Web3 101 for brands: here’s your cheat sheet
Web3 could revolutionize the relationship between brands and their customers. Here’s a primer on what marketers need to know.
When the Internet first went live, publishers created content and users consumed it – a period known as Web 1.0. A decade later, Web 2.0 took over with the emergence of web applications and social networks, which made it easy for everyone to create, share and interact with content.
Fast forward to today, and the novelty of Web 2.0 has largely worn off. Some of the most influential Web 2.0 companies – like Meta (Facebook), Google and Apple – have made a splash leveraging user-generated content to engage consumers and create unique profiles for each of them only to turn around and ultimately sell that data. to third parties for advertising purposes.
The worst part? The vast majority of these users had no idea this was happening – and none of them gave permission for it to happen.
If advertisers want to rebuild trust with consumers, they need to take an open and transparent approach and ask their audience for permission to collect data. And that is exactly what the Web3 opportunity enables – a new era of the Internet characterized by decentralization, transparency and autonomy.
What are the fundamentals of Web3?
Ask 10 people to define Web3 and you might get 10 different answers. But at a high level, Web3 is a new iteration of the internet powered by blockchain technology and the token-based economy, and it’s also governed by three core principles:
Decentralization. In Web 2.0, companies own platforms. In Web3, the platforms are decentralized. No organization has control of any content; users do.
Transparency. Using blockchain technology, all users of peer-to-peer networks and decentralized applications (dApps) will share open, unalterable databases that they can verify with their own eyes.
Autonomy. Ultimately, users will be able to control their own digital destiny and have the final say over the collection and use of their data.
According to a recent study, 96% of consumers do not trust advertisers. This is exactly why brands should be incredibly excited about the Web3 moment.
With the right approach, digital advertisers can rebuild the trust they lost in the Web 2.0 era by connecting with consumers on a meaningful level in an open and honest way.
Web3 is here. It’s time to prepare for the tectonic shift
Although we are still ahead, the Web3 moment has already arrived. Unfortunately, advertisers waiting to adapt to this reality will learn the lesson the hard way.
In the not too distant future, users will demand a reduction in the revenue generated by the data they create. As an incredibly divisible native internet currency, crypto is the easiest mechanism to deliver incentives that users can immediately put to use.
As the world gravitates towards the Web3 standard, user data will increasingly be held on blockchain or in decentralized storage solutions, giving users more power over their data than ever before. As a result, they will be able to choose exactly which brands they agree to share data with, what data they want to share and for how long.
Advertisers who do not prepare for this tectonic shift and adapt their methods to deliver a true value proposition in exchange for interacting with user data will be left behind.
By offering token rewards – whether fungible crypto coins or non-fungible tokens (NFTs), a trending, blockchain-based and one-of-a-kind digital asset – advertisers can tap into the Web3 philosophy while exciting users about what they have to offer. In addition, they take advantage of the magnificent properties of blockchain technology, such as:
Immutabilityor the permanent and unalterable nature of a blockchain ledger
Validationor how users can verify that transactions are legitimate
Disintermediationor the absence of intermediaries between advertisers and users
Deep Securitymade possible by cryptography and decentralization
Ease of transferwhich simplifies and speeds up the sending and receiving of tokens.
How Crypto Can Help Advertisers Thrive in Web3
One of the easiest ways to reward users for giving permission to share their personal data or perform specific actions is to issue crypto rewards. For example, you can offer them rewards for watching videos, viewing personalized ads, and opting in to receive content from brands.
By offering an opt-in value exchange – where they are willing to part with their data or attention for tokens – advertisers can begin to build lasting relationships with their customers and regain trust while ensuring compliance. regulatory.
Although cryptocurrency is still in its infancy, its adoption continues to increase; today, some 27 million Americans own crypto. With steady growth over the past decade, it’s only a matter of time before the use of crypto reaches critical mass. The sooner advertisers embrace the inevitable crypto, the sooner they will be able to capitalize.
Since the future of digital advertising will be powered by digital authorization and rewards, brands must start looking for a purpose-built crypto advertising platform that will guide the journey ahead. Strategies that enable aligned incentives – where all participants, including users, advertisers and the platform, benefit from authorized data sharing – will lead to victory in the age of Web3.
With the right approach, the imbalanced relationship between brands and consumers suddenly balances out, and the two parties engaging with each other is more of a partnership than anything else.
Lauren Griewski is the Chief Revenue Officer of Permission.io
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