How is Blockchain Technology Improving Digital Advertising?
Today’s product marketing is data-driven, and marketers are relying more on big data to study consumer behaviour, marketing trends, current demands, and the overall business environment. The data collected comes from multiple sources, with a big chunk of it directly from consumers. This method is working for marketers, but there is a growing concern about data security for companies.
The techniques used to collect data and its sharing or processing tend to drive consumer concerns. To help create a balance and address user concerns, digital marketers believe that blockchain technology will provide much-needed solutions.
So, how is blockchain technology improving digital advertising? Let’s find out.
Why bring blockchain technology into digital marketing?
Before digital marketing took centre stage in the product marketing field, the playing ground was smaller and more localised within restricted geographical regions. Advertisers could use local radio stations, local TV stations, roadside banners, and other forms of print advertising, which only made a difference within a state, nation, and sometimes even a town.
About two decades ago, the internet was taking shape fast, and its influence in the marketing field began to be impactful. A few years later, social media technology, SEO marketing, and ads by search engines evolved considerably. The more prominent tech companies had a tremendous advantage in digital marketing against smaller companies.
There were wide discrepancies between big tech companies and the upcoming ones. Upcoming advertisers began to seek alternatives to advertising, and complaints about data inflation, manipulation, and exaggerated profits by the big techs rose.
Due to greater demand for transparency and the need to have better control of the marketing industry by smaller companies, the most tangible alternative was blockchain technology, and that's how blockchain was brought into the digital marketing field.
Have the middlemen played a fair share game?
According to a business and technology essay help site, marketers rely on intermediaries to publish their advertisements and share the profits. The marketers look for business, create ads, and launch targeted campaigns to increase ROI. On the other hand, the middlemen only provide the adverting platforms and publish the adverts to create a worldwide presence.
There have been issues of insincerity by overstating viewing metrics and the use of non-genuine bot traffic, yet marketers pay for them. All these illegalities can only prove one thing - that the middlemen have not been playing a fair share game.
The solution is to have a decentralised network that creates a separation between marketers and the middlemen. Blockchain technology provides a solution where marketers bypass the middlemen and directly publish their ads. By so doing, they will do the caching, generate statistics, log the clicks and leads. Ultimately, this protects them from ad fraud and unfair game in profit sharing by social media (ahem, Facebook) and search engine giants.
The dramatic effect of a blockchain solution for digital advertising
Elimination of bot traffic and unfair middlemen
Some unprofessional middlemen had infiltrated the digital ads industry and defrauded marketers millions of dollars every year. A recent report by Buzzfeed news gave alarming news about eight men charged by a US court because they had obtained millions of money from fraudulent digital advertising activities.
The FBI indicted them after working with a group of companies specialising in cybersecurity, technology, and advertising. Digital advertising capitalises on advertising done on mobile phones and computer ads.
Some middlemen have not been faithful to the marketers, and they have been using bots to generate fake clicks, views, and impressions. They create reports afterwards and send invoices to marketers based on those fake leads.
A digital marketer might not have a way to know if a bot or real human beings generated the clicks and impressions because the system is opaque.
In direct contrast, blockchain technology is not opaque but provides a transparent system instead. Adopting it will eliminate the fraudulent go-betweeners and loss of money from bot-generated clicks, impressions, and views.
Use of multiple payment methods
Traditionally, methods of payment for online advertising have provided limited options through various negotiable instruments. For many years, the middlemen have dictated the payment method favourable to them without considering whether it is good for the advertiser.
Globally, cash remains the oldest and the most widely used mode of payment. Cash payments have been widely accepted as a safe mode of payment because the advertiser and the publisher settle the deal when both are present. The payer confirms if the cash is genuine and then publishes the ads.
The greatest disadvantage of cash is bulkiness and security while carrying it around. The introduction of debit and credit cards helped solve the challenge of carrying bulk cash and the risk of theft or fake cash. Advertisers took advantage of this mode and received or made payments using checks, credit, and debit cards.
The more recent modes of payment are mobile payments and bank transfers. Each method has its pros and cons with some having a devastating effect on advertising businesses. The latest payment method through blockchain technology has provided better and safer payment modes.
Advertisers and publishers no longer need to worry about fake cash, checks that cannot be cleared, fraudulent cards, identity theft, and scams. Blockchain is a transparent, highly secure method of payment compared to traditional methods.
Better solutions for ads tracking
Advertising companies follow up on their ads to know their performance and effectiveness. They also collect more data to help them prepare for the next ad campaign. The most common ads tracking method they use is cookies as the primary method.
Other standard ad tracking methods used by advertising companies are tracking pixels and unique tracking URLs. The collected data help advertisers know the level of interaction their ads receive across the internet. The data is afterwards analysed to help create another effective marketing campaign.
Better data security and quality consumer data
Companies use three methods to obtain data from websites and social media. They may request users to willingly provide them with information, use tracking methods with or without user knowledge, or acquire data from data harvesting companies. This is where data security concerns have remained a hot topic.
Currently, internet users seek to control their personal data, no longer wanting to submit information to one company to then start getting ads from another without receiving any benefit from this.
Blockchain technology will bring a paradigm shift in customer data security and its quality. Users will control who to share their data with and even charge if their information is used for advertising purposes. Data will be quality because consumers will get information or ads only if or when they are interested in that company.
It will help provide accurate and targeted information. Users will also know who is using their data and for what reasons. It will be a decentralised, secure system where every player gets a fair share from advertising, unlike in the scenario where publishers and marketers get the whole stake.
With the advanced technology blockchains operate with, it's evident it's the future of marketing. How is blockchain technology improving digital advertising you ask? Blockchain tech helps SMEs compete favourably with established larger enterprises, reducing the cost of advertising while increasing transparency. Additionally, there’ll be higher levels of customer satisfaction as their data is more securely transmitted through an authentication process. It certainly seems the future of digital media advertising lies in blockchain marketing.
About the Author:
Charlie Svensson works for RushEssay as a freelance writer. He covers various niches, including marketing, business finance, blogging, education, self-growth and technology.
The above references an opinion and is for informational purposes only. Do not take this as personalised financial advice or investment advice. The views expressed by the author do not necessarily represent the opinion of BitPrime.
Last updated: 11/11/2021