Despite the challenges brought on by the 2022 crypto meltdown, marketers are still drawn to Web3, especially in the sports and luxury brand industries. 

Web3 gives ownership of data and digital assets based on the concepts of decentralised applications and blockchain technology, creating new possibilities for creative projects by various brands. 

Byron Sorrells, CEO and co-founder of Dispatch, a platform that enables friction-free purchasing across multiple digital experiences, stated that the 2022 crash presented an important distinction between speculative claims and the actual utility of Web3 technology in a recent interview with Insider. 

According to Sorrells, he views Web3 as a technology that complements current methods rather than completely replacing them.

It's unfortunate that it took these significant incidents for that to occur, but you can see that some real use cases have survived, he added. 

In contrast to only providing technological solutions, Marija Zivanovic-Smith, the CMO at IEX Group, has stated that Web3 providers must address specific business issues faced by companies and marketers. 

Zivanovic-Smith emphasised the significance of addressing problems like decreasing targeting algorithm accuracy as a result of modifications like Apple's removal of cookies.

According to Zivanovic-Smith, "it's solving for growing digital loyalty, solving for the issues we're facing with losing 30% accuracy on targeting algorithms when Apple did away with cookies."

Web3 Adoption Declines 

According to Matt Moorut, a director and analyst at Gartner, Web3 adoption is progressing more slowly now than it was during the metaverse hype's apogee 12 to 18 months ago. 

Marketers are approaching Web3 cautiously and concentrating on use cases where the technology may benefit their businesses because of ongoing cryptocurrency volatility and worries about inflation.

Moorut clarified, "It's not to suggest Web3 is gone. 

While still intrigued, marketers are "trying to unpick those use cases where Web3 technologies are still valuable for the organisation" rather than moving too quickly with it.

Activewear and extravagant businesses have been at the forefront of Web3 adoption, according to Moorut. 

Early adopters included companies like Nike and Adidas, who integrated blockchain technology into loyalty programmes and created communities around it. 

As of November 2022, members of Nike's.Swoosh community can participate in both online and offline activations, communicate with Nike athletes and creatives, and wear virtual Nike gear in games. 

Nike's jointly developed Our Force 1 virtual collection was unveiled in April 2023.

Despite these marketing triumphs, consumer involvement in Web3 initiatives is still only slightly higher than average, and it largely appeals to a youthful, wealthy, and male population. 

The percentage of consumers that use NFTs or have cryptocurrency wallets is still small, according to Moorut. 

"Until there's a big sea change in consumer adoption, it's going to be kind of an edge case for a marketer, versus the core of most retailers' business," he continued.