Learn: Web3 And The Future Of Digital Advertising
At their core, NFTs represent a new type of digital ownership. These digital assets are stored on a blockchain—a decentralized, distributed ledger that provides a secure, transparent way to store and transfer assets. When created and stored safely, NFTs can put power back in the hands of the people.
While stringent regulation in the traditional sense may be antithetical to the ethos of blockchain, there are measures users can take. For instance, use reputable platforms to ensure tokens are created properly and securely and digital assets are owned by the creator or properly licensed. Creators and consumers can also take measures to protect their NFT codes with open-source licenses, encryption or copyright registration.
Web 2.0 relied on user data for advertising and monetization, but Web3 does still have commercial potential. Advertising on Web3 requires an understanding of decentralized technologies but also offers businesses a new way to reach audiences. This could help increase data privacy and reduce many of the advertising fees and dominance associated with traditional, centralized advertising platforms. In their place, blockchain technology and decentralized apps may help create a more transparent, secure online environment for consumers and businesses. Here are a few of the potential outcomes.
• More targeted advertising: Decentralized technology could help businesses target specific audiences more accurately. For example, blockchain-based advertising platforms can deploy smart contracts to ensure ads are displayed to users who meet certain criteria (e.g., age, interests, location or purchasing history).
• Increased trust: Instead of relying on centralized servers and companies to store and access user data, decentralized platforms can leverage blockchain technology to store data more securely, giving users more control over their data—and a stronger sense of trust.
• Better ROI: Decentralized technology may enable better ad targeting by leveraging user data to get a true read on ad placements, clicks and other metrics. It also eliminates specific intermediaries found in the traditional ad world, reducing transaction fees and lowering ad costs in the process.
Web3 technology, including blockchain, has the potential to create a more open, democratized advertising ecosystem. By reducing the dependency issues advertisers have on big tech, businesses and consumers alike could have greater control over their data and identity. As this new environment continues to grow, it’s reasonable to expect cutting-edge campaigns and technology along the way.
This article was extracted from Forbes, written by Ben Zimmerman
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