Written by Shivashish Yadav on   -  6 min read

How Blockchain changing Marketing and Advertising? Explained.


Cryptocurrencies, and especially Bitcoin, is a solid technology. Behind all of this technology is blockchain. I know most of you already probably know what blockchain is. I'm going to quickly explaining what is blockchain for you.

Essentially a decentralized unhackable database where everyone has a copy of the same database. there's no middleman. it's programmed to record, not just financial transactions like Bitcoin. But virtually everything of value. That could be an ad deliver, contract, signed music, records of the hospital. Any of these transactions will be recorded in the blockchain and everyone has access our copy of the same database.

So why should we care, or what makes blockchain a unique technology?

There are a few massive pains in marketing advertising, where blockchain is uniquely positioned to help these issues quickly. Our data collection and privacy at fraud, data quality and reporting, integrity, display ads, and how annoying they can be. Also at delivery frequency on timing. let's break these issues down and see how blockchain could be the solution for some of these.

Ad Fraud

One of the big issues for brands and publishers in ad space is the lack of transparency and accountability on how ads dollars are being spent. Ad fraud is common, a lot more common than I thought. It costs markets millions and billions of dollars each year. Forrester reports that 56% of all the display ad dollars were lost to fraudulent inventory. In 2016, the cost of AD fraud in 2018 alone is expected to reach $20 billion dollars and that's about 40% of Facebook's ad revenue in 2017. Point here to be noted, Facebook is the second-largest ad platform in the world.

Almost 50% of ads on IE were for non-human traffic. In 2017 major brands and big ads vendors like PNG. Cut their ad budget because their agency camp the transparency and reporting they needed.

So blockchain potentially end this. It can make advertising more transparent by validating and analyzing every consumer's journey through verified ad delivery. Confirming that he is real person and not a bot. So the ad marchers could control how their assets are being delivered. Monitoring exactly how their ads are being placed, ensuring proper ad engagement tracking which will lead to better attribution and efficient ad spending overall.

Display ads efficiency

Another enormous problem in the marketing advertising space is that everyone hates ads. Most ads maybe not the cool, expensive, super ones. Right? But we all hate ads. Display ads, YouTube ads, no one likes ads. Right?

There are too many of these ads out there, and the reason there are too many of them is that marketers don't really know what we want. Even they don't know what stage of the buying process we are. So there is a saying in marketing, ** you know, let's throw it at the wall and see what sticks. Guess what the wall is? The wall is you ** Marketers throw it at you and see what works or what doesn't, and that's how it works. Nowadays, in this data-driven world. This is what they do. The problem in fits itself when you see the same display ad for some brand following you from one website to another. Even though you already made a booking for the same hotel 3 days ago. I'm sure we've all been there. Right?

This is where blockchain technology can come in and prevent the same display ad from being over-served to anyone. Ensuring that optimal frequency of ad serving for each consumer. There are some serious flaws in display ads. The way it is from the perspective of advertisers. They can be expensive, low engagement, complicated to understand and manage. Also the inventory is only limited to two companies.

were primarily limited to two companies, its Facebook and Google. The issue is display ads from the user's perspective is known to all sides. Display ads are intrusive and knowing, and everyone hates them.

Brendan Eich the creator of JavaScript and co-founder of Firefox. Founded a blockchain start-up to tackle exactly this problem. He founded the brave blockchain browser and BAT, which stands for Basic Attention Token. And the goal here is to change the way users interact with that brave, and that simply breaks up the card monopoly on their advertising, by allowing publishers' advertises to trade on the value of user's attention. While also compensating the users using the BAT token. Users also get to choose which ads like and get the categories they like.

It's a win-win for all parties, marchers get better at performance data. And targeting publishers to get better revenue and control over them. That has the display users get a less good ad quality, and they also get compensated for their attention. And their data is also encrypted. In the blockchain, this kind of advertising utopia could make marketers think more about their ads, whether or not consumers really like it.

Data Collection and privacy

Data collection and privacy access the internet to go through traditional gatekeepers. Such as ISPS, web browsers, and social media platforms. These companies can learn almost everything we do online. From the sites we have been through, the content we read and who we are talking to. We're a little naïve in the past decade, thinking that these good young tech owners always have our best interest and provide us fair access and protect our data. But oh! This is not the case, and unless you were under a rock. I'm sure you've heard of the data breaches of Cambridge analytic and how our personal data can be sold and used by different parties.

Blockchain could be a solution for this. A good example of a blockchain startup trying to solve the data privacy problem is BLOCKSTACK. It's a network built on blockchain and introduces itself as the new Internet for decentralized apps. Because it is built on the blockchain. Your personal data remains with you instead of existing with a platform or a server somewhere. So visiting a site or using an app is like inserting a key into a lock. You keep your personal copy with you at all times, and once you place it into a lock. You can take it out whenever you want, and you give each and every app the access whenever you need to. So BLOCKSTACK essentially gives data ownership back to the user. Consider how marketing would change. if marketing didn't have that easy access

it's important to remember that some of these scenarios are for cases and early stage technology that is still under development. Blockchain, though, is here to stay. Some of the brightest minds are working on this space.

Many companies are building blockchain teams and many startups are raising a ton of money in the space, and blockchain is here to stay and will certainly impact marketing and advertising.