Effective marketing in Web3 is a sea full of challenges: tracking metrics, optimizing campaigns, finding the most effective channels, and filtering out the irrelevant ones.
Today, we’d like to share an inspiring story with you about the journey of Max, the Marketing Manager at Notum. He faced numerous challenges as a Web3 Marketer but due to his skills and tools, he made it. He reduced the costs of wallet connections by 64% and saved over 30 hours of manual work.
However, before we dive into Max's story, let's set the stage at Notum. They've developed a remarkable DeFi product, simplifying cryptocurrency investments to the level of a simple swap. Armed with this impressive product, Notum was ready to launch Go-To-Market campaigns on a significant scale. Influencers, quests, ad protocols, social media - you name it.
But before investing thousands of dollars, Max had some critical questions:
How do we calculate essential KPIs like ROI and CAC?
Which channels will yield the best results?
Who is our product attracting?
Max's first choice was clear: "Let's go with Google Analytics and Amplitude – the go-to tools in Web2." But…
Web2 Tools Fall Short in the Web3 Landscape
In the early days, Notum heavily relied on Amplitude and Google Analytics for their analytics needs. These tools did offer insights into channel-generated traffic and helped construct a comprehensive user traffic funnel. However, a crucial piece of the puzzle was missing – a deep understanding of the fundamental Web3 element: blockchain.
Google Analytics and Amplitude, unfortunately, couldn't peer beyond user cookies. They provided valuable information like demographics, attribution channels, bounce rates, and more.
But what about on-chain holdings, portfolios, or activity?
How much are users transacting from specific channels?
What is their favorite wallet?
Well, Web2 tools don't know about it. And Max couldn’t too. Until he stumbled upon a Cookie3 post on Twitter (sorry, X) about recruiting beta users.
Getting Started With Cookie3
As summer arrived, Max kicked off a beta test for the Notum platform. Access was granted to users who shared their wallet addresses via the Discord bot. This strategic move brought in over 1,500 wallets, but Max faced a daunting challenge: he had little insight into these wallets. Manually inputting each one into a portfolio tracker for analysis seemed like a time-consuming nightmare.
Enter Cookie3, with its game-changing feature: the ability to upload a CSV file containing wallet addresses and receive organized insights in a flash. What did this include?
Holdings of specific tokens and NFTs;
Timestamps of the first and most recent activities.
By using this feature Max saved 34 hours of manual work. Without Cookie3 he’d need to type in the wallet addresses one by one in etherscan and develop complex dashboards on his own.
Impressive, isn't it?
Max Goes a Step Further and Checks the Effectiveness of Quests
In his pursuit of building an initial user base, Max delved into popular quest platforms like QuestN, SoQuest, Zealy, and Galxe. These campaigns achieved a remarkable feat, channeling over 4500 participants into the Notum Discord server, all at an impressively low cost of acquisition (CPA).
However, upon uploading the wallet data, Max uncovered a sobering fact in Cookie3 dashboards: the average user's balance was less than $100. It became clear that very few of these participants were suitable for beta testing, which was the primary objective.
With this insight, Max made a critical decision. He determined that quests were not attracting potential testers and chose to halt these campaigns saving thousands of dollars.
Which Channel Is the Most Effective? Influencers, Performance Marketing, or Broadcasting?
Notum’s public launch was covered by many sources at the same time, so Max needed to get results for each channel separately. This is where Cookie3’s Campaign Manager came into play. It allowed him to create separate campaigns within which he could generate UTM links for tracking sub-campaigns.
For the visual audience - check out the minute video explainer of the Campaign manager below:
Max decided to use 3 different methods to acquire a relevant audience for Notum:
2. Ad protocols;
3. DeBank broadcasting.
Let’s see how Max puts all three to the test.
1. Influencers - Who Is the Most Effective?
As per Cookie3's data, Max achieved an outstanding 20-25% conversion rate for wallet connections, with 10% of these users making actual investments.
Max took it up a notch by setting specific goals within each campaign with on-chain tracking. This means Max could gauge KPIs in the context of costs. The average CPC stood at a reasonable $7, with a $40 cost per wallet connection.
But that’s not all. Thanks to Cookie3's Campaign Manager, Max gained valuable insights into the financial capacity of each influencer's audience. Two influencers had a median user balance under $50, while the other two boasted balances exceeding $350. Max decided to concentrate his marketing efforts on the latter, more affluent audience for upcoming announcements.
It’s also important to note that influencer marketing consumed one-third of Notum’s marketing budget. This highlights the importance of comprehending what you're investing in and the user base it brings.
2. Ad Protocols - Are They All Effective?
To address this, Max optimized creatives and revamped the user journey post-click. With Cookie3's continuous monitoring, Max could track user acquisition, complete goals, and assess the relevance of wallet balances. Eventually, he managed to reduce the cost to $50-60 per connected wallet.
Max observed a significant disparity in user profiles between the two platforms. In one of them, the median user balance was below $100, while in the other one, it exceeded $500. This highlighted the pivotal role of publisher quality and relevance in campaign success.
Returning to the topic of Web2 tools, Max realized that relying solely on Google Analytics for insights would have left him blind to a critical aspect: the financial capacity of Notum users. This oversight could have directed traffic toward an irrelevant audience.
Thanks to Cookie3, Max made a strategic shift. He decided against investing solely in acquiring impressions through performance marketing and instead reallocated 15% of the marketing budget to other channels.
3. DeBank Broadcasting - How Max Saved 50% of the Budget
During the initial tests, Max explored DeBank Broadcasting's capability to convey the launch message to a specific target audience. However, as per Cookie3's data analysis, this channel delivered disappointing results with a mere 10% conversion rate for wallet connections and a steep CPM of $1000. Moreover, individuals on the target list had a median user balance of less than $50.
Recognizing diminishing returns midway through the campaign, Max made a decisive move to minimize losses. He redirected the budget to DeBank's social media segment. By strategically publishing posts within the feed and introducing a rewards system, Max not only expanded Notum's reach organically but also achieved investment goals more effectively.
Thanks to Cookie3's insights, Max managed to save a remarkable 50% of the initially allocated budget for DeBank broadcasting.
What Are the Final Results?
Well, the numbers speak for themselves. However, it’s also important to take a closer look at the marketing workflow Max was able to optimize using Cookie3:
Max was able to leverage data-driven insights almost immediately. He watched how the KPIs evolved over time to move the budget to the most efficient channels.
Reporting to the team was streamlined and structured. Explaining your work using KPIs rather than observations makes you better understood.
For a Marketer, CEO, Product Manager, or even Designer getting to know the users is fundamental. Max made it easier.