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The advantages of blockchain in the advertising market

Technology support access to quality information and cost reduction for advertisers

One of the biggest problems in the advertising and advertising industry is beginning to be solved by blockchain-based systems. Innovative technology helps professionals, agencies, media and advertisers to deal with tools that increase transparency in relation to negotiations and practices of production and delivery of ads.

Especially, it solves problems that cause reliability friction between professionals and contractors. One of the topics with the potential to generate great controversy, such as the monitoring of advertising. Or, to put it another way, the innovations serve to eliminate the possibility of fraud.

Old problems

Audience auditing is an age-old problem for media companies. Since the times when radios, televisions, newspapers and magazines absolutely led the media markets. Put yourself in the shoes of a businessman who advertised in a magazine, for example. He was never quite sure that his ads were actually seen by the consumers he intended to reach. In fact, the advertiser could not even be sure that a subscriber, for example, received the magazine or the newspaper.

Even in current times, dominated by digital media, the possibility of falsified data, even if without purpose, continues to exist. There is no absolute certainty about potential consumer behavior. It is also not possible to truly know whether a Google or Facebook advertisement is getting clicks from real users.

Advertising fraud is expected to cost the industry $44 billion by 2022, up from $19 billion this year, according to estimates from business consultancy Juniper Research.

Blockchain solution

Technology is used today to increase transparency around advertising practices. Through its public database function, blockchain ensures the storage of information about a digital advertisement. The tools developed make it possible to keep records up to date, increase data security and transparently display consumer behavior.

In turn, this data plays a direct role in significant business decisions such as introducing new products, setting prices, and creating future marketing campaigns.

Thus, it is possible to know who created them, while sharing them with everyone else on the network in a verifiable and immutable way. For digital advertising, this means that ad impressions can be tracked along the supply chain and advertisers can record where an ad is delivered.

In addition to monitoring ad placements, it is possible to develop campaigns that take advantage of technology in other areas. For example, agricultural products with traceability are candidates for specific marketing actions.

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