As advertisers, we are always looking for new ways to reach the people we want to reach. Blockchain is moving fast, and now we can add it to that list. A blockchain is a shared record, or ledger, of transactions that many computers keep in step. Here are five ways it could help advertising:
1. Increased transparency and trust.
One of the key benefits of blockchain is that it is open and can be trusted. Not every blockchain is public, but people can look at the transactions sent to one, as far as the network’s access rules allow. This helps cut fraud and build trust between advertisers and consumers. The network checks each transaction against its rules, then writes it to the ledger. That can make later changes easier to spot. But it does not prove the data was true in the first place. This openness and trust can help advertisers, who need an audit trail. They must still check that campaigns ran as planned, and that the data going in was right.
2. Enhanced security.
Blockchain is also very secure, thanks to cryptography. That is the use of maths-based codes to protect data. These codes can guard parts of the system. But they do not keep keys, apps or customer data safe from every cyber threat.
Advertisers today find it hard to keep their data safe. There are many ways for the wrong people to get at private data. These range from data that leaks out by accident to attacks by hackers.
Blockchain can help with some of these worries. Its ledger is tamper-evident: it is built so that changes are easier to spot. That can help reveal when records have been changed. But you still need access controls, and you still need to protect data kept outside the ledger. Spreading the ledger across many computers changes who you have to trust. It does not, on its own, stop people getting at private data.
3. Reduced costs.
One of blockchain’s main strengths is that it can help cut costs. Some designs can rely less on middlemen and their fees. But the costs of the systems, the transactions and linking it all up remain. Advertisers can more easily check their spending and see where money goes to waste.
Ad buyers can also buy ad space through a decentralized network. That is a network run across many computers, not by one central party. This may remove some middlemen, but not every role they play. It can lead to much lower costs for ad space. On top of that, smart contracts can automate the buying and selling, which may cut costs further. These are bits of code that run set steps on their own once coded conditions are met.
Overall, there are several ways blockchain could cut the cost of programmatic advertising. That is the kind where software buys and sells the ads.
4. Increased efficiency.
Another benefit of blockchain is that it can make work more efficient. How fast and costly a transaction is depends on the network and how busy it is. A shared ledger may save time when parties match up their records. But it is not always faster or cheaper.
Advertisers also find it hard to track how their campaigns do, and to keep their data safe. Blockchain can help in several ways.
First, blockchain can help make campaigns more efficient. Advertisers can use it to record reports of clicks, and of ad impressions, meaning each time an ad is shown. Separate checks are still needed to show that those views and clicks came from real people.
Second, blockchain can help keep data safe. Its audit trail of all data transactions is built so that tampering is easier to spot. That can help find records that were changed. But privacy and security controls must still protect the data, and the people it is about. This can be of special value to advertisers who handle sensitive customer data.
Third, blockchain can help cut ad fraud. Ad fraud is a major problem in the industry. It costs advertisers a great deal of money. Blockchain can help by giving them a tamper-evident record of their ad spending.
Fourth, blockchain can help make buying and selling ads simpler. The system can run that process on its own, so it takes less time and effort.
Finally, blockchain can help make the ad industry more open and accountable. It gives advertisers a record of ad spending where tampering is easier to detect. That record can help them check their spending. But to prove they got what they paid for, they still need data they can trust about each view or click. This can help build an ad industry that people can trust more.
5. Enhanced reach.
Finally, blockchain could give the systems that handle audiences or campaigns a shared record. On its own, it does not create reach or sharpen targeting.
With blockchain, advertisers could share records of people’s interactions across the audience and campaign systems that take part, where this is allowed. That sharing is still limited by identity, consent and data quality. Advertisers can target specific groups more closely, if the data, permissions and platform links allow it. They can also use blockchain to track how people engage with their ads. That way, they can tune their campaigns as they run. Any gain in precision or ROI would need to be measured against the added costs and risks.
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