A New Age For Digital Advertising with Blockchain?
Advertising has become an essential part of promoting any type of business available and even plays a role in driving the data market further. The world of advertising is worth billions of dollars and is on course to hit $120 billionby 2021 in the US.
Every company, no matter what they offer, cannot function without reaching their target audience-- this is where advertising comes into the picture. Brands like Google live off consumer data which can be used to send targeted ads to the right audience. Unfortunately, there are several issues that make the process of reaching the right audience inefficient.
Currently, almost half of all ad traffic is generated by bots. This means that even though so many brands pay a lot of money to reach their potential customers, it does not guarantee that they will actually make any sales to real, paying customers. While the reach and even engagement generated by paid ads can translate to heavy figures, the useful leads are relatively low.
This situation can be fixed by creating platforms that will allow companies to target their potential customers individually and in a direct manner. This will ensure that bots can be filtered out and sales can be maximized.Blockchain applications and smart contracts are great technologies to base such a system on.
A blockchain platform is an immutable digital ledger that stores all the transactions carried out on the network it supports. It has already been described as an emerging technology that will disrupt the way several industries function. It is now clear that digital marketing may be one of those ledger technology industries.
In the past few years, since the emergence of bitcoin, the buzz surrounding blockchain which underpins most cryptocurrencies has increased considerably. There are already more than 2000 digital currency, all with their own unique use cases and projects. The appeal of blockchain lies in the number of useful applications it has. In advertising, a blockchain platform would be able to target the users on its network without allowing bot activity to thrive. It could also change current the world of advertising by making the process more transparent and private.
HOW CAN THE NEW BLOCKCHAIN PROCESS BE USED BY ADVERTISERS?
Mostly, blockchain can be used to improve the process of running digital ads and paying out publishers as well as distributors. When implemented, the technology can improve the following:
Advertising has a fraud problem perpetrated by human accounts as well as bots. Usually, bots are created to crawl web pages carrying out helpful tasks, but they have become a medium for carrying out cybercrime.
Popular platforms like Twitter where advertising plays a huge role have reported a bot problem that they’re actively trying to combat. In fact, Twitter has begun making plans to implement blockchain technology in solving this problem.
According to “What Happens Next: How To Reverse The Rising Tide Of Ad Fraud,” a 2017 report, up to $16.4 billion of global advertising revenue was wasted on ad fraud in 2017. Unfortunately, this figure may continue to increase if nothing is done to fix the situation. There are several factors that make blockchain well-suited for fraud prevention, including:
High levels of security due to its decentralized mode of operation, verification mechanisms and encryption.
Transparency since transactions can be authenticated.
Overall, blockchain systems make it difficult to commit fraud because transactions are in the open. Also, blockchains do not have a single point of failure and as such, it is difficult to hack them. This can potentially save advertisers and publishers millions each year by protecting them against cybercrime.