As more wallet-level data becomes available, advertisers begin using it for targeting and outreach. Here we give an overview of the emerging field of wallet marketing.

This is a research report from Superdao, an all-in-one DAO platform with $11M in funding. We just launched Superdao Growth, a new platform for wallet marketing. To get access to its alpha version, message Yury.

Wallet data explosion

In 2022, there are at least 50-100M monthly active wallets. User wallets contain public info on financial transactions, tokens, NFTs, POAPs, DAO votes, tickets, crypto domains, educational credentials, gaming achievements, and social activity records. There’s now enough information to build high-quality target lists.

The on-chain data is particularly informative for the following verticals: consumer finance, gaming, developer tools, DeFi, NFT tools, recruiting, web3 social apps, fashion, luxury, art, crypto-enabled hardware, metaverse, education, and events.

Problems with web2 advertising

While the web3-native marketing ecosystem is in its infancy, traditional advertising is facing serious problems. Big tech companies like Google and Meta have a market monopoly, control all user data, and limit advertiser innovation. There is a growing amount of ad fraud and low-quality clicks. Prices go up, ROI goes down. The targeting options aren’t precise enough, especially for high-spending consumers. Apple’s anti-tracking policies make ads even less precise and measurable. Further, there are serious restrictions on crypto-related advertising.

The promise of wallet marketing

The web3 data growth and web2 ad problems lead to the emergence of wallet marketing. Advertisers can now rely on public on-chain data, use high-resolution targeting, and build direct relationships with users bypassing big tech monopolies.

Compared to web2, crypto-native marketing offers several new opportunities.

• Competitor targeting. You can see what wallets are interacting with comparable projects and direct competitors.
• Whale targeting. On-chain data allows for identifying the biggest spenders and most active users in any given domain.
• High ROI. Wallet marketing is new, and the first businesses embracing it can acquire users far cheaper than in saturated web2 channels.
• Precise attribution. With custom affiliate links, advertisers can analyze individual wallets that came from each influencer, partnership, or ad. That allows tying partner compensation both to quantity and the quality of the clicks they drive. E.g. you can pay more for every whale lead.
• Personalization. Dynamically create marketing messages based on individual wallet histories.
• Higher payouts for creators and publishers. In web3, lightweight and decentralized protocols can replace centralized ad platforms with high take rates. This should lead to more value delivered to the “edges” of the ecosystem as opposed to one central monopoly.

The wallet marketing playbook

Let us break down the key elements of wallet marketing.

Data sourcing. Collect and organize public on-chain data about wallets involved with reference projects, tokens, and NFTs. Typically, you start with a “long list” of 50k-200k wallets active in your field, then collect as much relevant data about those wallets as possible. In the future, wallet marketing can source both blockchain-based and web2 data. A key area of future work is finding emails and other contact info for wallets.

Customer insights. Analyze the on-chain behavior of your current customers. Identify your core audience (most engaged customers) and cluster customers into segments. Find influencers and collections with the highest overlap for future collaborations.