Coming to cryptocurrency, they are different favor perception about it, regarding the total cryptocurrency market capitalization currently stands at about $1.7T. In detail How Blockchain Can Be used To solve Online Advertising And Transparency, Forms In Which Blockchain Can Enhance The Field Of Advertising And Marketing, Swift Growth Of Advertising, Blockchain Technology In Advertising.
Nevertheless, having numerous repulsed actions by this speculative asset, Devotees or disbelievers, one thing worthy of note is the brilliant technology that is the blockchain.
Problems/Issues Of Advertising
Distinguishing Advertising from marketing contrary to numerous misconceptions, Advertising is a field that dates back to the printing press. Nevertheless, The field is ridden with decades-old flaws which become stronger with each passing day. Following a study by ExchangeWire, future prophecies foretell that fraud in ads can rise up to $50 billion over the next decade while 79% of researchers voiced their references owing to lack of clarity in programmatic advertising.
Most Widely Known Issues With Advertising;
1. Lack Of Clarity
owing to the overcrowding of the programmatic trading scene with vendors and intermediaries, companies and advertisers are not fully made known over how their ad budget is being spent which creates an issue of clarity where those spending the money and those paying for the services do not have transparent contact between them and thus, marketers are left wandering in terms of exposure to where their ad money is going.
2. Loss Of Ad Dollars
Advertising is a huge industry with units in the digital and realistic world. Each year, the advertising and marketing wings of corporations obtain enormous sums of profit. This profit, regardless, also needs huge sums of investments and agencies for campaigns purposes. This tending money to ad fraud, where a part of their money does not get the project and rather is stolen by countless unknown links in the long chain. For the year 2020 following reports, ad dollars worth US$35 billion were lost to frauds and scams which laboriously affected the annual advertising profits in countries that include the United States, China, and the United Kingdom, which lost $11.4 billion, $5.2 billion, and $1.6 billion discretely.
3. Negotiator And Men
Invaded by new people peeking to take a quick cut out of the multi-billion dollar pie, which has pushed the roles of intermediaries or middlemen to become more predominant with passing time. Owing to a lack of clarity concerning intermediary third parties in the space, companies are ignorant of undisclosed costs that can significantly decrease the performance of a campaign. Besides, most advertisers are not clearly notified about who they are working with when they hand their money over. The third parties are often unknown to the advertisers, this forms the problem of outsourcing too, where the company buying the advertising services reaches out to a firm that they consider reliable. Nevertheless, that firm in turn employs more third parties to do the job that was allocated to them.
Swift Growth Of Advertising
With all the issues of air nondisclosure, lack of clarity, and doubt are the reason many brands are scrutinizing to cut down their advertising appropriations. Nevertheless, the general industry is still on the upwards. Following a report In mid-2021, by Magna Global projected that “Global advertising spending will grow by $78bn in 2021 (+14%) to $657 billion, a new all-time high, following a decline of -2.5% in 2020. The marketplace will continue to grow in 2022 (+7%)”. This forecast was spot on, and a new point by Zenith heeds that by the year 2024, the retailer media advertising is definitely growing from $77 billion to $143 billion.
Blockchain Technology In Advertising
Cryptocurrency isn’t the singular field that can profit from the wonders of blockchain technology. Blockchain has profitable prospects in many other areas such as artificial intelligence, robotics, and even the media.
On report to EnvisionX CEO and Co-Founder, Zheng Zhang, blockchain can decode clarity issues by making a viewable transaction environment that will greatly decrease ad scams
Forms In Which Blockchain Can Enhance The Field Of Advertising And Marketing.
Features of Blockchain That Can Benefit Marketing
With the industry’s developing power, there comes the threat of defrauding actors in the market. thus, very crucial to infuse a system that will save buyers and sellers.
Blockchain can massively donate to building conditions of clarity among buyers and sellers in digital advertising. Below are the key elements of blockchain tech that could potentially revolutionize the industry:
Following a decentralized system, the blockchain industry means that the decision-making regarding investors’ money is not in the hands of solely one group of people. The ledger of the blockchain is visual to all indicating that the transactions happen in the “public eye”, leaving no room for mistrust.
2. No Hidden Costs
There is no necessity for hidden fees, as marketing costs are laid out when negotiating with the blockchain. This is extremely useful as the transactions are made between the buyer and seller instantly.
3. Fraud Eradication
Blockchain is very competent in eradicating fraudulent advertising as the receipts for each transaction are documented on the ledger permanently and can be retrieved by any party, at any moment of the exchange.
If this is the case, it is a very bad market for frauds or bad actors because they become are traceable. Advertising fraud slashes off a major amount of the annual marketing revenue. Blockchain technology, with its clarity in keeping records visual to the consumer and for references, enables advertising to take a phase ahead in terms of reducing scams and frauds. Self-executing intelligent contracts in the form of computer codes additionally improve the security and transactions on the chains.
4. Data Collection Enhancement
Prior to the decentralization of data in the blockchain, data storage solutions make data collection an exceptionally efficient task. User data is extended to only one place or area and is spread over different regions of the world. This form of data collection is not only more certain, reducing cases of tampering, but very reliable. It is a perfect example for storing such large numbers of user data and can assist companies to keep track of their individual data collection.
5. Building Consumer Trust
Following the visibility that blockchain presents, consumers and advertisers correspondingly can potentially have tremendous trust in the firm managing their money. The complete ledger being known for marketing companies will help them keep track of their investments and check very well the possibility of fraud. The contracts that take place on the blockchain are in the form of codes that will stay on a blockchain as long as it survives. This demonstrates that as a receipt that a firm has been paid by a company for marketing projects and if the firm does not operate consequently, the receipt can be a source of protection for the consumer.
Transparency In Advertising
The industrialization brought about by the programmatic advertising world has generated an increased commonness of frauds in the form of hidden fees, and a lack of clarity on the media buying activities of traders. which has notified buyers and sellers to be mindful of the ad trading environment. Blockchain technology has virtually minimized all these issues due to a translucent, decentralized system.