Web3 and Advertising: Fit & Friction

Web3 and Advertising: Fit & Friction

Web3 and Advertising: Why the Fit Is Awkward

1. Premises of the Web2 Ad Model

  • Centralized user data: Platforms like Google and Meta aggregate user behavior and optimize ad delivery with algorithms.
  • “Free service” in exchange for data: Users effectively provide their personal data to use services at no monetary cost.
  • Revenue comes from advertisers: Ad spend ultimately flows to the service providers.

2. The Web3 Ethos

  • Decentralization & ownership: Users directly control their data and assets via wallets.
  • Transparency: On‑chain transactions and histories are public, making black‑box targeting harder.
  • Direct value transfer: Tokens and NFTs enable direct rewards to users and creators.

3. Why the Mismatch

  1. Targeting is harder: Without centralized personal data, ultra‑precise Web2‑style ad targeting is difficult.
  2. User mindset: Many Web3 users resist data capture and prefer direct rewards, so ad viewing faces more friction.
  3. Different revenue logic: Instead of relying on advertisers, communities favor direct payments, tipping, and governance‑driven funding.

4. Where Ad‑like Elements May Survive

  • Rewarded ads: Opt‑in viewing in exchange for tokens (e.g., Brave’s BAT model).
  • On‑chain sponsorships: DAOs or NFT projects acting as sponsors.
  • Brand collaborations: Sponsored billboards or avatar items inside metaverse spaces.

In short, Web2 ads as data‑extraction clash with Web3. But consent‑based, value‑sharing ad models can still work.

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