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How Blockchain Technology Is Transforming Digital Advertising

How Blockchain Technology Is Transforming Digital Advertising Published in 2017, Juniper Research’s “Future of Digital Marketing: AI, Ad Fraud, and Ad Blocking” report  reveals that more than $51 million is wasted daily on fraudulent impressions. Another study  by the Association of National Advertisers in 2017 found that over 9% of desktop display and 22% of video spending was inauthentic, demonstrating the extent to which digital advertising industry is compromised. The three biggest problems facing the digital advertising industry are: How to track the effectiveness of advertising The absolute control the digital advertising oligarchy exerts over the market — all of which blockchain technology can solve simply and effectively How Blockchain Technology is Revolutionizing the Digital Advertising Industry The same features that make distributed ledger technology uniquely suited to the optimization of the supply chain industry make it ideal for solving issues plaguing digital marketing. Blockchain’s transparency, traceability, immutability, and efficiency are set to make the digital marketing oligarchy obsolete. Blockchain technology eliminates the reliance on third-party middlemen crippling the current digital marketing industry. Using blockchain-based platforms, advertisers can connect directly with publishers in a completely transparent manner. The ability to transact via smart contracts ensures that publishers will be able to determine precisely what they are paying for and to only pay if smart contract terms are met. Similarly, the transparent nature of blockchain technology eliminates the possibility of ad fraud. Impressions can be recorded on an immutable distributed ledger, making it far easier for publishers to access consumer metadata to improve campaign efficiency. The Gugya 2017 State of Consumer Privacy and Trust report shows that consumers have an increasing understanding of the impact of data security, with 68% of consumers refusing to trust brands with their personal information. Blockchain technology enables user metadata to be completely anonymized, or in some cases, even provide consumers with incentivization for sharing their personal data.

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