Blockchain tech will fight centralized advertising

Blockchain tech will fight centralized advertising (source:

Blockchain technology will revolutionize the media buying industry. All marketers agree that this decentralized encrypted database can make online advertising safer and more transparent. A lot of startup companies have already adopted this innovation.

With the increasing popularity of cryptocurrency, it became necessary to develop a reliable and well-protected ledger. Initially, blockchain was designed for making transactions. This tech is related to Bitcoin.

Now, this invention is broadening the scope of its application. Blockchain-based systems can be implemented in the financial sector, medicine, transport, retailing and online advertising.

Blockchain allows marketers to minimize ad expenditures and improve the performance of promotional programs.

Digital marketing faces various issues. One of the urgent problems is ad fraud. Online advertising sector lacks credibility. Centralized system of media buying industry provides a basis for a domination of big players on the market. Scammers and bot traffic ruin the whole industry reputation. How can blockchain tech help advertisers and publishers?

Blockchain in media buying

Fake app installs, artificial ad impressions are the reasons why merchants lose their money. Besides, mediation services require great investments. It is blockchain that can make the online advertising sphere more cost-efficient and convenient.

Blockchain is an encrypted protected database that consists of different blocks (elements). This sequence has no single control center. Each participant can safely transfer data. These data cannot be distorted since there is a protection from unauthorized access. At the same time, the system is transparent. Each participant of blockchain gets access to the register.

This transparency and reliability allow all players of digital ad market make deals safely. Advertisers are sure that their commercials will be viewed by humans. Moreover, blockchain provides buyers with an opportunity to track the number of times each ad impression was seen, who is interested in the advertisement content, how ad budget was spent, etc.

The use of smart contracts on the blockchain basis is the great opportunity to simplify the cooperation between advertisers and publishers. They can interact with each other without intermediaries.

Let’s look at the example of blockchain implementation. The AdEx platform is developed on the basis of Ethereum blockchain. There is a marketplace where advertisers bid for ad placements and publishers choose appropriate bids. The process is handled via smart contract.

The possibility of direct cooperation between both parties of media buying environment makes many marketing experts sure that traditional ad networks will soon be gone.

Data privacy issues are also obstacles on the way to digital marketing growth. Blockchain can radically change things. Decentralization and security of this novelty allow consumers to share their data with brands and advertisers more confidently. Customers will provide only the information they want to disclose.

That helps brands to build stronger relationships with the targeted audience, acquire more loyal customers and keep them engaged.

Finally, let’s look at the blockchain’s function from the other side. However, blockchain has some disadvantages. Thus, blockchain cannot guarantee the high speed of transactions which is important for the real-time bidding process.

This innovation like any other new tech, requires further investigation, testing, and development.

3 thoughts on “Blockchain tech will fight centralized advertising

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