The Death of Traditional Online Marketing
How Web 3.0 and AI Are Taking Over
Understanding new technology can improve productivity, solve problems, and help you make better decisions. Technology constantly evolves, and keeping up with all the changes can be hard. I will break down some basics of the most cutting-edge technology trends and help you get started. You are already ahead of the game by reading this article! Some of the newest tech advancements to consider are Web 3.0. and artificial intelligence. This article is your digestible, high-level overview of some digital marketing applications these technologies are making possible.
Web 3.0 is the next evolution of the internet, known as the “decentralized web,” and will be based on public blockchains. I can explain blockchain technology in a way that’s easy to understand.
Imagine there are thousands of identical sticky notes that are owned by different people all over the world. Every time you make a transaction, you write it down on your sticky note, and everyone else writes that transaction down on their sticky note too. The sticky notes are all connected, so if someone tries to change or erase a transaction on their sticky note, it would be immediately obvious to everyone else because their note would not match.
A blockchain is a decentralized digital ledger. Each block works like a sticky note. Once a block is added to the chain, it can’t be altered or deleted without affecting the entire chain. Unlike Web 2.0, where data is mostly controlled by organizations such as Facebook and Google, Web 3.0 is designed to distribute power and control among its users.
Decentralized Applications (Apps): Web 3.0 enables the creation of decentralized applications that run on a blockchain network. Advertisers could use dApps to create more transparent and secure advertising systems where users can be compensated for sharing their data with advertisers. This would increase the accuracy of ad targeting and enable the creation of new advertising models, such as micro-payments and peer-to-peer advertising networks. Smaller advertisers could get more opportunities to reach their target audiences by utilizing this precision targeting.
Peer-to-Peer Advertising: Peer-to-peer advertising refers to a new digital advertising model allowing users to monetize their attention and data directly and securely. In this model, users can choose to participate in advertising campaigns that align with their interests and values. This represents a significant shift away from the advertising models of Web 2.0. Peer-to-peer advertising enables new forms of micropayments and token-based incentives, where users can earn cryptocurrency or other digital assets like NFTs for engaging with ads, sharing their data, or contributing to the advertising ecosystem.
MicroPayments: This type of advertising incentivizes viewing and interacting with ads using micropayments. These are made using cryptocurrencies, which allow for fast, low-cost transactions. This can lead to more meaningful interactions, as users are more likely to provide feedback or complete actions like signing up for a service or making a purchase if they are being compensated for their time. This can help to build trust with your brand. Users can determine their own online interactions and will not be subject to intrusive or irrelevant ads.
Smart Contracts: Smart contracts are self-executing contract programs that automatically enforce the terms of an agreement. Utilizing blockchain technology ensures that smart contracts are tamper-proof and transparent. This could have significant implications for online advertising, which has long been plagued by issues such as fraud, lack of visibility, and data privacy concerns. Along with decentralizing users’ stored data on Web 3.0, smart contracts will make it harder for hackers to breach data and give users more control over their personal information.
AI is already changing online advertising and will continue to do so in the future. Artificial Intelligence refers to powerful computer systems that simulate the cognitive processes that humans use to make decisions or predictions, solve problems, learn from experience, and identify patterns. AI can attempt to synthesize visual perception, speech recognition, and translation between languages and can adapt and improve over time as it is exposed to more data. There are several different design approaches, including rule-based systems, artificial neural networks, and deep learning.
Rule-based systems begin with humans programming a set of instructions into a computer. The program will then rely on this set of rules and logic to make decisions or solve problems. This technology has the potential to improve your online strategy in multiple ways. Some examples are using AI to personalize advertising experiences based on individual user data or it could use correlation, statistics, and logical data comparison to identify potential click fraud or bots and prevent it from harming campaigns.
Artificial neural networks work similarly to how your brain uses connected neurons that work together to process things. Artificial neural networks use connected nodes that work together to process information. Artificial neural networks are used in a wide range of applications, from image recognition and natural language processing to self-driving cars and personalized recommendations. AI can analyze user behavior and interests to optimize advertising campaigns, adjusting targeting, messaging, and creative elements based on these algorithms.
Deep learning is a subset of artificial neural networks that aim to create intelligent computer systems that can learn and improve independently without being explicitly programmed to do so. For example, a deep learning algorithm could be trained to recognize the difference between images of apples and oranges by being fed thousands of images of both and adjusting its connections between nodes until it can accurately identify which image is which. These models have achieved impressive results in fields like image and speech recognition. With the rise of voice-activated devices like Amazon Echo and Google Home, AI is becoming increasingly important in optimizing advertising for voice search.
Where This Leads
AI is transforming how online advertising is created, delivered, and optimized. It can analyze massive amounts of data in real time, making it an invaluable tool for digital marketing. As AI technology continues to improve, we can expect even more significant changes in the future. While it is still early days for Web 3.0, it is clear that this new iteration of the web has the potential to fundamentally transform the online advertising landscape, bringing greater transparency, security, and user control to the world.
About Dealer OMG
Dealer OMG is an automotive digital marketing firm focused on helping dealers measurably grow sales, service, and trades. Founded by former Facebook employees and automotive executives, Dealer OMG pioneered the VINAmp platform to refine target audiences, making ads more relevant to shoppers. Through white-glove dealer-specific creative and VINAmp platform, Dealer OMG’s dealership clients are able to be the dealership continually in the shopper’s feeds.
For more information, you can contact our Chief Operating Officer, Keith Turner at Keith@DealerOMG.com