To quote Don Draper, “Advertising is based on one thing: Happiness…”. But, unfortunately, consumers aren't feeling that happy when it comes to advertising. Instead, advertising in today’s world has taken on a whole new meaning.
Distrust, skepticism, data tracking, and data selling are the terms associated with advertising today. A significant reason for this can be attributed to the privacy issues caused by Facebook and Google.
Here is where Blockchain can step up and be the knight in shining armor for advertising while restoring it to its former glory.
But first, let’s take a glance at the issues plaguing the advertising industry.
With the advent of digital media, the concept of ad fraud came along too. This primarily consists of bots clicking on advertisements to generate false data, disrupting statistics, and misleading customers.
Lack of transparency is at the forefront of consumers’ problems with advertising. This is because there has been a massive uproar regarding the misuse of consumers’ data over the past couple of years. Major culprits of this have been the top digital corporations, which have impacted consumers’ mindsets about sharing their data and information online.
At times, agencies want to share advertisements over wide-ranging platforms. However, this has a drawback because, in some cases, the ads show up on undesirable channels. This leads to limited impressions and low conversions. But, more importantly, it impacts the brand image in the eyes of consumers.
It won’t come as a surprise to most of you that the advertising industry is highly centralized. The primary reason for this is the popularity of digital advertising agencies, which control the situation by expanding the gap between brands and their target audience. In addition, ad giants and publishing houses like Facebook and Google further rub salt into wounds as we all know how advertising works on these platforms.
In today’s times, the cost of advertising is exponentially high since it involves payment facilitation and the payment for consumer data. The key reason for this is the intermediaries who control the advertising game while acting as the centralized bodies of trust and control.
Blockchain’s peer-to-peer network can step in and reduce costs by eliminating the middlemen. This move would allow businesses to reduce expenses on advertising (lower transaction costs, processing fees, payment facilitation, and customer data costs). Furthermore, Blockchain can also introduce a result-based payment system wherein the amount is only paid if specific predetermined targets are met.
Consumers are annoyed with websites using cookies to track their data under the guise of “personalized content”. But, in reality, advertisers are using this goldmine of data for better targeting of their ads.
From consumers’ perspectives, this scam conveys that they have no control over their private data. Even with the options of blocking and unsubscribing, consumers are not free of tracking. Well, unless they choose to stop using the Internet.
Using Blockchain technology in this scenario would provide consumers with greater control over their data. This can be done with the help of the public and private keys in Blockchain. These mechanisms ensure only authorized users can access specific information.
Hence, in this case, advertisers would require consumers’ explicit consent for using their data. To make things easier, advertisers could also reward or compensate consumers for sharing their data. Furthermore, this would also help in gaining consumers’ trust.
Blockchain’s innate ability to trace information in a trustworthy manner will allow advertisers and ad agencies to make smarter choices when targeting the correct set of audiences.
Since digital advertisers had access to a large volume of consumer data, they ran inconsistent campaigns across numerous channels. This may have resulted in positive ROI in the initial stages, but it isn’t a suitable strategy in the long run. For example, only 15% of the entire campaign may have contributed to 80% of the sales, resulting in 85% of the ad spend going to waste.
With the help of Blockchain technology, advertisers can examine the performance and data to carry out optimization algorithms to maximize ROI and sales. Using this model, advertisers can select the optimal communication mix based on their target audience.
In addition, advertisers can also improve ad effectiveness by deciding the frequency of the targeting. Here Blockchain can be employed to record and track each ad that is shared with a unique customer. This method of optimization advertisements can be utilized across a plethora of digital media. At the same time, it provides advertisers with relevant insights about consumers.
Blockchain can also help in drastically reducing ad fraud. With the help of Blockchain-based decentralized platforms, advertisers can examine the ad journey while blocking apps and sites with high bot activity levels.
This would help advertisers reduce wasteful spending by diverting money towards better-performing websites.
Blockchain can completely revolutionize digital media while providing greater transparency, visibility, efficiency, and a dedicated focus on data privacy.
And the beauty of Blockchain is that its use-cases are wide-ranging. Just ask us! Whether in advertising, travel, or even banking, we are the best partner to elevate your business with Blockchain.