The relevance of strategic communications for Web3 businesses

3 2 1… launch!

Well, preparing for that launch can be the ABC of the comms world.

Communicating for a nascent industry’s businesses has its challenges, which often can be turned into opportunities.

When preparing communications strategies, we often have to think of the environment and historical period we operate in. Now, while the tech space is becoming a hot topic, with the future of finance, applications of AI in business, and blockchain technology taking up most of the business interest, being a native Web3 business can have its challenges, including looming (inter) and national regulation in the space.

Let’s walk you through the factors to keep in mind before that 3 2 1… launch.

First, let’s look at the complexity of the new Internet of Value dimension.

Web3 businesses often face several challenges when communicating their business ideas, vision and mission.

The main common difficulties they usually encounter are:

The Complexity of Technology: Web3 startups are often built on blockchain or decentralised technologies, which can be complex and unfamiliar to the general audience. Explaining the technical aspects of their product or service in a clear and concise manner can be challenging.

The Lack of Awareness and Education: Web3 concepts, such as decentralised finance (DeFi), Non-fungible tokens (NFTs), or smart contracts, are still relatively new and unfamiliar to many people. Startups may need to invest time and effort in educating their target audience about these concepts before effectively communicating their business.

A Niche Target Audience: Web3 startups often cater to a specific target audience within the crypto or blockchain community. This audience may already possess some understanding of the underlying technology, but it can be challenging to expand beyond this niche and also reach a broader user base.

Regulatory Uncertainty: The regulatory environment surrounding cryptocurrencies and blockchain technology can be complex and ever-changing. Businesses will need to navigate these regulations and clearly communicate how they comply with relevant laws to gain trust and credibility.

Lack of Tangibility: Unlike traditional products or services, Web3 startups often deal with intangible assets such as digital tokens or virtual goods. Communicating the value and benefits of these intangible assets can be challenging, as they may not have a physical or easily understandable counterpart.

Scepticism and Trust Issues: The Crypto industry has faced its fair share of scams and fraudulent activities, leading to scepticism and trust issues among potential users. Web3 startups need to address these concerns head-on and communicate how they prioritise security, transparency, and user protection.

An ever Evolving Ecosystem: The web3 ecosystem is constantly evolving, with new projects and technologies emerging regularly. Startups need to keep up with these developments and adapt their communication strategies accordingly to stay relevant and differentiate themselves in a rapidly changing landscape.

To overcome these challenges, Web3 ventures should focus on simplifying complex concepts, providing clear use cases and real-world examples, emphasising user benefits, building trust through transparency and security measures, and actively engaging and educating their target audience through various channels, such as social media, community forums, and educational content.

So…what to do?

In order to overcome these challenges, communications professionals and PR can assist businesses to focus on simplifying complex concepts, providing clear use cases and real world examples. Emphasising user benefits and building trust through transparency and security is key, as well as actively engaging their target audiences through diverse channels: social media, forums and educational content.

Innovation often involves complex ideas, technologies, or processes that may be difficult for the general public to grasp. Through storytelling though, businesses can break down these complexities and present them in a relatable and accessible format. By using analogies, anecdotes, or real-life examples, businesses can help the audience understand the value and impact of their innovation.

Do you have a valuable communications partner to hold your hand?