The onset of digital marketing revolutionized the advertising industry. Thanks to digital technology, tracing the impact or reach of the advertisements or ads is much easier today. However, there is a major issue of transparency in the advertising sector with the increasing infestation of ad fraudsters in the digital market.
Blockchain technology is soon rising in popularity. The Bitcoin System, which is considered to be the core of the peer-to-peer transaction also holds the promise of revolutionizing the advertising sector. While the latter is still a possibility for the distant future, inculcating blockchain in the advertising industry to enhance transparency, reliability, and also efficiency is a no surprise.
An introduction to Blockchain
With ad fraudsters initiating new forms of ad frauds, it is time to bring in a system that will effectively enhance the trust factor. The implementation of blockchain technology, thus, comes into the big picture.
Blockchain, as the name suggests is a network of interconnected blocks of transaction data. What makes the blockchain system truly efficient and trustworthy is that the network can never be tampered or manipulated.
How blockchain can disrupt the advertising industry?
Blockchain technology can disrupt the advertising ecosystem, especially the digital advertising system to bring in trust and transparency in the network.
The rising popularity of the blockchain system is attributed to smart contracts, and more importantly its decentralized framework, meaning, it is not controlled by a central authority.
Smart contracts is a program that automatically executes, controls, or documents the relevant events as assigned in the contract signed by all the parties involved in a transaction.
Implementing blockchain smart contracts among advertisers and intermediaries will undoubtedly increase the system efficiency alongside increasing transparency.
Why is blockchain technology entering into digital advertising?
Blockchain offers a decentralized network among the advertisers and intermediaries like the publishers, brand advertisers, etc. In fact, the decentralized network offers protection from fraudulence by providing accurate data of all the transactions, right from advertisers to ad publishers.
Decentralization provides the opportunity to increase transparency via caching, key statistics, and logging of leads and clicks. It is furthered by smart contracts, which is established with all the parties involved. Thus, bringing in the elements of trust and efficiency.
Blockchain applications in digital advertising
Here are some of the practical applications of blockchain in digital advertising;
- Buying and selling of ads without the involvement of a mediator
While incorporating a blockchain-enabled advertising platform online, undoubtedly, it would snip off the various intermediaries otherwise involved.
- Prevention of fraudulence in the digital advertisement supply chain
It is often difficult and sometimes also impossible to pick out fraudulent impressions in digital advertising. Blockchain will certainly solve this dilemma through caching, and logging of the genuine clicks and leads.
- Data and content management
Blockchain aids in delivering data-driven content, which is more personalized and audience-specific. While blockchain also can efficiently manage and group data about visitor behavior, it also ensures the efficiency of the digital ads.
- Safe transactions
While the smart contracts automated the process, blockchain, in general, also significantly reduces the cost of transactions. Thus, ensuring far safer transactions along with the added advantage of user anonymity, which is yet another key feature of blockchain technology.
Blockchain typically involves a decentralized network alongside the salient feature of smart contracts. Blockchain will disrupt the advertising industry or more specifically digital advertising by introducing the trust element for increasing transparency through smart contracts and a decentralized system.