The lion’s trail: Lessons from Brave for the upcoming Web3 marketing generation.
Storytellers, Communicators, Marketers…
The digital landscape is on the cusp of a major transformation, and this shift is set to have a profound impact on marketing strategies and the role of Chief Marketing Officers.
With the advent of blockchain technology, companies now have the capability to bypass intermediaries, leading to significant cost reductions. However, the most exciting potential lies in strategic applications. This technology isn’t just about saving money; it’s about rethinking how we approach marketing at its core, offering everyday marketers new tools and opportunities to innovate and succeed.
In the late 1990s, the rise of Web2 significantly transformed marketing, with businesses rapidly embracing the internet for advertising and growth, leading to the speculative and investment-heavy Dotcom boom.
However, this era came to an abrupt end when the Dotcom bubble burst in the United States, quickly splashing all over the globe and causing a major reassessment of digital business and marketing strategies.
The aftermath saw a shift towards more sustainable, measurable online marketing approaches. As we now transition into the Web3 era, characterised by decentralised, blockchain-based technologies, marketing is poised for another evolution, promising enhanced data security, transparency, and consumer empowerment, and completely revolutionising business-consumer interactions as we now know them.
In the crowded advertising space that are, among others the busy Meta, X and Google-owned avenues, intrusive & heavy marketing techniques have become commonplace for the past 30 years.
Digital identities have become commoditised, users’ time and space are continuously invaded.
In the Web2 paradigm, most browsers and online platforms have typically relied heavily on tracking user data and behaviour to serve targeted ads. This model has often raised privacy concerns and typically led to user dissatisfaction.
In 2018, Uber faced FTC action for failing to secure sensitive data, leading to a massive breach. Similarly, Lenovo and Vizio were penalised for unauthorised data collection and sharing, with Lenovo installing invasive software on computers and Vizio collecting data from smart TVs without user consent.
In 2020, the ongoing 10 year feud between Apple and Facebook sparked unprecedented heightened tensions. It became quite evident that digital identities are what most centralised data companies easily capitalise on.
“On Wednesday, in response to Facebook’s public challenge, Apple said it was standing up for its users, who “should know when their data is being collected and shared across other apps and websites.” The company added that Facebook did not need to stop tracking users or creating targeted advertising, but that “it simply requires they give users a choice.”
Big data mogul wars aside, blockchain technology has made its way and has been adopted as a solution in many industries, among them the marketing space.
Jeremy Epstein is influencing the future of work by enabling organisations to assess performance through the achievement of specific objectives and key results (OKR method). As an expert in blockchain and marketing, he explained Brave’s pioneering approach to the Blockchain Research institute, stating that we are headed towards a pay-for-attention model with blockchain based identity systems.
‘Crypto accelerates the trend that social media started, which is not about the brand having power over customers. It’s about communities having power over brands.’ J.E
Hear lion’s roar. Brave’s silent rise.
As a trailblazer in the space, Brave dipped his paws in the Web3 waters, and experimented with Blockchain technology to captivate internet users — in a more rewarding way.
Brave introduced a novel concept utilising the Basic Attention Token, BAT.
BAT is a form of cryptocurrency that reimagines the relationship between users, advertisers, and content creators.
Delving deeper into the functionality of the BAT:
The Brave ecosystem, to provide its users with high-quality, monetisable advertisements, collaborates with a network of verified advertisers. These advertisers allocate a specific sum in BAT to fund their advertising endeavors, aiming to reach internet users without invading their privacy.
When users watch an advertisement from these advertisers, a portion of the funds contributed by the advertisers is distributed to them. This strategy enables advertising firms to precisely monitor the effectiveness of their advertisement investments, ensuring they are not just gambling with their budgets.
A key component of this reciprocal system is the role of publishers or content creators. They, too, receive BAT tokens as a reward when users view ads on their sites.
Additionally, users have the option to show their support for their preferred content creators or publishers by tipping them in BAT, utilising ERC-20 tokens as a method of subscription.
In this sophisticated setup, the Brave Browser not only guards its users against deceitful and intrusive ads but also compensates them for engaging with content from its media partners.
Why it’s significant for CMOs and businesses?
1. User Privacy and Consent. Brave wants to prioritise user privacy by not tracking user behaviour. This approach aligns with growing consumer concerns about privacy and data usage.
2. Rewarding User Attention. Users are rewarded with BAT for their attention when they opt to view ads. This creates a more engaging and respectful model where users have a tangible incentive to view ads.
3. Supporting Content Creators. Users can directly tip content creators with BAT, creating a more direct and transparent revenue stream for creators, which is a significant shift from traditional ad revenue models.
4. Ad Relevance Without Privacy Invasion. Brave still allows for relevant advertising but does so without compromising user privacy. Advertisers can target ads based on browser-side intent signals, which are kept private from the advertisers.
5. Blockchain Technology. By using blockchain technology, Brave brings transparency and efficiency to ad transactions. This can reduce fraud and increase trust among all parties involved.
So, what could we possibly learn from Brave…
Consumer Privacy as a Priority. Businesses can build trust with their audience by respecting and protecting their privacy.
Innovative Revenue Models. Exploring new models like BAT shows that there are alternatives to traditional ad revenue that can be more appealing to users.
Leveraging Blockchain for Transparency. Using blockchain can enhance transparency and efficiency in marketing transactions.
Creating Value for Users. Offering tangible rewards for user engagement can be a more effective marketing strategy.
Where are we? and where do we go from here?
Web3 Marketing: A Comprehensive Guide for 2023, Ninjapromo
Marketers, CMOs, Communications professionals will all have to adapt to Web3 to assist businesses in the up and coming era.
Understanding and potentially integrating these principles into your strategies could be pivotal in the businesses you serve, to continue staying ahead in an increasingly privacy-conscious and blockchain-integrated market.
The direction is clear. Digital transformation of business strategy implies a rapid shift from a purely data-driven marketing to value-driven and user-centric approach. This is the new age of enlightened marketing.
The opportunity to survival and adaptability: In the way lions adapt to the savannah’s challenges, must tech businesses and advertisers alike not also adapt to the ever-changing tides of global market trends, politics and users?The Internet of value is at its wake — with its new set of challenges, but also unprecedented opportunities that will give rise to a new era of businesses.
The world is evolving, and so should we.
#Data #DigitalTransformation #Web3Marketing
