Marketing and advertising play a crucial role in the financial operations of companies, with billions of dollars allocated to these activities annually. On average, businesses dedicate 12% of their total revenue each year to create content, run PPC ads, and promote their products and services worldwide. We are constantly exposed to the results of these investments, from traditional print media to digital advertisements.
While Web2, the current iteration of the internet, is saturated with advertisements, the same cannot be said for Web3. Although Web3 has a significant number of users, it has a limited number of active ads compared to Web2. In fact, many platforms in the Web3 space do not accept ads at all. However, given the increasing popularity of Web3, it is only a matter of time before marketing and advertising become prevalent in this realm.
In this article, we will explore the world of Web3 advertising and how it is gaining traction in unexpected ways. We will also delve into the advertising strategies employed by leading companies like Banksters, showcasing their rigorous due diligence and vetting processes for Web3 ads.
Common Advertising Channels in Web2
Web2 is dominated by tech companies that heavily rely on advertising revenue. Giants like Facebook, Apple, and Google generate substantial profits from ads, with Facebook alone making over $114 billion from ads annually. These companies distribute ads across platforms such as Instagram and Facebook, reaching billions of users.
Some common advertising channels seen in Web2 include billboards, influencer and collaboration markets, and online advertisements. However, Web3 has relatively few ads in comparison, as advertising struggles to establish a strong presence in this domain. So, what is preventing Web3 from being inundated with typical Web2-style advertisements?
Trust as the Foundation of Web3 Ads
One of the reasons why advertising in the Web3 industry remains underdeveloped is that it leads to higher customer satisfaction. Without ads constantly bombarding users, they can focus on the specific products or services they are interested in, without distractions.
However, the lack of advertising in Web3 is not due to a lack of access. In fact, in-game play-to-earn billboards, empowered Web3 influencers, and PPC ads that reward users would thrive in this space. The main reason for the scarcity of ads is the decentralized nature of Web3, which fosters a higher level of trust between audiences and platforms.
Community lies at the core of the Web3 experience. As users participate in Web3 projects, they gain ownership opportunities and have a say in shaping the evolution of these projects through decentralized autonomous organizations (DAOs). This high level of community engagement sets Web3 brands apart from Web2 tech giants, as they prioritize their users. Advertisements in Web3 are rare because developers must carefully vet the companies they promote. If they endorse a project or platform that exploits their customers, they also suffer the consequences of their lack of due diligence.
This meticulous approach to advertising in Web3 has several benefits:
1. Fewer Ads: Users can navigate Web3 platforms without being overwhelmed by pop-ups, billboard ads, and deceptive advertisements.
2. Higher Quality Ads: Unlike Web2, where anyone can create a Facebook Business account and launch an ad for almost anything, Web3 spends more time vetting each advertisement to ensure they are of high quality for consumers.
3. Safer Online Ecosystem: With a lack of deceitful or misleading ads, consumers in Web3 can confidently discover new products, services, and systems.
Banksters serves as an excellent example of a Web3 company that fully embraces advertisements while maintaining a rigorous vetting process. They provide recommendations and suggestions to their users, thoroughly assessing each advertisement and connected company for validity. This fosters an ecosystem where reputable projects recommend other effective and commendable projects, creating a healthier overall environment. Although Web3 advertising may differ from its Web2 counterpart, it promises a safer, more secure, and higher-quality advertising experience for users.
Final Thoughts
Web3 distinguishes itself from Web2 through its foundation of trust, certainty, and community. Web2 is now heavily reliant on advertising, with annual sector spending exceeding $73 billion. While Web3 has the potential to expand into the advertising market, it will remain aligned with its core principles.
With brands like Banksters leading the way, we are already witnessing a different approach to Web3 advertising and marketing. If other companies in this space continue to adhere to the fundamental principles of blockchain and follow Banksters’ example, we can expect a much healthier online space for consumers in this new era of the internet.
