The challenges of advertising today
Firstly, offline advertising is not accurate: it is extremely difficult to estimate reach, even at points such as Time Square. That said, measurement has gotten better in the era of CTVs, which are monetised through subscription (SVOD), one-off content purchases (TVOD) and direct, or direct-to-video, advertising (AVOD), but only through a mix of classic and online advertising.
As for offline banners, for example, things are more complicated: surveillance via camera is not always legal, and classic metrics by today's standards contain excessively large deviations (margin of error). LED surfaces are more interactive, but so far also unidirectional. The user does not actually interact with them: the exception is the interactive surfaces at a number of sports events, in shopping malls, etc. We should also note another important point that we identified at the stage of primary analytics collection: advertising as a business has a direct correlation (positive) with literacy. Here are a few examples:
- 1.Oral advertising has long prevailed over written and pictorial forms because most people were illiterate and could not read, but now there is a reverse process;
- 2.The differentiation of art styles was one of the catalysts for the emergence of original advertising styles, which are still evolving today (hence brand strength and other indicators of visual media);
- 3.Book printing was a major catalyst not only for new types of advertising, but also for its mass appeal;
- 4.Finally, while at the end of the XX century the Internet was seen by many as entertainment for geeks, now (see below) it is one of the main sources of spending on advertising budgets of companies around the world, and all because people have begun to use the Web constantly and understand many programs without even thinking about it: online browsers, messengers, client-banking, cryptocurrencies and so on.
A quick glance at the market today reveals the following: On average people spend 2 to 4 hours on their mobile phone and only 1 to 2 hours on their PC: of those 2 to 4 hours consumers spend up to 90% in apps. At the same time, this is not the case with Web 3.0: the majority of dApps are accessed through a browser. Another important point: for every 4 non-game applications, 1 game comes out on average: at the same time, according to CMC, dappRadar and other aggregators in the Web 3.0 industry, it is the games that take the lead. Many more illustrative examples can be found, but let's go further.
To appreciate the changes in advertising, it's worth briefly recalling its main functions:
- Brand/commodity awareness;
- Creating an image: of the business, the product, etc.;
- Convincing positive qualities;
- Creating an incentive to buy;
- Reminder of product, promotion, etc;
- Reinforcing (past) experiences.
Thus, we come to the same conclusion on three sides:
- 1.Whereas brands used to remind themselves by increasing the points of contact with the consumer: radio, TV, branded packaging, banner advertising, Internet advertising, etc., the consumer can now link himself to the brands he is interested in: for example, once end-to-end Web 3.0 authorisation is disabled - the user is no longer in the macro-network. Hence the first conclusion: a modern and forward-looking advertising platform must be able to work with Connect Wallet and similar technologies.
- 2.Whereas previously the user was forced to use ads, now he can use Brave browsers to disable them, as well as the same MetaMask/MEW/Trustee/etc. wallets, which only give information to services for the duration of authorization. Therefore, it is important that the user himself become an active promoter of this or that product, commodity, brand. Thus, the second conclusion is that the economics of action and transactional reputation necessitate the creation of other motivators for the user.
- 3.While previously the user was a person, Web 3.0 expands the horizon: it can be any subject-object that has some means (cryptocurrencies, tokens interchangeable or NFT and other assets). Therefore, it is crucial to learn how to separate "living" and "non-living" actors, so that advertising still performs its functions and at the same time - expands the horizons. Therefore - conclusion three: a platform that can indirectly gradate different actors and identify their usefulness/harmfulness (in relation to point 2) for specific ecosystems should be recognised as innovative.
Thus, Veezy focuses as a service on three aspects: first, on connecting advertising integrations for the subject-object; second, on developing innovative forms of advertising delivery in different parts of the Meta universe; third, on implementing classic tools in Web 3.0 mechanics. Let's look at each point separately below. But to quantify it, let's first turn to the analysis of the main indicators.