Web3 Demographics: The Users Behind Web3

Web3. It’s all the internet wants to talk about these days. If you’re anything like us, you’ve been in dozens of conversations and Twitter threads on the subject (and you might have even already opened an office there). As the landscape grows and big brands are getting involved in the space, we’re having more and more talks about where it makes sense for our clients and partners to get involved. One of the biggest ways to figure that out is to see who’s already there – and where the space is headed. 

So we decided to investigate for ourselves. We took a closer look at some of the biggest components of Web3, (specifically digital experiences like gaming, NFTs and crypto) and found some surprising results around the communities growing in each sphere. 

GAMING

Gamers may already be ahead of the pack on Web3, not just due to their familiarity with customizing avatars or having a digital third place for social interaction. They also tend to have the most powerful computer processors available to consumers, making them far more likely to have the tech specs needed for total digital immersion. As a result, Web3 gamers represent a different group than the average. We specifically looked at Roblox and Fornite to learn more:

Active Users:

• 30+ million daily active users on Fortnite
• 43+ million daily active users on Roblox
  

Gender:

• Fortnite skews predominantly male identifying (72.4% male vs 27.6% female)
• Roblox is a bit more evenly distributed (44% women, 51% male). 

Age: 

• 62.7% of Fortnite’s user base is between 18-24.
• 67% of Roblox’s user base is under 16 years old. Only 14% are over the age of 25. 
• Both games skew much younger than the average gamer, who is typically around 35 years old. 
• Craig Donato, Roblox’s Chief Business Officer, says a younger, more digitally native audience, “certainly helps” when it comes to building the metaverse. 

Region:

• 28% of Roblox’s daily active users are based in the US & Canada. Next steps for Roblox include “continued global expansion.” Not only translating the game, but understanding the nuances of different languages.

Three ways to connect with Web3 Gamers:

1. Stop acting like it’s a big deal. For Gen Z, the metaverse – and the games that exist there – are already a thing. They’re spending 8+ hours a day online, where “the metaverse is a natural extension of the world they already live online with gaming (creating a collective of gamers they play with on a regular basis that they have never met)” 
2. Traditional advertising won’t work. For this group, gaming platforms are not just games. They’re first and foremost free social spaces for connecting with friends. If brands are eager to jump into the metaverse, it helps to have a compelling reason to join the conversation. Otherwise, they run the risk of coming across as “cheap” “pushy” “boring” and “a blatant cash grab” as various users called Forever 21’s less than impressive Roblox experience. 
3. Consider engaging in co-creation. Part of Roblox’s magic is how content is built from independent developers who bring their own unique skill sets and designs to the table. Partnerships with creators that know these avenues best can result in more engaging and attuned experiences. 

NFTs 

 In a recent study by The Harris Poll and Adweek, “40% of Americans say they’re now familiar with NFTs (up from 27% just two weeks ago) and 81% are now aware of them.” 

• Gender: Morning Consult polled 2,200 adults and found that 15% of men were collectors of NFTS, compared to only 4% of women. Men have also found far more success in NFT art sales – in November of 2021, female artists accounted for just 5% of all sales.

• Age: Research shows buyers are primarily between 18-34 years old. This isn’t particularly surprising, as some research shows Gen Z sees NFTs as extensions of the things that they already value online — their online social reputations on instagram and the content they identify with on TikTok. 

• Income: Income has the greatest disparity. Civicscience conducted a survey showing those earning less than $25,000 (lower-income) are investing in NFTs equal to those making more than $150,000 annually (upper-income). 94% of those earning somewhere in between (25,000 – $150,000) responded they were not interested in NFTs at all. 

• Region: Tech hubs like California (San Francisco, Los Angeles, San Jose and San Diego make up the top 5 cities searching for NFTs list) are driving search results up.

• Outside of the US is where things get interesting. According to Google Search Trends for the past 12 months, interest or search volume of metaverse, NFT and crypto have increased year over year. However, the US still trails behind in search volume for all three keywords compared to the rest of the globe. Metaverse and NFT are both more readily searched for in East and SouthEast Asia and crypto/cryptocurrency is primarily led in searches by European nations. 

As of today, a large majority of NFT buyers can be considered either collectors or investors:

NFT Collectors 

The earliest of enthusiasts for NFTs are primarily those familiar with video games, design and illustration. For many collectors, what makes an NFT valuable is the artistic value. Collectors are also “more likely to see the sentimental value” of NFT’s (61% of collectors in the Harris Poll vs 46% of investors in the Harris Poll), making them more likely to purchase as a sign of support for their favorite artists rather than for monetary value.

• 22% of people who identify as “collectors” collect NFTs. That number jumps to 33% for individuals who earn more than $100,000 in annual income.
• As the Morning Consult survey found, 45% of male respondents report they collect a physical item, roughly twice as likely as women (22% of women reported they are collectors of some sort).

Compared to other collectors as a whole, NFT collectors are:

• As common as collectors of vinyl records and vintage toys (22% collect)
• Outnumber those that collect sports memorabilia (21%), comic books (19%) and cars (18%)

NFT Investors

NFT Investors joined the NFT community once they realized the growing interest in the space. According to data from OpenSea and reported by Barrons, only 28.5% of NFTs purchased directly from issuers and then sold on the platform result in a profit. In comparison, buying on the secondary market from other users and flipping them resulted in a profit 65.1% of the time. Research by Chainanalysis shows that the most successful NFT investors don’t cite their success in strategizing which NFTs might return a profit – instead, they’re simply buying and selling more. They’re also more likely to invest in a diverse array of NFT collections. 

Research by Chainalaysis also shows that flippers find the most success if they’re able to become a whitelisted buyer. Early followers that help artists promote their work are usually added to a “whitelist,”allowing them access to new NFTs earlier and at a much lower price than the rest of the market. Due to this lower price point, OpenSea data shows that users who make the whitelist and later sell their newly-minted NFT gain a profit 75.7% of the time, versus just 20.8% for users who do so without being whitelisted. 

Brands and Influencers

It’s worth noting that a third entrant has emerged. Celebrities and influencers have also spoken out about the NFTs they’ved minted or have already purchased, making many feel like they need to jump on the bandwagon. But consumers have specific brands in mind that they’re more willing to buy an NFT from. 57% say they’re most likely to buy an NFT from Nike, vs 17% from Yeezy and only 13% from Charmin. 

Three ways to connect with NFT lovers:

1. Combine goods in the physical and digital world, such as Coca-Cola’s friendship inspired NFT that sold for over $575,000. The winning buyer not only received four NFTs including a red puffer jacket (very on trend as winter’s most coveted item) to flaunt in Decentraland, but also a real-life retro Coca-Cola fridge. Extra bonus points were given as proceeds went to longtime friend of Coca-Cola, the Special Olympics International. 
2. Consider the value of an experience. John Cena and WWE partnered to attempt to sell 500 charity packages (including an NFT, clothes, accessories, and an autographed picture), each for $1,000. Only 37 of them sold. But when he sold a premium platinum NFT – that included VIP tickets to WrestleMania, along with 5-star accommodations – it sold for over $20,000. By taking the experience a step further, and providing tickets to WrestleMania, the package was much more enticing. 
3. Educate the consumer. NFTs are a global phenomena, with much more awareness and ownership outside the US. Brands that help potential buyers learn more about the space may help some interested fans make the jump to purchasing.

Compared to other collectors as a whole, NFT collectors are:

• As common as collectors of vinyl records and vintage toys (22% collect)
• Outnumber those that collect sports memorabilia (21%), comic books (19%) and cars (18%)

CRYPTOCURRENCY

As of August 2021, more than one in 10 people in the U.S. (13%) currently invest in cryptocurrency, with most crypto investors (61%) starting to buy in 2021, making it one of the fastest growing and most approachable opportunities within Web3. 

Gender:

• Over 50% of people that invest in cryptocurrency identify as male. Cryptocurrency has broken down barriers in investing by race (about 10% of each race in the US owns crypto), but it hasn’t managed to do the same by gender: just 19% of crypto investors are white women and only 4% are black women. (Source)
  

Age: 

• Almost 50% of crypto buyers and sellers are millennials. As crypto is usually bought, sold and mined through apps, users are tech-savvy and interested in cryptocurrencies that have been previously successful or have undergone more scrutiny. 

Three ways to connect with cryptocurrency adaptors:

1. Give back to excited users already embracing change. Companies like Lolli, coined the Honey of crypto, is a platform that gives Bitcoin, instead of cash, back after a purchase. They currently partner with over 1,000 stores and connect both enthusiastic shoppers and brands alike. With this in mind, what rewards can your brand share with your community?
2. Build more opportunities for women, especially women of color, and older generations. Cryptocurrency is still relatively new for most of the population, and there is ample opportunity for brands to involve and educate older populations and women of color.
3. Lead by example. Brands with the means to help guide and dispel scams that are prevalent on some social media sites should help new users tell fact from fiction. 

IN SUMMARY: 

Web3 is growing and changing so fast that the statistics above (and below) likely will have changed just a few months after publishing this article. But we’re including a handy chart, just in case – and we’ll keep you updated as we continue to dive into and shape the communities of Web3.