Web3 Advertising: The Next Big Innovation | 🧨 |
Decentralised Advertising, Empowering Users & Transforming Brands
GM. 🫶
This is Web3 Espresso ☕—the Web3 Newsletter for creators, marketers, and coffee drinkers looking to understand how Web3 technology is changing the world we live in.
GM’ 😎,
It is starting to feel like spring. As I sip this coffee on a sunny terrace, I want to take a look into the future of advertising. Grab your Web3 Espresso ☕ and keep reading.
Advertising.
Boomers grew up in the era of Mad Men.
Gen Xer (me) grew up in a weird no-man’s land of half-finished digital information.
Millennials and Gen Z got to experience the full fury of digital advertising.
Today, Web3 innovators are building the platforms that will serve ads to Gen Alphas.
What will this look like?
And who stands to benefit?
Read on.
PS: It is a fascinating time to learn about these new innovative marketing solutions. strategies. If this topic interests you, I highly recommend listening to The Out of Ordinary Web3 Marketing podcast by Alexandra Nicorici.
What’s in store today:
🥡 The Weekly Roundup 5 in 5
| 🧨 | Web3 Advertising: The Next Big Innovation
The Evolution of Web Advertising
Web3 Advertising: A Paradigm Shift
The Future of Digital Marketing in Web3
Let’s go! 🥤
🥡 5 in 5 …
The Five Stories You Need to Know This Week
Lego and Epic Games team up in the Metaverse for Kids 👉 read it here
Top 10 ways NFT can benefit the Corporate Industry 👉 read it here
How a decade of NFTs has changed digital art 👉 read it here
Metaverse real estate and how it overlaps with the real world 👉 read it here
The Metaverse in education report - to reach $43 Bn by 2028 👉 read it here
Rethinking Digital Marketing: The Web3 Advertising Revolution
The digital landscape is undergoing a transformative shift, and the world of advertising is not being excluded from this revolution. Innovators in the advertising space are re-thinking the way advertising is being created and delivered to users, ushering in an era of decentralisation, transparency, and user empowerment. Redefining the norms of digital marketing.
The Evolution of Web Advertising
To fully appreciate the significance of Web3 advertising, it's essential to understand the journey that led us here. Let's take a look at the evolution of web advertising:
Web 1.0: The Static Web
In the early days of the internet, advertising was limited to one-way broadcasts to the masses via a handful of channels. The static nature of Web 1.0 websites, with their read-only text and images, laid the foundation for what was to come. While these one-dimensional web pages may seem archaic now, they paved the way for the internet's integration into our daily lives.
Web 2.0: The Social Web
The advent of Web 2.0 marked a significant shift, characterised by social networking, user-generated content, and cloud computing. This data-driven approach allowed businesses to target specific audiences based on their interests, behaviours, and demographics. Web 2.0 created the social fabric of the internet as we know it today, enabling users to engage with various platforms and services seamlessly.
Web3: Decentralisation and User Empowerment
Today, platforms like Meta and search engines like Google collect and resell user data without the users' knowledge or consent. They serve as middlemen while maintaining total control over user information. Advertisers pay the platforms to display targeted ads to particular user groups based on this data.
The golden age of data mining is drawing to an end as more individuals voice concerns about their privacy and as governments enact stronger privacy laws that have an impact on the advertising sector.
Now, we stand on the cusp of a new frontier: Web 3.
This decentralised, blockchain-powered ecosystem promises to disrupt the status quo, empower users and challenge the dominance of centralised platforms in the advertising industry. Web3 represents a shift from centralised systems to decentralised systems online, with the goal of providing individuals with control over their personal data.
Web3 Advertising: A Paradigm Shift
Core Principles of Web3 Advertising
While Web 2.0 depends on user data for advertising and revenue, Web 3 necessitates an understanding of decentralised technologies to work. Web3 advertising is built on the foundation of blockchain technology, which ensures transparency and security. This decentralised approach aims to alter the advertiser-consumer dynamic, giving users more control over their data and enabling more authentic and meaningful engagement.
What are Web3 Ads ?
Web3 advertising places ads that are shown on an ecosystem that uses peer-to-peer networks and decentralised technologies like blockchain. Web3 ads are ads that marketers pay for and put on web3 platforms, forums, and other places where the ads are likely to have an audience.
For example, we can imagine that blockchain-based advertising platforms deploy smart contracts to ensure ads are displayed to users who meet certain criteria (e.g., age, interests, location or purchasing history).
Blockchain Technology: Transparency and Security
The ideas of trust and transparency are central to the Web3 world. Instead of relying on centralised servers and companies to store and access user data, decentralised platforms would leverage blockchain technology to store data more securely, giving users more control over their data and a stronger sense of trust.
Decentralised Advertising Methods
Decentralised advertising platforms empower users by allowing them to directly interact with brands, reducing their reliance on intermediaries. Web3 advertising companies like Permission.io are pioneering decentralised advertising models and run a model where members give permission to advertisers to serve specific ads that interest them. Members receive the ASK cryptocurrency as compensation for watching the ads.
You can find a list of Web3 ad networks here.
We previously looked at a Web browser called BRAVE that enabled the same ecosystem, where the user chose what advertising to be served and was rewarded for consuming it.
The Tokenisation of Advertising
Tokenization also has the potential to revolutionise the web advertising industry. This gets a little technical but in essence, businesses can create a more transparent and secure advertising ecosystem by using cryptographic tokens to represent digital assets. These tokens can be used to track ad impressions, clicks, and conversions, ensuring that advertisers only pay for genuine user engagement. Tokenisation is also enabling the creation of new advertising models, such as micropayments and decentralised ad exchanges. Micropayments allow advertisers to pay users directly for their attention, creating a more equitable and user-centric advertising ecosystem. Decentralised ad exchanges, on the other hand, can facilitate peer-to-peer transactions between advertisers and publishers, eliminating the need for intermediaries and reducing transaction costs. Platforms like Singular are pushing new solutions in this space in terms of marketing intelligence and performance measurement.
Automated Granular Targeting
Web3 ads are also enabling more targeted advertising by using smart contracts and other blockchain-based tools. These technologies are helping businesses display ads to users who meet specific criteria, such as age, interests, location, or purchasing history. As a result, high levels of precision in targeting ads can lead to higher conversion rates and more efficient ad spending.
Benefits of Web3 Ads for Businesses
Embracing Web3 advertising can unlock numerous benefits for businesses, including:
Increased Exposure and Reach
Web3 ads enable businesses to target specific audiences interested in blockchain, cryptocurrency, and decentralised technologies, helping them reach the right people and increase their visibility. By leveraging these emerging technologies, businesses can position themselves as forward-thinking and innovative brands within their respective industries.
Targeted Advertising
With Web3 ads, businesses can leverage advanced targeting capabilities based on user demographics, interests, and behaviours. This level of precision leads to higher engagement and conversion rates, as ads are delivered to audiences most likely to be interested in the products or services being offered.
Improved Transparency and Performance Tracking
Web3 advertising platforms provide real-time data and analytics, allowing businesses to make informed decisions and optimise their campaigns for better results. The transparent nature of blockchain technology ensures accurate tracking of ad delivery and engagement, reducing the risk of fraud and enabling more effective campaign management.
Boosting Brand Awareness and Sales
By embracing the Web3 advertising revolution, businesses can enhance their brand's reputation as innovative and forward-thinking. This increased brand awareness, combined with targeted advertising and improved performance tracking, can drive more traffic to businesses' websites and ultimately increase sales.
Placing Web3 Ads Effectively
To maximise the impact of Web3 advertising, businesses must carefully consider the platforms and channels they choose for ad placements. Here are some effective strategies:
Choosing the Right Platforms
Businesses can leverage a variety of Web3 ad placements, including decentralised exchanges (DEXs), NFT marketplaces, and blockchain-based social networks, to reach their target audience effectively. Alkimi Exchange is a decentralised advertising platform that aims to increase efficiency through programmatic advertising and tokenisation.
Blockchain-Based Social Networks
Platforms like DiamondApp are called “DeSo” and offer an alternative to mainstream social networks, catering to users interested in blockchain technology and decentralised applications. Advertising on these platforms can be an effective way to reach a highly engaged audience of blockchain enthusiasts.
Crypto-Focused Forums and Marketplaces
Similarly, advertising on crypto-focused forums and marketplaces can be an effective way to reach a highly engaged audience of blockchain enthusiasts. These platforms often have active communities of individuals passionate about cryptocurrencies, NFTs, and other decentralised technologies, making them ideal for targeted Web3 advertising campaigns.
The Future of Digital Marketing in Web3
As the Web3 advertising landscape continues to evolve, businesses must stay ahead of the curve and embrace innovative strategies to remain competitive. Here are some key trends shaping the future of digital marketing in the Web3 era:
NFTs: Redefining Branding and Personalisation
NFTs have allowed brands to re-think their relationship with their consumers. As the NFT world showed us a few years ago, advertisers are pushing the boundaries of technology with this approach. Taco Bell, for instance, used a blockchain-based platform to sell NFTs with a taco theme. Gucci launched the Gucci Grail NFT series, giving followers the chance to get a special NFT from Alessandro Michele, the brand's creative director. By fusing the digital and physical realms and creating a "phygital" marketplace where customers can buy NFTs to access a virtual showroom, Bugatti joined the Web3 fray.
Advertising in the Metaverse
One of the biggest challenges for advertisers and marketers today is standing out from the crowd due to the constant barrage of marketing messages that audiences are exposed to. Numerous companies are looking for novel approaches to connect with their target audience and differentiate themselves from the competition. Marketers and advertisers now have a new avenue to connect with consumers thanks to the metaverse, particularly younger Gen Z and Gen Alpha who grew up in early metaverses.
We are seeing companies advertise through immersive outdoor advertising billboards that resemble 3D metaverses. Think virtual event placements, branded partnerships or even AR/VR technology-empowered advertising placements.
Empowering Users and Disrupting Traditional Models
Web3 advertising is poised to disrupt the traditional advertising landscape, empowering users with more control over their data and fostering a more transparent and equitable ecosystem. As users become more aware of the value of their personal data, they will gravitate towards platforms and brands that respect their privacy and offer fair compensation for their engagement.
Challenges and Opportunities Ahead
While Web3 advertising presents numerous opportunities, it also comes with its own set of challenges. Businesses must navigate the complexities of emerging technologies, regulatory landscapes, and shifting consumer expectations. However, those who embrace these challenges and adapt to the Web3 paradigm will be well-positioned to capitalise on the boundless potential of this new frontier.
A number of key questions remain :
How can businesses ensure compliance with Web3 advertising regulations?
What are the potential risks associated with Web3 advertising?
How can businesses measure the effectiveness of their Web3 advertising campaigns?
In summary, the Web3 advertising revolution is:
Driven by blockchain technology and decentralised platforms
Empowering users with control over their data and fair compensation
Offering businesses increased transparency, targeted advertising, and improved performance tracking
Leveraging innovative strategies like NFTs and token-based incentives
Disrupting traditional advertising models and fostering a more equitable ecosystem
The future of digital marketing is on its way. Is it time to embrace the Web3 advertising revolution ? I think we’re still very early. This space is dedicated to niche Web3 audiences that feel comfortable with new technology and embrace breaking the status quo. Google Meta and other advertising actors in Web 2.0 are not ready to relinquish part of this very lucrative pie - nor are the users as we continue to browse the internet in its current format.
I believe that as Web3 becomes more integrated into Web2, we will see more and more opportunities to fairly reward users for their usage of advertising. The nudge needed could be the integration of a wallet into our existing browsers.
Let’s see, it could happen soon !
That was intense - time to kick back and relax.
That’s all for this week… 🫶
Please note that I do not recommend or endorse the companies and organisations mentioned in this newsletter. This content is purely informative and not a recommendation. Always be mindful of where you connect your wallet. Always do your own research. 💛