When it comes into the financial market segment, Blockchain is nothing less than the technology underpinning Bitcoin. The innovation of Blockchain for Bitcoin made it the first digital currency to eliminate the issue of double-spending without the need for a focal trusted authority or server. We could say that the innovation of Bitcoin gave a new derivation to financial transactions in terms of decentralization, security, transparency, and reliability. The immutable record of transactions between a network of participants made the whole process simpler and quicker.
Today, blockchain is widely implemented across many segments like document verification, supply chain, logistics, health care, defense, security and so forth. The architecture of Bitcoin has inspired these business segments to adopt blockchain technology. If we look closer, we can see that there are many private blockchains that have been proposed for many business use cases. Private blockchains for media and advertising, academic document verification, identity management have mushroomed like never before.
In this blog, I have plotted a couple of benefits with blockchain in media and advertising space.
We know, today, the advertising industry is not only blooming but also becoming more dominant and significant like any other moment. We could simply say, the urge for advertising is getting higher and higher as time passes by. According to the studies conducted by Forrester, it is estimated that by 2021, the spending plans or the marketing budgets for advertisers in the United States alone, will move to an aggregate of $120 billion, which is quite large. And other countries are not that far from the United States. This simply indicates that there is no backing off from advertising at any point in the near future.
With ad works like Google, Facebook, Amazon, and Apple, online advertising is nothing if not pliant. Yet, this flexibility is the advertising’s greatest quality and its most prominent shortcomings.
While blockchain technology may not self-reliant to cure all of the advertising’s technical problems, however, it can play a significant role in the situations where there comes censorship and sides of the supply chain (i.e. publisher and advertiser) are dismayed at not having access to pertinent information. If you have limited to your imagination that blockchain innovation is just something that crypto-diggers and bitcoin enthusiasts needed to worry about, you should need to reconsider.
Blockchain encompasses various intriguing implications that the advertising and media space can merit.
Current Challenges in Advertising Sector:
Online advertising is considered as one of the most powerful medium of communication to connect with the audience. It is proved that online advertising can shape any brands at its best possible ways, reaching the maximum audience. However, the rising fraudulent activities in online media is a matter of concern. It was found that 7.6 percent of ad displays were a fraud in 2017.
And according to the latest statistics released by Association of National Advertiser, about $1 out of every $3 spent on digital marketing efforts are getting invested in wrong places, making the advertising efforts futile. It is estimated that in the US alone the ad fraud has ballooned to 6.5 billion dollars in a short span of time.
In short, the advertising space is becoming more and more insecure and trustless. It is gradually moving into a state of demolishing the delicate sense of trust between a brand and its consumers.
If one fails to take an action at the moment, the online advertising practice can simply threaten the longevity and potential reach of the brand, end resulting in great loss to the business.
What blockchain can do in advertising?
Advertisers Can Directly Connect to Consumers. With the no role of a middleman or a broker, blockchain helps the advertiser to directly connect their customer. This naturally shields your promotions from rivals, bots, click ranches and different types of snap extortion. With blockchain, one can totally evade the role of middlemen, make their presence totally irrelevant to the exchange. This simply helps in getting connected to the potential customers in a more direct fashion. Nonetheless, the ledger at the heart of blockchain providers the advertisers, the critical visibility (i.e., an advertiser can apprehend that the individual has viewed the advertisement before making their payment).
Enhanced transparency. Like its application in the realm of cryptocurrency, the most significant implication blockchain conveys to the segment of online advertising is its transparency. The majority of the real systems in this space like Google, Facebook, Amazon, and Apple – have made huge investments however stayed dim and murky. Blockchain with its tamper-proof ledger system can empower the search engine optimizers via confirming that each client is 100 percent certified, which converts into site proprietors being charged only for genuine clicks in their webpage.
In short, taking into the note, the complex architecture of advertising supply chain, blockchain technology can offer greater efficiency, reliability and high-quality data for processing the action. Being decentralized peer-to-peer networks, blockchain eliminates the possibility of failure and malicious hacking in the advertising platform. This will curb down the rising fraudulent activities said a forth. The business organizations and advertisers can relax at their place, that their data are placed safely in the blockchain and are secure. They can stay calm that the immutable ledger of blockchain makes the information only available to those blockchain members, who are the part of the network thus retaining the layer of trust and transparency in the advertising sector.