How advertisers can survive and win with the Web3 shift

How advertisers can survive and win with the Web3 shift

The internet is evolving. Users are entitled to privacy. They can avoid Big Tech entirely thanks to cryptocurrency, blockchain, and decentralized apps. And they’re leaving in large numbers. When you add it all up, you have a perfect storm for advertisers: the data pipeline is drying up, ad costs are rising, and ROI is declining.

Smart advertisers, on the other hand, aren’t afraid; they’re embracing this new Web3 environment, connecting with new consumers on their terms. They’re diversifying their ad expenditure and responding to the need for a user-first web.

The status quo: web 2.0

But before we discuss the potential of Web3, let’s examine Web 2.0. What exactly is web 2.0? It’s the internet as you’ve always known it. It’s Amazon, Facebook, Google, YouTube, and any other app or site where you may upload, publish, or log in. Apps that are useful yet are dominated by Big Tech and sucking your data.

To be honest, Big Tech isn’t exactly stealing. In today’s internet, users “voluntarily” give up their data (“voluntarily” in quotes because no one reads 10 pages of legalese before clicking “yes”). These platforms have billions of users and provide nearly limitless data on everything from what you search for, click on, like, and so on. To make money, digital corporations acquire your data, bundle it into targeted ad space, and profit massively.

Data collection—and abuse—is practically baked into how web 2.0 works. Apps require funds, which they obtain through monetizing your data. You are the product in web 2.0.

The changing digital advertising landscape.

However, this model is evolving. Fast. People are growing increasingly worried about data privacy and taking steps to safeguard it. They’re abandoning platforms like Facebook, becoming savvier with ad blockers and VPNs, and shifting to new models like Web3 (more on that in a moment). To assist consumers to protect their data, governments are passing privacy and antitrust regulations such as Europe’s GDPR and California’s CCPA.

This presents a challenge for advertisers: users want privacy, governments are regulating it, and Big Tech is dragging its feet. As individuals leave these tech platforms, ad inventory declines, ad prices rise, and ROI on ad expenditure falls to the right. However, Big Tech still has billions of users.

What to do?

Web3’s Potential:

Not to worry. Web3 is a new web model that provides genuine opportunities for consumers and advertising.

Web3 still offers sites and apps, the same as before. These sites and apps can be found instead of being controlled by Big Tech… everywhere. Web3’s infrastructure is dispersed globally, with no centralized authority. It is decentralized and supported by cutting-edge technology such as blockchain and bitcoin.

However, the “why” of Web3 is more important than the “how.” Web3 seeks to prioritize people over corporations. It is user-centric, democratized, and empowers people to govern their own data. There is still advertising on Web3, but it is based on trust and agreement. Web3 allows consumers to make their own decisions regarding tracking, cookies, and how their data is utilized.

Web3 users are astute. They use ad blockers and VPNs and do not watch network television. They are at the forefront of a shift that will soon influence the whole advertising business.

Advertising in the future of privacy.

Not all (or even most) users have converted to Web3. We live in a hybrid society—a “web 2.5” environment in which web 2.0 still reigns supreme.

However, relying entirely on tech behemoths for audience reach and ROI is becoming less practical by the day. Community-building, direct involvement, surveys, and zero-party data sources will be priorities for brands that survive. They’ll look for new ad platforms (ones that respect user privacy) to supplement their advertising budget.

Brave is one such platform. Brave is a web browser that prioritizes privacy, with over 60 million users worldwide. Among its numerous features is an ethical ad approach for reaching Web3’s privacy-conscious audiences. Brands can access tech-savvy consumers with Brave Private Ads, and users may earn a portion of ad revenue. These ad units are not intrusive and do not rely on user data to function. Most importantly, they are offered directly in the Brave privacy browser, a platform with a previously untapped audience. As a result, they have a significantly higher CTR (6% on average across all ad units, with certain units substantially higher).

As the transition to Web3 accelerates, brands will need to adapt in order to understand users’ privacy concerns and communicate with them on their terms. Successful brands will experiment with Web3 ads in addition to Web 2.0 ads. And they’ll be ahead of the competition.