How Is Web3 Transforming the AdTech Industry

The term ‘Web3’ has been in existence since 2014 when Gavin Wood, the famous computer scientist who helped create Ethereum, coined it. For years it had been a topic that was discussed within the tech community only. Recently, though, Web3 has started to attract much more interest from the general audience. But what is Web3 exactly?

Web3 is a new phase of the Internet which should replace Web2, the iteration of the World Wide Web we’ve started to use around 2004. The evolution is driven by emergence of new web technologies with the most important of them being blockchain. The shift from Web2 to Web3 has already started in the mid-2010s but it’s going to take a while before humanity starts using the new Internet extensively.

However, it’s very likely that almost everyone outside the tech industry has heard of something Web3-related. Bitcoin, the most popular cryptocurrency in the world, and NFTs have become overhyped buzzwords and generated a lot of widespread memes. Nevertheless, they’ve done a good job in heating up the interest towards Web3. And still, there are a lot of positive Web3 features that aren’t covered enough.

Unlike its predecessor, Web3 is decentralized ― it means it’s not controlled by a rather narrow circle of gigantic tech corporations, like Alphabet, Meta, and Twitter. It means, it’s going to be more democratic, inclusive, and fair because every user will be able to get their share in the Web3 economics. There will be no more user data harvesting for sale by huge companies, everybody will be able to control their personal data and content and decide on monetizing these digital assets.

All these things make a lot of tech visionaries passionate and enthusiastic about this version of the World Wide Web. Web3 is predicted to revolutionize almost every industry from FinTech to Creative Economy. If you work in the advertising industry, the most important thing for you to know about Web3 is that it’s going to overturn the existing foundations of digital marketing.

Why Web3 Is a Game-Changer for the Ad Industry

The game-changing nature of Web3 is rooted in the fundamental concepts of this new phase of the Internet. Since the behemoths of the tech industry will be unable to collect user data like they do today, targeted advertising will require negotiating with users about them providing their data themselves.

In Web3 people will be able to control their personal data and the content that they produce and decide whether they want to sell it or exchange it for something valuable. They will be able to choose whom to sell their digital assets to. For brands it means that they’ll have to work harder on building connections with their customers and enhancing their loyalty.

In addition, users will be able to choose when they want and are ready to watch brand ads. In these circumstances the quality of advertising should be really high, otherwise people may never want to watch another dubious ad from your company and there will be no way to make them do it. It may be a strong motivation for brands to collaborate more with outstanding creatives in order to produce truly engaging content.

Also, thanks to blockchain, all transactions held through the internet will be transparent because they will be recorded as blocks of information and kept there forever with access open to everyone. Consequently, consumers will be able to see, for instance, the full supply chain and assess its sustainability which may hugely impact the choices that they make.

It may sound like everything in the Web3 ecosystem is beneficial for users only, but the truth is that brands win too. Web3 eliminates any possibility for advertising fraud because one can’t create click bots there. Thus, your ads receive attention strictly from real people who are truly interested in what you have to show them.

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Companies that Already Create AdTech Solutions for Web3

The Web3 MarTech industry has been growing intensively since the end of 2010s. Consequently, there are already some established AdTech tools, solutions, and platforms that cater to the main principles of Web3. Looking at them, you can get a glimpse of what these new web technologies can do.

Here are some vivid examples:

Mint is a platform that helps brands create NFTs which they can give to consumers as points or rewards in loyalty programmes. For instance, tickets to exclusive events, collectable digital art, discount codes, etc. It helps to create a more meaningful connection between a brand and its consumers.

Brave is a free open-source web browser that prioritizes user privacy and allows no ads and data harvesting unless a user agrees to it. Any person can turn on ads if they want to and get Basic Attention Tokens, a sort of the Brave’s own cryptocurrency,  in exchange for their time.

Permission is an advertising platform that lets users get crypto rewards for sharing their data with advertisers. A user’s permission is necessary for a brand to show them advertising.

Ojamu is an AI-powered B2B platform that helps companies automate organic product marketing in the Web3 economy and advertise within the Web3 ecosystem. The main purpose of Ojamu is to assist brands in migrating from Web2 to Web3.

What Other Changes We May See in the Future

It’s hard to make any predictions and, to be honest, quite unfruitful. However, when it comes to Web3, we can outline a few main tendencies that are going to define the future of the AdTech industry.

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For instance, it’s very likely that there will be new social media platforms that align with the ideas of Web3, and advertisers will have to adapt to them. Another significant change may come from the brands’ need to produce high-quality content which will motivate them to search for creatives to work with and artistic and smart user generated content, consequently boosting the creative economy.

It seems that the most important thing will be that brands will strive to create stronger and deeper ties with their audience rather than making attempts to attract as many people as possible. It will make the capitalist world we live in a more human and healthy space.

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[To share your insights with us, please write to sghosh@martechseries.com]