Blockchain In Digital Advertising: The Answer To Industry’s Trust Gap
Reading Time: 4 minutesWe come across data breach scandals on a frequent basis – people getting tracked with hidden cookies, giving permissions unconsciously. Advertising losses were supposed to reach $42 Billion in 2019. But that is when Blockchain came into action. Blockchain in digital advertising provided transparency while serving ads and offered human interaction on ads, instead of automated traffic.
Lately, blockchain is emerging into the technology market and transforming the way we do online transactions. However, this technology is not restricted to the finance market. Blockchain has had a significant impact on the marketing and digital advertising industry as well.
Why is Blockchain entering Digital Advertising?
Blockchain is the Distributed Ledger Technology, containing accounts of multiple distributed transactions between several people. It doesn’t need any central control, because the data is not located in any local server. The data is deposited in a secured server that is distributed globally.
The application of blockchain in digital advertising is significant. In the last few decades, advertising firms have handled users’ personal data to understand their buying habits. They have designed campaigns by invading their personal space. But when the news for data discrepancy and data inflation started surfacing online, advertisers and publishers had to look for a better alternative online.
Blockchain offers a protected environment for advertisers and publishers. It allows them to connect to the right audience and make safe transactions.
Applications of Blockchain in Digital Advertising
Ad Buying and selling without the mediator
Blockchain-powered online advertising platforms do not need or benefit any mediators. Hence, blockchain is solving the transparency and trust issues the ad tech industry has.
Preventing Fraud in the ad supply chain
It is challenging to find the false clicks and impressions that you might be paying for. Blockchain technology is integrated with tools that help in identifying and flagging the sites with click inconsistency as well as bot infiltration. As a result, the ad budget goes to the right sites and gets genuine clicks.
Targeting the right audience
It is important to drive an ad campaign based on your customer’s journey. And with the help of blockchain, ad tech platforms can automate campaigns on the basis of a specific set of rules. So if the audience belongs to a certain category or fits into specific criteria, only then an ad will be visible to them.
This will result in advertisers utilizing their budget on better sites to display ads. Moreover, audience engagement will be reliable. This accurate data will, in turn, help in designing better campaigns.
Customize ad delivery
Nobody likes to see the same ads over and over and increase ‘ad fatigue’. But advertisers were never able to manage the delivery of ads in most of the top advertising platforms. With blockchain coming into the picture, advertisers have full control to limit the ad frequency as per the objective of their campaign.
Data safety
Data safety and privacy is a significant challenge in the digital advertising industry. The browsing pattern of a user is no longer a reason for marketers to serve ads to them. Now, marketers need permission from the audience to use their personal data.
Benefits of Blockchain
Accountability and transparency are essential in the new digital advertising ecosystem. Blockchain is able to bring that trust factor to the table. With the help of blockchain ad tech vendors are now able to show the overall actionable view of the ad distribution as well as transactions.
Data is the key that defines business success for every advertiser. With blockchain, the advertisers are able to get high-quality data and reduce any chances of change because of the distributed ledger approach.
The cost of the transaction is also significantly less by eliminating many payment gateway platforms. Blockchain-powered ad platforms promise safe transactions while keeping a user’s anonymity at the same time.
Is Blockchain the Future of Digital Advertising?
Blockchain was on top of the digital marketing trends 2020. It is too early to assume if blockchain will be able to put an end to digital advertising scandals, ad frauds, and bot traffic for good. But it definitely has a positive and gradual impact on the digital advertising ecosystem. Ad tech giants – such as Google – are accommodating the blockchain-powered tools to improve their functionality.
Blockchain can only eliminate these factors when everyone shows zero tolerance for ad frauds, data alteration, and data breaches. The companies that are considering upgrading their advertising platform with blockchain will be the ones leading the way going forward. And it is time the rest of the crowd gets on board and adds their business to this roster.
FAQs:
1. How did blockchain enter digital advertising?
When the news for data discrepancy and data inflation started surfacing online, advertisers and publishers had to look for an alternative. Blockchain offers a protected environment for advertisers and publishers. It allows them to connect to the right audience and make safe transactions.
2. What are the applications of blockchain?
- Blockchain-powered online advertising platforms do not need or benefit any mediators.
- Blockchain technology is integrated with tools that help in identifying and flagging the sites with click inconsistency as well as bot infiltration.
- With the help of blockchain, ad tech platforms can automate campaigns. So if the audience belongs to a certain category or fits into specific criteria, only then an ad will be visible to them.
- Nobody likes to see the same ads over and over and increase ‘ad fatigue’. With blockchain coming into the picture, advertisers have full control to limit the ad frequency as per the objective of their campaign.
3. What are the benefits of blockchain?
- Accountability and transparency are essential in the new digital advertising ecosystem. Blockchain is able to bring that trust factor to the table.
- With the help of blockchain ad tech vendors are now able to show the overall actionable view of the ad distribution as well as transactions.
- With blockchain, the advertisers are able to get high-quality data and reduce any chances of change because of the distributed ledger approach.
- The cost of the transaction is also significantly less by eliminating many payment gateway platforms.
4. Is Blockchain the Future of Digital Advertising?
It is too early to assume if blockchain will be able to put an end to digital advertising scandals, ad frauds, and bot traffic for good. But it definitely has a positive and gradual impact on the digital advertising ecosystem. Blockchain can only eliminate these factors when everyone shows zero tolerance for ad frauds, data alteration, and data breaches.
