What Advertisers Need to Know About Blockchain Now
By Julia Beyers
What if you could dramatically decrease the money spent on advertising for your product? What if you could know precisely where ad money goes to escape ad frauds? What if you could use a more secure and transparent way of advertising in general? And what if it is already possible, but you don’t know about it?
Blockchain technology is a single answer to the questions asked above. Although it still undergoes numerous adoption stages, one thing is obvious – blockchain has a strong potential in various fields. From completing cheaper cross-border transactions to eliminating ad frauds to changing ad business radically – this is what the technology offers. Here is how the advertisers can benefit from the change.
How Blockchain Can Change Ad Business
The three core values of blockchain technology are transparency, security, and speed. The first two are extremely relevant to the advertisers. Why does it matter and what do the numbers tell us about the current situation on the market?
Blockchain can eliminate ad fraud
The latest report from Juniper Research has shown that advertisers are expected to lose $42 billion to ad frauds in 2019. This is 21% more than it was in the previous year. Such a dramatic increase is the result of new techniques that fraudsters implement.
Moreover, the fresh study carried out by Future Digital Advertising: Artificial Intelligence & Advertising Fraud 2019-2023 predicts that the total loss to fraud will rise to $100 billion by 2023. These numbers are surreal, aren’t they? And so the time has come for advertisers to fight back. Blockchain is the option.
Blockchain decreases fees and improves the quality of service
In the modern era, it is still quite hard to track the money flow during a campaign. It is also hard to evaluate the quality of the service delivered for the price paid. But even though the ad frauds are widespread, they are not the only reason why companies would like to turn to blockchain. The fees of the middlemen involved in ad campaigns are quite high, and consequently, they increase the cost of advertisement.
Say “bye” to fake and shocking ads
Certainly, blockchain is beneficial to the marketers due to cost and risk reduction, but it can also provide ad verification. It’s unlikely that a well-reputed company would like to place its ad near some extremist or outrageous ads. But how could it be ensured? Blockchain can help with this, because it shares information with everyone who has access to the network.
What are the benefits of blockchain?
Blockchain can provide data to the public, let companies run campaigns without middlemen, ensure that advertisers know where their money goes and verify the participants to the campaign. Here is how it is possible...
Blockchain stores all the information about any transaction in blocks and provides users with access to them. The information about the completed transactions can’t be changed or removed. It is available to all blockchain users. However, the biggest problem here is how to effectively manage the whole host of information stored within blockchain. The solution is yet to be given.
Data transparency allows companies to find out whether the campaign is successful or not, where it is seen, where the money goes and, generally speaking, maintain trustworthiness.
Today, the main middlemen players in the digital advertising market are Google and Facebook. These are the platforms that companies are most likely to use to run their campaigns. They connect advertisers and publishers, and thus, ask a fee for it.
Blockchain allows the advertiser and the publisher to work directly, peer to peer. This way the publisher charges the advertiser for the genuine clicks only. Finally, direct communication decreases the number of ad frauds.
Provably fair concept
In gambling, there is one approach, provable fairness, that can also be applied by advertisers. This solution prevents players from being deceived in online casinos. The provably fair concept enables players to verify each roll result. This way, you can’t become a victim of fraudsters. It allows gamers to double-check the result of algorithms online to make sure that they are correct and trustworthy.
Basically, this is what blockchain offers to its clients — open data with the ability to double-check the steps that were made. Thus, marketers can be sure that they are not deceived and are treated well.
What are the current challenges of the technology?
The potential of blockchain is enormous, but still, there is not enough proof of concept for the technology to become widespread. More and more companies are turning their heads towards blockchain, understanding its benefits. Blockchain is likely to be an inevitable solution to streamline many industries. The community will realize it eventually. What can we do today though?
The main challenges that blockchain is facing are the lack of business models and data-management tools designed exclusively for decentralized systems. Companies need to join forces and work on providing the industry-specific standards and approaches.
A concluding note
Blockchain is a relatively new technology with lots of potential. But the lack of practical implementation is the issue that plagues it now. It will definitely take some time for it to fit in. But once it does, those companies that pioneered it will definitely lead the race.
Various expert studies predict that blockchain will become a breakthrough solution in business. Not only can it provide security and transparency, but also change the approach to running ad campaigns. Hopefully, soon we will be able to witness the influence of the technology on the global market.