Ad Networks in web3 promise a more transparent, equitable, and efficient way of running ads on the internet. How?
Here are the advantages web3 ads have:
1. No more intermediaries.
Blockchain technology acts as the trust layer, connecting advertisers directly with publishers and users.
Advertisers can have increased confidence in the validity of the ads' impressions, and publishers get fair compensation for their content without excessive fees imposed by intermediaries.
2. These networks can leverage smart contracts.
Self-executing contracts with the terms of the agreement written into code — to automate the process of ad placement, ensuring that the ads are served to the right audience at the right time.
3. User privacy and data sovereignty will be back to users.
In Web3 Ad Networks, users have control over their personal data, allowing them to choose whether to share their data in exchange for personalized ads or keep their browsing activity private.
Decentralized advertising marks a radical departure from the traditional pay-per-click or pay-per-view models.
The guiding principles of this new approach are fundamentally different and revolve around the unique features of the Web3 ecosystem.
Here are the key things to understand:
1. One key characteristic of decentralized advertising is that it operates on networks free from fake accounts.
This ensures that the advertising impact and revenue distribution are not diluted by bots but are concentrated among validated users who genuinely support the network.
2. Interestingly, decentralized advertising doesn't pay users directly for viewing or clicking on ads.
Instead, it builds an "attention economy" where the compensation model is tied to the network's coin inflation.
This coin inflation is distributed among only real, validated users who contribute to the network's maintenance and growth.
3. When advertisers wish to promote their ads, they use a coin burning mechanism.
Users then see only those ads for which the most coins have been burned.
This model fosters competition among advertisers, where the more coins they burn, the more their ads are likely to be seen.
4. As users view and interact with these ads, advertisers are incentivized to burn more coins to keep their ads visible.
This process leads to a shortage of coins, stimulating demand in the market where users can freely sell these coins.
This unique approach ensures that, even though users don't receive direct rewards for ad interactions, it's still beneficial for them not to block ads and even to actively engage with those that are genuinely useful to them.
At the cutting-edge of Web3 ad innovation, Metronomo is creating a cross-chain Programmatic Ad Network. They employ AI algorithms for on-chain user behavior targeting, launch Web3-native Ad Units, and assure transparent attribution.
Slise is creating a new paradigm in the Web3 ad sector, with its innovative use of blockchain technology to deliver personalized ads to crypto-natives. Their publishers include dApps across DeFi, NFT, and Web3 gaming sectors, while advertisers can enjoy transparent data analytics.
Redefining the Web3 space, Mad Finance's MadFi is a decentralized ad protocol offering transparency and fairness. It provides publishers with an SDK for new revenue channels and creators on Lens can issue free NFTs and earn fair ad revenue.
Leading the way in Web3 Affiliate Marketing, AmpliFi acts as a "clickbank" for NFTs, Web3 projects, and DeFi. It bridges businesses and marketers, integrating affiliate marketing with innovative Web3 concepts.