Today we will take a detailed look at the prospects for the development of blockchain in the advertising business and the features of this technology. Let’s get acquainted with digital advertising tools that are developed by major manufacturers and used in the field of Internet marketing.
At the moment, there is a great demand for blockchain technology in the modern advertising industry, which has been used in Internet marketing for a little more than a year. Now the debate about this new technology in the press and the media is not abating. Gradually, blockchain technologies have found their application in the advertising environment, but experts already predict that such technology can radically change the entire market: the effect of overpricing will gradually disappear, intermediaries will take a back seat, and it will become more difficult for fraudsters to implement their schemes via the Internet.
What is the blockchain market?
The blockchain market was formed not so long ago – it started in 2012. The development of the technology began with a few deals and a small investment. However, already in 2016, investment in blockchain technology reached about $ 550 million, and as investors were the giants of the digital technology market: Google Ventures, Andreessen Horowitz and other large companies. Blockchain technology is actively used in financial enterprises. The main goal that all participants pursue is to quickly update data and the entire infrastructure.
Blockchain is a great opportunity for large financial enterprises to get secure databases that contain information about credit obligations and transactions, as well as other data. Blockchain technology allows you to store a large amount of information, as well as use it for commercial purposes.
If we talk about the main points of the blockchain, we should highlight the following facts:
- A blockchain is an information storage system where all data is located on network computers (in normal databases, they are located on the organization’s server). If even several computers on a shared network are hacked, it will not interrupt the operation of the shared network.
- Blockchain has an important ability to record any events that usually need to be certified by lawyers or other authorized bodies. The basis of the technology is to form a data chain, where each element has its own unique key. At the same time, you will not be able to remove individual components of this chain yourself, as well as redo them (if their authenticity is confirmed) – the block is fixed in the system forever. Before a block is recorded, all participants approve the entry.
A good example of using the blockchain system is a new technology for passing passport control, which is intended to be implemented in the UAE. In Dubai, passengers will be checked using digital blockchain passports – identity compliance will be checked using a scanning system when leaving the air transport.
How do you plan to use blockchain technology in advertising?
At the moment, a number of tools based on blockchain technology have already been developed that allow you to cope with most common problems in the advertising business. The article below will discuss the most popular and widely distributed ones.
Not so long ago, a special digital advertising platform adChain was developed, which is designed to protect resources from more fraudulent schemes. Every year, digital advertising is attacked by fraudsters, so more than half of all traffic is generated by robots – in this regard, a large number of advertisers lose a large amount of invested funds in promotion (about 7-8 billion dollars) during the year. To reduce the risk of loss of investment, the adChain platform was developed – it allows you to increase the reliability of digital advertising.
The adChain program includes a large number of open protocols that are linked using the blockchain system. At the moment, experts are developing the first protocol registry. It will mean a rating of useful and safe sites where you can place ads without the risk of falling into a fraudulent scheme. This registry is based on blockchain technology, which is a complete decentralization of the system. A specific organization cannot control the list of sites. In this case, the list itself is determined by a vote of all participants in the adChain network. In the future, it is planned to develop other protocols, the function of which will be to verify and identify advertising campaigns, as well as to monitor malware.
Using BAT tokens
Another tool based on this technology is the Basic Attention Token. It is a unit of communication between multiple platforms and specific users. If the platform has received enough attention from its users and the content of the site is interesting to users, then the site is rewarded with tokens. This tool was the next step on the way to creating a full-fledged digital advertising system. The first stage of using this system was the browser from Mozilla and Firefox – Brave, in which the security and information protection block was already added. The main function of this invention is to block programs that collect user data, pop-up unwanted advertising, and the ability to maintain the confidentiality of user data.
The Brave browser and BAT tokens should work together, and the scheme of their work should be as follows:
- The browser program collects information about the user and their resources;
- A person receives only safe and verified ads that are viewed by the Brave browser;
- If a user views a recommended ad, they are rewarded with tokens that can be exchanged for useful system functions in the future;
- Platforms that place their ads can legally earn money without fear of losing money due to fraudulent schemes, and companies also have accurate data about their expenses.
Mass Network online advertising platform
This tool based on blockchain technology is SOFTWARE for both ordinary users and platforms and companies. The main function of this digital tool is to stop spying on user data and restore justice in the online advertising market. Using this tool, you can block unwanted ads, as well as view only relevant ads – access to this technology can be obtained for providing personal data to the system (payment is made at the expense of the Mass Coin cryptocurrency system). The entire withdrawal system is based on a blockchain system.
What areas are considered the most promising for blockchain?
The tools of companies that have made a significant step forward in the development of blockchains were discussed above. Which of the areas is considered the most attractive from the point of view of the development of the innovation system:
- Experts say that the synthesis of big data and blockchain will lead to the development of the Internet advertising market: this integration will allow you to get complete information about the user’s needs and preferences, while maintaining confidential information.
- The ad purchasing system will go a long way. The blockchain system is also able to make advertising contracts clearer and more transparent, since programmatic purchases also depend on the quality of traffic. With the help of this system, you can identify the user, as well as check their reality. However, the role of intermediaries should also be mentioned here – since platforms and advertisers can enter into contracts directly, there will be no need for the services of advertising agencies and exchanges. This can lead to the decline of the industry.
- The blockchain will allow you to store information about the client’s activity, as well as about their interaction with the platform. The system will store the transaction history of funds, the results of the site and the analysis of advertising effectiveness, as well as other useful information.
Does the blockchain system have a future in advertising?
The development of blockchain technologies can affect the future life of the world of Internet marketing and advertising. At the moment, it is a tool that will allow you to create a secure and secure data system that both the user and the advertiser can trust. A common language is used for all participants.
If we consider the near future, then within a couple of years the blockchain will actively join the system of programmatic purchases. Integration of the two components will protect you from a large number of fraudulent schemes and quickly collect and store the necessary information about consumers. If you make a forecast for several decades ahead, then most likely the system will have an impact on all marketing and advertising tools that are based on database analysis. The most striking example of such marketing communications is the creation of a loyalty program, as well as auto-ordering purchases. Perhaps in the future, the human factor will be completely eliminated.
At the moment, experts see the technology’s prospects in Internet marketing, but now they are trying to apply it in other business areas. Existing tools are still raw enough to evaluate their effectiveness. Not all experts trust the same adChain system, whose actions are based on the vote of several participants.
There are a lot of opinions about the future of blockchain in the advertising industry, but now all experts agree that this is a completely new system that is designed to solve many problems in the information environment, although not everyone understands how it can be used. If you use all the features of the blockchain efficiently, then in the future this technology will allow you to influence the process of forming the optimal price for services, as well as ensure high quality of traffic and advertising. Modern companies that are actively developing in the digital environment need to pay attention to this technology right now in order to easily join the new digital marketing system based on blockchain in the future.