• Decrease Costs

In today’s times, the cost of advertising is exponentially high since it involves payment facilitation and the payment for consumer data. The key reason for this is the intermediaries who control the advertising game while acting as the centralized bodies of trust and control. 

Blockchain’s peer-to-peer network can step in and reduce costs by eliminating the middlemen. This move would allow businesses to reduce expenses on advertising (lower transaction costs, processing fees, payment facilitation, and customer data costs). Furthermore, Blockchain can also introduce a result-based payment system wherein the amount is only paid if specific predetermined targets are met.
 

  • Boost Consumer Data Privacy

Consumers are annoyed with websites using cookies to track their data under the guise of “personalized content”. But, in reality, advertisers are using this goldmine of data for better targeting of their ads. 

From consumers’ perspectives, this scam conveys that they have no control over their private data. Even with the options of blocking and unsubscribing, consumers are not free of tracking. Well, unless they choose to stop using the Internet. 

Using Blockchain technology in this scenario would provide consumers with greater control over their data. This can be done with the help of the public and private keys in Blockchain. These mechanisms ensure only authorized users can access specific information.

Hence, in this case, advertisers would require consumers’ explicit consent for using their data. To make things easier, advertisers could also reward or compensate consumers for sharing their data. Furthermore, this would also help in gaining consumers’ trust. 
 

  • Increase Ad Effectiveness and ROI

Blockchain’s innate ability to trace information in a trustworthy manner will allow advertisers and ad agencies to make smarter choices when targeting the correct set of audiences. 

Since digital advertisers had access to a large volume of consumer data, they ran inconsistent campaigns across numerous channels. This may have resulted in positive ROI in the initial stages, but it isn’t a suitable strategy in the long run. For example, only 15% of the entire campaign may have contributed to 80% of the sales, resulting in 85% of the ad spend going to waste. 

With the help of Blockchain technology, advertisers can examine the performance and data to carry out optimization algorithms to maximize ROI and sales. Using this model, advertisers can select the optimal communication mix based on their target audience.

In addition, advertisers can also improve ad effectiveness by deciding the frequency of the targeting. Here Blockchain can be employed to record and track each ad that is shared with a unique customer. This method of optimization advertisements can be utilized across a plethora of digital media. At the same time, it provides advertisers with relevant insights about consumers. 
 

  • Reduce Ad Fraud

Blockchain can also help in drastically reducing ad fraud. With the help of Blockchain-based decentralized platforms, advertisers can examine the ad journey while blocking apps and sites with high bot activity levels. This would help advertisers reduce wasteful spending by diverting money towards better-performing websites. 

Source : https://mutualmobile.com