Web 3.0, an Opportunity for Brands to (Re)Build Trust (Published in Bombay Stock Exchange Broker’s Forum)

Arundhati seigell bombay stock exchange broker's forum

Will I own a virtual home in the future in a blockchain land and socialise through the metaverse shopping, movies, and sporting events? For digital world

enthusiasts like me, it is like living in Dr Strange’s world. But for many, the parallel virtual world is daunting and not fathomable.

The reality, however, is that the next version of the internet is already here. We already have a free blockchain technology- based privacy-focused web browser – BRAVE, all set to disrupt the advertising model of Web2.0. Read on to uncover the world of Web 3.0 as it evolves and overcomes the perils of privacy infringement and data fraud.

With the advent of blockchain technologies, many foresee a sea of opportunities opening with unimaginable collaborations with supermarkets, retail outlets, real estate, and entertainment, fueling growth in a crypto-rewarded advertising model, a win-win for consumers and brands alike. There is no turning back from the Crypto revolution, despite the sceptics. The global crypto adoption increased by a record 880% last year and the crypto industry has a market capitalisation of $2 trillion. The rise in venture capital investments in blockchain startups is a clear indicator of the fast adoption of the crypto economy.

Decentralisation, Transparency, and Autonomy are the three pillars of Web3.0. We will experience this reality as tokenisation penetrates deeper and faster into our daily lives.

Amidst the wrath of data privacy infringements that have robbed customers’ trust, blockchain technology, with its decentralised solutions, is a boon that will give users more power over their data.

The unalterable nature of the blockchain ledger that can verify the legitimacy of transactions without intermediaries between advertisers and users is truly an opportunity for users to exercise their choice on whether to divulge their data with brands and corporations. It is time to change the rules, and people will have the power to do it.

With the advent of blockchain technologies, many foresee a sea of opportunities opening with unimaginable collaborations with supermarkets, retail outlets, real estate, and entertainment, fueling growth in a crypto- rewarded advertising model, a win-win for consumers and brands alike.

Do humans even see ads in Web 2.0?

Wasting advertising dollars and being deceived by bot traffic, domain spoofing, and discrepancies are rising. In a recent discussion with leading marketers in the UAE, determining metrics and understanding which impressions or clicks are potential fraud or actual was one of the biggest obstacles to justifying growth strategies.

The unlawful collection of personal information to sell this user data to third parties to deliver more targeted advertisements is a practice that is damaging brand reputation. The tracking technologies are constantly chasing to retarget ads at your face, and consumers are searching for alternatives to escape.

According to a survey by Forrester, sixty-nine per cent of firms that spend over $1 million per month on advertising lose at least 20 per cent of their budgets to digital ad fraud. Studies and surveys estimate that click fraud is growing by 50% annually. Some advertisers argued that more than 30% of their impressions could have originated from fraudulent click bots. Major brands like P&G have cut their ad budgets because their media agencies have failed to give them the much-needed transparency.

Inflated numbers by manipulations like click frauds, fake impressions by bots and unknown resellers are siphoning money from brands and their marketing and technology partners and becoming the cause for increasing mistrust. User experience interrupted with abrupt ad pop-ups is causing more annoyance than interest in ads. Spam adds fuel to the fire. User’s choice is limited, privacy infringed, and trust broken. All this has made Ad-blocking a necessity costing business their Return on Investment with advertising.

Users can choose which brands they consent to share data with and whether they’re willing to part with their data or their attention in exchange for tokens. This opt-in value exchange can help advertisers build a long- lasting relationship with their customers and regain trust while ensuring regulatory compliance.

The exponential growth of the digital landscape has created multiple channels of inventory sourcing that have conveniently led to the compromise of privacy and misuse of people’s data.

Is authentic digital advertising possible?

Web 3.0, Metaverse and Blockchain may seem far-fetched for many, but it is a real paradigm shift that will shape the future of decentralised solutions that will bring value both to the public as users and to brands and businesses where every dollar spent can be accounted.

Data fraud, centralised control of platforms, and making a killing out of user-generated content is what ruled Web2.0. We now need disruptive technologies that do not rely on monetising user data. BRAVE browser is one such disruption that focuses on privacy, integrated decentralised applications DApps and decentralised finance DeFi with its crypto wallet built into the web browser. BAT is its token that allows advertisers to buy BATs to show ads on the browser. The value exchange for users for viewing ads is earning BATs, and they can choose to see ads related to the content they are browsing. The icing on the cake is that all user data is stored on the user’s device and not accessible to any third party. Many blockchain innovations are evolving, like the IPFS for storage, Experty for video calls, EOS as an operating system, Steemit for social networking, Status for messaging and more.

Web 3.0 will change the game with the advent of blockchain technology, enabling ad networks to eliminate fraud by removing the intermediaries and bots who click and interact with your ads. The digital advertising ecosystem will operate directly and automatically with smart contracts enforced through the blockchain between you and the brand.

How will the advertising dynamics of the world change?

A recent study from Market Reports Center found that the global blockchain market was worth $708 million in 2017 and is expected to rise to $60.7 billion by 2024. Research published by the Statista Research Department found that global spending on blockchain solutions accelerated from 4.5 billion to 6.6 billion in 2021. In the coming years, demand for security with digital identities and Web 3.0 will increase demand for blockchain.

Blockchain technology is in its infancy, but the advertising ecosystem comprised of the blockchain, the ad platform, and the application platform is evolving. Tokenised marketing is a new way of targeting and saving millions of dollars. Decentralised advertising exchanges will allow companies to advertise their products and services effectively and efficiently. Publishers will tokenise different kinds of advertisement slots on various resources providing full transparency and guarantees of payments for all participants.

We will soon see a revolution in advertising with tokenised rewards, whether cryptocurrency or non-fungible tokens, secured by the immutable blockchain ledger, decentralised security, and the absence of intermediaries. Users can choose which brands they consent to share data with and whether they’re willing to part with their data or their attention in exchange for tokens. This opt-in value exchange can help advertisers build a long-lasting relationship with their customers and regain trust while ensuring regulatory compliance. Tracking digital marketing campaigns may not be immediately apparent, but blockchain innovations in advertising are a reality.

‘Ferrari of Life’ is the title of a column Arundhati Seigell penned when she first moved to Dubai, reflecting her vivacious spirit and an insatiable appetite to explore. She is a passionate communicator, go-getter and budding entrepreneur. Her unconventional approach inspired her to co-author the book ‘Who Moved My Heels’ with amazing women from all spheres of life.

An award-winning women leader who has carved a niche in the communications industry. Arundhati is an accomplished marketing professional, best known for driving change by connecting business strategies to building trust and protecting reputation. Her expertise of 20+ years spans organisations including the United Nations, British Council, IT, Manufacturing and Corporate, in India and internationally. She has steered several successful strategies in revitalising brands and led numerous game-changing initiatives, which has had a tangible and positive impact on organisations and won them several awards.

She hopes to leave a mark to inspire women to be ambitious, bold, and never give up. She firmly believes that the world is an oyster of opportunities, and we must be brave to grab it. She is always ready to plunge into new ventures. She is a self- starter with a firm conviction that what goes around comes around.

She loves exploring marketing technologies, meeting people, exploring new places and creating strong bonds. Born and raised in India, she now lives in Dubai.

Source: https://brokersforumofindia.com/assets/pdf/NL%20Jul%202022.pdf

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