Blockchain is fast becoming a panacea for all digital advertising sphere worries. In fact, it’s a giant leap for the advertising industry.
The revolutionary technology has taken the advertising sector by storm, thereby disrupting the advertising and marketing industry by redefining advertising and marketing processes, management, accounting and communications with users.
Interestingly, it offers solid solution to diverse programmatic advertising challenges of the industry like growing ad fraud, system and data integration and more.
As such, advertisers, publishers, and ad tech vendors have embarked on a widespread adoption of the blockchain technology for a better alternative for cybersecurity, trust, transparency, and privacy of users’ information in the advertising sphere.
Recently, big brands like Unilever, Kellogg, Kimberly Clark, McDonald’s, Nestle, and more have all taken to the adoption of blockchain for improved transparency in online marketing, thus harnessing the power of blockchain technology in providing solutions to ad fraud, trust issues, data inflation and discrepancy.
Meanwhile, let’s take a look at the unconventional ways in which blockchain is transforming the future of the advertising industry.
Ad fraud prevention
Fraud is constantly evolving and the way we tackle it, should too.
Basically, online advertising is built on an open system powered by internet connection. However, these open systems create a gap which in turn makes the entire system vulnerable to fraud.
According to Juniper Research, advertising losses were estimated to reach $42 billion in 2019 and predicted to reach $100 billion by 2023 due to increasingly sophisticated techniques of fraudsters. However, the adoption of blockchain helps in transforming the way online transactions take place, thus providing a secure environment for advertisers and publishers.
Considering the decentralized nature of blockchain, all transactions and information are being recorded on the distributed ledger. And as a result, every participant on the supply chain can monitor and detect threats on the chain and also block fraudsters.
The application of blockchain in digital advertising is very significant especially in the aspect of fraud prevention. Blockchain technology integrated with the necessary tools can help detect and curtail fraudulent activities like ad stacking, bot traffic, domain spoofing, and so on.
Transparency and trust
One of the most appealing features of blockchain is the degree of transparency that it can provide. In fact, blockchain technology can facilitate data transparency in a way that has never existed in the advertising ecosystem, which in turn promotes trust in the industry.
Asides from finding and flagging sites with click discrepancy and bot infiltration, blockchain technology can assist in tracking the number of clicks and also help in targeting real audiences with genuine clicks.
Additionally, with blockchain technology, ad vendors can show actionable views of the ad distribution and transactions. Thus, consumers can verify that the data they are viewing is true and accurate. Data stored cannot be altered without recording the changes made.
Ultimately, this technology makes it seamless for users to be aware of the whole process before the distribution of goods is visible — like what the product is and where it’s coming from.
Hence, blockchain promotes transparency and trust in the digital advertising ecosystem around the world by providing an auditable and valid ledger of transactions.
Data privacy is one of the major challenges in the advertising industry. For the digital advertising sphere, data is precious and key to success. Now, with the decentralized nature of blockchain, information is secured and protected by all the members of the chain.
Each member of the blockchain network can access and review information of various activities executed on the chain. Moreover, every ledger has a unique public key that is distributed to all participants with links to all the transactions in the chain. Consequently, data alteration or leakage is impossible.
In addition, with blockchain applications in the advertising industry, solutions have been provided to the challenges associated with data safety and privacy as audience permission is required to use personal data. It gives users control over their data and puts the value of their data completely in their hands.
No need for middlemen
Blockchain, the ultimate democratization tool is indeed revolutionizing the advertising industry by eliminating the need for middlemen in all ad transactions, thereby reducing unnecessary costs.
Basically, it reduces cost of transactions by removing various payment gateways and giving no room for intermediaries or third parties. In other words, blockchain is offering more direct business transactions between advertisers, publishers and their users.
It’s worth noting that blockchain technology does not only eliminate the need for advertisers to go through intermediaries — like Google and Facebook — but it also connects them directly with their potential customers. By employing blockchain-powered online advertising platforms, users are assured of safe transactions and anonymity.
Indeed, this is good news for the early adopters of blockchain technology in the advertising industry as they are sure to reduce costs during ad transactions while maintaining direct ad buying and selling with end users.
In conclusion, it’s interesting to know that advertisers, publishers, and ad tech vendors are now redirecting their gaze towards blockchain technology to provide solutions to the diverse challenges in the online advertising sector.