Modern Economic Nonsense — Crypto is changing the advertisement business
The digital advertising industry is growing fast. The combined global market is expected to reach $232 billion by 2020, according to Statista. And with the rise of social media and digital content, advertising has shifted from traditional TV ads to online ads, such as those that appear on websites or in mobile apps. In the last two decades, digital advertising has grown rapidly. In 2018, advertisers spent a staggering $123 billion on online ads (excluding video ads). Moreover, the increasing popularity of social media platforms like Facebook and Instagram has led to an increase in influencer marketing and native advertising as well. However, at this point and time, there are many issues with current forms of advertisement, from trust and transparency concerns (with regards to users being tracked for targeted ads) to a general annoyance factor among consumers due to over-exposure. This is where Blockchain technology comes into play. With its ability to create trustless networks and tokenize almost anything
What’s wrong with the current state of advertising?
The biggest issue with the current state of advertising is that users are not given an option to opt in or out of receiving ads. In other words, if a user searches for a certain product online and clicks on an advertisement, he or she is being tracked and profiled for targeted ads. This means that users are then shown ads related to their interests and online behavior and are not compensated for this. This lack of transparency and user consent is what has led to a general user distrust of online ads. According to a study by the Pew Research Center, 51% of U.S. adults have “little to no trust” in the ads they see online. This distrust is due to the fact that most users are not aware of how their data is being collected, who is collecting it, and how it’s being used.
Consumer data is being collected without consent
Another major issue with the current state of advertising is the issue of user privacy and trust. There is a general misconception that data privacy is being protected when in reality, it’s not. While advertisers can track users’ online behavior, they cannot track the actual identity of the user. This…