Targeted Ads and Their Evolution in the Wake of Web3’s Rise
There is no denying that the digital advertising and marketing industry has flourished in a big way since the mid-90s, so much so that the sector is projected to reach a cumulative valuation of $1.5 trillion by 2030, growing at a CAGR of 13.9% over the above said period. In fact, 2019 was the first time that digital ad spending surpassed traditional avenues such as television and print media, marking a seismic shift in how companies now engage with their core audiences.
Targeted ads and data mining: The good, bad, and the ugly!
One of the most important facets of this rising digitization has been the birth of targeted ads, which, as the name suggests, are marketing tools directed toward an audience exhibiting certain traits. Such a level of personalized advertising has been made possible thanks to data mining, wherein companies sieve through large databases — analyzing the relationships between parameters such as customer age, gender, tastes, etc. — to ascertain the behavior of their existing/potential clients.
In fact, empirical data suggests that companies that invest in data-driven marketing are 23 times more likely to acquire customers and 6 times more likely to retain them. That being said, as useful as data mining is, it is not without its share of flaws, especially in the context of the Web2 market, where huge centralized entities sometimes misuse client information (by selling/sharing it illegally).
Over the past decade, there have been several instances of this behavior. For example, earlier in 2023, Meta — the parent company behind Facebook, Instagram, etc. — was hit with a $1.3 billion fine for violating the European Union’s data privacy laws. Around the same time, online therapy company BetterHelp was slapped with a $7.8 million fine for sharing its clients’ data with third parties.
Revolutionizing advertising with Web3
With the growth of Web3 (a decentralized iteration of the World Wide Web) recently, digital advertising has ascended to unforeseen levels of transparency and user control. This is because Web3 systems are built atop the blockchain, and therefore, client data is not stored on a centralized server, much like how it is with companies like Google, Meta, Amazon, and so on.
Not only that, Web3 has helped foster a novel advertising ecosystem, one that has allowed it to seep into a broader, more diverse set of industries, such as gaming, healthcare, etc. This has given rise to “intelligent ads” that are not only interactive and dynamic but capable of serving multiple purposes. In this regard, projects like Reneverse are working to bridge the gap between Web2 and Web3 advertising using a novel borderless framework.
Touted as a blockchain gaming ecosystem, it would be unfair to refer to ReneVerse as just that since it is more of a platform enabling players, developers, and businesses to interact with one another. One of the project’s most unique offerings is it’s ‘Borderless Ads’ feature. The module allows ads to be converted into digital assets and subsequently utilized across ReneVerse’s entire suite of games and applications.
As an example, imagine a scenario where an ad for a new energy drink not only appears in one game but can also be used as a power-up in another game. This is what Reneverse makes possible. In fact, such a unique proposition holds the power to unlock several new monetary avenues for advertisers and gamers alike in the near future.
Lastly, the non-local architecture utilized by ReneVerse offers an unrivaled level of transparency, thereby making today’s data mining processes — particularly those aimed at targeted advertising — more ethical and transparent. Not only that, using this framework, other businesses, too, can make data-informed decisions without compromising consuser privacy, thereby increasing the effectiveness and ROI of their campaigns.
Looking forward to a transparent, ethically driven future
As the idea of transferable in-app assets becomes more popular within the digital mainstream, it is reasonable to assume that the marketing industry now stands at a precipice, one that can transform it irrevocably.
And, with projects like ReneVerse pushing the boundaries of what advertising in the modern world can achieve, it will be interesting to see how the blockchain gaming paradigm continues to intersect with the world of digital marketing. This crossover is especially pertinent to consider because the Web3 gaming market is primed to reach a valuation of $133 billion within the coming decade. Therefore, it will be interesting to see how things play out for both industries in the coming few years.
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