Web3 Branding Manual: Decoding Seven Marketing Principles Through Cases Like Ethereum and Metamask
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Web3 Branding Manual: Decoding Seven Marketing Principles Through Cases Like Ethereum and Metamask
Category Rule: If you can't be the first in a category, create a new one.
Navigating Web3 tides with focused insightsAuthor: phillip_xyz, Marketing & Growth of Sei Labs
Translation: Felix, PANews
Introduction: Competition among projects across crypto sectors is intensifying. To stand out as a leader, one can learn from established marketing principles. The 7 Immutable Laws of Web3 Marketing are derived from classic theories by Al Ries and Jack Trout—two of the most renowned strategists in traditional marketing. These timeless principles remain highly valuable for today's Web3 marketing landscape.
1. Law of Leadership: It’s Better to Be First Than It Is to Be Better
The Law of Leadership focuses on a brand’s ability to shape consumer perception, define needs, and pioneer new market categories. It’s not about being the best—it’s about being first in the consumer’s mind. Marketing is a battle of perceptions, and whoever establishes their image first will surpass others—even those who may objectively be superior.
No matter how unique or excellent a latecomer’s product might be, the “first” brand typically leaves the deepest impression in consumers’ minds. Once a brand fills a category gap, it becomes difficult for consumers to change their perception.
Web3 Example:
Ethereum: As the first smart contract platform, Ethereum shaped how the market perceives blockchain computing and dApps. Despite fierce competition from capable platforms today, Ethereum still dominates in public perception.
Metamask: Metamask may not be the fastest or smoothest wallet, but it was the first on-chain wallet. Being the first to launch has allowed Metamask to maintain its position as the go-to crypto wallet, even as competitors offer lower fees and smoother user experiences.
2. Law of Category: If You Can’t Be First in a Category, Create a New One
Can’t be first in an existing category? Then create a new one. This law emphasizes establishing a new, distinct niche within the broader market—a space where your brand can lead rather than compete directly with established leaders.
As a Web3 marketer, you may find yourself in a space dominated by pioneering projects. This principle encourages innovative thinking to carve out a new niche. This approach not only helps avoid direct competition but also offers the opportunity to lead and define a new category.
Web3 Example:
Axie Infinity: Axie Infinity dominates the “Play-to-Earn” space. However, newer games like StepN carved out their own niche with the concept of “Move-to-Earn.”
Trader Joe: Originally a fork of SushiSwap, Trader Joe is now the top DEX on Avalanche. It strategically created a new category through gamified UI and features, allowing it to dominate its niche.
3. Law of Mind: It’s Better to Be First in the Mind Than to Be First in the Market
This law emphasizes entering the consumer’s mind first and reinforcing that presence through repetition. The real battlefield of marketing lies within the minds of your target audience. By consistently repeating messages, slogans, and core brand positioning, you shape consumer thought.
In the chaotic world of Web3, the ability to create a unique mental space in your audience’s mind is invaluable. It’s about creating lasting impressions and strengthening connections. Ultimately, you’re not just selling a product or service—you’re selling a perception, a feeling evoked by your brand.
Web3 Example:
Solana: Despite network instability issues, Solana gained widespread attention by consistently promoting its speed and low-cost advantages, positioning itself as a fast and affordable alternative to Ethereum.
DOGE: Although DOGE wasn't the first meme coin, exceptional marketing, branding, and a cult-like community made it the #1 meme coin in the minds of crypto enthusiasts.
4. Law of Focus: The Most Powerful Concept in Marketing Is Owning a Word in the Prospect’s Mind
The key to this law is the power of simplicity and specificity. By narrowing focus to a single word or concept, you can “embed” deeply into users’ minds. Marketing is about shaping perceptions, and success favors those who consolidate their brand identity rather than dilute it.
Owning a word in the customer’s mind gives you a unique space that competitors cannot easily penetrate. By focusing on one concept, you become the expert in your field, making your brand easier to recognize and remember.
Web3 Example:
Phantom Wallet: Phantom Wallet focused on owning the term “Solana wallet,” creating a strong mental association between the two.
1inch: 1inch has remained highly focused on DEX aggregation, deliberately ignoring other DeFi niches, thereby solidifying its position as the category leader.
5. Law of the Ladder: Your Strategy Depends on Your Market Position
The Law of the Ladder states that your marketing strategy should be determined by your brand’s position in the market. If you’re the market leader, your focus should be on promoting the entire category. If you’re a challenger or follower, your strategy should emphasize differentiation from higher-ranked brands.
Remembering this law helps brands develop clear and effective marketing strategies. It underscores the importance of understanding your market position and acting accordingly.
Web3 Example:
Tensor: Tensor strategically positioned itself as a competitor to Magic Eden, targeting professional traders to capture market share from Magic Eden’s dominance on Solana.
LayerZero: Although LayerZero entered the cross-chain infrastructure space later, it identified existing gaps and adjusted its positioning accordingly.
6. Law of Brand Extension: There Is Unrelenting Pressure to Extend the Equity of a Brand
The Law of Brand Extension warns that overextending a brand often leads to dilution and confusion. When a brand tries to represent everything, it ends up representing nothing. Brands that attempt to appeal to everyone often struggle. A brand should focus on proven methods rather than assume that loyal customers guarantee growth.
Understanding this law helps avoid the trap of overexpansion. If a brand considers expanding into new areas, it risks weakening its message and confusing users. Don’t undermine the brand equity built over years of effort.
Web3 Example:
Magic Eden: After expanding beyond the Solana ecosystem, Magic Eden quickly lost its dominant market position.
Uniswap: DeFi protocols like Uniswap successfully built strong brands in decentralized finance but failed when attempting to expand into NFTs.
7. Law of Acceleration: Successful Projects Are Built on Trends, Not Fads
The Law of Acceleration emphasizes that successful marketing strategies are built on long-term trends, not short-lived fads. While fads may generate short-term profits, they don’t deliver lasting value.
While fad-chasing is tempting, it’s important to remember that fads rise quickly—and fade just as fast. A brand’s marketing strategy should be authentic and focused, not reactive to every passing trend.
Web3 Example:
Wonderland DAO: Wonderland DAO (TIME), a fork of OlympusDAO (OHM) on Avalanche, failed to sustain active trading after its initial hype.
Additionally, many virtual metaverse projects have erred by chasing fads instead of focusing on long-term trends or delivering sustainable utility.
In conclusion, adhering to these seven Web3 marketing laws can help build a lasting brand in this ever-evolving industry.
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