How will Blockchain technology affect advertising?
Blockchain, since its inception, has been like a hot potato – everyone is tossing it around, wanting it, but ultimately waiting until someone solidifies its mainstream use to the very interested consumer market. A field that urgently wishes to foresee its effects is the advertising industry that wishes to see it shake the market up to the point that companies start paying their main target audience directly to see their advertising – and completely skip the process of buying a commercial space.
2017 was to be a long way forward to the point when the cryptocurrency started running on the right track. But in the rush for speedy wins, the more significant blockchain technology, which allowed for the cryptocurrency phenomenon to happen, ended up in the dark. 2018 will be the year when marketers and companies really need to understand what blockchain is all about and what the technology can achieve. But we have to do it now.
When talking about Bitcoin, one must distinguish between two things: the Bitcoin network with the underlying technology (Blockchain) and the payment method itself (Bitcoin). The origin of the two terms comes from 2009 when Satoshi Nakamoto published a document titled \”Bitcoin: A Peer-to-Peer Electronic Cash System\”. In it, Satoshi explains its invention.
Bitcoin: A decentralized (P2P) digital network where payment is made without third party verification but secured by the network\’s all nodes. Initially, Bitcoin was not meant to be a digital currency but as an easy way to send money directly from one party to another without having to go through a financial institution. Even though the crypto terminals have gone up and down recently, many are convinced that Blockchain technology will shock, revolutionize and change many industries. This does not exclude the advertising market.
It effectively removes the intermediary
One of the principal arguments for blockchain changing the world is that it removes intermediaries and returns the power to its rightful owners and recipients. It has been talked about for several years but most likely it will take a further year before blockchain becomes solidified. However, there are already good communities and companies around the world who have implemented the technology and put it to good use in other parts of the market. For a long time, consumers have surfed the internet and due to this huge generation of information, some companies have become rich in the cookies these consumers have left behind on different sites.
An ongoing, infamous and some would say, Machiavellian, example of this is Facebook. I\’m writing, of course, about the Cambridge Analytica scandal, where data from 50 million users were misused for announcing political messages – an investigation linked to an almost scandalous frivolity. Now, consumers get a chance to use their data as currency – while advertisers can get higher accuracy with validated data – all possible through blockchain.
Is blockchain positive for digital marketing?
It has recently been calculated that publishers who circumvent intermediaries can increase CPM and go from 1 to 5 dollars. Blockchain can help achieve even better results. It may shake the market to the point that companies pay their main target audience directly to see their advertising, and completely skip the process of buying a commercial space. With the help of micro currencies, companies can only pay for real views instead of impressions.
Blockchain makes it possible to effectively, \’\’prove\’\’ the number of views before the currency changes ownership. This leads to increased efficiency and, in itself, is an opportunity to create proper contact with their customers. But not just that. Blockchain enables advertisers to also build customer profiles and gather all information that customers are willing to share at once. This allows the market to be better tailored to the needs of the customer and ads are only shown to those customers who are actually willing to purchase the product.
The advertising market needs to learn about blockchain – or take the consequences.
With a few experts, many interested and endless possibilities, it\’s a bit of a wild west for new phenomena. Today we see that there are too few advertisers who want to train themselves in the field and unfortunately some are burned out. In the future, most companies will have a person or department in-house as \’\’blockchain expertise\’\’. As with everything else, it\’s a matter of who\’s the leader and who\’s catching up to him. Those who lead have a lot to win while those who follow need to kick up an extra gear to take the lead themselves. Who will you be?
Daniel Vice – Evolvera: Always changing, always evolving.