The most significant and successful marketing strategy presently is online advertising. To make an impact, marketers and business owners must customize the consumer experience and advertising communication.
Online advertising is incredibly flexible due to ad networks like Google, Facebook, Amazon and Apple. It has expanded at a phenomenal pace and has become a widespread practice for both small and large enterprises.
The widespread use of smartphones, the development of high-speed internet, the spread of social media, the rise in advertising expenditures on digital media across various industries and the rising popularity of streaming platforms are some of the factors that are fueling the growth of the global online advertising market.
According to Google Trends, interest in blockchain advertisements is on the rise. The online advertising market is expected to increase from $359 billion in 2020 to $1,089 billion in 2027, rising at a CAGR of 17.2%.
What Is Online Advertising?
Online advertising leverages the Internet to attract visitors to websites and targets potential customers. The speedy marketing of product information irrespective of geography is a significant benefit of online advertising.
Online advertising allows you to target a particular demographic, such as a particular gender, generation or geographic area as compared to traditional advertising methods. Online advertisements are typically also more interactive than traditional methods.
What Is Blockchain?
Blockchain is a distributed ledger technology (DLT) used to securely, transparently and irreversibly store data across numerous computers. To establish digital ledgers that are cryptographically safe, it uses a consensus mechanism to verify each transaction individually. By ensuring reliability and transparency it lowers the possibility of fraud or manipulation.
Transparency and immutability are the two strong and distinctive factors that give blockchain an advantage over a conventional database.
- Blockchain is transparent as many independent parties own copies of the database, which are cross-referenced for accuracy. To verify a specific data record, anyone can cross-reference several databases.
- Blockchain is immutable wherein the data cannot be modified after being entered onto a ledger. The ledger must be updated with a new data item to undo any errors that were made. Both pieces of information are available in the ledger and can be seen on all versions of the ledger.
Blockchain can store any type of data. Until now, cryptocurrency transactions were the primary form of data, but the future holds unlimited applications for blockchain.
How Can Blockchain Benefit Online Advertising?
Blockchain can be extremely beneficial for digital marketing in many different ways. For example, it can improve the way we monitor consumer interactions, improve the precision of our targeting and even control online advertising campaigns. There are many advantages to using blockchain technology in online advertising. Here are a few of them:
1. Keyword Tracking
Google results that an individual sees are often specific to where they are and what device they are using. This makes tracking keyword ranks difficult for marketers. Blockchain, when applied to search, can record individual page rankings along with the location and device information.
Marketers can utilize this data to determine what steps they need to take to perform better in places and on devices where they are currently underperforming. Compared to current techniques like cookies or beacons, blockchain offers greater accountability, transparency and traceability.
This means that marketers can gather precise information on the behavior of their clients. As a result, they’ll be able to better understand their target demographic and develop campaigns to suit their requirements.
The most significant impact blockchain has on online advertising is transparency, which is similar to its application in cryptocurrencies. Blockchain has better visibility and is tamper-proof.
It can empower search engine markers as it can confirm whether every user is authentic. Website owners can thus be compensated for actual clicks that lead to their site.
Blockchain allows advertisers to create customer profiles directly from information that consumers disclose. This will help advertising become more effective. It’ll also improve targeting and will eventually increase conversions and income.
For instance, in a blockchain-powered model, as a consumer you don’t have to worry about falling into a trap when you receive an advertisement for a specific product. You can immediately check what and where the item is from. If you wish to purchase it, you can choose between buying it directly from Amazon or any other marketplace.
3. Better Lead Quality
Individuals who provide their data to your brand are probably interested in your business. Thus, it is easier to generate leads and convert customers as they are already qualified prospects. Many marketers currently gather data from several sources, combine it and use it to inform a campaign.
This approach has its shortcomings resulting in inconsistent and inaccurate data being used. On the other hand, since blockchain transactions are decentralized, marketers must approach consumers directly.
4. Resources for Avoiding Ad Fraud
Marketing professionals are aware of the growing incidences of advertising fraud. According to research, by 2023, ad fraud may cost marketers $100 billion. Marketers can use blockchain to analyze first- and third-party data and produce an evaluation that indicates how likely a person viewed an advertisement.
Due to the speed, accuracy, confidentiality and consistency of blockchain, tools like this guarantee marketers that they will be paid more quickly and more generously for legitimate views from advertising.
5. Remove Middlemen
Instead of the traditional auction method for promotions, the current trend requires marketers to communicate with users. Blockchain facilitates that relationship by cutting out the intermediaries, which may be banks or payment mechanisms. As advertisers can interact directly with publishers and consumers and cut out the middleman, the process of purchasing media is now relatively easy.
Blockchain technology has the potential to transform online advertising by increasing the accountability of advertisers, publishers, brands and consumers.
There are many blockchain-powered ad networks in the market currently. Several corporations such as IBM, Amazon Web Services, Accenture, Microsoft, SAP, Oracle and Infosys have invested significantly in this technology.