Blockchain technology is nothing new, in fact many attribute it’s creation to Satoshi Nakamoto a decade ago. But the truth is that the idea of a blockchain has been around since before this, even. Yet many are only just becoming familiar with the term blockchain, primarily due to the recent explosion of Bitcoin’s price around the end of 2017. Whilst the financial sector has become and obvious use case for blockchain technology and more specifically Bitcoin, there are a vast number of use cases and industries can could benefit from this now well-established technology, not least of all the advertising sector. So, here’s a few ways how
Distributed Trust & Fraud Prevention
By putting all interactions on the blockchain, this information becomes irreversibly encrypted and distributed across a network of nodes. This means that trust does not have to be put between two parties i.e. one party does not have to trust the other party that the interactions with an online ad, for example, are true. If one party attempts to falsify and ad interaction, the network would reject them and therefore the ‘true’ interactions remain reliable.
By having these interactions written on the blockchain companies will also be able to accurately pin down who is viewing their ads allowing for a more accurate re-targeting strategy and potentially saving huge amounts on ad budgets.
Improved Targeting and Engagement
It’s no secret that advertisers have invested greatly over the years in finding new ways to gain user data and improve audience engagement, in order to allow them to get the right message to the right person at the right time. BitClave are a start up, working on a decentralised search engine that compensates users for ad-interaction and also sharing their data with the companies that are advertising rather than the advertising middle-man. It’s an interesting concept, but it’s adoption is yet to be seen…
Buying & Selling Adspace
Finally, and possibly the most disruptive way that blockchain technology could change the sector is by changing the way in which ad space is bought and sold. For years now, the model has existing whereby all media space is bought through a centralised body. Kochava is a company that is looking to disrupt this with their XCHNG platform.
Their aim is to utilise smart contracts to allow the buying and selling of ad space to happen directly between 2 parties, cutting out the centralised middle man. The process will allow buyers and sellers to agree terms and seal it up in a smart contract which will then effectively automate the payment once the terms of the smart contract are met.
Watch This Space…
The advertising sector is one of the oldest sectors around and so needless to say disrupting it will prove extremely difficult with many player having no incentive to adopt any of these changes. Watch this space…