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Web3 and how does impact Digital Marketing

Updated: May 31

Web3 is the next evolution of the Internet. It's a fairer, more transparent, and private version of the Internet that empowers users. Web3 is based on the principle of decentralization. It would keep information in multiple places simultaneously instead of in one place by one authority. More concretely, Web3 aims to create a virtual world within the Internet using Blockchain technology, the Semantic Web, and Artificial Intelligence. Users could buy, interact, communicate, and play with each other via websites. This would create a collaborative environment that offers consumers real value. More focused on the user experience, this new Web version would facilitate information sharing between companies and communities.

Web3 and its impact on digital marketing

Blockchain technology within Web3 (Web 3.0)

Blockchain technology is increasing and is widely used in cryptocurrency and finance. This technology within Web3 is about eliminating centralized systems and creating a more open ecosystem. It provides data security and decentralization for Web 3.0. Thus, it directly connects companies to customers without any intermediary. More concretely, this technology allows the registration and verification of transactions. Therefore, Blockchain makes digital marketing within the Web3 more transparent, secure, and efficient.

The impacts of Web3 on digital marketing

Web 3.0 will impact all industries that use the Internet in some way. However, marketing and advertising will experience the most significant positive effects.

Access to better quality information

Web3 gives consumers back control and ownership of their data. Indeed, Blockchain technology will offer consumers the possibility of charging for their details. Furthermore, they can guarantee that only the companies in which they have an interest will be able to receive their data. This is good news for marketers as they will stop relying on stored and not up-to-date data. It will also limit their spending on advertising and spam data. Web3 will give companies access to targeted and precise information from consumers interested in their products and services.

New ways of advertising

Blockchain technology will allow marketers to rely on a rich set of data. This will provide an overview of consumer behavior. Thus, companies can offer more targeted advertising to consumers, leading to a transition from traditional advertising to more engaging brand experiences. In addition, web3 will create interactive advertising opportunities. This will allow marketers to adopt more effective strategies to promote their products. Indeed, this new web environment opens the door to various advertising possibilities in digital marketing.

Also, due to the decentralized aspect of Web3, companies will no longer have to buy ads through intermediaries. Marketers will no longer be forced to go through intermediaries to ensure their ads are on quality sites targeting their target audience. Blockchain technology will bypass advertising networks since users will be verified automatically. Consequently, using intermediaries to generate trust will no longer be required. This will save companies from spending high advertising costs. Companies creating advertisements can work seamlessly with websites with ad space available.

Fraud detection in advertising space

Web3 will detect fraudulent impressions and clicks that businesses pay for. Blockchain technology within Web3 will identify and report sites struggling with click fraud and bot infiltration through the ad Chain registry. This smart contract ensures that Blockchain transactions declare only humans. Thus, it will ensure genuine clicks and ad impressions and eliminate non-human engagement, which is a significant burden in digital marketing.

How can Web 3.0 disrupt digital marketing?

Decentralized Advertising

Publishers, advertisers, and users initially ruled the Web 2.0 advertising market. However, it is currently dominated by ad exchanges, sophisticated behavior-tracking systems, and cross-device user tracking. Also, the exponential growth of online marketing has sparked fierce competition for customers' attention. As a result, users are frequently inundated with targeted advertisements based on their browsing behavior and personal information. Additionally, users have found ways to avoid these ads by using blockers, resulting in a need for more data and clicks for advertisers. At the same time, brands lose billions of dollars due to more effective ads.

Also, a new reality begins to take shape. Web 3 is based on the concepts and aspirations of the original Global Web, which is a decentralized world supported by peer-to-peer networks and driven by community interactions. The philosophy of decentralization and transparency demands that brands and users engage directly with each other in Web 3. As marketers, we must adapt to this transformation by changing our behaviors and rethinking best practices in a decentralized society.

On the other side, proponents of a decentralized web claim that decentralized advertising will give users and marketers more control, privacy, and openness. Decentralization would allow marketers to control their sales better and have better insight into advertising expenditure, as advertising requests would not have to go through opaque exchanges. Instead of relying on tracking signals provided by ad technology, digital advertising has the potential to become more effective because marketers can listen to calls from users who control the flow of advertising to their browsers, apps, and devices. Therefore, if marketers have more control and transparency over how their advertising is sold, they can provide users with more detailed privacy controls, such as viewing data used for advertising purposes and advertisers who bid for advertisements.

Let's see together the advantages of decentralized advertising in 4 main points:

Fraud prevention and more transparency

For a long time, digital advertising has been plagued by ad fraud and transparency issues. Blockchain technology has the potential to eradicate ad fraud and verify that marketers only pay for genuine clicks. Decentralized advertising can ensure marketers get more results for less money. In addition, user-controlled privacy, data traceability, and the transmission of authorized blockchain information improve efficiency and transparency. This allows advertisers to determine the success of their ads more efficiently than non-blockchain digital ad platforms.

Smarter ad optimization

Advertisers and customers have no meaningful ties to each other. As a result, advertisers need more knowledge about the audience they want to reach, and consumers need to learn how third parties use their data without their permission. Decentralized advertising reinvents marketing by providing a seamless environment connecting advertisers to users. In addition, it offers a real-time operational platform that efficiently executes advertising campaigns for brands and agencies. This means marketers and other stakeholders will see results in real time.

Better control for consumers and more qualified leads for marketers

Increased customer access and control over data sometimes mean less information. Instead, customers can choose when, to whom, and for how long their information is public. In addition, users can redeem their data for rewards in decentralized advertising. However, the benefits continue after the customer. Indeed, decentralized advertising can help marketers gain greater information autonomy. Although the number of leads may be reduced, the quality of those leads will increase.

Anonymity client

Many websites and social media platforms we use today have access to tons of data, ranging from browsing history to banking details. However, in the case of decentralized advertising, blockchain-based verified signatures can help digital marketers keep their customer data anonymous on their servers or servers run by third-party applications. This can help users maintain their anonymity and improve their internet privacy.

The future of marketing

Web 3.0 will offer advertisers an excellent opportunity to get back to basics and interact directly with users while delivering real value and experiences. With Web 3.0, we can expect a complete overhaul of how we use the Web and do business online.

Undoubtedly, there are flaws in how various Web3 features are currently being adopted. Yet there is also much optimism that the problems of Web 2.0 will be solved with the next phase of the Internet, which is worth paying attention to and anticipating for the future.

What are the advantages?

Web 3.0 marketing is a concept that explores the Web based on new technologies and has many advantages. Therefore, marketing will not just evolve; it will revolutionize our thinking.

The Web 3.0 environment will improve the user experience by offering rich and interactive advertising opportunities. This is a boon for marketers, as they can now deliver more targeted advertisements to consumers while creating more effective strategies to advertise their products.

Additionally, consumers will have access to many different sources of information that will affect their purchasing decisions.

And the disadvantages?

The promises of Web 3.0 may sound exciting, but there are limitations despite the many benefits this new iteration of the Internet offers.

One of the first limitations concerns accessibility since it can have a cost. For example, owning an address has a particular financial cost. In contrast, transactions on specific blockchains can apply exorbitant gas fees, which, for the moment, remains inaccessible for the populations of the least developed countries or the most modest people.

Another limitation of Web 3.0 is that the technical barrier still needs to be lowered for most novice users. Indeed, for the average user, browsing Web 3 without encountering technical difficulties is the only possibility.

Moreover, the Web3 ecosystem is still very young and quickly evolving. Therefore, it still depends significantly on centralized infrastructure like GitHub, Discord, Twitter, etc. Many companies try to offer a Web3 alternative to these frameworks. Still, it can take time to establish itself as a viable alternative, and they have yet to emerge as a genuinely effective and intuitive solution.

Another disadvantage of Web 3.0 is the difficulty of regulating activities. While this might be seen as a positive by some, it could also be seen as a negative, as it could lead to increased cybercrime and other abuses.

However, these restrictions, valid today but may evolve as Web 3 develops, should be tempered. Indeed, thanks to layer two solutions, the evolution of blockchain scalability, the development of increasingly easy-to-use protocols, or even DAOs managed efficiently by their members, Web 3 still has great potential for the years to come.


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