Web 3.0 is being vastly explored, but we haven’t seen its full potential just yet. The internet has come a long way, but is far from its final form of evolution, having started as a text-only platform to the multimedia-rich and interactive web we know today, we are now entering the era of Web 3.0. This era puts forth forms of innovation and interactivity that present new and exciting opportunities for the advertising world that can truly change how it works and the impact it can create. Its entire model resolves key pain points in the current advertising landscape that brands today struggle with, with better targeting approaches, more transparent data policies, seamless ways to measure impact and more.
Centralised platforms like Google and Facebook have been a rock for advertisers, with a heavy reliance on them to reach audiences. Web 3.0 has come in to stir the pot with a decentralised and transparent ecosystem that encourages brands to aim even higher than a paid ads model with big budgets. It enables brand-to-user interactions without the need for intermediaries, provides more intelligent and autonomous systems that can learn and adapt to human behaviour, and makes online transactions much more secure and trackable, a model that users can trust for payments.
On the topic of trust, users generally struggle to trust social media platforms in terms of access to data, privacy and credibility, and authenticity of advertisements since they’re paid for. Web 3.0 will create a more trustworthy landscape with the blockchain that offers a decentralised display of data, where users can have more control over how their data is being used by advertisers, only granting access to data they want shared. This shift will create better relationships between advertisers and users. For instance, for the advertising industry, blockchain-based advertising solutions could reduce the risk of fraud, while the accuracy in the data provided on ad impressions and conversions provide a more efficient and cost-effective way of targeting different audiences. At the same time, from a user’s perspective, more control over data and privacy could reduce the likelihood of targeted advertising being seen as intrusive, with a better model for targeting based on actual interest versus spamming with unwanted content.
We’ve also seen a trend in social media platforms towards personalised algorithms and feeds, which is becoming a core approach to increasing user bases and time spent on platforms. This model is heavily integrated within Web 3.0, where advertisers can get greater access to insights about users when it comes to their needs, preferences, and interests, creating more engaging and targeted content based on the audience(s) they’re trying to reach.
While both approaches have proven an impact, the core difference between them both is that social media platforms cater content based on data from what they think the user would be interested in, through paid ad models with set user targets. Whereas, with Web 3.0, the user shares the information that they want to be visible to the brand and be targeted with relevant products and services which they are more likely to engage with. This core behavioural shift in the users interaction with the content they receive will play a huge role for the advertising world as this allows brands to target users a lot more accurately in a cost-efficient manner.
The benefits it presents to this industry are endless and touch on different aspects that are currently pain points. For example, Blockchain technology will streamline advertising supply chains, ensuring all parties are compensated fairly and accurately. Advertisers can also use this technology to create new and engaging ad formats through smart contracts, where they can offer rewards to users who interact with their ads. They can also capitalise on decentralised marketplaces to buy and sell advertising space directly with publishers, which could reduce costs and increase efficiency. In addition, advertisers will have a more efficient way to monitor the impact of their campaigns.
By using decentralised advertising models, agencies can reduce overheads and increase profit margins through more efficient and cost-effective ways to buy and sell advertising space.
It’s not a clear path to achieve the expected, the rise of Web 3.0 will not come without challenges. Advertisers will need to adapt to the new paradigm, invest in the latest technologies and talent skill sets to remain competitive. There will also be a need for greater education and awareness around the benefits and risks of Web 3.0 for the advertising industry before moving full force into the new world the internet has introduced.
I do still believe that the challenges are worth the reward, as this will present a wealth of opportunities like no other. Advertisers who embrace Web 3.0 will have a competitive edge and can be positioned as industry leaders in the new era of advertising.
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