January 29, 2018
Blockchain in Advertising and Marketing
DIGITAL ADVERTISING TODAY
Not so many years ago, advertising had to be negotiated and purchased manually by humans. With the digital revolution and the inception of the internet, automated advertising become a reality. Computers and software made it possible to buy adverts automatically through ad campaigns, but even this type of advertising involved a middleman. Platforms like AdWords connect advertisers to publishers but this type of advertising still requires humans to plan the ad campaigns even if advertising does not need to be placed manually. A newer type of advertising which is fully automated is offered by companies like Google, but this type of advertising comes with its own challenges. Advertisers pay Google who in turn places the adverts for them, so there is still no direct contact between the advertiser and the publisher.
From a cost point of view this could prove to be expensive because both Google and the publisher have to be paid. Programmatic advertising is often subject to fraud and the Interactive Advertising Bureau estimates that over 8 billion is wasted by advertisers who have no way of knowing how effective their advertising campaign has been. The only way to measure the effectiveness of advertising online is through clicks and page views which is difficult to assess at the best of times. Apart from the use of bots which can make it appear like there are actual humans connecting to these adverts, fraudulent advertising schemes have become a huge problem on social media, mobiles and apps. There is clearly a need for a way to be able to discern between a bot and a real person, and the hope is that this will be done with blockchain technology in the very near future.
COME IN BLOCKCHAIN TECHNOLOGY
Blockchain technology can resolve many of the challenges that the digital advertising world faces. One of the companies that is well on its way to introducing a blockchain based ad management solution is BuxUp network. This new technology is designed to benefit advertisers and publishers by using smart contracts which will allow the two parties to negotiate directly without having to use a middleman. These contracts will be enforced automatically through blockchain without a centralized party.
BuxUp is building the server but will not act as a middleman in the ad management process. Another innovation with this blockchain ad management platform is that the process of tracking ads and their effectiveness will be clear to the advertiser as there is no possibility of hackers using bots or changing anything through blockchain. Content publishers will be able to provide the advertisers with anonymized data on users on their site, at a cost. BuxUp Network has programmed software to handle the buying and selling of ads with no human interference. A new generation of programmatic advertising opportunities through blockchain has been born, this will allow advertisers and publishers to enjoy more cost effective, secure and reliable advertising campaigns.
BLOCKCHAIN – THE GAME CHANGER
We all remember the rise of the internet and how much it has changed our lives. It is amazing that digital advertising is a $223 billion global industry, even though it is plagued by hackers and ad-bot scams. Blockchain technology can only improve the circumstances in which these adverts are placed and paid for. By decentralizing the whole process, with transparent and immutable storage of data, blockchain will be the way to go. Transactions will be captured in their original state preserving the authenticity of the data and once the information is recorded it cannot be changed or deleted. The data remains in its block for viewing by platform users, clients and other stakeholders. The block will record the financial transaction with reconciliation for billing purposes and the validation of the adverts’ resources and assets. Standards and protocols will be adapted across the digital advertising board to ensure transparency and security at reasonable prices. Fraud will be eliminated and the ability to measure the results of an advertising campaign will allow advertisers to strategize and make the most of their advertising dollars.
Blockchain technology is already changing the way global industries share data and perform transactions. This provides mutual benefits for digital markets and advertising which is one of the fastest growing industries online. It is essential that the people working on introducing new platforms find the solutions to advance a common set of standards and protocols. Blockchain technology is currently being used in digital advertising companies like AdChain and Adex which are both on the Ethereum public blockchain specifically for digital advertising ecosystems. These systems have been formed to provide transparency, integrity and control in online advertising. Faktor is also a blockchain based identity management platform that is utilized by publishers and advertisers.
Blockchain technology is set to change the world of digital advertising, it is just a matter of time before a happy medium is found and these platforms are released to the public. The challenges and inefficiencies that are associated with programmatic online advertising will soon be a thing of the past.