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Wednesday May 4th, 2022

What is Web3 and How Does it Affect Digital Marketing?

We’ve turned the page to a new chapter of the internet. Web3 is changing the way people do business, how brands amplify awareness, and the means with which we interact with each other and the world around us.

When it comes to the World Wide Web, those in the tech sector typically assert that there have been three significant waves of technological advancement. In this post, Werkbot, a leading web development agency, talks about what Web3 is, how it’ll impact marketing, and how your business can make the most of it.

A Brief History of the Internet

Long before we had the technological capacity for the internet, scientists, programmers, and engineers were hard at work trying to unlock new features that would eventually connect the globe digitally. In the early 1900s, Nikola Tesla thought of creating a “world wireless system.” Others toyed with the idea of systems of searchable media, digital storage, and an “intergalactic network” of computers.

post web3 database

In October of 1969, the first two computers were connected with each other. Born out of a U.S. Department of Defense project to aid in secure communication, America had officially broken new technological ground.

Throughout the 1970s and ‘80s, tech experts came up with ways to connect multiple computers from various networks, eventually creating a “network of networks.” With one final push in 1990, Tim Berners-Lee invented the World Wide Web. As more people began to access websites, the internet became an accessible, user-friendly part of daily life.

Web 1.0

In the early days of the internet, people used it to publish static web pages and graphics. For the average web surfer, it was a place to share simple information, play a few pixelated games, and instant message friends and family.

Web 2.0

In the late 1990s and early 2000s, social media networks changed the world. From SixDegrees.com pioneering the way, to Myspace fostering a teen hipster Mecca, to Facebook making a Harvard University-specific “Hot or Not” list, Web 2.0 connected people in a revolutionary way.

What is Web3?

Web3 is a milestone in the evolution of the internet that emerged in the mid to late 2000s. Currently, we’re in the heart of it, and determining what’s possible moving forward. Web 3.0 was, and continues to be, fueled by artificial intelligence and algorithmically-based social media and search engine networks. It’s immersive, interactive, and personalized. Moreover, the “Semantic Web” that comes with it allows people and computers to work together by enhancing and individualizing every user’s experience.

Many people in the tech industry also refer to Web3 as the “decentralized web.” The reason is that Web 2.0 used HTTP protocol to access information on location-specific servers, while Web3 accesses information in various locations simultaneously, eliminating a “center” for data storage. There are a variety of benefits that arrive with the decentralized nature of Web3, including:

  • Better privacy rights
  • Data transparency
  • Fewer data breaches
  • Less manipulation of information
  • Less theft
  • More opportunities for virtual and augmented reality applications

A Quick Note on Blockchain

In the context of marketing, blockchain technology, which helps decentralize transaction records, will force marketing and advertising effectors to be customer-focused and transparent. It’ll allow users to better control their data and privacy and force companies to be more transparent. Brands should see blockchain technology as a means of fostering more trust with customers and clients.

What Does Web3 Mean for Businesses?

Through algorithms and semantic technology, every internet user browses, networks, and interacts in an online environment specifically individualized to them. Because of customized experience, advertisers and marketers can better target specific audiences.

But Web3 isn’t just about pushing out data-driven pay-per-click ads on social media and search engines. While those have their time and place, marketers can also deliver relevant content to audiences that want it.

Whether a person is looking for reviews on a new product, online communities to join, or news on current events, Web3 lets them do better, faster, and from anywhere by letting users take control of their data and preferences.

To make the most of Web3, businesses should develop content that their current and future customers enjoy. For hyper-progressive industries, this initiative might be investing in the metaverse and crafting immersive experiences. For others, it’ll require a more thorough investigation of what customers really want and where, when, and how they get it (e.g., accept cryptocurrency on your eCommerce store, have an omnichannel marketing experience).

With Natural Language Processing (NLP) technology, social media networks and search engines will be able to provide better, more accurate, and individualized solutions to internet users. Web3 is an opportunity for businesses to differentiate themselves from their competitors by crafting engaging, high-quality content and presenting it through a user-friendly, branded user experience.

How Web3 Can Improve Your Business

The way businesses interact with consumers will be forever changed with Web 3.0. Whether you start accepting cryptocurrency as a form of payment or use virtual reality to create an interactive online shopping experience, new technologies will open up new opportunities for you and your consumers.

Streamline Usability

Because blockchain technology allows users to own their data, businesses will no longer be responsible for housing usernames, passwords, and other profile information on their sites and servers. Instead, those surfing the web will have one username and password that grants them access to the entire blockchain ecosystem.

Build Consumer Trust

In traditional web platforms, businesses store customer data after a person makes a transaction or makes a conversion by some other action like subscribing to a newsletter or downloading gated content. With this approach, there is a much higher risk for data breaches. However, data that filters through the blockchain is automatically decentralized, meaning the business is not responsible for it, and users have complete control over their data profiles.

Allowing customers to own their data creates a culture of transparency that can be vital for success in the digital world. As businesses want to track more touchpoints from daily internet usage, consumers will better understand how organizations use their personal information.

Know Your Customers

Though decentralized data means no one owns any other person’s information, it also means everyone has access to public consumer information. With that in mind, companies can tap into specific audience profiles to determine how best to reach them, be it a targeted ad while someone is scrolling through their Instagram feed or an email coupon sent just before someone takes a lunch break. Essentially, Web3 will make it easier to connect with customers on a specific, recurring basis.

Stand Out in Web3

Changes in technology happen rapidly, and how we process new advances can either simplify or complicate our business endeavors. From cryptocurrency payments to investing in digital real estate, how we engage with customers is on the cusp of a massive transformation.

Successful businesses will need to ensure they are developing user-friendly, interactive websites that keep customers wanting more. And staying up-to-date with emerging technologies is crucial for long-term profitability. Contact Werkbot today to learn more about how we can help you stand out in Web3.