Advertising is critical for every business, whether digital or traditional. Marketing and advertising are an essential part of efficiently offering services and products to a wide range of users. They also provide people with convenience in identifying appropriate products and services easily.
Challenges In The Digital Advertising Industry
The advertising economy in web2 began as a marketplace governed by advertisers, publishers, and users. Nowadays, it is dominated by ad exchanges, cross-device user tracking, and complex behavior monitoring systems. On top of that, the mass of content that is now present on the internet has resulted in an ongoing, fierce battle for viewers’ attention. Users are constantly bombarded with algorithmically targeted advertisements that are based on their personal information and browsing behavior. Furthermore, many internet users have discovered ways to avoid commercials by utilizing ad blockers. This has resulted in advertisers receiving insufficient data and being unable to target their desired audience efficiently. Brands are now losing billions of dollars because of inefficient advertising, all while ad fraud is on the rise.
But a new reality is emerging just beyond the horizon. Web3 is based on the concepts and aspirations of the original world wide web, which is a decentralized world driven by community-based interactions. The ethos of decentralization and transparency in web3 requires brands and users to engage directly with each other. Marketers will need to adapt to this transformation by changing their behaviors and rethinking best practices in the decentralized society that is emerging.
Building Back Trust
Blockchain applications powered by peer-to-peer networks have grown in popularity due to the belief that blockchain will become a critical technology infrastructure. The blockchain is a digital ledger with a transaction history that’s shared across network members and doesn’t have a centralized owner. This open, decentralized approach helps to increase authenticity and prove ownership of digital assets. It goes together perfectly with the digital marketing supply chain as it is a distributed, immutable, and transparent record. Brands can dramatically enhance efficiency and transparency, prevent fraud, and reduce expenses using blockchains.
While most programmatic ads in web2 are launched through a few major ad exchanges that are highly opaque in terms of their algorithm and control the flow of data, with decentralized advertising, advertisers will have micro-exchanges that communicate with one another in a network.
Decentralized web supporters claim that decentralized advertising will allow users more privacy and control while ensuring more openness from marketers. Since ad requests will not have to transit via opaque exchanges, decentralization will allow marketers significantly more control over their programmatic sales and better information about ad spending. Rather than relying on tracking signals that are provided by ad tech, the system that web3 promotes means digital advertising has the potential to become more efficient. This is because with web3 tech marketers can listen to signals from users who have control of the flow of advertising into their browsers, apps, and devices when they report their interest and disinterest to brands and marketers.
Benefits Of Decentralized Advertising
Fraud Prevention & Transparency In The Ad Supply Chain
For a long time now, digital advertising has been plagued by the issues of ad fraud and transparency. Blockchain tech has the potential to eradicate ad fraud and also to verify that marketers only pay for genuine click-throughs. Decentralized advertising can ensure that marketers get better outcomes for less money. The blockchain’s data traceability, user-controlled privacy, and permissioned information transmission will improve efficiency and transparency, enabling marketers to determine the success of their advertisements more efficiently than with non-blockchain digital advertising platforms.
Smarter Ad Optimisation
As it stands currently, advertisers and customers don’t have meaningful connections with one another. Advertisers have limited knowledge about the audience they are targeting, and consumers are unaware of how 3rd parties utilize their data without their permission. Decentralized advertising reinvents marketing by providing a transparent advertising environment that will connect advertisers with users. It provides a real-time, operational platform that executes ad campaigns for brands and agencies efficiently, meaning marketers and other stakeholders will be able to view results in real time.
Consumers Taking Back Control & Marketers Createing More Qualified Leads
An increase in customer access and control over data doesn’t always imply decreased information. Instead, this means customers can choose when, to whom, and for how long their personal information is made public. Users will be able to trade their data for rewards in decentralized advertising. However, the advantages don’t stop with the customer. This setup will assist marketers in gaining greater information autonomy. The number of leads may be reduced, but the quality of those leads will surely increase.
Complete Anonymity For Customers
Websites and social media platforms that we use today have access to tons of data, ranging from browsing history to banking details. However, in decentralized advertising, blockchain-based verified signatures will help digital marketers keep data anonymous on their servers as well as servers managed by 3rd party applications. This will assist users in maintaining anonymity and will improve their privacy while on the internet.
Decentralized Advertising Causing A Shift In Digital Marketing
Marketers must brace themselves for a significant transition in digital marketing. They must adopt new technologies and systems and capitalize on the innovative potential they provide. The web is growing and changing direction, but this decentralization can bring us closer together in many ways.
