How Can Blockchain Disrupt Digital Advertising?
Blockchain technology, which initially emerged to disrupt the fintech sector, has now brought the storm in the world by reconstructing how businesses, organizations, governments, and individuals communicate with each other. The technology comes with the potential to remove expensive intermediaries by providing a single source of truth.
Blockchain is poised to validate any transaction, building trust and simplifying the movement of assets, information, and money globally. With its capability to provide security, accountability and transparency, the technology is also ready to transform the way digital advertising works nowadays. Marketers and publishers have been experimenting with blockchain to combat fraud and trust issues in the digital marketing industry.
It was announced on September 2017 by the Interactive Advertising Bureau (IAB) that a working group would commence discovering ways to leverage blockchain to enhance efficiency in digital advertising.
Blockchain would allow consumers to gain control over their buying data and personal information. From purchases to marketing value, delivery, measurements, and advertising efforts, everything can be impacted by blockchain-based solutions in the field of digital marketing.
Though it may lead to expensive consumer data, it will result in better ROI for marketers and advertisers. Let's understand the disruption of blockchain in digital advertising in more detail.
Currently, digital marketers and advertisers understand that it is impossible to obtain accurate data. You have to wonder always if these clicks are actually real or not. Team or bots hired to increase traffic can inflate statistics to raise their rates.
Billions of dollars get lost because of bots. Therefore, it is currently expensive and complicated to get the clarity of your ad buys.
Blockchain technology can redefine it by offering transparency and security with each block created, validated, secured and recorded on the chain. Since the chain of records would present better transparency, advertisers will be able to get accurate target audience views. It could save the money they lose because of wrong and unproven data.
Similar to the cryptocurrency world and its business - the cryptocurrency exchange development, blockchain can bring transparency to the world of digital advertising. All the popular networks in the space, including Facebook, Amazon and Google have earned a huge amount of money in this field that has not been transparent enough.
But with the transparent and tamper-proof nature of the blockchain technology, everything is about to change. Search engine makers will be empowered by blockchain as it can authenticate that each user is 100% genuine, which implies that website owners are only charged for authentic clicks to their site.
Blockchain will also allow advertisers to create customer profiles directly from data that customers are willing to share, which will improve targeting and increase more potential conversions and revenue.
As the quality of any website’s SEO is based on the quality of traffic, blockchain can guarantee high-quality traffic to enhance SEO.
Marketing automation experts can create advertising campaigns on the blockchain platform to bring traffic back to their website as they are doing in a present scenario. The additional benefit is the authenticity of inbound traffic. Companies that will implement a tokenized marketing program can also trace the activity of consumers across the website and compensate customers for their activities.
Presently, digital advertisers and marketers have to get consumer information in bits and pieces from different sources, which is a quite tedious and time-consuming process.
Since the consumer blockchain transactions will be decentralized, it will become easier for marketers to rely on that data. They can always trace back and confirm if the information is authentic or not.
Because consumers will have control over their personal information, what if you could buy their data personally from them and run targeted audience ad campaigns. It may seem costly; however, it would save your additional ad costs spent on wasted and inaccurate data.
With data saved on the blockchain, marketers and advertisers will be able to get potential and converting leads.
As of now, digital advertising involves an intermediary for running the ads. For example, there's a company that wants to offer an ad space but does not need low authority businesses or sites to associate with them.
Such companies usually proceed via platforms like Google to ensure that only credible businesses buy that space. Google, as an intermediary, charges a high fee from the company to offer credibility.
On the other hand, if the same scenario is implemented via blockchain technology, the process will not be complicated and expensive. Users on the blockchain are always validated and verified through the consensus of network members. Therefore, only authorized members will be able to buy the ad space and run ad campaigns securely and transparently.
With blockchain, advertisers would always know that they are paying for real clicks and advertising services providers would trust the amount they have been paid.
Cutting the middleman from the ecosystem would make advertising more profitable and efficient.
One of the innovative blockchain advertising projects is AdEx which is an open-source and fraud-proof display advertising platform. Built on the Ethereum blockchain platform, it allows connecting advertisers and publishers without the involvement of middlemen. With real-time reporting for both parties, the platform enables payments per impression with no withdrawal threshold for publishers. It allows advertisers to pay for only genuine traffic and publishers to earn more revenue for the ad space.
You might come across many other projects which are disrupting the advertising field with the blockchain’s potential.
Though blockchain technology is still new for many organizations, it will be exciting to know how blockchain will have an impact on the future of digital marketing and advertising. Currently, it seems that the blockchain offers consumer-heavy benefits; however, marketers and advertisers and marketers would improve ROI.
Highly targeted ads, encryption for company and customer data, better user experience, fewer pop-ups and higher security are some of the benefits that you will achieve by implementing blockchain in digital advertising.
Akash Takyar is the author of Blockchain Technology and Business book. He is the co-founder of Leeway Hertz and is a consultant to fortune 500 companies including Siemens, 3M, Hershey’s and others. He has a Masters Degree in Computer Science. Akash’s experience of building over 100+ apps allows him to the solution architect responsibilities and design solutions. His ability to explain complex technologies in simple and practical ways has resulted in him becoming a popular speaker at colleges, universities, and conferences.