Blockchain Protocols vs. Digital Advertising Monopolies
Date: 2024-11-29 Author: Henry Casey Categories: BLOCKCHAIN
Digital advertising has long been controlled by tech giants like Facebook, Google, Instagram, and TikTok. Companies that want to promote their products have had to pay these platforms to reach their audiences. According to Axios, the traditional advertising market could exceed $1 trillion by 2025. However, users often complain about irrelevance of ads and consider them spam.
Blockchain protocols offer an alternative based on tokenized rewards and a data ownership model. They allow for more accurate product selection for users and eliminate annoying ad interruptions.
Brandon Kumar, co-founder of Layer3, believes that traditional advertising provides little or no value to users. “If I’m shown ads on Facebook, the most I get is personalized ads, but it’s not worth the effort and time I put in,” he said.
Many Web3 users prefer apps like play-to-earn games that provide more value for their participation. However, finding such apps can be difficult. Previously, users relied on Twitter (now X), but this did not always provide reliable results.
Traditional approaches like airdrops and “liquidity mining” often resulted in token prices falling. Layer3 offers a solution by distributing rewards only to users who are likely to add value to the ecosystem.
Kumar explained that their platform takes into account on-chain user data, such as wallet volumes and on-chain behavior. This allows them to specifically attract users who have the potential for long-term engagement.
In addition to financial benefits, Layer3 offers educational content for cryptocurrency newbies.
Apurv Kaushal, co-founder of Intract, also noted that Web3 could disrupt traditional advertising schemes. He stressed that airdrops, while attractive, are not always effective. “Many companies have realized that airdrops do not provide quality users,” he said.
Intract uses a “targeted reward distribution” approach that takes into account both on-chain and off-chain data, as well as user reputation. One of the methods is a “proof of humanity” feature that filters out bots.
Jonathan Bosanca, co-founder of Playa3ull Games, believes that video games will be an important tool in the fight against traditional advertising. He recalls trying to convince Sony and Atari to implement advertising in games.
“Why in games where the character gets shoes for high jumps, is it not Nike? Or an energy drink not Red Bull?” Bosanca wondered.
Playa3ull is working on creating 30 Web3 games that use the 3ULL token. It is planned that as the audience grows, so will its utility. In 2025, the company will begin actively attracting advertisers, which will allow for additional funding for the development of games.
Blockchain protocols such as Layer3, Intract and Playa3ull show that the future of advertising can be transparent, targeted and beneficial for both companies and users.
