One of the many plus points of the internet age is the ability to market products and services online by effectively targeting a demographic of users. In other words, the rise of the internet has made it easier than ever for brands and consumers to interact effectively, and with fewer barriers.
However, while this showcases the effectiveness of digital marketing, it sometimes comes at a great disadvantage to individuals whose privacy online is abruptly interrupted.
Undoubtedly, we have witnessed a significant improvement within the internet space in recent times, and with the previous, web 2.0 iteration, marketing possibilities became limitless especially as it employs various target market techniques.
Going by capabilities, Web 2.0 happens to be an ideal internet iteration for digital marketing as it goes the extra length to ensure that a product or service is marketed to the right of audience.
In the same vein, the web 2.0 iteration is also known for its reckless way of violating user privacy policies, although, there has been a significant improvement with permission marketing which is sometimes not enough.
On the other hand, web 3.0, which doubles as the most recent iteration of the internet has an entirely opposite practice. Notably, the web 3.0 internet iteration is built on blockchain and, as such, it is open, decentralised and more secure than any of the previous web iterations.
While Web 3.0 guarantees user data security and privacy online without the involvement of any intermediaries, it is capable of downplaying the role of digital marketing.
That said, what are the implications of Web 3.0’s privacy-first model on native digital marketing?
Digital marketing in web 2.0 vs. web 3.0
For digital marketing to effectively work and yield great results, it requires a lot of data, especially those that belong to a targeted user. In the web 2.0 internet iteration, there are a lot of ways by which data is randomly collected from users.
The most prominent way by which user data is collected in web 2.0 is through the use of cookies. In this context, we are not referring to your regular Digestive or Royal favourites cookies. Instead, we are referring to HTTP cookies which are small blocks of data created by a web server while a user is browsing a website and can be accessed by a website.
Cookies collect random information on your web browser and make it accessible to the website on which you are browsing. Information that is collected could range from users’ biodata, as well as browsing activities that give them insight into your most searched product or services, contents, and so on.
This data, when collected, can be shared with SEO companies, social media networks, and even the host search engines themselves can make use of it for advertisement purposes.
For instance, Facebook can promote a brand product, and specifically target a potential user who had previously searched about a product – hence, the phrase ‘targeted advertising’.
While the unconsented collection of user data is greatly frowned upon by various regulatory bodies across the world, most websites have been conditioned to permission marketing which requires a website to seek consent from a user before collecting data.
It is for this reason that you tend to come across the phrase “Accept Cookies” when you are browsing on different websites. Except you are less bothered about your data being shared to several other platforms, do not respond by pressing ‘Yes’.
In contrast, the Web 3.0 internet iteration eliminates this choice, and give users the ultimate control over how they want their data to be shared or used by third-party platforms.
How does Web 3.0 disrupt existing digital marketing protocol?
It is important to note that, web 3.0, unlike the previous web iteration, is pioneering an open world where creators and users have more control over things they create and share online.
The implication is, however, that users are very much in charge, and have ultimate control on how their data is distributed online, or in terms of privacy, what content they want to be fed.
While web 3.0 is largely a concept-in-motion, a lot of structures are yet to be put in place and, as such, it is quite unclear how the emerging web iteration will disrupt digital marketing.
Regardless, one thing is certain – the latest web iteration makes the process of data collection extremely challenging for any Web 3.0 initiative. In the same manner, third-party platforms may not find it as easy as it was in Web 2.0 to access data that will aid targeted digital marketing.
What will digital marketing in Web 3.0 look like?
Because Web 3.0 is far more interactive and immersive than its predecessor, it opens up a whole new experience to how content is created and consumed. In the same vein, digital marketing will take a new form.
Notably, Web 3.0’s decentralised blockchain protocol puts every internet user in a safe environment where they can own and be properly compensated for their time and data.
That said, Web 3.0 digital marketing will take a personalised approach, considering that marketers will be connected directly to the customers without any intermediaries. On the other hand, customers would be in control of what and what not to accept.
That said, marketers may need to offer more than just content to onboard new customers. In addition to content marketers may be conditioned to offer incentives as well as quality content.
What this means is that creators will act in the capacity of digital marketers, and may require a native “creator’s token” to reward loyal customers. Ultimately, digital marketing in web 3.0 is incentive-driven and, as such, creates a mutually beneficial ecosystem for creators and consumers alike.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.