Why paid ads are important in Web3

Do Paid Ads Work in Web3?

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Internet technology as we know it is changing. The move from Web 2.0 to Web3 is going at full speed, and this comes many new ways of doing things. One of the most important aspects of this new era is how we advertise and market our projects and solutions to grow our communities.

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In the past, advertising has been largely restriction-free. However, with the advent of Web3, several restrictions have been implemented that make paid ads in Web3 difficult. From data collection rules to complete blockages from advertising any digital asset or blockchain technology solutions.

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It can be helpful for brands to understand if paid ads are still relevant and how to navigate these changes. How do we continue to access our perfect user while building the internet of the future?

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What makes paid ads important is that they allow us to reach beyond the limitations of organic social posts or our user-generated content and to connect with users at all stages of our marketing funnels. They are also powerful tools to spread brand awareness in an effective way.

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In this article, we'll take a look at some of the key reasons why paid ads are so important for marketers in Web3, and how you can make the most of them to reach your ideal consumers and get the most value from your user focused campaigns.

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What Are Paid Ads?

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Paid ads are a simple concept. They are more than the digital versions of print ads - in fact they are a marketing manager's ideal media for reaching your ideal audience cross-platform. In effect, you're paying to flight your media to a targeted audience.

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This can be done in a number of ways, but the most common is through Pay Per Click (PPC) advertising and display banner advertising. Two powerful forms of marketing which have formed the foundational revenue of centralized Web 2.0 brands such as Google and Facebook.

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In PPC advertising, you pay a fee each time one of your ads is clicked. These ads are often used on search engine results pages, where they appear as sponsored results above or below the organic search results. Most PPC ads require limited written content and/or images.

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You can set a budget for your PPC campaigns and bid on keywords that you want your ads to appear for. When a user searches for one of those keywords, your media may appear on the search results page.

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With PPC, you only pay when someone clicks on your ad. This makes it a very effective way to reach your ideal users, as you're only paying for results.

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The second most common ad is Display Banner Advertising, used to reach a broad audience and increase brand awareness. This involves placing banners on websites or other online platforms. Display adverts are typically rectangular and can be static or animated.

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They are designed to catch the user's attention and direct them to your website or landing page. In display banner advertising, you pay the publisher of the website or platform a fee based on the ad's number of impressions.

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Several companies in the industry offer PPC and Display advertising, but the most popular is GoogleAds. Lunar Strategy has partnered with a 100% Web3, permission-based PPC business in recent months.

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This team has taken the time to develop an industry-first concept where we can now flight adverts with no centralized authorities to owners of NFT-based media. This, we believe, will add significant value to our clients and partners in the industry.

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Paid Advertising types in Web3 

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There are four primary types of paid advertising across the industry that you can use to reach your ideal audience and drive traffic to your project. Each marketing focus has its own unique features and benefits and can be a useful tool for businesses looking to increase their visibility and reach.

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1) Paid Social

Social media platforms like Facebook, Twitter, and LinkedIn offer paid advertising options that allow you to reach a larger audience than you would through organic means.

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2) Paid Search Engine (SEM) 

Another popular form of paid advertising is through search engine platforms like Google and Bing. This is known as Search Engine Marketing (SEM), allowing you to place your ads in front of people who are already searching for products or services like yours.

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3) Banner Ads 

Banner ads are a type of display advertising that appears on websites, often in the form of a banner at the top or bottom of the page. These can also be hosted on various publishers' websites.

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4) Native Ads 

Native ads are a type of advert that blends in with the content of the site it appears on. They are often less intrusive than other types of ads and as a result, can be more effective. Many niche news and forum publishers' sites allow companies to display native adverts.

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Benefits of using paid advertising 

Using paid ads as a web3 project has the potential to provide several benefits for advertisers, creators, publishers, and consumers alike.

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1) Greater reach 

Paid ads allow you to reach a much wider audience than you would through organic means.

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2) Targeted advertising 

With paid ads, you can target your advertising to a specific audience, which ensures that your message is seen by people who are more likely to be interested in what you have to say.

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3) Increased visibility 

Paid ads can help to increase the visibility of your brand, and this can lead to more sales and inquiries.

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4) Data Collection

Web3 is all about building community. The main benefits of data collection when running paid ads include building a better understanding of your consumers, improving campaign performance, as well as the ability to prevent fraud around automated clicks.

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How effective is paid advertising? 

Paid advertising is a highly effective way to reach your target audience and promote your products or services.

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At Lunar Strategy, we have helped many Web3 advertisers reach their ideal users with paid ads built around the needs of their brands. To learn more about our process, check out our case studies.

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There are several ways to measure the effectiveness of paid advertising. These rely on the careful implementation of data fields and website tags - to deliver the correct data to the platform used.

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Companies implementing these measures across the web benefit the most from digital advertising technology. There is several data points that you can measure, which include:

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» Click-through rate (CTR)

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• This is the number of people who click on your ad divided by the number of people who see it. A high CTR means that your ad is effective and popular with the viewers.

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» Cost per click (CPC)

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• This is the amount you pay for each click on your ad. A low CPC means that you're getting good value for money. You can control your budget by limiting your CPC.

» Conversion rate

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• This is the number of people who take the desired action on your website, such as making a purchase or signing up for a newsletter. A high conversion rate means your ad is effective and relevant to your consumers.

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» Cost per acquisition (CPA)

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• This is the amount you pay for each conversion. A low CPA means that you're getting good value for money.  While you can't control the CPA, you need to set up the data parameters to access the insights correctly.

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The bottom line in any Web3 campaign is whether your community is growing with relevant and engaged community members. If you launch an app or have a lead form - these can be simple things to measure. But community growth and brand reputation take a lot more thought and planning to accurately attribute the source of the growth.

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Measuring the right data points determining success for you and your project is the primary requirement for understanding if a campaign is effective and worthwhile continuing or revising.

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Best Practices for Web3 Paid Advertising

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Before deciding to go the paid ads route for your web3 project, it is important to know that paid ads alone are insufficient to “send your project to the moon.”

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An organic and engaged community and a clear understanding of your project (even for web3 newbies) are just some of the keys that’ll complement your paid ad campaigns.

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Similar to running paid ads on Web 2.0, the following best practices will add to the success of your paid advertisement in Web3:

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• Always use high-quality, relevant graphics and visuals
• Describe your offering with simple words.
• Target a broader audience to reach more people, or focus on a niche if that is relevant.
• Amplify and promote your narratives with storytelling.
• Track ad effectiveness and optimize effectively.
• Understand the rules of the advertising platform to ensure that your ads comply with the relevant regulations and guidelines.

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Remember that the ownership in Web3 is moving from the big brand to the creators and publishers of the future. Transparency, user privacy, and identity protection are critical aspects of Web3 world and the future of the web.

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If you're unsure about these best practices - it may be best to partner with a leading paid ads agency. This often works out more efficiently in the long run as budget optimization is a core role for effective agencies - as is strategic planning before campaign launches.

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Examples of Paid Advertising in Web3

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There are several big Web3 brands that are using paid advertising to reach their target audience in Web3. Here are a few examples for Web3 internet marketers:

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One of the world’s best cryptocurrency exchanges, Binance, clearly promotes its staking feature and the rewards to expect with an actionable CTA. From the smartphone image they use in the ad below, you can already see the cryptos you can stake and how much you can make from staking them. 

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Getting your promotional message out there isn’t easy. But remember that sometimes, less is more. You can always have a nice visual balance like this "Near Protocol" banner ad displayed on CoinDesk. 

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This gif banner ad by Meta Arena is simple and effective. Valuable details about the project are rapidly displayed, and the ad sequence ends with an excellent actionable CTA. 

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Which types of Web3 projects can benefit from paid advertising?

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Any type of Web3 project can benefit from paid advertising, but it is especially effective for projects looking to increase their visibility and reach a larger audience. 

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The decentralized nature of the web and the increasing use of blockchain technology across the internet have opened up new possibilities for creating and monetizing digital content.

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Forward-thinking brands are taking advantage of these developments by creating digital art, games, and other digital collectibles - items that can be bought and sold as non-fungible tokens. Telling these stories is where paid adverts are powerfully effective.

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The potential of the new space of metaverse real estate, where virtual assets can be bought, sold, and stored on the blockchain, has created many new projects. All of these are trying to build community. Marketers and publishers must draw users to their companies to achieve success.

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In recent times, the rise of decentralized web platforms like the Brave browser has provided a new solution for the issues of data ownership and control that have plagued traditional advertising. Transparency, shared ownership, and revenue models are making an impact in DApps and games.

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These platforms are attracting a growing number of users and advertisers by giving users more control over their data and the ability to earn money through adverts without giving up their privacy. Understanding this aspect of paid advertising can give you a head start in the new Web3 world.

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Overall, using paid adverts as a web3 project can help businesses, advertisers, and consumers navigate the rapidly-changing digital world. With the ability to create engaging and effective ads, your business can reach your potential customers and increase your brand's visibility in the digital space.

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Enlisting Professional Management

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Paid ads are still a very relevant and effective way to reach customers and drive website traffic in the Web3 era. Advertisers who partner with an efficient agency, project owners, can focus on their core operations while leaving the management of their paid ad campaigns to professionals.

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At Lunar Strategy, we specialize in managing paid ad campaigns for businesses in the Web3 space. With our experience and expertise, we can help you create compelling and compliant ads that will reach your ideal users and drive traffic to your website. We can also provide valuable data and insights that will help you optimize your campaigns and improve their performance.

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Summary

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Paid advertising can also be very effective for projects on a tight budget. It is a cost-effective way to reach your target audience only if you find the right keywords, niche, and potential customers early in your paid ads strategy, as is our custom.

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Overall, using paid ads is a valuable part of any Web3 marketing strategy, and partnering with Lunar Strategy can help you maximize the potential of your campaigns. Contact us today to learn more about how we can help you reach your marketing goals.