The global digital ad sector has turned into a duopoly dominated by Facebook and Google. Currently, the two tech firms have a combined market share of 74%. Blockchain is viewed as one technology that could effectively break this duopoly.
This is because the technology has the capacity to revolutionize various aspects of the digital advertising industry and this includes data management, targeting, engagement, and prevention of fraud as well as buying and selling of media.
With regards to data management blockchain technology could be used in addressing challenges and issues that relate to user data especially privacy. One advantage of blockchain is that it is possible for participants in a platform to ask questions regarding the data of other users without having to take possession or access that data.
Digital ad fraud
One of the biggest complaints that are leveled by advertisers against digital marketing is the fact that there are high incidences of fraud. The problem has only grown bigger the more advanced ad tech has become. Various solutions have been proposed but they all have shortcomings in that fraudsters are always finding a workaround. However, blockchain technology promises to be a real game-changer, at least on paper.
According to the Interactive Advertising Bureau, blockchain technology fits naturally with the supply chain of the digital ad sector and it has the potential to cut costs and enhance efficiency. With blockchain technology, it will be possible for instance to increase transparency, whittle down the number of intermediaries, cut the number of queries that advertising technology systems need to make every second as well as ensure the reliable buying and selling of premium video inventory.
More blockchain applications
Per the Interactive Advertising Bureau, this year will see the rolling out of a wide variety of blockchain applications meant for digital video as well as television. One of the segments blockchain is likely to impact highly is television advertising especially with regards to a premium long-form video which has a high cost per impression and is thus expensive.
One of the blockchain-based projects whose goal is to revolutionize the ad tech sector is Zohem. The project bills itself as a user behavior data exchange protocol that is open source. The project aims to decentralize user behavior data by applying smart contracts that are based on the blockchain.
By using the smart contracts online publishers will be able to pool their data and in so doing get the Zohem Data Token (ZDT) as a reward. It will thus not be necessary to have a centralized entity or entities controlling the market. Using the user data publishers will be in a position to monetize their data while advertisers will be able to improve on specific targeting requirements since the user data will be accurate as opposed to generalized.
Users on the other hand will be able to carry out audits concerning their own data and this will offer valuable insights regarding how the data that they share on the network is being used.