4 Ways Blockchain Can Address Some of Marketing

Despite widespread public interest in blockchain applications and a significant rise in the number of blockchain startups, the technology has yet to make a dramatic impact on the advertising industry. In a recent survey of 300 agency executives, only 11 percent reported using blockchain in their media buys, while nearly half said they had no plans to do so in the future.

One reason this wait and see attitude persists is that while advertising leaders are looking for concrete blockchain applications that can address today’s challenges, the hype-machine continues to distort blockchain’s true capabilities. If we focus on immutability, one of blockchain’s greatest value propositions, advertisers can identify solutions that intersect with their greatest challenges.

A ledger that cannot be changed allows marketers to validate information and allows post activity research to be performed accurately. On a nuts and bolts level, immutability makes data portability both frictionless and reliable. The more data an advertiser’s partners write into an advertiser’s permissioned blockchain, the easier it is for that advertiser to switch agencies and take their data with them or work with a wider network of agencies for specific projects.

Blockchain’s immutability can be an asset for advertisers looking to address the ad-tech tax. Think of the ad-tech tax as two separate pieces: unspecified fees and superfluous spending. At the moment, transparency issues make it difficult—if not impossible—for advertisers to see those costs. But both types of costs can be uncovered post-campaign completion through various blockchain projects. Once identified, buyers can adjust their systems to improve their partner relationships and streamline flow.

If advertisers want a more proactive approach to reducing superfluous spend, some firms use cryptographic proof that’s written into the blockchain to verify publisher identity and eliminate the problem of domain spoofing. By addressing that issue, advertisers not only reduce unnecessary costs in their media budgets, they eliminate the uncertainty that persists around delivery.