Web3 Protocols Challenge Centralized Digital Advertising

Blockchain protocols and Web3 aggregators like Layer3, Intract, and Playa3ull Games are disrupting the centralized digital advertising industry. Traditionally, platforms like Facebook, Google, and Instagram have dominated, generating over $1 trillion in expected revenue by 2025. However, their advertising methods often lack user engagement and relevance, leaving people frustrated with spam-like promotions.

Web3 protocols aim to create a fairer system by focusing on user rewards and ownership of data. Instead of bombarding users with ads, they incentivize engagement with tokenized rewards and personalized experiences.

Key Problems in Traditional Advertising

1. High Costs for Developers: Companies must pay significant sums to reach their audience. Without payment, access is limited.
2. Spam-like Ads: Many advertisements fail to match user interests, leading to wasted efforts for both advertisers and viewers.
3. Lack of Value for Users: Traditional platforms offer minimal benefits, even though users spend significant time and energy.

How Web3 Protocols Are Solving These Issues

Tokenized Rewards and Data Ownership

Web3 protocols focus on delivering value to users. For example, Layer3 co-founder Brandon Kumar explains that traditional ads don’t reward users adequately for their time. Web3 platforms address this by:

• Offering rewards through tokens.
• Using user data for targeted incentives.
• Helping users discover valuable apps and products.

Kumar emphasizes targeting users likely to contribute positively to the ecosystem, which helps prevent wasteful spending on uninterested participants.

Improved User Targeting

Instead of relying on ineffective airdrops, platforms like Intract use targeted incentive distribution. This involves analyzing:

• Onchain Data: Tracks user activity and transactions to find engaged participants.
• Offchain Social Data: Assesses reputation to identify high-quality users.

Intract also offers tools like “proof of humanity” to reduce bot activity. Verification methods vary from simple Google account linking to stricter standards like verified crypto exchange accounts.

Video Games as a New Advertising Platform

Video games may emerge as a powerful alternative to traditional advertising. Jonathan Bozanquet, co-founder of Playa3ull Games, envisions video games disrupting the ad industry by bypassing social media and search engines.

Key Features of Playa3ull’s Approach:

• Unified Token Economy: The 3ULL token is used across 30 upcoming Web3 games, increasing its utility.
• Future Advertising Plans: The project plans to attract advertisers by late 2025, reinvesting revenue to grow its user base.

Bozanquet sees video games as a way to deliver engaging, non-intrusive advertisements, creating a win-win for players and advertisers.

Comparison: Traditional Ads vs. Web3 Protocols

The Future of Digital Advertising

Web3 protocols are pushing for change in a monopolized industry. By offering users ownership, rewards, and relevance, they aim to create an ecosystem that benefits all stakeholders. Video games, tokenized incentives, and targeted engagement may redefine how products are marketed, challenging the dominance of traditional platforms.