Introducing Blockchain for Efficient Decentralized Digital Advertising

Published : Oct 11, 2019

  • Advertisements are always crucial for businesses, whether they are digital or traditional. They assist businesses to effectively introduce their products and services to a diverse audience range. They also enable users to find appropriate products and services that make their lives simple and better. However, there a few challenges within the digital advertising industry that make it ineffective. In this blog, we will explore how blockchain technology and its applications can address digital advertising challenges.

    Current State of The Digital Advertising Space

    The state of the global digital advertising industry is far from being perfect as it faces several issues. The ad-tech is centralized, and giants like Facebook and Google control it. Another challenge is the use of user data for targeted ads while infringing on their privacy rights. Besides, intrusive and invasive ad formats plague the consumer experience, instead of benefitting them. Users have also found ways to deal with them with ad blockers. Here, blockchain app development services and solutions can resolve these digital advertising industry challenges. It provides a platform to create new revenue models and improve existing processes with trust, transparency, and security.

    Let's take a look at how Blockchain empowers the digital ad space with its potential.

    Also Read: How To Become The Digital Advertising Industry Leaders With Blockchain Technology

    Blockchain: Bringing Everyone in Power

    It is necessary to understand technical aspects beforehand to realize the potential of distributed ledger technology like blockchain in digital advertising.

    Blockchain is a digital ledger that provides a secure way of making and recording transactions, agreements, and contracts — The Guardian

    Essentially, a blockchain application is a software that runs atop the blockchain technology. A blockchain-based app conducts transactions that a digital ledger or database records in a shared, distributed manner. It establishes decentralization that lays the foundation for end-to-end trust, transparency, and security in the application network. It also increases the efficiency and growth of business operations with smart contract technology. Smart contracts operate as automated transaction validators that replace the need for intermediary transaction authenticators.

    If we apply blockchain applications in digital advertising, it can bring many transformations in its traditional processes and provide an all-new marketing space.

    Capabilities of blockchain applications in digital advertising

    Ad Buying and Selling

    Advertisers and consumers lack meaningful connections between them. Advertisers have less information about the audience they are targetting. Consumers don’t know how third-parties use their data without their consent.

    Blockchain reinvents the advertising industry by creating an open advertising ecosystem that connects advertisers directly with consumers and their devices. It provides a live, working platform that successfully delivers ad campaigns for brands and agencies with real-time tracking. It means advertisers and other stakeholders can see results in real-time.

    A unified platform powered with blockchain facilitates all aspects of advert creation. In includes campaign delivery, traffic observation, and content verification and optimization with transparent reporting and costs

    Benefits of Blockchain in Ad Buying and Selling

    • Enables all participants to save money that currently gets wasted through middlemen
    • Prevents fraud by connecting advertisers directly with KYC-verified users 
    • Incentivizes users to share their data with advertisers without exposing sensitive information
    • Transparent, secure, and real-time payments and micro-transactions directly between advertisers and publishers
    • A layer of trust, transparency, and openness of the ledger enables advertisers to verify and reconcile their campaign data
    • Enable publishers to analyze the true value of ad traffic and advertiser spent

    Transparent, Efficient and Secure Advertising Ad Platforms

    Blockchain can eliminate advertising fraud and ensure that advertisers only pay for valid click-throughs. Blockchain smart contracts can ensure that advertisers receive more results and pay less. The Ethereum blockchain platform is suited to a variety of advertising types. Ethereum takes a decentralized approach with an immutable yet auditable ledger. It enhances efficiency and transparency with user-controlled privacy, data auditability, and permissioned information exchange. It can enable advertisers to ascertain the success of their ads more efficiently than with non-blockchain digital advertising models.

    Native Video Ads

    The video ads market is in a strong growth phase as more consumers are turning to internet videos for entertainment and information. Native advertising based on content enables advertisers to access specific, large, and growing segment of internet traffic. Blockchain addresses the challenges of right content discovery and advertising management. The technology can integrate with artificial intelligence to automatically find the most relevant native ads, and show them to interested viewers.

    Also Read: How To Become The Digital Advertising Industry Leaders With Blockchain Technology


    Blockchain application development services enable immense potential in digital advertising. Among other benefits, its potential to connect publishers directly with advertisers is commendable.

    Indeed, it seems beneficial to explore blockchain-based advertising for the above-mentioned benefits.

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