The Point: Why This Matters
- Next iteration of Web. Web3 is the next iteration of the internet, characterized by decentralization, transparency, and fairness.
- New world of content and data. Web3 changes the landscape of content and data ownership, giving users full control of their data, which will change the way businesses acquire data for targeted advertising.
- Martech's big adaptation. Martech will have to adapt to the new rules of personal data distribution, but the adoption of Web3 will provide new advertising platforms and increase the efficiency of content creation through AI.
In 2014, the term “Web3” was first introduced by Gavin Wood, founder of Polkadot and co-founder of Ethereum. For those specializing in Martech, Web3 will be the crux of a crucial shift in the basic mechanics of digital marketing, but it hasn’t turned into a buzzword in the way that Bitcoin and non-fungible tokens (NFTs) have.
That being said, Web3 should be widely discussed because it’s going to significantly impact our future.
What Is Web3 and How Is It Different From Web2?
Web3 is the next iteration of the internet fueled by the advancement of technologies, which have the potential to change online power dynamics dramatically. Web3 is decentralized, meaning it’s not controlled by gigantic tech corporations like Meta (Facebook, Instagram, Whatsapp), Twitter or Alphabet (Google, YouTube). Most of us probably know by now that these companies create seemingly free products in order to harvest user data and profit from their sales.
With Web3, enthusiasts see this new version of the online world as a more transparent and fair internet. One of the foundational technologies behind Web3 is blockchain, which helps store information about every transaction within the network. Each transaction can be viewed and verified, which makes Web3 a fraud-free zone and leads to more trust between users, brands, consumers, art dealers and collectors and so on.
Web3 is also changing the landscape of content and data ownership. Tech behemoths will no longer be able to collect user data and sell it because it will be fully controlled by their users, who will have comprehensive ownership of the content that they produce. Today, when we create a post for our social media profiles, the work belongs to the platform and can be used or deleted without discretion.
The structural shift of the World Wide Web means today's landscape of digital marketing will change dramatically and new conditions will require new Martech solutions.
Related Article: What Will Web3 Really Be About: Part 1
The Main Changes for Martech
The emergence of social media platforms ― combined with the rapid development of the mobile internet ― has led to a boom of targeted advertising. Targeted ads are powered by user data and harvested by tech corporations, but in Web3, this data collecting practice won’t be possible. Even though targeted ads will remain, change will come in the way businesses can acquire this data.
With Web3, users can choose who sees data and on what terms. For businesses, this necessitates a negotiation about receiving consumer data without any middlemen. For instance, your company may offer your customers the ability to share their data in exchange for a discount. Although this may initially sound discouraging, it’s likely that the shared data will come from your exact audience rather than from unidentified sources, which is often what happens today.
Business will have the opportunity to know their audience better and build stronger ties with them, too. The value of brand communities and high quality content will rise consequently because Web3 will be highly semantic; its machines can understand the intentions of humans searching for information online much better. However, you’ll need to make it thoroughly thought through and truly useful to get your content marketing to consumers.
AI by your side to assist you with content. Artificial intelligence is getting better with natural language generation and is going to be an assistant to all content marketers out there. There are already AI tools that can create content strategies, write texts and make illustrations to them like Writesonic or Jasper. Of course, there still will be a need to oversee and edit it all, but the process is going to increase in efficiency.
Related Article: ChatGPT: What You Need to Know
New Marketing Opportunities of Web3
The Web3 revolution is not only about changing rules but also about adding new layers. In Web3, there will be an additional dimension: the Metaverse, an immersive, fully-digital space which provides its own marketing opportunities. Although the Metaverse is virtual, the people inside of it are real and can serve as your target audience.
Companies are already seeking advertising opportunities within the Metaverse. This online world will become a place where brands can place ads, brand events and sell their goods ―both physical and virtual ― directly to consumers. Inevitably, VR and AR will play a big role of many marketing campaigns. Actually, some brands like Nike or Gucci are already using these technologies.
Although the hype around NFTs has subsided, their mechanics can operate outside the digital art world and give brands new opportunities to win over consumers. Collectable NFTs will still be in demand for brands that want to utilize them for generating extra revenue or reward their customers with something unique in exchange for loyalty. There definitely will be an increase in popularity of utility NFTs ― tokens with real rights to the real world items attached. They can be transferred digitally to loyal customers as a means to give them an invitation to a brand event.
With the spread of Web3 technologies, Martech will have to adapt to the new rules of personal data distribution. It will spurn new advertising platforms that can connect brands and consumers directly as we've seen with The Metaverse, but it’s necessary to start exploring these marketing opportunities now lest we miss the opportunity later.
Learn how you can join our contributor community.