What is Web3 & How Does it Affect Marketers and Advertisers?
What is Web3?
At its core, Web3 is the internet without dictatorships.
Because the big companies have almost total power, it's hard to make them accountable. And although governments are trying to by slapping fines on them for data breaches or monopolizing, those tactics aren’t really stopping the giants. That's where Web3 comes in.
So how does Web3 work? It works by ensuring that information is stored on networks, not servers.
Anyone can access Web3 without handing over personal information. And any data that is shared will have clear records and this can prevent fraud to a large degree.
Payments from one to another could become possible without the use of banks. There are many more possibilities aside from cryptocurrency including the creation of contracts, movement of assets, and more.
The downsides are that, to use it, you’ll need an understanding of blockchain technology. Anonymity is limited because everything is contained on ledgers permanently. Misinformation may be difficult to control and censor, and finally, there is the potential for scams.
What’s Driving the Change to Web3?
This is important to understand because understanding the drive and if it has enough power behind it, will impact whether it will have lasting success.
One of the main drivers is big companies like Facebook and Google. Why? Because there is a high reliance on these platforms, they have a major say in web experiences and collect a huge amount of data — your data!
If Facebook's new parent company, Meta, is successful in pulling off the Metaverse, they will have even more control over how people experience the internet.
Another driver is blockchain technology. Blockchain is worthy of its own long explanation, but basically, it’s a ledger of transactions that are completely trustworthy because they can't be tampered with and are therefore secure.
This security is based on the existence of multiple copies across a network. Blockchain forms the basis of cryptocurrencies, but that won’t be its only use in the future.
Web3 And Marketing
Meta wants the world to remain in Web 2.0 because they have some serious skin in that game. As they build the metaverse, however, they will have first-party data and no external companies like Google or Apple will be able to affect this.
The algorithm won’t go into free fall with every external alteration, and advertisers will be much happier as results remain consistent. But in order to hedge their bets, Web3 will be accessible via the metaverse just in case things don’t remain the same.
The metaverse and other versions of this do use blockchain technology, but again, data may become an issue in the metaverse.
Advertisers may have a more difficult time selling in Web3 if it wins the battle of the next Web iteration. Or will they?
Advertisers may need to pay users directly for the data they receive, but they are in effect paying anyway right now. Long term, Web3 will gather much higher-quality data and, as a result, marketers will be able to cultivate better customer relationships.
As customer support and service are quickly becoming essential parts of your marketing plan, the better the relationship, the better the sales.
However, flashing ads at people in order to get them to sign up or buy won’t work in the Web3 world the way that it might have in Web 2.0. Because the story and journey a brand can create and bring to its customers will be the difference between success and failure.
Also, brands will be extremely user-centric, and advertisers won’t be able to cut corners.
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