are several benefits of doing this.

Metaverse land prices are down

Land prices in the metaverse have been falling for weeks. Land prices in Otherside, the most popular metaverse project of recent times, have recently lost 15% of their value. Other metaverse plots with high market values are similarly declining in price. These include projects such as The Sandbox (SAND), Decentraland (MANA) and Axie Infinity (AXS).

This would be a good opportunity for companies who want to purchase land in the metaverse.

To be closer to the Gen Z

Large international brands, such as Walmart, recently entered the metaverse game to be closer to the younger generation, namely millennials and generation Z.

Open-mindedness toward new technologies

In the modern world, it is important for companies to declare their statement to their audience. Open-mindedness and sympathy for innovation can be good indicators for customers. In the case of ArentFox Schiff, that work with Web3 cases, transferring to the metaverse would be a logical decision to prove to potential customers that they are offering services related to Web3.

Making dream office come true

Some office ideas regarding the interior or location can never come true. The good news is that metaverse rent is way cheaper than real one. On top of that, any kind of wild ideas regarding how the office will look can be recreated in the metaverse. That will allow to create a unique place both for coworkers and to present the clients.

Marketing move

Since real estate in the metaverse is still a new thing that is hyped around, the companies can use this opportunity to draw the customers' attention and to brag before the competitors.

Disadvantages of the metaverse offices

Low ROI

There is no guarantee that the money spent on the metaverse will bring high returns. Indeed, the metaverse office is a good feature, but it doesn't bring financial benefit directly. The companies should be considerate if they are willing to invest money in the metaverse land, which can quickly depreciate.

There is no exact reason

In order to justify the money spent on the metaverse office, the companies would have to determine the exact reason for such a purchase first. Is it a marketing movement, or is it just a fancy thing to buy, or maybe it is just excess irrelevant spending from the marketing budget?

Clients are not ready

You may be ready to buy the property in the metaverse, but your customers can not be adapted to such innovation yet. Perhaps the metaverse is an absolutely unknown word for your clients, and your target audience can be reached through different marketing channels.

So pick up that phone and call your friend, colleague or client to meet in person. It always creates stronger bonds.

As Mark E. Forster, Chairman of IAB Metaverse and Adello founder, during the panel discussion about the metaverse from the law perspective, mentioned: 

“The legal frames follow the technical possibilities with a delay of a couple of years.” 

Indeed, Web3, in general, is an absolutely new field that was almost untouched by government law. Nevertheless, contentious issues and unfair situations already take place in the Web3 world. For instance, one of our Adello Magazine authors, Lavinia D. Osbourne, took her law case to the High Court and managed to secure an injunction to freeze the NFTs that were taken from her wallet. In fact, in the Internet era, where users can officially own things, juridical regulations are essential.  

Despite the fact that the law system for Web3 was not designed yet and regulated by the government fully, there are some juristic elements that help to protect users. One of them is smart contracts. 

What is smart contract?

A smart contract is an agreement between two or more parties to establish, change or terminate legal rights and obligations. Part or all of the terms of a smart contract are written, executed, and/or enforced automatically by a computer algorithm in specialized software. 

The use of digital agreements reduces financial, administrative, and time costs, as well as the likelihood of legal errors. Smart contracts involve the resources of the entire network rather than a separate segment of it. Introducing smart contracts into business turnover will increase the speed of business processes. Also, the use of smart contracts in traditional processes has the potential to create a more convenient environment for interaction between government, organizations, and citizens. 

Traditional contracts are often so complex that they require third parties to enforce them. That is why there are lawyers who work on drafting and adjusting smart contracts for specific cases.  

Decentralized Nature of Smart contracts 

An important aspect of smart contracts is decentralization. The blockchain system processes direct debit transactions in which the recipient, not the sender, initiates the payment. Decentralized blockchain platform supporting thousands of transactions per second, the processing of which is cheap and does not require huge energy costs. This facilitates messaging and makes the process transparent. Moreover, decentralized management reduces the risk of manipulation and fraud by criminals.  

Future of smart contracts

Smart contracts are made between two or more parties or legal entities formalized not on paper but in the form of an algorithm. 

In global practice, smart contracts are used not only in the financial market, including banking and insurance but also in public administration, retail, healthcare, initial public offering, and others. Smart contracts allow the tokenization of everything, including ownership rights to real-world assets and intellectual property. Generally, these tokens can be split into 2 groups: non-fungible tokens, also known as NFTs, and fungible ones.  

This gives smart contracts vast potential. It is expected that in the near future, smart contracts can be more popular as more private and public organizations adopt them. This can be explained by the growing confidence in blockchain technology and the widespread use of Web3, as well as the rise of controversial cases related to ownership on the internet (including intellectual property). 

The global economy is on the verge of a new digital revolution, which will lead to a mass usage of smart contracts in many different areas. The introduction of new technologies will result in a global acceleration of transactions and business processes. Smart contracts can completely change all spheres of the national economy. The world economy will become more flexible, transparent, and personalized.  

With a smartphone, the user will be able to sign a contract with any business or person, no matter where they are located. Computer algorithms will help eliminate bureaucratic hurdles and create new incentives for business development. According to The Economist, smart contracts have the prospect of becoming the most important application of blockchain technology. 

The application of smart contract tools gives impetus to the emergence of new business models, which impacts increasing competition and the development of new services in the financial market. 

Smart contracts can become legally significant if they comply with the laws of the state. For this purpose, smart contracts must contain conditions and restrictions established by the legislation of the country. 

Smart contracts bring opportunities as well as risks. Blockchain technology could render hundreds of professions redundant, leading to a dramatic increase in unemployment on a global scale. The complete digitization of documents will lead to the emergence of hacker groups that specialize in hacking distributed databases. In the event of a successful attack, cybercriminals could gain access to vast amounts of information that would be used to steal money. 

The Future of Smart Contracts  

Smart contracts adoption hurdles

Currently, smart contracts are still far from perfect. The blockchain infrastructure is still in development, and the code has critical bugs. In addition, there are many gaps in the regulatory framework for smart contracts, and oracle programs still need to be developed. This makes it harder for organizations and individuals to use smart contracts in their everyday work. 

Also, sometimes lawyers and programmers need help understanding each other. This communication gap prevents law professionals from controlling the correctness of will or deal expression. 

Another issue is decentralization. Decentralization, as we mentioned, is an important aspect of smart contracts. Decentralization itself suggests that a community of users establishes the rules. If the state governs this, the principle of decentralization is put into question. 

On top of that, smart contracts are not functionally flexible. When using traditional mechanisms of making agreements, it is always possible to agree to or change its terms. Still, it is hard to make these kinds of changes during the execution of smart contracts. The lack of a formalized smart contract status in global legal practice can make it difficult to resolve disputes that arise when its terms are violated. 

To date, the use of smart contracts in everyday life has been limited by technical, legal, and social factors. Nevertheless, it is already clear that smart contracts have a future. Perhaps they will revolutionize the world of management and finance or simply automate standard processes. Either way, the potential of this technology gives room for new ideas. 

Due to the strong growth in sales in the first quarter, Adello hired another employee.

Ana Cecilia Bravo Lopez is the fourth person to join the team this year. She studied marketing in
in Karlsruhe. With her passion for data analysis and digital marketing, she is the ideal candidate for the Big Data company.

Cecilia Bravo on her new position: "I like data. What fascinates me about Adello is the combination of technology and behavioral patterns to achieve better results. By making the decision regarding the company, the dynamic, young team was also very important to me. I hope to learn a lot and contribute to make digital marketing even better."

We still have open positions in the areas of:

Contact
anja.prosch@adello.com

About Adello
Adello analyzes human behavior in real-time and combines it with fully automated, self-learning
technology for maximum mobile marketing ROI. Global market research agency Technavio ranks our technology, which is protected by various patents and winner of nearly 20 awards, among the top 16 in Big Data worldwide.

Since 2022, the company has been refocusing on emerging Metaverse technologies Blockchain, Gaming,
Crypto/NFT. Adello has among its customers hundreds of the world's leading brands and agencies such as BMW, Clear Channel, GroupM, McDonald's, SBB, and UBS. Adello operates offices in Europe, Asia, North America, and is a Swisscom Ventures portfolio company.

After the successful event in February on the topic of Metaverse and changing the company focus,
Adello decided to straighten its team in the Zurich office. The goal of such expansion is to drive technological innovation in the company in the coming years.

Konstantin "Excalibur" Pak joined Adello as an associate in January. He is focusing on Metaverse/Gaming/NFT.

Mike Saladin joined the team in March as an associate with a focus on business development/blockchain/crypto/NFT. Mike Saladin on his motivation to join Adello:

"For me, blockchain is one of the most exciting new technologies. In my previous job in investment management, innovation was not the main focus. What I like about Adello is the forward-thinking vision, the positive energy, the young, international team, and the continuous evaluation of new technologies in our own "Lab51". The fact that I can work here on a topic that is important to me is a perfect fit. I'm looking forward to seeing what we can achieve together in the coming months and years."

Cristian joined our team in March as well. He is an Associate with a focus on Business Development/Social Media/and Metaverse.

We still have open positions in the areas of:

Contact
anja.prosch@adello.com

About Adello
Adello analyzes human behavior in real-time and combines it with fully automated, self-learning
technology for maximum mobile marketing ROI. Global market research agency Technavio ranks our technology, which is protected by various patents and winner of nearly 20 awards, among the top 16 in Big Data worldwide.

Since 2022, the company has been refocusing on emerging Metaverse technologies Blockchain, Gaming,
Crypto/NFT. Adello has among its customers hundreds of the world's leading brands and agencies such as BMW, Clear Channel, GroupM, McDonald's, SBB, and UBS. Adello operates offices in Europe, Asia, North America, and is a Swisscom Ventures portfolio company.