Original article by phillip_xyz, Marketing Growth of Sei Labs
Original translation: Felix, PANews
Introduction: Competition among crypto projects is becoming increasingly fierce. To stand out and become a leader, you can learn from some traditional marketing rules. The 7 immutable rules of Web3 marketing are derived from the classic theories of Al Ries and Jack Trout, the most outstanding strategists in the field of traditional marketing. These rules have stood the test of time and are still very valuable for Web3 marketing today.
1. Leadership Law: It’s better to be first than to be good.
The Law of Leadership focuses on the brand's ability to shape consumer perceptions, define consumer needs, and pave the way for new market categories. It's not about being the best, it's about being first in the minds of consumers. Marketing is a battle of perceptions, and whoever leaves an image in the minds of consumers first will surpass those who may be objectively better.
No matter how unique or superior the newcomers’ products are, the “first” brand usually stays in the minds of consumers. Once a brand fills a niche in a category, it is difficult for consumers to switch.
Web3 Example:
Ethereum: As the first smart contract platform, Ethereum shaped the market’s perception of blockchain computing and dApps. Today, despite facing stiff competition from other capable platforms, Ethereum still holds a dominant position in people’s minds.
Metamask: Metamask may not be the fastest or smoothest, but it was the first on-chain wallet. As the first wallet to launch, Metamask has maintained its position as the go-to crypto wallet despite competitors offering lower transaction fees and a smoother user experience.
2. Category Rule: If you can’t be number one in a category, create a new one
Can’t be number one in an existing category? Create a new category. This rule emphasizes establishing a new, unique niche within the broader market where your brand can become a leader, rather than trying to compete with the leader in the existing space.
As a Web3 marketer, you will find yourself in a space that is already dominated by pioneering projects. This principle encourages you to think innovatively and create a new niche. This approach not only allows you to avoid fierce competition, but also provides an opportunity to lead and shape a new category.
Web3 Example:
Axie Infinity: Axie Infinity dominates the “Play to Earn” space. However, newer games like (StepN) are able to carve out their own niches like “Move to Earn.”
Trader Joe: Trader Joe was originally a fork of SushiSwap and has now become the#1DEX in the Avalanche ecosystem. Trader Joe strategically opened up a new category and developed a gaming-like user interface and functionality to dominate.
3. Thinking Law: Being ahead in thinking is more important than being ahead in the market.
This law emphasizes that brands must first penetrate the minds of consumers and then consolidate that position through repetition. The real battlefield of marketing is in the hearts of your target audience, and through repeated messages, slogans and core brand positioning, you can shape consumer minds.
In the chaotic world of Web3, the ability to create a unique space in the minds of your audience is priceless. It’s all about creating a lasting impression and strengthening the connection with your audience. In essence, you’re not just selling a product or service, but a perception, a feeling that your brand evokes.
Web3 Example:
Solana: Despite network instability, Solana has gained widespread attention as a fast and cheap Ethereum alternative by continuously promoting its speed and cost advantages.
DOGE: Although DOGE is not the first MEME coin, it has become the Top 1 MEME coin in the minds of crypto enthusiasts thanks to its excellent marketing, brand promotion and a "cult"-like community.
4. The Law of Focus: The most powerful concept in marketing is to own a word/concept in the mind of your potential customer.
The key to this law is the power of simplicity and specificity, which can "drill into" the user's mind by narrowing the focus to a single word or concept. Marketing is all about manipulating the perceptions of your target audience, and success tends to those that reinforce the brand's position rather than those that expand its reach.
Owning a word in the minds of potential customers allows you to occupy a unique space that your competitors cannot easily penetrate. By focusing on one concept, you can become an expert in your field, making you more recognizable and memorable.
Web3 Example:
Phantom Wallet: Phantom Wallet focuses on the term “Solana wallet,” allowing users to make a strong association between the two.
1inch: 1inch has been highly focused on DEX aggregation and consciously ignored other DeFi niche markets, thereby consolidating its market position as the category leader.
5. Ladder Rule: The strategy you use depends on your market position
The ladder rule states that your marketing strategy should be determined by your brand's position in the market. If you are a market leader, your focus should be on the category as a whole. If you are a challenger or follower, you should focus on how to differentiate yourself from higher-level brands.
Keeping this rule in mind can help brands develop clear and effective marketing strategies. This rule emphasizes the importance of understanding your market position and acting accordingly.
Web3 Example:
Tensor: Tensor strategically positions itself as a competitor to Magic Eden, focusing on professional traders to capture a piece of Magic Eden’s market dominance on Solana.
LayerZero: Although LayerZero entered the cross-chain infrastructure field relatively late, it still discovered the current gap and adjusted its positioning.
6. Brand extension law: There is irresistible pressure to extend brand value
The law of brand extension states that over-extension of a brand often leads to dilution and confusion. When a brand stands for everything, it ends up standing for nothing, as brands that try to cater to everyone tend to get into trouble. Brands should focus on leveraging what works, rather than taking it for granted that having a loyal customer base will lead to brand growth.
Understanding this law can help prevent your brand from falling into the trap of over-expansion. If your brand is considering expanding into new areas, it will dilute its brand message and confuse users. Don’t easily destroy the brand you’ve spent so much time and effort to build.
Web3 Example:
Magic Eden: Magic Eden lost its market dominance in a short period of time after expanding beyond the Solana ecosystem.
Uniswap: After successfully building mature brands in the field of decentralized finance, DeFi protocols such as Uniswap attempted to expand their business to NFTs, but all failed.
7. Law of Acceleration: Successful projects are not based on hot spots, but on trends.
The law of acceleration emphasizes that successful marketing strategies are based on long-term trends rather than short-term hot spots. Although hot spots may bring profits in the short term, they will not bring lasting benefits.
While hotspot tracking cannot be ignored, it is important that hotspots become hot quickly and cool down quickly. A brand’s marketing strategy should be authentic and focused, rather than following every hotspot.
Web3 Example:
Wonderland DAO: Wonderland DAO (TIME) is a fork of OlympusDAO (OHM) on Avalanche, which failed to maintain active trading activity after the initial enthusiasm.
Additionally, many virtual metaverse projects make the mistake of chasing hot spots instead of focusing on long-term trends or providing sustainable utility.
In summary, by adhering to the above seven Web3 marketing rules, you can build a lasting brand in this ever-evolving industry.
