As we continue to progress into the digital age, a new era of the internet is emerging: web3.
Much of what is (and can be) is up in the air but one question we can try to answer now is what it means for marketers.
Let’s break down what web3 is, when it will launch, and how it could impact marketers in the short and long-term.
What is Web3?
Web three, or the third-generation of the internet, is a vision of a more decentralized web that places the power in the hands of users instead of large tech companies like Google, Amazon, and Netflix. It’s built on blockchains using existing infrastructure with the goal to make the internet more accessible, private, and secure for users.
When will Web3 launch?
The short answer: We don’t know. There have been talks surrounding web3 for years now, but it’s still very much in its infancy.
A lot of the infrastructure needed to make it a reality is still being built and there’s no set timeline for when it will be completed.
So why the sudden buzz? Well, cryptocurrency is booming right now. In fact, venture capitalists invested over $27 billion in crypto-related projects in 2021, according to an article by The New York Times.
So, this idea of an internet built around it has everyone talking.
The impact of Web3 on marketing
1. Limited access to user data
In the short term, web3 could mean more data privacy for users.
Currently, companies make money based on the data they collect from users. Either by using it to feed their marketing strategies or by selling it to third parties.
Proponents of web3 believe that a consumer should play a more active role in how their data is used and who they share it with, given the immense value it holds.
Would it make it harder for marketers to collect consumer data? Possibly. It would force marketers to be more transparent with data collection and usage while finding new creative ways to reach their target audience.
2. A community-oriented approach
Web3 is all about redistributing power to the average consumer.
The idea is that consumers will decide and promote the ideas they’re most interested in, instead of being in the passenger seat. With this shift, marketers will have to lean more on building a strong community.
As distrust of brands and how they use data grows, community is more important than ever.
3. A greater reliance on content creators
Currently, many content creators feel at the mercy of the platforms they publish on with strict guidelines on what they can post to limited earning potential. Web3 would arm them with full autonomy.
In a CMS Wire article, Charlie Neer at MIQ, a leading programmatic media partner, explained this shift.
“Currently, when an individual downloads a song, the creator gets a fraction of the total revenue and the host (think Spotify or Apple Music) makes out like a bandit,” said the chief revenue officer. “The same goes for creators on YouTube, Twitch, etc. This is going to rapidly change with the Web3.0 revenue model, and the content creators will be the ones in control.”
Of course, we’re still a long way off from web3 becoming a reality. However, it’s something that marketers need to be aware of and keep an eye on.