4 Ways Blockchain will Disrupt the Traditional

adtech Ecosystem

The most important change to adtech? Blockchain cuts

out the middleman

The blockchain is the new champ in the ad tech ecosystem. Best known for

backing popular cryptocurrencies such as Bitcoin, the forward-looking

technology today is making noticeable inroads in the ad tech space.

Let’s start with a brief on blockchain first before moving onto how this

technology could positively affect the ad tech space:

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What is Blockchain?

Blockchain, basically, is a globally distributed ledger. Each participating

member has a first-hand account of the transactions conducted, which make

the entire process transparent and accountable. The best part is that the

database can be built upon but not changed.

All these incredible benefits make Blockchain a technology of choice for the

ad tech ecosystem.

The 4 major benefits that inspire ad tech world to bet on Blockchain:

Excellent Value for your Ad Spends

In the digital advertising world, the middleman runs the entire show – be it

buying or selling ads – and in return demanding a huge pound of flesh for

the services rendered. Which means, the website owners and publishers

don’t make much in terms of revenue for their ad spend.

Spooked by the unfairness of the situation, publication houses have time

and again, though off-record, spoken about the need of cutting out the

middleman and dealing with the advertisers directly by setting up in-house

ad exchanges. According to a Forrester rep Michael Greene, publishers

owning ad exchanges witness a significant rise in their C.P.M. rates – from

about US$1 to up to US$5.

Unsurprisingly, publication behemoths such as Forbes and CNBC Interactive

have finally decided to walk the talk by establishing their own in-house ad

exchanges. These newly set up ad exchanges focus on selling lower-priced

ads that get run at the bottom of the web pages.

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Now, with Blockchain entering the ad space arena, companies without ad

exchanges also stand to gain as the technology enables both the publishers

of the ads and the advertisers to directly deal with each other, doing away

with the need for middlemen.

Further, the technology is so advanced that it helps advertisers audit the

audience's attention before the cryptocurrency exchanges hands.

The Brave browser, for instance, leverages “Basic Attention Token” (BAT)

that enables advertisers to calculate payment based on the “mental effort”

applied by the person viewing the ad. This means advertisers get real value

for the ad money spent.

Harnessing Trust and Transparency

The Economist refers to Blockchain as the “trust machine.” Why? Refer to

these two interesting real-world scenarios.

Scenario 1 : While dealing with Low Trust Economy

As per 2018 Edelman Trust Barometer, trust in US institutions, including the

government and media, is imploding. Richard Edelman, the CEO of the

company that produced this report said in a press release that,

“The United States is enduring an unprecedented crisis of trust.

And the ultimate irony is that it’s happening at a time of prosperity

with the stock market and employment rates in the US are at

record highs.”

Enter blockchain. This highly advanced technology, referred to as

trust-machine, helps in identifying verification and management by helping

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you look into the facts of the matter, and thereby determine the

authenticity of the claims.

Picture this: You bought an expensive Tag Heuer watch online, only to find

that the watch was fake. No more. Blockchain’s digital ledger system

ensures every item that passes through its supply chain is tamper-proof. In

other words, buyers can easily find out about the product origin, whether

it’s legitimate or faux, regardless of whether they have been brought online

or offline.

Companies, like the fashion line Babyghost, leverage blockchain to help

customers verify the products’ authenticity by enabling them to scan the tag

of the Babyghost item. If that was not enough, customers could even see

the ‘story’ in terms of place of origin and who previously modeled the

products. Such ingenious use of technology allows customers to create a

personal connection with products.

Scenario 2 – Dealing with Bots and Hired Traffic

Yet another crippling issue that advertisers are facing today while dealing

with online advertising is that it’s almost impossible to know whether the

incoming traffic stats are accurate. Thanks to the profit-driven, manipulative

practices adopted by ad companies, bots and hired clickers are shooting up

the stats.

According to an Entrepreneur post, nearly 50 per cent of the ad traffic

comes from bots. All these bots and hired traffic cost brands US$16.4 billion

last year.

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Step in Blockchain. The technology is encrypted and transparent, which

makes it easier for companies to verify that those viewing the ads are part of

their target audience, saving millions in ad spend each year.

Public Scrutiny of Corporate Social Responsibility

The term Corporate Social Responsibility (CSR) sounds good to the ears. But

then, most companies don’t keep up with their CSR goals, thanks to the

noncommittal ways of the executive level managers who are actually

entrusted to run the program, while the CEO’s engage sporadically.

Unsurprisingly, such inconsistencies are deliberately and swiftly swept under

the carpet, given that it does not overly affect the profit margins of the

company.

This is where a blockchain technology could be made useful, in terms of

verifying CSR goals. Blockchain ensures that there’s no room for fake

promises and vague numbers as the programs and progress get documented

in a shared ledger. Which means each and every step taken with regards to

your CSR activity is open for public scrutiny.

Put another way, the public themselves can make sure that corporations are

taking active steps toward fulfilling their social responsibility goals, in

keeping with their promise to promote greater justice and equality in the

world.

Better Targeting of Audiences

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Usually, advertisers gather information about customers via various sources.

One source might reveal the age and sex. The second source reveals the

salary. The third source might tell them about the best dining places they

visit and so on.

The bottom line? It’s difficult to gain all the required data from a single

source.

This is where blockchain comes into the picture. The technology enables

customers to collect all the required info directly from the customers in one

swoop. This allows businesses to market products as per customers’ needs

and spends calculatedly only on those customers who are likely to buy the

product.

Future of Blockchain

The breakthrough technology is sure to unfold an array of opportunities for

marketers who are ready to change with times and are willing to experiment

all the same.

Find top blockchain chain technology companies who’d help chart out

different growth strategies that would give you an edge over the

competition.

Sure wide-scale adoption of this technology may take some time, but then

being prepared beforehand will help you stay ahead of the curve.

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