Fair and square: how blockchain will make advertising closer to consumers
According to the forecast of Juniper Research, funds that advertisers will have spent on unseen online ads by 2020 will equal to $27 billion. Why do people refuse to view content for the publication of which companies pay millions?
There are many reasons for that: most often ads are intrusive, low quality, and shown dozens of times. However, what to do with the useful advertising content that is still blocked?
Blockchain can return the interest in advertising without additional costs. Read further in the article how companies use the technology for marketing purposes.
How blockchain fights bots
The problem of up-to-date advertising platforms is that their audience can appear to be not real. The detection of Methbot in the late 2016 showed the enormous scale of click fraud – fake ad clicks. When bots click ads instead of real people, the digital advertising industry annually loses around $7 billion.
The platform of Data & Marketing Association and MetaX called adChain with a number of open protocols based on the Ethereum blockchain system is already dealing with the problem. It contains a register of white websites and publishers that do not apply fraud schemes when placing ads.
The project relies on the main principle of blockchain – decentralization: not a single organization can control the list of websites. In such a way, only the voting of members of the adChain community confirms the ‘karma’ of a portal.
Blockchain incentivizes users to view ads in exchange for bonuses
Time is money and users do not want to present it to advertisers. What can incentivize them to view ads?
Brave was launched in 2016 and uses the embedded ad block function and a blockchain-based payment system. Its operation principle lies in the following: users can turn off all ads in the browser at any moment. However, if a user likes an ad, there is a possibility to thank the advertiser with a donation.
At the same time, users will also receive rewards for viewing ads in the form of BATs (Basic Attention Tokens) that can be spent inside the system.
The idea of Brendan Eich was taken with enthusiasm: Brave conducted the first ICO in May 2017, raising $35 million in 30 seconds. The event has become a precedent in the market.
Statistics without intermediaries: how users leave personal data on blockchain
A separate source of major concern for marketers is the analysis of the audience. Of course, before the ad placement, any media platform provides statistics about the site attendance, the availability of the target audience loyal to the brand. However, how to check this data?
Thanks to blockchain, consumers and companies will have a possibility to exchange personal data without intermediaries. For instance, Synapse is one of the platforms where consumers can sell their data for SYN tokens, and companies can track data about specific users. All of it is done by agreement of the parties.
Iris is another blockchain-based platform intended to sell data related to the health of users. Such a project can help not only marketers, as government-owned companies will have a possibility to receive data about the health of residents, diagnose and prevent many diseases.
Blockchain can make data more accessible and transparent. Thanks to the technology, ads will be shown to real customers. Intermediaries that provide statistical data will not be able to fake it. What is more important, both advertisers and potential customers will be interested in ad views.
Speakers of Blockchain & Bitcoin Conference Kyiv will tell how to use blockchain in business efficiently in the capital of Ukraine on September 19.