Bringing You Up to Speed on Web3 and its Impact on Digital Marketing

• Updated on: 2024-04-01
• Read original article here

Digital trendsare continuously evolving, and as marketers, we must constantly keep on top of industry-changing trends to stay in the know, remain relevant, and maximize marketing effectiveness.

One such industry-changing recent trend which we are sure you’ve stumbled upon isWeb3– an improved form of the current internet-type projected to be the next big thing in tech.

All the buzz stems from what content creators, marketers, brands, and everyday internet users stand to gain from the changes Web3 brings to internet usage. From a marketing point of view, it’s imperative to understand what Web3 is all about, its ties with blockchain technology, and how marketers can make the most of it.

Let’s start with some background. Web1 was in use before the current iteration of the internet (Web2). Web1 featured static pages, few content creators, and an uninspiring replication of existing media such as magazines and newsletters. 

With Web2, which kicked off in 2004, it’s been a different ball game, as evident in how we interact with the internet today. Web2 integratesuser-generated content, giving rise to big social media guns such as Facebook, where people share and download information as opposed to the read-only system of Web1.

So, what does Web3 do differently? And how is it a major improvement over what is currently available, especially from a marketing point of view?

Since it became the moment’s wave, the major selling point associated with Web3 is the possibility of decentralization. Virtually every internet activity today revolves around centralized companies such as Google, Facebook, and Amazon, which own and control users’ data to influence engagement on their platforms. 

With Web3’s decentralized capabilities, made possible with blockchain technology, data control is transferred from centralized entities to a distributed network, meaning the data belongs to no recognized entity. Decentralization happens through smart contracts stored on the blockchain that is activated when set conditions are fulfilled.

Also, Web3 paves the way for the semantic web, a framework that allows information to be reused and shared seamlessly amongst communities, programs, and companies. Summarily, Web3 is the user-owned internet.

Blockchain technology, one of the driving forces behind Web3, will empower the new internet iteration. It will do this by providing the much-needed data, decentralization, and security, which can revolutionize marketing in the digital sphere.

Blockchain records and verifies transactions for anything that requires trust — including money, digital properties, and medical records — through a publicly-available ledger. As a result, the metaverse and NFT mechanics, also key elements of blockchain technology, will play significant roles in Web3 adoption.

Just as in Web2, NFTs in Web3 will:

UnlikeApple’s iOS 15 update, In general,email marketingwon’t necessarily be hugely affected when Web3 reaches mass adoption. Many marketing channels currently in use in Web2 will remain relevant in Web3 for almost the same functions. 

However, since Web3 is a decentralized version of the web, the power will rest in the hands of the users. This means that Web3 could make data collection harder for marketers, and it could require that marketers practice even more transparency when it comes to collecting data on their potential consumers and using it. You may remember whatthe loss of third-party cookiesdid to the marketing industry, and Web3 may double down on the importance of collecting first andzero-party data. 

The key thing to note is that Web3 is primarily community-focused. As a result, email marketers may need to rethinkemail content, media type to use (i.e., memes, which can be seen as more relatable because of the human feel), andKPIs used to measure email marketing success. With Web3, email marketers should aim toprovide personalized experiencesmade possible by real-time data sharing in product communities.

While we still await the mass adoption of Web3, the buzz points to the fact that it’s one reality that every business and marketer should prepare for, considering its adoption by some major brands. Keep your eye on the progression of Web3 so you can prepare your marketing strategies for any necessary shifts and changes in the way you collect and use data.