Intelligent and Secure Digital Advertising with Blockchain

Published : Sep 30, 2020

blockchain digital advertising

  • In its present state, the advertising business is fraught with challenges, including costly intermediaries, lack of openness & responsibility, and inefficiency. Blockchain Ads & Marketing is now emerging as a promising solution and a possible workaround for the problems of the ad business with significant testing.

    We discuss the different facets of the Blockchain-Advertisement relationship in this post. In doing so, we highlight the advantages of using Blockchain for digital advertising and marketing. We then also propose how hyperledger blockchain development for advertising solutions is beneficial for all.

    Challenges in the Digital Advertising Industry

    There are perhaps the most critical, infamous ad frauds. It typically entails automated bots clicking on advertising to produce fake data on momentum, thereby misleading advertisers. Advertisements wind up on inappropriate sites due to the downsides of insufficient programmatic advertising schemes. In exchange, such irrelevance results in low conversions and resulting resource wastage.

    Besides, advertisements are put on objectionable outlets in which the company, or its intended clientele, does not resonate. It also tarnishes the company's picture.

    Also, today, more than ever, the market is strongly centralized. It attributes to the emergence of digital marketing companies that, by building a bridge between the advertiser and its target audience (user / potential consumer), dominate the sector. Such unified types of ad giants, such as big publishing houses and, above all, Google and Facebook, still exist.

    The Limitations of the Current Digital Advertising Space

    The latest Advertisement Sales Survey from IAB shows that the first quarter of 2017 saw the best Q1 digital advertising earnings in the US. The spending, at $19.6 billion, was a staggering 23 percent more than it was in the same timeframe a year earlier. The new digital advertising model is, however, unsustainable for the advertiser, publisher, and the consumer, despite the increase in spending.

    Why is it that way?

    Internet marketers use incentive structures such as pay-per-click or pay-per-action. It involves many intermediaries between a publisher, advertiser, and customers. Now, because there are real customers or buyers at the end of the line, this value chain fits well. In terms of placing ad material using real-time bidding of available ad space on publisher websites, it also provides the potential for wins. This model, however, has significant deficiencies.

    Also, Read |  Introducing Blockchain for Efficient Decentralized Digital Advertising

    Blockchain-powered Advantages for Digital Advertising

    Control of Data, Accountability, and Prevention of fraud

    Whether you are an advertiser or a publisher, knowledge is precious. Advertisers are also able to access the correct primary success metrics with the aid of blockchain technologies and extract reliable results from the marketing strategy. Distributed and shared data across the network reduces the chances of data theft and alteration. In the advertisement industry, Blockchain has launched a very significant element, which is transparency. The publishers now know who uses them for ads, and the data flow inside the network.

    Removing intermediaries

    With advertisement purchasing and selling in a blockchain-based network, advertisers can communicate with consumers. Blockchain creates a direct link between advertisers and consumers by replacing intermediaries that may be ways of payment or banks. Yet currently, as you run the campaign, Google and Facebook appear to be the intermediaries, demanding you to pay them to screen advertisements. Now, with the blockchain-powered media purchasing process, marketers can link the publisher/consumers directly and bypass the middle medium that falls into your path. It can increase the expense per thousand CPM experiences by $4.

    Targeting Markets

    Advertisers can create campaigns focused on detailed data-driven steps. An ad can only be available after a viewer fulfills a set of criteria. You're not paying with faulty clicks or scams with video views. With a blockchain-based digital advertising solution, marketers can gather correct customer details according to their customer experience and conduct a more fine-tuned strategy. In doing this, advertisers do not need to pay for the clicks and emotions they do not like.

    Optimized Ad Frequency

    How many times will audiences see the same advertisements? Any of the resources you are using right now can't monitor this. But, with a blockchain-powered app, you get access to ad frequency control while reducing your spending on ads.

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

    Creating Efficiencies and Improving Results for both Ad Buyers and Sellers with Hyperledger-Based Solution

    Hyperledger is an open-source community project produced to develop blockchain technology through industries. It is a broad alliance of industry pioneers across communications, retail, the Internet of Things, supply chains, logistics, and others. Underneath the base, the Linux Foundation runs Hyperledger. Hyperledger projects are licensed blockchain infrastructures that publishers, marketers, and the rest of the media supply chain stakeholders can use as a database mechanism for record-keeping of contracts. Further, Hyperledger Fabric offers a scalable architecture with a delineation of roles between networking nodes, Smart Contract implementation, and configurable consensus and membership services.

    When we combine these multifaceted Hyperledger blockchain platforms, including Indy and Fabric, it enables instant smart contracts facilitating advertising purchases and an ultra-fast programmatic data transfer transmission layer.

    Such a blockchain platform developed with these blockchain technologies can merge all the data from the whole chain into a single ledger for every perception when allowed.

    Also, Read | Hyperledger Blockchain Projects | Everything You Need to Know

    Blockchain In Digital Advertising | Use Cases


    This platform allows peer-to-peer purchases from and inside native ads as a blockchain-based advertising marketplace. Given the improved openness of QChain, for small brands and marketers, this network proves to be extremely lucrative and navigable.


    This framework automates native-ad placements by coupling the concepts of Blockchain, AI, and Influencer Marketing.

    AdHive uses a smart contract and blockchain-based automated ledger matching method to put multiple units at once smoothly and effectively, as opposed to the conventional case-by-case approach to ad unit placement. It, essentially, makes the procedure less time-consuming and fault-proof.

    Using AI to validate the execution of ad assignments, with the aid of smart contracts, the app provides Blockchain-enabled incentives.

    Also, Read | Blockchain Advertising To Form The Idea of Digital Media Rights

    Looking Forward

    Presently, blockchain-based digital advertising innovations are in the initial phases of development. However, both the blockchain enthusiasts and the advertising sector are rigorously innovating to realize the advantages of using blockchain technology in digital advertising and marketing effectiveness. We have already addressed some of them, which can change the sector entirely.

    Blockchain presents the ads industry with several advantages, which are already in development. Consumers can get a new way of putting, watching, and communicating with ads as they happen. That said, we are looking forward to a world where we do not need ad blockers, and where we free ourselves from cookies that are spying on us.

    At Oodles, our team of blockchain developers is proficient in recognizing the viability of your proposal and come up with an optimal solution if you are trying to create an ad network using blockchain technology.

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