Impact of Web3 on Advertising and Media Industry

Web3 has the potential to dramatically transform the Adtech industry, which is in a constant mode of evolution to adopt new advertising technologies and techniques.

The Adtech industry has continued to transform, corresponding to technological evolution. From print to digital ads, the medium of advertising has changed significantly over the years.

Given that the Adtech space is constantly evolving, advertisers must keep abreast of the latest technologies shaping the tech horizon.

With advertisers innovating new and improved ways to promote their brand and offerings, brands also look for ways to upgrade their branding approach and shift to an unconventional ecosystem. Likewise, ad tech bodies are interested in learning about Web3 Adtech and taking advantage of this concept. In this regard, let's decode Web3 and understand how it drives value to the advertising industry.

What is Web3?

As Web3 is an emerging concept, it currently lacks a precise definition. That said, the core concept of Web3 represents the third iteration of the internet- a decentralized web. Along with decentralization, Web3 strives to transform the way identity and ownership work in the existing centralized web ecosystem. Essentially, the term "Web3" is the result of natural progression in the web; Web1, Web2 and Web3. Let's understand these different phases of the internet.

Web1- Read-only web

Web2- The social web

Web3- The decentralized web

impact-of-web3-on-advertising-and-media

What is Adtech?

Adtech is the abbreviation for advertising technology, an overarching term describing the tools, technologies, and software advertisers use to create maximum impact on their targeted audience.

The Adtech industry is growing fast. In 2018, the global Adtech software market was valued at USD 16.27 Billion and the same is expected to reach USD 29.85 by the end of 2026 (according to the statistics of verified market research). As the number of brands and advertisers increases rapidly, buying and selling ads becomes a complex process. To address this challenge, Adtech companies offers a range of tools and technologies, streamlining the advertising process on both the publishers’ and advertisers' end.

impact-of-web3-on-advertising-and-media

These Adtech companies have started to offer their services apart from solutions. Standard services of the best adtech company include developing adtech tools such as demand-side platform (DSP), supply-side platform (SSP), and technologies like ad servers and ad networks. These tools enable advertisers and publishers to reach their milestone of buying and selling impressions via a highly profitable deal.

How are Web3 and Adtech related?

Like other industries, Adtech is a growing and consistently evolving industry. Adtech companies must keep pace with emerging advertising trends & technologies to upgrade their ecosystem in a more timely fashion. The current version of the internet, the centralized web or Web2, is slowly hopping on the bandwagon of decentralization or Web3.

Eventually, the advertisers and brands will start showing interest in promoting ads across the decentralized Web3 environment. From social media platforms to chatting apps and wallets, decentralized platforms will revolutionize the core concept of Adtech.

Therefore, Adtech companies must prepare themselves to welcome the Web3 revolution wholeheartedly. They should comprehend the concept of advertising in web3, brainstorm ideas to build Web3-powered Adtech solutions, software, and tools. Also, Adtech companies must understand how ads will display on a Web3 ecosystem, who will own the ad content and how they can earn revenue without acting as middlemen between the advertisers and publishers. That's the only means Adtech can guarantee companies' sustainability.

The evolution of digital advertising

When the internet was officially introduced on January 1, 1983, people considered it a simple technology to exchange information via emails and text-based messages. However, many brands and advertisers perceive the internet as a tremendous opportunity to grow their business through effective advertising.

The banner era

The banner era was when display ads in digital banners started to gain traction across advertisers, encouraging them to produce creative and highly engaging banner ads to attract targeted audience demographics. The duration from 1994 to 1996 is considered the banner era.

The channel era

Between 1999 and 2000, the channel era showed a considerable rise and fall in online advertising. While Google's advent in 1998 revolutionized the digital advertising ecosystem, tools like "Adblocker" created a bundle of challenges for advertisers and publishers alike. However, mobile and web advertising both peaked during the channel era.

The social era (2005-2008)

The social era (from 2005 to 2008) aggregates overwhelming popularity due to the launch of the three most prominent social networking giants- YouTube, Facebook, and Twitter. These platforms revolutionized the Adtech industry by allowing brands and advertisers to publish highly engaging content in ads that are easy to engage, understand, display, and share.

The native era (2009-2011)

Since 2009, online advertising has had a solid grip over brands. With that, advertisers started to seek conspicuous ways for effective advertising and brand promotion. That's where native ads gained momentum. The ad format helped advertisers to showcase their ads in a more genuine manner that could sync up with the feed and make a higher impact on the viewers.

The revolutionary/modern era (2012-present)

The beginning of 2004 brought a revolution in the Adtech world. Companies started to realize the importance of different online advertising patterns, such as native, email, push, and more. Now, we are entering the next era of advertising- "Web3 and metaverse".

Metaverse and NFT games are currently driving high traffic to the brands. Also, brands are targeting metaverse-based platforms to display their ads and boost their brand reputation.

How will Web3 change the advertising and media industry?

Web3 entails the development of metaverse platforms, blockchain-powered dApps, crypto games and decentralized solutions, addressing the challenges in the centralized or Web2 ecosystem.

Regarding the impact of Web3 on the ad tech industry, Web3's idea of decentralization will discover new trends in advertising technology, encouraging brands to shift to decentralized ecosystems and show their ads to the masses. Corresponding to such changes, brands, in the coming years, will start pushing ads on dApps like Pancake and OpenSea rather than centralized apps.

However, the concept of Web3 is in its infancy. Right now, even the top brands trust the centralized web and the tech giants regulating the ecosystem, such as Google, Facebook, and Youtube. Once the decentralized web dominates the centralized web, these platforms will possibly decentralize their infrastructure and hop on the future. Hence, brands will rely on decentralized ad networks, ad exchanges, and ads.

How can advertisers and brands leverage Web3?

Digital media and advertising brands first need to thoroughly understand the concept of web3 if they want to leverage its benefits and elements such as blockchain, metaverse, augmented reality, and virtual reality.

Web3, for advertisers (or brands), refers to a "new internet" powered by blockchain technology for decentralization. The difference between centralized and decentralized web is that decentralized web allows the content creators (or the advertisers) to claim ownership of the ads. Whereas, in centralized web infrastructure, third-party authorities hold the content's ownership on behalf of the advertisers or the brands.

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Furthermore, GreedyGame's team researches new advertising trends, tools and technologies to build futuristic Adtech solutions. Whether centralized, decentralized, Web3-focused, or Web2-focused, the company is open to assisting diverse app owners seeking to grow their apps and leverage monetization.

Conclusion

Web3 is not a mature concept yet as much progress is ongoing on its horizon. While it has the potential to revamp the media and Adtech companies, advertising experts have barely scratched the surface of Web3 as of now. In the coming years, Web3 will become a more mainstream and globally accepted concept and it will replace the idea of centralized entities and intermediaries.

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info@greedygame.com

India Office

GreedyGame Media Private Limited,
4th Floor, No.04, Zed Pentagon,
Hosur Main Road, Bommanahalli,
Bengaluru 560068 Karnataka

USA Office

GreedyGame Inc.
2093 Philadelphia Pike,
#2346, Claymont,
State of Delaware 19703