How Digital Advertising Industry Can Leverage Blockchain Tech?February 22, 2018
Digital takes the priority within business advertising efforts. Every company wants to promote itself on different connected devices, but they see the problem of relevance and transparency. Fortunately it can be solved with blockchain technology.
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Just think about this two figures: the total market for media and advertising has grown more than $550 billion (Statiscta.com), and since 2016, more than half of It is digital (PwC). It means that businesses all over the world spend more than $275 billion on digital ads of different formats. The scale of the market brought different platforms to life: now we have bidding platforms, demand-side platforms, supply-side platforms and different programmatic algorithms, which help reaching “the right person” with your advertisement impression.
But the Reality is not so bright. According to GroupM’s research, about 20% of all digital advertising spending are fraudulent or inaccurate. It means that companies usually throw out about $20 from every $100, showing banners to robots and not interested viewers, and just deceivers. That’s why specialists are looking for new tools to make this process more transparent and trusted.
Blockchain can help
How could it happen, that so large amount of digital ads is fraudulent? The problem is in the number of ads. There are about 2 billion impressions per day globally, and large advertisers don’t even have a chance to control or check every banner, every transaction. The problem is quite similar to double-spending, solved for cryptocurrencies with blockchain. The distributed network can help collecting ratings and history-proof information for publishers and every particular advertisement.
The key feature of blockchain for the future of digital advertisement is smart-contract. Customizing impression parameters, such as personal profile, demonstration time, region, gender and so on, you can be sure to pay only for relevant impressions. Blockchain needs no centralized control center, because the distributed network will guarantee the smart-contract is completed. Only in this case the publisher will receive tokens for the banner.
Moreover, blockchain opens the new horizons for your ad campaign monitoring. The ability to store all the advertisement data is the foundation for ROI calculation, checking, clicks, actions, impressions or views. With blockchain-based advertising platforms buyers could get the feedback from internet users, analyzing their further behavior.
ClearCoin is a pioneer
Today there is an example of successful blockchain ads platform already. The ClearCoin (CLR) company operates with Display, Mobile, Video, Native, Social, Audio, Television, Content, and Search Context formats, getting together agencies, publishers and buyers. With their history-proof ledger as a killer advanage, ClearCoin already has more than 10 000 subscribers and got more than $3 mln investments for the development. It is planned that blockchain-based network will work with up to 100 000 impressions per second, protecting clients from the fraud.
One of the large ClearCoin’s clients has already optimized $140 million wasted advertisement expenses. Spending $2 billion for advertisement, P&G now is implementing a new strategy, supporting fair publishers and supporting with their money the blockchain-based platform development. As more and more transactions will be tracked with such systems, the less risky digital advertisement will become. And it is the future of online marketing.
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