Can Blockchain transform advertising?

Blockchain is a digital distributed record-keeping system on which tokens are stored chronologically and publically. Let’s break this definition down.

Digital- Blockchain is online and is always accessible.

Distributed- Blockchain is located in a collection of locations rather than one central point. This means that if one computer goes offline, the network is still fully operational.

Chronologically- Blockchain data adheres to a strict time principal which allows for auditing and traceability of entries.

Publically- Blockchain is open for everyone who has access to such a network to view.

One application of Blockchain, cryptocurrencies, especially Bitcoin dominated the airwaves in 2017. 2018 is set to see a recession in the overall hype of crypto investments but one application is sure to deliver real value.

Advertising is a very mature market which saw its golden age in the 1950s. Advertisers were viewed as maestros as they wove their copyright symphonies into the appetites of eager listeners and watchers. One only has to think of the suave Jon Hamm who played Don Draper in Matthew Weiner’s Mad Men series that took the world by storm. The industry has moved on since then and some may say there is a lack of trust with consumers and a lot of the technologies are ripe for change.

Blockchain could help alleviate some of these pain-points. Let’s take a look at how this will happen.

Cut out the middleman

Today, advertisers rely on a broker in the form of an advertising network, to connect them with channels who are willing to display their ads. Someone has to pay these middlemen for facilitating the connection. With Blockchain, since there is no middleman, advertisers and publishers can save on commission by pairing up with each other directly. This will work by an advertiser simply publicising their work on such a network. It will be automatically picked up by a publisher who has set certain criteria with regards to the types of subject matter they are willing to publish and at what cost.

Better audience targeting

Audiences will even be able to take part in specifying what kind of material they see. By voluntarily providing their personal information and preferences, the audience will receive better targeted ads. This will be welcomed by advertisers as it means their work is submitted to interested parties and they are throwing away less money in wide broadcasts.

The Basic Attention browser blocks ads through smart contracts

Fraud Prevention

Blockchain is built on cryptography. This means very advanced encryption is part of its DNA. Today advertising is besieged by click-farms and bots. With better security built into the system, artificial hits on an ad will be a thing of the past as cutting-edge analysis systems may even be powered by artificial intelligence.

Providence will be sexy

With consumers becoming more and more interested in ethically sourced goods, supply chain will become an advertising channel. Thanks to the chronological and open nature of Blockchain, it is possible to register a good’s journey from sourcing to manufacturing and sale. Users need only to scan a supplied barcode to view an immediately verifiable record of a goods providence.

Rounding it all up

Disintermediation is more than just a buzzword for anarchists and libertarians. It’s the future and it’s here now. It will usher in true democracy as well as cost savings and the streamlining of processes. Here’s to the second golden age of advertising, here’s to Blockchain.

Do you have a differing opinion on Blockchain for Advertising? Are you working on a platform in this space? Leave a comment.

This post was written by Ade Molajo a Blockchain- Speaker, Writer and Consultant.

For more info, follow me on Medium and check out my site for services AdeMolajo.com.