Maybe you’ve heard of it: Web3. The next generation of the internet. Most online experiences are currently hosted on “Web2” technology. Web2 is characterized by centralized platforms controlling data.
Big powerful websites own consumer information and use it as they see fit.
Web3 will focus on decentralized blockchain technology. In practical terms, this means that users will have more control over how their information is shared and used.
- Blockchain technology will let users control who sees their data and how it’s used, rather than automatically surrendering it to big tech companies who can sell or share it however they want.
- Smart contracts could automatically enforce privacy agreements and data usage terms, giving users real power over their information rather than just clicking “accept” on terms of service.
- Decentralized platforms mean your data isn’t stored in one company’s servers – it’s distributed across networks that you have more direct control over.
It used to be that signing up for a website meant giving away your data to whatever company owned the platform. With Web3, users will maintain ownership and control of their information, choosing how and when to share it. This fundamentally changes the relationship between users and platforms, putting power back in the hands of individuals.
Web3-specific marketing is expected to be a $100 billion dollar industry by 2030. What does that mean in practical terms? In this article, we take an in-depth look at how decentralized internet technology can change the relationship between marketers and consumers.
Casino Marketing: From Centralized to Decentralized
Let’s say you’re marketing for a crypto casino.You know your target audience. You set up a Facebook ad and it appears before the eyes of people who fall neatly into your demographic. Forty-something females, say, with an established interest in recreational gambling. This is a rough-cut version of what online marketing looks like today.
In a decentralized system, you’d take a different approach. Instead of paying Facebook to reach users, you’d create smart contracts that reward users directly for engaging with your casino. Here’s how it works:
- You set up a promotion: “Watch our 2-minute casino tour, get $5 in crypto instantly deposited to your wallet.” The offer appeals naturally to people who will be most likely to spend money at a casino, while still putting more control in their hands.
- You create loyalty programs that reward information sharing: “Share your gaming preferences, get instant VIP status” or “Verify you’re a high-roller, unlock exclusive bonuses.” Users control what they share and get paid directly for their data.
- You build referral networks by rewarding players who share your content: “Earn 50 tokens when friends join through your link.” The value goes straight to players instead of paying Facebook for reach.
A fascinating component of these types of campaigns is that they target motivation more than interest. Consumers might prefer this system because they get paid directly for their attention and data.
The key for marketers is that while you’re still spending money to reach potential customers, you’re building direct relationships rather than relying on platform middlemen. Users who choose to engage are likely more qualified leads since they’ve actively opted into your marketing.
Is Decentralization Truly Upon Us?
That’s a tricky question. Blockchain technology, and more specifically, the development of Web3 technology is designed at least in part with decentralization in mind. However, there are some fine points that require consideration:
- Even as Web3 technology develops, the internet’s core infrastructure remains centralized. Most “decentralized” applications still rely heavily on traditional servers, companies, and services to function.
- Major tech platforms have already collected vast amounts of user data and built deeply integrated ecosystems. When you use Google or Facebook to log into other services, you’re reinforcing these centralized networks.
- While blockchain could enable better user control going forward, it can’t undo decades of centralized data collection or easily replace the convenience these platforms provide.
DeFi–a decentralized finance platform currently holds a market penetration of 0.69%. The global Blockchain valuation may swell to $65 billion within the next twelve months.
There is a sustained and pervasive interest in cutting out the proverbial “middleman.” It just takes a lot of time and effort.
Decentralization will likely play an important role in the internet’s future, but the change won’t happen overnight. Between established tech companies’ massive data advantage and users’ preference for convenient services, the shift toward Web3 will probably be gradual and partial rather than revolutionary. Many services will likely blend new decentralized features with traditional centralized platforms.
Conclusion
Meta advertising revenue is forecasted to exceed that of television ad revenue in 2025. In other words, marketers don’t need to forget everything they know about centralized consumer outreach strategies.
Facebook ads aren’t going anywhere. Still, it is interesting to imagine a world where consumers offer not just their data, but also their consent to use it.
Decentralized marketing does require more creativity and a unique take on how advertising budgets are spent. Still, the ultimate rewards could be significant. Consumers who participate willingly in the process may respond more enthusiastically to the offers they are presented with.
More to the point, in the absence of all-powerful middlemen, marketers and their audiences both have more power. While we may be a long way from a world where decentralized digital marketing is the standard, it’s a good time to think about ways to develop more intimate and mutually beneficial relationships with your audience.