By Alankar Saxena
The digital realm around us is evolving for the future. The next big shift has already begun, thanks to Web3 or Web 3.0. Web3 refers to the next era of the internet age. It uses decentralization, blockchain technology, and cryptography to reshape the online landscape into a more user-focused, open, and trust-driven environment.
According to a report published earlier this year by Safary, a Web3 marketing analytics firm, around 200 companies are currently exploring the possibilities of the Web3 digital media landscape. Among them, 71 have collectively raised $600 million in funding. The most well-funded categories include Messaging, Questing, and Loyalty platforms, each attracting over $100 million in funding. The report also discussed how Web3 offers analytics tools like Nansen and Dune, which aggregate on-chain, platform, and social data to provide growth insights on Web3 communities.
Here are some ways that Web 3.0 holds the potential to transform the digital media landscape:
Decentralized Content Platforms
Startups are exploring decentralized content platforms that use blockchain technology to ensure content ownership, transparency, and fair compensation for creators. These platforms enable content creators to directly monetize their work through mechanisms like NFTs (Non-Fungible Tokens), representing digital asset ownership. For example, Friend.Tech lets creators build their own communities and monetize their interactions.
Tokenized Incentive Models
Web3 enables the creation of native tokens that can be used to incentivize user engagement and content consumption. Startups and digital marketers can develop tokenized reward systems that encourage users to engage with content, share it, and contribute to the growth of the platform. This can lead to more meaningful interactions between brands and their audiences.
Web3 reaffirms the concept of identities and personal data ownership. Startups and marketers can leverage the principles of Web 3.0 to create advertising models where users have control over their data and are directly rewarded for engaging with ads. This can potentially lead to more relevant and less intrusive advertising experiences. For example, The Brave browser rewards users with BAT (Basic Attention Tokens) for watching ads.
Trust is non-negotiable in the modern digital landscape. Enter blockchain-based analytics, a Web3 innovation that provides unparalleled transparency and immutability. Through this technology, start-ups and digital marketers access rock-solid data that validates key metrics such as reach, engagement, and conversions. This infusion of credibility elevates campaign performance reporting, offering stakeholders data-backed insights they can count on.
Enhanced Data Privacy
With Web3, users have greater control over their data and how it’s shared. This creates the potential for startups to develop solutions that allow users to selectively share data with marketers in exchange for personalized offers or incentives. This approach can lead to more meaningful and consent-driven interactions.
Smart Contracts for Campaign Execution
Smart contracts can be used in marketing campaigns to automate processes like reward distribution, affiliate marketing, and partnership agreements. This can streamline campaign execution and reduce the need for intermediaries.
Virtual Reality (VR) and Augmented Reality (AR) Experiences
Web3 can enhance immersive experiences by enabling the ownership and trade of virtual assets through NFTs. Startups and marketers can create unique branded experiences in virtual worlds that users can engage with and potentially trade with.
Crowdfunding and Token Sales
Startups can use Web3 principles to conduct token sales or Initial Coin Offerings (ICOs) to raise funds for their projects. This decentralized fundraising model can provide direct access to a global pool of investors interested in supporting innovative ventures.
Supply Chain Transparency
Startups and marketers can leverage Web3’s transparency features to ensure transparency in the supply chain, proving the authenticity and origin of products or services. This can be particularly relevant in the fashion, luxury goods, and food industries.
The fusion of Web3 technology with the digital media landscape is poised to redefine our understanding of digital content, engendering a new era marked by heightened user engagement, data ownership, and transparent interactions. This holds immense potential for marketers and start-ups to innovate, experiment and establish themselves.
(The author is Mr. Alankar Saxena, CTO and Co-founder of Mudrex, a Global Crypto Investment Platform, and the views expressed in this article are his own)