How to Create Custom Audiences from Wallet Data
Creating custom audiences from wallet data enhances targeted marketing in the crypto space. Key steps include connecting analytics platforms, defining audience segments based on onchain behaviour, and building filters. Effective segmentation relies on transaction history, token holdings, and user engagement patterns. By leveraging wallet intelligence, businesses can improve user engagement by up to 50% and optimise marketing strategies, ultimately driving growth and retention in a competitive landscape.
Struggling to effectively target your audience in the rapidly evolving Web3 landscape? This article will provide a step-by-step guide on how to create custom audiences from wallet data, enabling more precise marketing strategies. Research indicates that leveraging wallet data can boost user engagement by up to 50%, making it a critical component for crypto-native teams aiming to enhance their growth and retention efforts.
Introduction to Custom Audiences from Wallet Data
Creating custom audiences from wallet data is essential for targeted marketing in the crypto space. Wallet intelligence allows businesses to transform pseudonymous wallet addresses into actionable user profiles, providing insights into user behavior and preferences. By analyzing wallet properties, user lifecycles, and in-app activities, companies can effectively segment their audiences, tailoring their marketing strategies to specific user groups.
The scale of wallet intelligence is significant. For instance, Nansen has labeled over 500 million crypto wallets, including both whales and exchange accounts. This vast database enables marketers to identify high-value users and engage them with personalized messaging. As stated in the Formo Blog, "Without context, a wallet address is just a random string of characters. You can't tell if it belongs to a power user or a bot farming rewards." This underscores the importance of understanding wallet data to distinguish between genuine users and automated accounts, ultimately leading to more effective audience targeting (Formo).
Utilizing wallet intelligence can unlock new growth opportunities by ensuring that marketing efforts are directed toward the right audience segments.
What You'll Need
Creating custom audiences from wallet data requires specific tools and resources to effectively analyze and segment users. Below are essential components for building these audiences:
Web3 analytics platforms: Tools like Formo, Nansen, and Dune Analytics offer robust capabilities for understanding user behavior and wallet interactions.
Blockchain data access across multiple chains: Access to data from various blockchains enables a comprehensive view of user activity, enhancing audience insights.
Wallet intelligence and labeling capabilities: These features allow businesses to categorize wallets based on user behavior, identifying high-value targets for marketing efforts.
SDK/API integration for event tracking: Integrating software development kits (SDKs) and application programming interfaces (APIs) helps track user interactions across platforms, providing detailed analytics.
Privacy-compliant data infrastructure: A focus on privacy ensures that user data is managed responsibly, maintaining trust while enabling effective audience targeting.
As highlighted, understanding these components is crucial for leveraging wallet data effectively in marketing strategies.
Understanding Wallet Data and Audience Segmentation
Creating custom audiences from wallet data plays a crucial role in enhancing marketing efforts within the crypto ecosystem. By leveraging wallet intelligence, organizations can convert pseudonymous wallet addresses into meaningful user profiles, gaining insights into behaviors and preferences. This ability to analyze various factors, such as wallet properties and transaction histories, allows for more precise audience segmentation.
The importance of wallet data cannot be overstated. With approximately 40% of American adults owning some form of cryptocurrency, the potential audience for targeted marketing is substantial. Understanding wallet behavior—such as dapp usage, token holdings, and spending patterns—enables businesses to tailor their strategies effectively.
The challenge lies in accurately interpreting wallet data to identify high-value users. As noted in the Formo Blog, "Web3 analytics focuses on wallet behavior: dapp usage, token holdings, net worth, and spending patterns." This highlights the necessity of sophisticated identity resolution techniques to ensure businesses engage effectively with their most valuable users. Without a comprehensive understanding of user behavior, marketing efforts may miss the mark, leading to ineffective segmentation and engagement strategies.
In summary, harnessing wallet data for audience segmentation not only enhances marketing precision but also fosters deeper connections with users, ultimately driving growth and retention in the competitive crypto landscape.
Types of Wallet Data You Can Collect
Collecting wallet data enables marketers to develop targeted strategies based on various factors. Key types of data include:
Transaction history: Insights into volume, frequency, and types of transactions provide a clear picture of user engagement.
Token holdings: Analyzing portfolio composition reveals user preferences and potential interests.
Net worth: Understanding asset distribution helps identify high-value users.
DApp interactions: Tracking protocol usage informs about user activity across platforms.
NFT ownership: Monitoring trading activity indicates market interests and engagement levels.
Cross-chain patterns: Observing behavior across different chains offers insights into user versatility.
Staking behavior: Identifying liquidity provision patterns can highlight investment strategies.
Governance participation: Engagement in DAOs showcases user commitment and influence in projects.
This comprehensive data collection allows for precise audience segmentation and tailored marketing efforts.
Key Segmentation Criteria for Web3 Audiences
Key segmentation criteria for web3 audiences can significantly enhance marketing strategies.
Understanding wallet properties, user behaviors, and engagement patterns allows marketers to build more effective segments. The primary criteria include:
Net Worth Tiers: Classifying users based on asset value, such as whales (>$10M) and retail (<$10K).
Behavioral: Identifying activity patterns, like DeFi degens or NFT collectors.
Engagement: Segmenting users by frequency of usage, such as daily active or dormant users.
Lifecycle Stage: Recognizing users' journeys, from new to power users.
These criteria facilitate targeted outreach, optimizing marketing efforts in the competitive crypto landscape.
Step 1: Connect Your Analytics Platform and Capture Wallet Data
Connecting an analytics platform to capture wallet data is the foundational step in creating custom audiences. This process begins with identity resolution, which involves detecting which identifiers correspond to the same individual or household. Given the pseudonymous nature of cryptocurrencies, it is essential to recognize that a single user may control multiple wallets.
Once the analytics platform is integrated, businesses can track user interactions across various touchpoints. This includes monitoring wallet properties, transaction histories, and in-app behaviors. By analyzing these data points, companies can segment their audiences effectively, tailoring marketing strategies to specific user profiles.
Formo supports real-time attribution across 40+ EVM chains plus Solana, enabling comprehensive cross-chain wallet tracking for audience creation. This capability enhances the understanding of user behaviors, allowing for more targeted engagement strategies. The ability to transform wallet addresses into actionable insights is crucial for optimizing marketing efforts in the crypto landscape.
Step 2: Define Your Audience Segments Based on Onchain Behaviour
Defining audience segments based on onchain behavior is crucial for effective marketing strategies in the crypto space. By analyzing various aspects of wallet data, businesses can create targeted campaigns that resonate with different user groups. The following strategies can be employed:
Transaction-based: Analyze volume, frequency, and transaction types to distinguish between power users and casual participants. Understanding these dynamics helps identify high-value users.
Token holdings: Segment users by their holdings in governance tokens, stablecoins, or specific NFT collections. This data can provide insights into user interests and investment strategies.
Protocol interaction: Track how frequently users engage with DeFi, NFT, or gaming apps. This information reveals preferences and potential areas for engagement.
Social engagement: Monitor participation in decentralized autonomous organizations (DAOs), governance voting, and community activities. Active participants often represent valuable segments for marketing.
Behavioral patterns: Assess risk tolerance, investment goals, and user motivations. This understanding allows for tailored messaging that aligns with user expectations.
As one expert noted, "The richer the data about users for our use cases, the more powerful the audience segmentation will be." This emphasizes the importance of comprehensive data analysis in defining audience segments.
Step 3: Build Custom Audience Filters and Labels
Building custom audience filters and labels from wallet data enhances targeted marketing efforts. This process involves analyzing wallet activity, holdings, and behavioral patterns to create distinct user segments. By categorizing wallets based on specific criteria, businesses gain insights into user preferences and engagement levels.
The effectiveness of wallet labeling can be illustrated through successful case studies. For example, Chris and Friends from NFT Lab Berlin doubled their community's buying power and increased their user base by 30% within two weeks by leveraging tailored audience strategies. This demonstrates the potential of refined audience segmentation in driving growth.
"Wallet labeling is the process of categorizing blockchain addresses by analyzing their onchain activity, holdings, and behavioral patterns." - Formo Blog (Formo)
Creating filters and labels requires an understanding of the specific attributes that define different user groups. Businesses should prioritize metrics like transaction frequency, asset diversity, and interaction history. This strategic approach not only improves marketing precision but also fosters deeper connections with users by delivering personalized content that resonates with their interests. By implementing these techniques, companies can optimize their outreach efforts and enhance overall user engagement.
Step 4: Analyse Wallet Profiles and Enrich User Data
Analyzing wallet profiles and enriching user data is a crucial step in creating custom audiences from wallet data. By leveraging wallet intelligence, businesses can transform seemingly random wallet addresses into detailed user profiles. This process involves examining wallet properties, transaction histories, and user interactions within apps.
The extensive labeling systems employed by platforms like Nansen track over 120 million addresses, providing insights into smart money movements and institutional flows. Such data enables companies to segment their audiences effectively, allowing for tailored marketing strategies that resonate with specific user groups. For instance, understanding whether a wallet is associated with a high-value investor or a casual user can significantly influence marketing approaches.
Creating these enriched profiles involves several key strategies:
Transaction Analysis: Examining transaction patterns helps identify user behavior and preferences.
Lifecycle Mapping: Understanding the user journey from acquisition to retention allows for targeted engagement.
Segmentation: Classifying users based on their wallet activity can enhance personalization in marketing campaigns.
Effective audience segmentation not only improves marketing efficiency but also increases the likelihood of user engagement. As stated in the Formo Blog, "Without context, a wallet address is just a random string of characters. You can't tell if it belongs to a power user or a bot farming rewards." This highlights the necessity of a robust analysis to derive meaningful insights from wallet data.
Step 5: Export and Activate Your Custom Audiences
Exporting and activating custom audiences from wallet data involves several strategic steps that enhance marketing effectiveness. First, it is essential to define the audience segments based on wallet attributes, user behaviors, and transaction patterns. This segmentation allows marketers to tailor their messaging and campaigns to specific groups, increasing engagement and conversion rates.
Once the segments are identified, the next step is to export this data into a marketing platform. Many analytics tools provide seamless integration with marketing automation systems, facilitating the transfer of audience data. This integration ensures that campaigns can be executed swiftly and efficiently, leveraging the insights gained from wallet intelligence.
Activation of these custom audiences can lead to significant improvements in marketing performance. For instance, platforms that unify onchain and offchain data can reduce customer acquisition costs and increase campaign ROI by up to five times compared to traditional metrics through precise wallet-level targeting.
Implementing these strategies not only enhances audience targeting but also maximizes the impact of marketing efforts. By focusing on actionable insights derived from wallet data, businesses can better engage their users, leading to improved retention and loyalty over time.
Advanced Audience Targeting Strategies
Advanced audience targeting strategies are crucial for leveraging wallet data effectively. By utilizing wallet intelligence, businesses can gain deeper insights into user behaviors and preferences, transforming anonymous wallet addresses into actionable profiles. This approach enables precise audience segmentation, enhancing marketing efforts.
Key strategies include:
Smart Money Tracking: Monitoring wallets that consistently make profitable trades to anticipate market trends.
Cohort Analysis: Grouping users based on wallet creation dates or transaction timings to identify patterns.
Cross-Protocol Behavior: Tracking users across multiple DeFi platforms to recognize sophisticated users.
Social Graph Integration: Linking wallet activity to social profiles for enriched segmentation.
Predictive Analytics: Employing AI and machine learning to detect patterns and forecast wallet behavior.
These strategies empower marketers to create targeted campaigns that resonate with specific user segments, optimizing engagement and conversion rates.
Creating Lookalike Audiences from High-Value Wallets
Creating lookalike audiences from high-value wallets involves identifying key characteristics of existing high-value users and leveraging this data to find similar profiles. This process enhances targeting precision by focusing on wallets exhibiting profitable behaviors or consistent engagement patterns.
Marketers can utilize tools that analyze wallet transactions and behaviors to create segments based on attributes such as trading frequency, asset types held, and interaction with various protocols. By focusing on these traits, businesses can effectively reach new users likely to exhibit similar high-value behaviors.
"Lookalike targeting helps you find audiences similar to your customer base to engage with." - AdRoll Blog (AdRol)
Cross-Chain Audience Segmentation
Creating custom audiences from wallet data involves leveraging insights from user behaviors across various protocols. By integrating wallet intelligence, marketers can identify distinct user segments based on transaction history, engagement levels, and cross-platform interactions. For example, tracking users who frequently engage with specific DeFi applications can reveal sophisticated behaviors, allowing for tailored marketing strategies. This approach enhances targeting precision, ultimately leading to more effective user engagement and conversion strategies.
Tips & Troubleshooting
Creating custom audiences from wallet data requires a strategic approach. The following tips can enhance the effectiveness of this process:
Start with clear KPIs: Define success metrics such as repeat purchases, retention, and community growth.
Choose the right tools: Match platform capabilities to specific use cases, utilizing Dune for custom queries and Nansen for smart money tracking.
Blend onchain and offchain signals carefully: Use privacy-compliant methods for data integration.
Monitor for wash trading and bot activity: Track suspicious patterns that affect data quality.
Establish review cycles: Regularly validate segments as user behavior evolves.
Regular analysis and adjustment are essential for maintaining accurate and effective audience segments.
Measuring Success and Optimising Your Audiences
Measuring success through audience segmentation relies on several key metrics derived from wallet data. These include:
Revenue Per Wallet (RPW): Total revenue generated divided by the number of wallets in the segment.
Wallet Lifetime Value: Calculated as RPW multiplied by average retention duration and margin rate.
Retention and Churn: The percentage of wallets that remain active versus those that become inactive over time.
Segment ROI: Analyzing the cost to acquire a segment against the resulting onchain actions and the return on investment.
Active Users by Segment: Tracking daily active users (DAU) and weekly active users (WAU) across different wallet cohorts, such as NFT holders versus DeFi users.
Understanding these metrics enables targeted marketing efforts and improved engagement.
Frequently Asked Questions
What tools are essential for creating custom audiences from wallet data?
Essential tools include Web3 analytics platforms like Formo and Nansen, blockchain data access across multiple chains, wallet intelligence capabilities, SDK/API integrations, and privacy-compliant data infrastructure.
How can transaction history improve audience segmentation?
Transaction history offers insights into the volume, frequency, and types of transactions, allowing marketers to distinguish between casual users and power users, thereby enhancing targeting strategies.
What are some key metrics for measuring the success of audience segmentation?
Key metrics include Revenue Per Wallet (RPW), Wallet Lifetime Value, retention and churn rates, segment ROI, and the number of active users by segment, which all inform the effectiveness of marketing efforts.
How can businesses ensure they are targeting high-value users effectively?
Businesses can target high-value users by analyzing wallet properties, transaction histories, and behavioral patterns, then categorizing these wallets based on defined criteria like net worth or engagement levels.
What is the role of lookalike audiences in wallet data marketing?
Lookalike audiences help identify new users with similar characteristics to existing high-value users, enhancing targeting precision and improving the likelihood of engagement based on profitable behaviors.
Sources & References
Audience Targeting Tactics for Better Crypto Advertising | AdRoll
Wallet Labeling and User Segmentation: The Web3 Growth Playbook
Web3 Audience Insights: Unlock Growth Onchain with Wallet Intelligence
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