In its present state, the advertising business is fraught with challenges, including costly intermediaries, lack of openness & responsibility, and inefficiency. Blockchain Ads & Marketing is now emerging as a promising solution and a possible workaround for the problems of the ad business with significant testing.
We discuss the different facets of the Blockchain-Advertisement relationship in this post. In doing so, we highlight the advantages of using Blockchain for digital advertising and marketing. We then also propose how Hyperledger Application Development for advertising solutions is beneficial for all.
Challenges in the Digital Advertising Industry
There are perhaps the most critical, infamous ad frauds. It typically entails automated bots clicking on advertising to produce fake data on momentum, thereby misleading advertisers. Advertisements wind up on inappropriate sites due to the downsides of insufficient programmatic advertising schemes. In exchange, such irrelevance results in low conversions and resulting resource wastage.
Besides, advertisements are put on objectionable outlets in which the company, or its intended clientele, does not resonate. It also tarnishes the company’s picture.
Also, today, more than ever, the market is strongly centralized. It attributes to the emergence of digital marketing companies that, by building a bridge between the advertiser and its target audience (user / potential consumer), dominate the sector. Such unified types of ad giants, such as big publishing houses and, above all, Google and Facebook, still exist.
The Limitations of the Current Digital Advertising Space
The latest Advertisement Sales Survey from IAB shows that the first quarter of 2017 saw the best Q1 digital advertising earnings in the US. The spending, at $19.6 billion, was a staggering 23 percent more than it was in the same timeframe a year earlier. The new digital advertising model is, however, unsustainable for the advertiser, publisher, and the consumer, despite the increase in spending.
Why is it that way?
Internet marketers use incentive structures such as pay-per-click or pay-per-action. It involves many intermediaries between a publisher, advertiser, and customers. Now, because there are real customers or buyers at the end of the line, this value chain fits well. In terms of placing ad material using real-time bidding of available ad space on publisher websites, it also provides the potential for wins. This model, however, has significant deficiencies.
