‘Blockchain’ is not just a buzzword. It has found its way into several fields, including Finance, Healthcare, IoT, Insurance, and more. Of course, some of the verticals are just brewing the ‘blockchain technology’ and planning to deploy it soon.
Is Adtech going to be one of them?
Before analyzing the question, we first need to understand the ‘101’. Without knowing the roadblocks between us and blockchain, it isn’t possible to settle on the answer.
Table of Contents
So, What Is Blockchain?
The Blockchain is a decentralized, peer-to-peer operating, incorruptible database.
Here’s what we mean:
Decentralized – Blockchain technology is completely decentralized and isn’t administered by a single entity. No one (Person or Entity) can delete or manage the database for security purposes.
Peer-to-Peer – It relies on individual persons or entities for functioning. Assume a shared Google document where many people can access and edit simultaneously. The same goes for blockchain. There will be multiple copies (equal to the number of nodes*) distributed among the network, where individual nodes can update their own copy independently. In the end, the most popular copy will become the de-facto official record or Master Copy.
*Nodes are the persons or entities in a Network
Incorruptible – Why it is incorruptible? No single entity is responsible for managing the blockchain. It is open to all the nodes in the network, and every node in the network can see what’s happening.
As you can see, it is a great way to lift veracity in legal transactions. Now, let’s dive into our pool.
Why Is the Adtech Industry Getting in?
Our industry has been scrutinized for ad fraud and transparency issues right from the start. And, with the advent of ‘programmatic’ and ‘Header Bidding,’ the complexity got higher, and fraudsters haven’t had a break then.
In the long run of finding solutions, blockchain showed up as a possible stop.
By now, you’re probably aware of the fact that ‘Ad frauds’ are majorly due to the lack of transparency, and advertisers were easily blindfolded by the spammers using domain spoofing, ad Injection, bot traffic, etc.
On the contrary, Blockchain promises a decentralized framework and 100% transparency to all network nodes. Blockchain enthusiasts say our industry can be the framework and ask publishers, and advertisers (along with the middlemen) to act as the nodes.
Everyone knows what’s happening!
Applications So Far
Blockchain, once a novel tech, is now fast attracting numerous players in digital advertising. Pioneers like MetaX, NYIAX, AdChain, Brave, and Ubex have already started harnessing its potential for increased transparency, reduced fraud, and efficient campaigns.
Content Monetization – Decent’s ‘Publiq’ let creators share content on the network and get rewarded by a crypto-token in return. Advertisers can also place their ads on the blockchain with the help of targeting options available.
Programmatic – Blockchain Programmatic Corporation(BPC), a Silicon Valley startup founded by veterans of our industry, serves three products to the ecosystem. Blockchain Demand Side Platform (BDSP), Decentralized Data Management Platform (DDMP), and Smart Contract Ad Exchange (SMARTEX) are all based on blockchain and RTB technology.
Digital Media Buying and Selling – MetaX, a Blockchain-based digital advertising Exchange, promises Advertisers and Publishers end-to-end, transparent, fraud-free, and scalable campaigns. It runs on AdChain (Ethereum blockchain), which the MetaX and the Data & Marketing Association founded last year.
Exchange – NYIAX, an exchange to trade advertising contracts between publishers and advertisers. It functions by combining a Financial Matching Engine and Blockchain technology, and promises increased ROI and transparency.
Future of Blockchain in Digital Advertising:
As publishers, the future landscape of digital advertising illuminated by blockchain technology offers exciting prospects. With the rise of blockchain-based advertising platforms, the industry is set to witness enhanced transparency, eliminating common issues like fraud and obscurity and cultivating increased trust among advertisers, publishers, and consumers.
These platforms promise to revolutionize ad targeting and personalization by exploiting user data in a privacy-safe way. Integrated with emerging technologies like artificial intelligence and machine learning, they hold the potential to amplify the effectiveness of ad campaigns significantly.
Importantly, blockchain technology stands poised to introduce innovative revenue models, including micropayments and novel subscription structures, opening new avenues for earnings for publishers and content creators alike.
In an era where data privacy and consent are paramount, blockchain technology’s decentralized, secure, and transparent nature ensures user data is collected and used responsibly, with explicit consent.
However, obstacles such as scalability, interoperability, and broader adoption remain. While these challenges persist, the immense potential of blockchain signals a transformative horizon for digital advertising, offering opportunities for greater trust, efficiency, and profit for publishers.