The decentralized ledger as the core component of the blockchain technology, is rapidly integrating into various spheres and industries, including but not limited to finances, banking, and medicine.
The sphere of the digital advertising didn’t fall far behind, - today with a help of blockchain it becomes possible to rearrange the existing relationship models between ad market participants, enhance the performance of advertisement campaigns, automate processes, and cut off unnecessary business expenditures radically.
The digital advertising industry still lacks many key elements that ensure efficiency and reliability of the internal processes, that costs advertisers billions of dollars a year, for instance, the only use of ad bots brought ad market $7 billion losses last year (2017).
Blockchain provides transparency for tracking and auditing the entire supply chain, that makes hacking such system almost impossible. Let's find out how it works in details.
The algorithm defines benefits
First of all, that would be right to admit that blockchain can record and store any kind of information. This way, technology offers companies secure distributed databases, and provides clear, transparent information about transactions, loans, and other operations.
The decentralized ledger is what allows every network participant access the transaction records simultaneously. The total synchronization means no participant has an exceptional right to make changes in it, and all the records happening within must correspond to the vast of the records. Any record in the system, like in the community, is approved by all network members and the transaction data is also encrypted to ensure total protection.
This way, there are two key benefits that blockchain technology brings in ad tech:
- The data is omnipresent. As data is not stored on the corporate computer or the company’s server, it simultaneously exists on all computers of the chain it’s impossible to break it, even there if massive hacking takes place.
- The data can’t be erased. Registering the information, the ledger organizes it in the sequence of blocks with records, each having a unique key that can’t be deleted or modified after the rest of the chain approves it.
Hands-on-practice: who is it good for?
The publishers are widely ad networks because they provide them with independent access to the advertisement tools, budget planning, and tracking capacities, however, knowing how much they pay, the publishers can’t access the data considering money transferring, so how can they know they receive everything they paid for?
The blockchain ledger that tracks all information delivers the necessary transparency to the participants, who can see exactly who and when accessed the data and what actions and transactions were committed.
The transparency of the ledger is also a competitive advantage that helps to eliminate the number of the third-party participants who take part in the buying process. These days money transferring is only possible through intermediaries who take a commission for their services. One operation is not much in terms of commission, but piled up together these little sums may turn into a good load of money an enterprise has to lose on the regular basis.
In blockchain transactions are hidden inside the ledger that’s distributed among all participants, so the need to involve additional parties for money transferring literally vanishes.
Advertisers and ad networks will be able to save even more money if they don’t pay to the ad certification centers and intermediaries that guarantee that source of the incoming clicks consists of real people, instead of ad bots geared by the site owner who wants to increase the profit. Blockchain digital signature helps to find out if an ad was served to the right person without collecting the personal user data, so much off the shoulders of GDPR-compliant companies as a bonus.
Wrapping it all up
With the help of decentralized ledger’s functionality, the ad market participants will finally be able to become more independent and confident in their actions and decisions, as well, they will not have to pay third-parties for basic services and information that can be delivered by blockchain for free.
The advertisers will have an opportunity to see how much money from budget actually reaches the publisher, analyze and perform the marketing campaigns without hiring a large marketing staff as all of the information, sales or affiliate program details will be safely stored in blockchain’s core.