The buzzword this year is Blockchain marketing. The Advertising Bureau has also debuted their whitepaper termed Blockchain for Video Advertising, and it details how the technology will change the supply chain of digital advertising and also affect other parts of the industry.
What is the Blockchain?
The whitepaper states that Blockchain offers two parties a way to transact a secure transaction using a decentralized network. It is a distributable, immutable, and transparent ledge, which cannot be altered. This implies that when data is stored on the distributed peer-to-peer network of the Blockchain, its authenticity cannot be questioned. Also, the value can always be verified
However, you require special permission to add new entries on the Blockchain database. Once the data is entered into the Blockchain, it becomes encrypted, and it is distributed to the network. It will remain there permanently. Blockchain technology can create total transparency among digital advertising services and also increase efficiency, reduce costs while eliminating fraud.
How Blockchain promotes advertising
Speed: according to the Motley Fool’s article, advanced Blockchain applications can process more than 7,000 transactions each second. However, the number is still not enough to be compared with other processors such as Visa, which processes up to 24,000 transactions each second. Advertisers hope that the Blockchain will keep increasing so that digital ad transactions may be processed on time as they are for digital currencies.
Truth: most campaigns today claim they had more impressions that they actually had. The only way to determine the truth is to agree on the number. Mostly, the advertiser leads the negotiations and provides the metric that is used to determine the billing.
This problem could be solved by Blockchain marketing by making use of immutable records stored safely on the public ledger of the Blockchain to reconcile the assignment that was completed on the agreed number of impressions.