April 18, 2018
The hype around Blockchain is spreading at an amazing speed. Just in the last few years, phrases such as “Bitcoin”, “Cryptocurrency” have been mentioned a lot in various channels, newspapers and magazines across the world. However, the true powers underlying this technology are yet to be completely explored. While much of the interest is purely into finance and banking industry, there is still a multitude of hidden markets that blockchain could help revolutionize. And a typical market in which blockchain is seen to have significant potential is the digital advertising industry. Let’s discover how this disruptive technology could reshape the whole advertising market worldwide.
Let’s take a closer and deeper look at blockchain technology to better understanding its massive impacts and implications on the field of digital advertising. Blockchain is, in essence, a digitized, decentralized and public ledger that keeps a record of all transactions taking place across a peer-to-peer network. Each transaction is recorded and stored in an orderly and sequential system, thereby creating an irreversible chain of blocks, or a blockchain. The entire blockchain is retained on the large network of computers, meaning no single individual can have total control over it. This makes the blockchain highly secure, transparent and difficult to tamper or modify.
It is inarguable that data is the backbone of the digital advertising ecosystem. However, with the risk of database vulnerabilities, the existing systems show lack of data transparency and privacy, which in turn leads to the sensitive issue of mutual trust amongst users. The advent of decentralized applications built on blockchain technology, thereby, offers a new and revolutionary way to optimize and simplify data storage and management. Databases distributed on a blockchain would be much more secure, transparent and trustworthy as we can easily leverage blockchain to trace back data history. Simply put, in an increasingly data-hungry and data-heavy world, the use of blockchain technology could simplify the data management process, making it easier for users to access and use data while maintaining the security of this source of information.
The fundamentals of customer experience are established in the trusts that customers build in a brand – the trusts of brand consistency, brand promise delivery, product quality and not letting the customers down. In light of that, blockchain logically has tremendous potential to provide greater levels of trust and transparency, thereby helping brands build, accelerate and sustain trust with customers, revolutionizing customer behavior and impacting total customer experience.
Through the effective use of blockchain technology, marketers and advertisers are allowed to interact directly with customers without the need of a trusted third party, leading to a higher degree of influence that brands have over the customers. Also with blockchain, marketers are able to build trustworthy customer database with information obtained directly from the customers, and brands can base on that to further develop accurate customer-driven strategies that will in turn drive more customer trust and engagement. Furthermore, this disruptive technology offers a win-win solution as customers can control the way their personal information is shared and even monetize their own data asset. Such customer identifiable information as demographic information, browsing habits, search details and internet history are of huge significance to advertising companies, helping them shift their focus on just the right customers and develop effective ad campaigns with far lesser costs.
All in all, in the industry that depends largely on customer experience, blockchain holds the key to create great value propositions that drive long-term value and loyalty for customers.
Ad fraud is long ago regarded as one of the top concerns and increasingly serious problems amongst advertisers and marketers, which could end up destroying the entire industry if left unchecked. In this day and age, automated advertising is becoming more and more popular, which can save time and money by freeing up advertising departments that need to be built to monitor an ad campaign. Despite its significant impacts on the business, it sometimes can be unclear when and where exactly the ads should be placed, and vast amounts of money can be wasted if the ads isn’t properly monitored. Stamping this kind of problem out is difficult because the digital ad ecosystem has become more complex and opaque, and use of programmatic advertising has rapidly increased.
Good news is that the industry is fighting back, and one solution being touted is blockchain. Blockchain holds the potential to guarantee the validity of clicks between advertisers and web owners by telling marketers in real time where their ad has been placed and whether targeting is being delivered as has been paid for. It ensures the transparency and a clear audit of interactions and metrics which will benefit both customers and advertisers alike. Put simply, as blockchain provides transparency, it also provides greater returns for those who deliver real value.
Perhaps the most intriguing application of blockchain technology to digital advertising is the use of blockchain to enable publishers and advertisers to buy and sell ads with fewer intermediaries, or even in a direct way. It means that costs will be significantly cut off and the process is no longer complicated and time-consuming.
Infinity Blockchain Labs is a visionary R&D company engaged in intermediary and RegTech services employing blockchain technology. We focus on forming alliances with established businesses and regulatory institutions across various industries, as well as providing collaborative incubation for early stage blockchain projects.
IBL aspires to empower Vietnam to become a global leader in blockchain development and therefore are committed to sharing information to nurture a passionate, educated blockchain community. One of the ways we maintain our role as ecosystem pioneer is by helping create educated blockchain enthusiasts. We are committed to sharing information and resources to help Vietnam become a blockchain hub through conferences, courses, contests, alliances, workshops, speaking engagements and incubations. Information regarding topics like hard forks helps people become more familiar with key blockchain concepts and thus able to adopt the technology.
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