The Role Of Blockchain In Digital Advertising

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INTRODUCTION

Blockchain technology is making many changes to industries, and one of them is digital advertising. Digital advertising is a form of online marketing which includes ; social media ads, display ads and video ads. This has benefited many businesses as it helps them to reach a large audience. Even with its benefits it also has many challenges such as fraud, issues of transparency etc.

Lack of transparency between advertisers is one of the main issues of digital advertising. Digital advertising is been controlled by intermediaries such as ad networks and agencies as a result advertisers usually have limited visibility of their advertisements, and this can lead to ad fraud.

Blockchain can help to eliminate the need for middlemen and also provide a transparent platform for all ad transaction. Making room for advertisers and publishers to interact directly reduces ad fraud.

• ENHANCED TRANSPARENCY AND ACCOUNTABILITY:

Blockchain technology provides and immutable and verifiable ledger for all ad transaction, and so enhances transparency and accountability. Normally digital advertising involves many intermediaries such as ad exchange network and agencies. This makes it difficult for the whole process to be transparent or visible to the advertisers

However, with blockchain, every ad transaction will be record on a decentralized ledger, visible for every one to see, there by providing transparency, and reducing the risk of ad fraud.

Also, the blockchain transparency brings about accountability among the participants, and thus accountability increases trust between the advertisers and the publishers. There by improving the overall efficiency of the digital market.

• REDUCING AD FRAUD:

The major problem of digital advertising is ad fraud. Ad fraud such as fake click, impressions, and bot traffic, making the advertisers to spend billions of dollars each year with reduced ROI .

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However blockchain technology offers a solution to this , by providing a secure and transparent platform for all ad transactions. Blockchain advertising systems makes it possible for every click and impressions to be recorded and verified in real time. This makes it hard for fraudsters to manipulate the system.

By reducing ad fraud , the blockchain network help advertisers to get value for their money. Also helping to build a more sustainable and trustworthy digital advertising system.

• IMPROVED DATA PRIVACY AND CONSUMER CONTROL:

Another significant role of blockchain in digital advertising is the ability to improve data privacy, as this is a serious concern in the digital advertising industry. As a result of this concern government around the world have introduced tighter data protection regulations such as the General Data Protection Regulation in the European Union.

However in the blockchain based digital advertising systems, there is no issue of data privacy, as users are in control of their data the amount they share and who they share it with . The blockchain network also makes sure that the users are aware of hue their data is being used.

By giving consumers more control over their data the network helps build trust between advertisers and the publishers. Also consumers can now protect their privacy and only share their information with the publishers that they trust.

• INCREASED EFFICIENCY IN AD DELIVERY:

The digital advertising system involves a lot of intermediaries, who add friction to the delivery of ads from the advertisers to the consumers. This therefore leads to delays, increased costs and reduced efficiency. However blockchain technology offers a solution to this by eliminating the need for intermediaries.

Blockchain technology makes ad transaction to be done automatically, ones the conditions of the contract are met. Thus automation reduces the need for intermediaries and make the ad delivery process faster.

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CONCLUSION

Blockchain technology plays a significant role in digital advertising as it helps to eliminate fraud, gives the users control over their data and builds trust between advertisers publishers and consumers.