Advertising has been going through a huge transformation for the past years characterized by stronger concerns around user privacy, data security, and value exchange between advertisers and consumers. AI and Web 3 have been contributing a lot to the further development and evolution of advertisement and how brands interact with potential customers. For instance, advertising and Web 3 leverage blockchain technology to create a more decentralized, transparent and user-centric internet. Unlike traditional Web 2 advertising, which often relies on intrusive data collection and third-party cookies, Web 3 prioritizes user consent, data ownership and rewarding the users for consuming advertising. This shift is paving the way for a new model of advertising that is both personalized and rewarding.
Advertising and Web 3: Personalization
Personalization is the cornerstone of modern advertising. However, high-level targeting and personalization come with major concerns on the privacy side. Web 3 could enable tailored marketing campaigns simultaneously providing a higher level of customer data protection. This would ensure that consumers receive relevant and engaging content, keeping a certain level of privacy or being rewarded for enabling or sharing some customer data with the advertisers which would make it more fair for consumers.
Key aspects of personalization in advertising and Web 3 include:
- User Empowerment: Consumers could have more control over their data and decide which brands they want to interact with.
- Data Ownership: Users could keep self-custody over their data, deciding how and when it can be shared.
- Opt-in Value Exchange: Consumers willingly share their data in exchange for personalized offers and rewards.
Advertising and Web 3: Rewarding Consumer Participation
One of the most exciting aspects of Web3 advertising is the ability to reward consumers for their participation, for instance, with native tokens. By leveraging blockchain and token-based systems, brands can incentivize users to engage with their content and campaigns. This not only fosters loyalty but also creates a fair value exchange between brands and consumers.
Ways to reward consumer participation include:
- Token Rewards: Users can earn native tokens, crypto or other digital assets for engaging with ads or sharing their data.
- Gamification: Implementing gamified elements for more engaging and rewarding interactions.
- Community Building: Using decentralized platforms and social tokens to cultivate communities around shared interests.
For example, Brave Browser and its Basic Attention Token (BAT) system have been implementing this model. Brave rewards users with BAT for viewing privacy-respecting ads. Users can then use BAT to tip content creators or exchange it for other cryptocurrencies. This approach not only demonstrates more respect towards user privacy but also incentivizes active participation in the advertising ecosystem.
Another example is AdEx Network, a platform that aims to leverage blockchain to create a more transparent and efficient advertising ecosystem. Advertisers and publishers can connect and interact directly, while users are rewarded for their attention with ADX tokens.
Thus, Web3 could redefine the advertising landscape by prioritizing personalization and rewarding consumer participation. Consumers could benefit from having better control over their data, seeing more relevant content and ads and getting rewarded for their consumer role. By embracing Web3 in advertising, the brands could build stronger, more meaningful relationships with their audiences, engage their audiences in a more creative way, staying ahead of the curve, and create more personalized and rewarding experiences for the customers, ultimately establishing a more positive positioning.
In the times of immense data collection and consumer targeting, this could be one of the tools to secure more privacy and give customers more flexibility to choose how exactly they want to be targeted and approached by the advertisers and brands.
Further reading
- Web3 Marketing Guide 2023: Features, Agencies, Services & More
- Web3 Marketing: A (Hype-Free) Complete Guide — Reforge
- Web3’s impact on personalization, trust and engagement through time-honored strategies (cointelegraph.com)
- AI-Enhanced Web3 Marketing: Smarter Targeting and Personalization (tokenminds.co)
- How to Earn and Use Cryptocurrency With the Brave Browser — PCMag
- 12 Top Web3 Marketing Companies to Know in 2024 — HeLa