Challenges faced by the advertising industry
No transparency
Digital ad space is controlled by Alibaba, Google, and Facebook, with 61.2% of combined market share. Some aspects of ad management by these giants are behind the scenes, so advertisers don’t have complete control over their data.
Ad fraud
According to MediaPost, up to 20% of all ad traffic is invalid; of that, 77% is deliberate, sophisticated fraud. Thus, impression data and the insights derived from it can be inaccurate and misleading.
Data controversies
The fragmentary nature of derived data might lead to the situation where different parties — ad platforms, advertisers, publishers — report different impression figures as campaign results.
Brand safety
With volume and speed too great for manual management, programmatic and third-party ad buying can field ads next to unsuitable content that damages brands, incurring recovery costs.
Data vulnerability
Data breaches and thefts stem from a relatively low level of control over who has access to the data, and how the data is used and by whom.
Unstable prices
Digital advertising market cannot go without liquidity. No matter which ad model advertisers use — CPC, CPM, or CPA — they cannot protect themselves against price spikes.
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Get expert adviceBlockchain solutions for advertising from Aetsoft
Direct communication
The distributed nature of blockchain and smart contracts make advertiser-publisher communications direct and transparent.
Trusted data
With blockchain, every piece of ad campaign data is on the surface. You can see who viewed your ad along with conversions and other key metrics — every action is recorded on the ledger.
Verified publishers
Think of blockchain as a highly protected database of publishers where there's a small chance of encountering swindlers when buying impressions.
Security
Single-point-of-failure risks leading to data thefts can now be eliminated, as data on a blockchain network is shared among all participants.
Instant transactions
Smart contracts can streamline advertising transactions, with automatic and instant money transfers to the advertiser’s account upon buying an ad.
Valid impressions
Smart contracts could be used to define the audience impressions should target as well as the number of impressions that count as successfully-achieved campaign goals.
Blockchain applications in advertising
Use case 1. Reduced ad fraud
Currently
Insufficient transparency of ad impression data leaves advertisers in the dark about who’s generating impressions, which makes marketing analysis and forecasting guesswork.
With blockchain
Blockchain provides you with accurate, real-time insights, giving an exact idea about impression sources and guiding your further marketing activities.
Use case 2. Accurate audience targeting
Currently
When it comes to audience analytics, current analytical tools, though insightful, are not sufficient, with some meaningful metrics inevitably missing.
With blockchain
Blockchain provides you with comprehensive data about audience behavior stored in a single database, so you don’t have to gather information across different tools.
Use case 3. Honest prices for ad space
Currently
Due to lack of transparency when making deals, ad purchasers often risk buying ads at unjustly heightened costs without even knowing it.
With blockchain
Smart contracts irreversibly define prices of ad spaces based on specific factors, each reflecting ad performance: views, clicks, impressions.
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