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Like everything, the internet is evolving too, and Web 3.0 is the next stage of evolution for the World Wide Web. It aims to be decentralized, open, and provide more functionalities to users.
“The next industrial revolution is toward a decentralized, autonomous, and resilient system where individuals and communities control their own destinies. This requires a transformation of our economic model from privatized control to cooperative models of ownership, in which the social technologies of the internet can facilitate.” – Russell Brand
Web 3.0 will change everything about the internet as we know it. It will impact digital marketing in a significant way. Due to blockchain, users will be in complete control of their data. They will decide who gets to access their data. NFTs will become increasingly prominent for boosting brand awareness. Web 3.0 will provide more platforms like AR/VR and IoT devices for promoting your products.
So, as a digital marketer, you need to be ready to adapt to these changes.
But before learning about Web 3.0 let’s understand its previous version.
Web 1.0 was the internet’s earliest version. At that time, there were a handful of content creators, with most people being consumers. Personal web pages were more common, consisting of static pages hosted on web servers managed by ISPs or free web hosting services. Web 2.0 unleashed user-generated content, made it more accessible, and increased participation for users. It is the second stage of the internet where we witness the growth of social media. Static web pages converted to dynamic or user-generated content.
Now that you know about Web 1.0 and Web 2.0, let’s start with how Web 3.0 will be beneficial for marketing, but for that first, we will understand what Web 3.0 is.
What is Web 3.0?
It is the next stage of the internet where machine learning, big data, and decentralized ledger will play a lead role in processing information for applications and websites.
Data will get interconnected in a decentralized way, compared to what we have right now, where data gets stored in centralized repositories. It will allow users and machines to interact with data.
Decentralization, transparency, and better user functionality form the core concept of Web 3.0. When we talk about decentralization, the terms that cross our mind at once are Blockchain technology, Cryptocurrency, NFT, and Metaverse. For starters, Blockchain is one of the three pillars of Web 3.0. The other two are IoT and artificial intelligence.
In this article, I’ll explain how digital marketers can benefit from utilizing the power of Blockchain.
What is Blockchain Technology?
A blockchain is a database that is shared among different nodes of a computer network. They store information electronically in digital format.
Blockchain is a record-keeping technology that is impossible to hack, and data stored in it cannot be tempered. It is secured and irreversible.
How Can Digital Marketers Benefit From Blockchain?
Nowadays, users want more privacy and better data security. People don’t like ads that creep up every time they search for something on the internet. Also, they want complete transparency regarding what type of data is getting collected and more control over their online experience.
On the other hand, digital marketers want their ads to reach the target audience and boost conversions, which is understandable, but the current method feels bothersome to the users. As per the March 2021 Merkle survey, 44% of customers think ads are intrusive, and 23% don’t like sharing their personal information regardless of its benefits.
So can blockchain resolve these issues? Yes! Here’s how it can do it.
Blockchain aims to establish a decentralized model and provide security and transparency to user data. No one can alter the digital record that gets added to the blockchain—even those who have access to view it.
Digital marketers can keep track of their ad expenditures as blockchain stores and records transactions in real-time and also establishes transparency on inventory purchases. You will know who is bidding on it and at what price.
Blockchain will stop scams on impressive or engagement due to pre-configured user metrics.
The ads that people purchase quickly make it hard to keep track of high-quality inventory, but that doesn’t mean it’s impossible. Blockchain technology will be able to keep up. Let’s take a look at some of the blockchain’s possible applications in digital marketing.
Potential Use Cases of Blockchain in Digital Marketing
1. Better Tracking of Digital Marketing Campaigns
You will be able to keep track of and monitor campaigns in real time with blockchain. There won’t be any need to rely on cookies or the current tracking methods. For example, in 2019, Unilever completed a blockchain pilot for tracking advertisement expenditures. There was zero leakage in its media investments, and now the company is scaling up the solution.
2. Resolving Privacy Issues
Internet service providers (ISPs) have unrestricted access to our data, from bank account information to browsing history. The verified signatures of blockchain, on the other hand, allow digital marketers to store client data on their servers rather than those handled by third parties. It will allow users to maintain their anonymity and boost privacy while using the internet.
3. Rewarding Users
Ads can be problematic for both users and digital marketers as they are costly, difficult to control, and unwanted. But tokenization can resolve this issue. Tokenization is an essential characteristic of blockchain and allows assets to be converted into tokens. So, digital marketers can reward users with tokens if they decide to participate in their advertisements.
There is a blockchain-based browser called Brave browser that is already capable of doing that. It blocks ads and web trackers by default. Users will get rewarded by opting for the ads they want to see.
4. Preventing Click Fraud
The price of ads is costly when targeting competitive keywords, so digital marketers don’t want to waste any of their budgets. They also face problems with their ads getting clicked by bots, which costs them a fortune. Blockchain can prevent click fraud by allowing the monitoring of digital ads on its decentralized servers. Besides Blockchain, even NFTs, an item of Web 3.0, are powering their way into the digital marketing arena.
The Rise of NFTs in Digital Marketing
NFT stands for non-fungible tokens. They are digital assets that you can purchase and sell, similar to any other property. Every NFT is tokenized, meaning that it has a digital certificate of ownership, making it unique. Blockchain stores the ownership token of each NFT in its server.
NFTs cannot be replicated. They represent real-world items like real estate and artwork.
Tokenizing these assets reduces any possibility of fraud. NFTs can also represent individuals, identities, property rights, etc.
How Can Digital Marketers Use NFTs?
Many big brands globally are using NFTs in their marketing strategies. Here are some examples:
- Marriott is using NFTs to Building Brand Awareness
Marriott is using NFTs on its Marriott Bonvoy travel program. The company joined hands with three artists to create different NFTs based on travel experiences and shared a teaser of it on their website.
The NFTs got launched at Art Basel, where a lottery was held, and winners got their NFT with 200,000 Bonvoy points. It helped boost brand awareness by using NFTs to build excitement around the brand and the experiences that Bonvoy offers to its customers.
- Bicycle is using NFTs for Expanding its Audience Reach
Bicycle, one of the oldest card-making companies globally, was looking for ways to expand to a new audience. It was established in the 1800s and has been a leading company in the card printing industry for two centuries.
Bicycle wanted to tap into the younger audiences, many of which were into newer technologies like NFTs. The brand recently announced its first NFT collection, which artist Adrian Valenzuela designed. Owners who purchase them will get access to exclusive events, presales, and a physical deck of NFTs.
NFTs are a new trend, making them more exciting and less competitive. So, it’s easy for digital marketers to stand out with NFTs until it becomes mainstream. Many high-profile brands are jumping into NFTs, like Taco Bell, AMC, Charmin, and Coca-Cola. NFTs will empower digital marketers to boost their brand awareness and promote new products.
Web 3.0 Will Provide More Avenues For Digital Marketing
Web 3.0 wants to make the internet available to everyone, no matter where they live, what kind of device they use, or how they connect to the internet. Nowadays, people rely primarily on smartphones and PCs for online activities, but Web 3.0 will expand to wearables, smart appliances and cars, AR/VR gear, and IoT interfaces. This means a digital marketer will have more options for promoting your products and will be able to connect to a wider group of people.
Web 3.0 Will Radically Change Social Media
Nowadays, we can’t imagine our lives without social media. Web 3.0 will introduce new changes in social media marketing services. For example, dApps will become more prominent, and there will be no centralized authority due to web 3.0’s decentralized structure. Users will be in complete control of their data. So, as digital marketers, you will have to stop thinking of consumers as a number in your database rather than see them as partners with whom you should build a meaningful relationship.
Wrapping Things Up
Web 3.0 offers an excellent opportunity to directly build meaningful relations with users by providing better experiences and valuable services. It will radically change how we use the web and conduct business online. Although web 3.0 is still a long way off, digital marketers should prepare for it. As a wise man once said, success comes to those who are prepared for it.