5 Applications of Blockchain Technology in Digital Advertising
The future development of blockchains for applications outside of monetary currencies is still little researched. One of those developments is in the field of digital advertising. Let's explore how digital advertising industry can harness the benefits of blockchain technology.
Since the beginning of the year, the term “blockchain” has made headlines in the technology sector more than any other term. But what made it so popular? The technology ensures that all the transactions that are carried out are properly recorded and conducted. This is true mostly to digital currency. But it is not virtual currencies only that can be transacted on the blockchain.
In fact, there are more applications of blockchain besides the cryptocurrency. Another industry that can harness the benefits of blockchain technology is the digital advertising industry. The following are the top 5 applications of blockchain technology in digital advertising.
1. Prevention of Fraud
It is estimated that for every $3 spent on digital advertising, $1 is lost due to fraud. In 2017 alone, $16.4 Billion was lost as ad loss due to fraud in the digital advertising industry. The digital ad industry is laden with fraudsters. Most advertising companies are not able to evaluate if the adverts they place and pay for are able to bring the desired returns or not.
The good news is that this problem can be prevented with the help of blockchain technology. There are several companies that have come up with ways of incorporating blockchain into the authentication process. Some of the companies that are using blockchain to prevent fraud include Ads.txt and MetaX. These companies are using blockchain in the verification of offerings
Another company using blockchain is adChain which is “a set of interoperable open protocols built on the public Ethereum blockchain.” On the adChain, they have an adChian registry which is “a smart contract on the Ethereum blockchain that maintains and stores a record of publisher domain names accredited as non-fraudulent.” With the help of adChain registry, a high level of integrity can be maintained because the fraudsters cannot get the ad transactions.
2. Management of Data
In the digital advertising industry, data is very crucial. Because of the free nature and usability of Search Engines, Email services and other social networks, a lot of data and company information is gathered and shared and most companies have no control over such. As a result most media companies are not happy with the techniques used to collect company information. Therefore, companies want to be able to control their data and be in charge of the information that can be shared with outsiders. Several companies have come up with efficient solutions for data management.
For instance, Comcast, a cable company, is developing a blockchain Insights Platform whose, “aim is to improve the efficiency of premium video advertising, resulting in better planning, targeting, execution and measurement across screens.”
In the management of data, the major problem is privacy. This is where blockchain comes in handy. According to Comcast, “One application of the Blockchain Insights Platform would be that advertisers and programmers could match data sets more effectively to build and execute media plans based on custom audience segments and more precisely and efficiently target across a nationwide footprint of pay-TV customers and streaming device users. Concurrently, programmers would be able to offer improved targeting precision across screens, increasing the value and quantity of monetized inventory. All participants would ultimately benefit from the resulting reporting and attribution metrics, and new potential revenue streams for participants could emerge for data insights they can generate for themselves and others.”
3. Increased Transparency
Blockchain technology can be used in the verification of marketing claims with the help of smart contracts. This will help the advertising company to deliver on their claims for any advertising plans that they have. The ability of the retailer and customer to negotiate on an advertising contract and then retailer be able to deliver as agreed. This will lead to transparency and in turn, lead to increased sales and a good reputation for the advertising company.
For instance, The Marketing Group (TMG) has a media agency that is known as Truth that is based on the blockchain that gives advertisers 100% transparency. According to TMG, “Truth’s technology uses the same program as cryptocurrency to track how a media buy makes its way from an advertiser to a media owner…. The platform combines the links in the media buying chain and puts the links on blockchain to create a single, immutable ledger of all the transactions. This aims to help clients see where their money is going and should help publishers to get paid more quickly, thanks to the smart contracts.”
Apart from TMG, Unilever is using IBM iX, a blockchain platform that is used to simplify the digital advertisement supply chain which increases transparency with their customers. When the clients understand how their money is going, it helps to increase trust with the advertising company.
4. Piracy Prevention
The digital advertising company can use blockchain to keep track of all their digital assets with the help of watermarking technology. One such media company that is using blockchain technology to track their records such as eBooks, movies and other documents through the blockchain is Custos Media.
To protect their digital records from online piracy, Custos Media use, “the distributed ledger can address the challenge of piracy by creating an immutable record of transactions on any asset, idea or creative work. The digital assets can be tracked throughout their lifetime, even when ownership is sold or otherwise transferred, even when the assets are assigned to players in other industries.”
According to Phil Gomes, a blockchain leader, “I personally believe that a lot of piracy comes from friction in the legal distribution mechanisms. Blockchain technology can enable more frictionless monetization of content to better compete with pirates.”
5. Improved Advertising Target
Blockchain technology can allow an advertising company to keep the records of all their clients. This means that when a company is able to use blockchain, they will have a ledger of all the purchases that a given customer made recently.
The use of blockchain technology by a company can help a company improve their advertising target. This will help the company overcome using the social media platforms such as Twitter or Facebook to reach their customers and even discover new data.
In conclusion, blockchain technology can be applied to various digital advertisers, distributors, content creators, artists, businesses and sponsors to mention just but a few and they will all benefit from its application. This technology helps in the effortless monetization of digital content. This technology has great potential benefits to digital marketers. On one hand, the digital advertising industry is growing and on the other hand blockchain technology has numerous applications which offer a platform for media companies to reach even bigger opportunities.
According to Myron Monets, writing for Native Advertising Institute, “The technology will undergo many changes as new platforms continue to innovate. This is a strength, but also a big advantage. For many native advertisers, going with a stable, known solution will trump the promises of a new blockchain platform.”