Tuesday, March 3, 2020

How blockchain has revolutionized the advertising industry

The advertising industry is a global industry that consists of Public Relation and marketing companies, as well as media services and advertising agencies. It is a global multi-dollar industry that brings manufacturers closer to their consumers. This industry is mainly characterized by a huge number of small to medium-sized advertising agencies whose operation is primarily in one country and a few numbers of very large advertising agencies that operate in many countries.

The job of the advertising industry is to create and manage the connection between companies, their products, and their consumers by properly translating their client’s message into effective campaigns. As simple as advertising might look, it can stimulate people into buying, help increase a company’s sale and also help to jumpstart the economy.

Just like with every other industry, the advertising industry has its own challenges that make it difficult for certain advertising agencies to carry out their job to full effect. These problems can be a limitation in budgets, compelling contents, choosing the right method, and measuring effectiveness.

The blockchain is an amazing technology that is known to be breaking boundaries and is no longer associated with only cryptocurrencies. It is a tool that is used to store information, in a fast, secure and distributed manner. The blockchain has been disrupting so many industries for years now and its involvement with the advertising industry might be just that breaking point that the industry currently needs.

Some of the ways in which the blockchain can revolutionize the advertising industry include:

Targeting the Right Audience

Blockchain has provided a decentralized search engine that helps advertisers to target the right audience by incentivizing the audience for the provision of their data. This assurance of getting paid anytime a user click on particular ads help to increase the hyper-targeting of the advertisement that allows people to see the content that only they want to see.

Prevention of Ad Fraud

Blockchain technology has helped solve the issue of fake clicks and help marketers to save a ton of money by displaying every click-through in real-time. This, in turn, allows marketers to rent out their advertising space and bring in quality traffic. 

Decentralization Of E-Commerce

Blockchain has brought about a decentralized solution to the way individuals buy things online by allowing vendors to directly sell their products directly to their consumers without the need to pay any middle man. This will, in turn, reduce the overall cost that is involved in carrying out an online transaction between manufactures and consumers.

Disrupting Influencer Marketing

Decentralized Influencer Advertising Marketplaces now use blockchain to identify the authenticity of their influencers. Taking advantage of the immutability and the transparency of the technology, they help marketers to approve influencers by confirming their followers and using smart contracts to get a guarantee on ROI.

Disrupting The Collection Of Data and Crowdsourcing

The problem of collating inaccurate data is solved using the blockchain and crowdsourcing. This allows for customers to accurately share their data personally in return for some kind of compensation which results in the collection of authentic and highly relevant data. These verified data is made accessible to any interested company, using the decentralized marketplace.

A good example of an advertising company that uses the power of the blockchain is SaTT.  SaTT, which stands for Smart Advertising Transaction Token is a utility token that is based on the blockchain technology and allows for the exchange of advertising and audience payment. The SaTT is regulated by smart contract and which allows the listing of advertising offers while all the data is securely held on the Ethereum blockchain. The smart contract is responsible for setting the conditions for participating in campaigns, quantifying the success of participating in campaigns, and guarantees the final result.

Using the SaTT smart contract, advertisers are at liberty to create advertising campaigns and set the conditions for participation, the result of the advertising campaign will then be recorded and stored on the blockchain, ensuring that they cannot be tampered with and making it impossible to manipulate. A transaction on the SaTT smart contract is only considered to be valid if: 

  • The affiliate meets the criteria like age, sex and city.
  • The publisher has relayed the advertising campaign and the defined oracle has returned the result statistics.
  • The “oracles” have returned the information, the transaction is executed and the SaTT amount transferred to the publisher.

Some of the problems that the SaTT smart contract solve includes:

  1. It helps advertisers to select the relevant publishers.
  2. They quantify the result of an advertising campaign.
  3. It helps in building trust and preventing fraud.
  4. It reduces cost and speeds up the transaction.
  5. It is a complete and decentralized tool that governs advertising transactions.

For more information about the SaTT Smart Contract, you can visit their website

Image(s): Shutterstock.com

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How blockchain has revolutionized the advertising industry

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