The advertising industry is playing a very important role in every industry you can ever think of. In the ad industry, it is helping businesses in building a successful brand image and ensuring long term success. Yearly, companies spend a lot of money in setting up an advertising campaign, according to a report, global ad spending stood at $563 billion by the end of 2019.
Digital advertising contributed to almost half of this yearly spending. The increase in social media adoption has greatly contributed to this growth. In 2020, it is estimated that around 3.6 billion people will be using social media worldwide, a number projected to increase to almost 4.41 billion in 2025. This projection further widens the growth prospect of digital advertising.
Traditional advertising as we know it has been faced with a lot of drawbacks which renders the approach inefficient and super expensive. The proposition of cutting-edge technologies like blockchain has proven to have the capabilities of fine-tuning and reshaping the ad industry, making it efficient, reliable, and cost-effective.
Blockchain In The Advertising Industry
Blockchain technology has the prospect to transform nearly all industries and how they enact data, the digital ad industry isn't an exception. Since its inception, it has practically found disruptive applications in a diverse array of industries, and the advertising industry seems to show a lot of promising future for digital advertising.
Blockchain is a Distributed Ledger Technology (DLT) that records and broadcasts information or transactions in a distributed ledger, allowing each person to verify its origin and authenticity. Data in a blockchain isn’t stored in any local server but rather it’s stored in a secured server distributed globally, and therefore doesn’t require any central control.
The blockchain market which is expected to reach over $23.3 billion by 2023 and $176 billion industry by 2025 will play an incredible role in the present and future generation of digital advertising. It will undoubtedly be a huge buzzword in the world of ad technology.
The Role of Blockchain In The advertising Industry
1. Ad Fraud Prevention
According to Juniper Research estimates, It has been projected that ad fraud will cost the industry $44 billion by 2022, up from $19 billion since 2018. Blockchain has the potential to mitigate ad fraud through its capabilities as an immutable public database, which allows it to store, retrieve, and validate previously murky information about digital ads.
The traditional advertising landscape makes it difficult to find the fraudulent clicks and impressions you might have been paying for.
Blockchain technology integrated with tools such as smart contract oracle to help find and flag sites with click discrepancy and bot infiltration which would help eliminate ad fraud and increase the flow of ad budget to the right sites with genuine clicks. This undoubtedly will help the advertiser to eliminate the outrageous funds spent due to ad frauds.
2. Blockchain Decouples MiddleMen
Advertising is super expensive, thanks to the existence of middlemen that interfaces between advertisers and publishers. However, it makes advertising too expensive for small businesses, and it further eats into publishers’ profits.
With blockchain integration, these intermediaries will be decoupled, thereby connecting advertisers and publishers independently, reducing the cost of advertising, and also rewarding publishers handsomely. It will allow for direct media buying and selling.
3. More Transparency For Consumers
Blockchain technologies breed transparency for users. When deployed in the advertising industry, it would help consumers to know who has their data and how this data is being used. While for marketers, it provides robust data to enact on for better decision making and running campaigns.
From the onlook of things, the marketing industry is seemingly just beginning to adopt blockchain technology, but the possibilities and implications are endless.
4. Improved Data Security
Data security is fast becoming a bigger challenge for people who buy and sell online. In the past, there have been trails of data scandals with media giants like Facebook and Google, and everyone wonders if their private identity or financial information has been compromised in any way whatsoever.
With blockchain, transactions and customers information is verified and publicly visible, however, the people involved will remain anonymous. As a result, blockchain’s immutability provides better security for consumers’ information while keeping their personal details totally anonymous.
5. Targeting The Right Audience (Better Leads)
Driving an ad campaign according to the customer's journey is a crucial step to ensure a high conversion rate. Blockchains enables ad tech platforms to automate campaigns based on the specified set of rules.
It improves advertising metrics in reaching the targeted audiences. If the audience falls into certain criteria, then an ad that matches their need will be delivered to them. By doing this advertisers can ensure that their specified budget is getting the maximum possible conversions, thereby increasing sales and profitability.
With many accurate data, audience engagement will be credible and will aid in designing better campaigns. Leads and subscriptions would be genuine and identifiable.
Blockchain-based Advertising Platforms Are Fast Springing Up
Blockchain remains a revolutionary technology, its capabilities are driving wide-range adoption in many industries, and the digital ad industry won’t be an exception. As a comparatively new technology, the first-mover advantage will be massive. Not many ad companies have integrated blockchain but SaTT is a notable mention.
SaTT is a blockchain-based advertising platform that has seamlessly integrated blockchain technology. The platform integrates blockchain with the aid of its native technology, SaTT Smart Contract developed by its parents’ company, Atayen inc.
The cost-effectiveness and efficiency of operation in the SaTT platform is listed as the top attraction for business owners, which is the major cause for the surge of interest of advertisers in the platform. Advertisers have come to realize that with a low budget, they can run an effective advertising campaign across all listed social platforms in the SaTT ecosystem.
SaTT adopts an influencer advertising strategy that enables social media users to become an influencer for business brands and be able to monetize their publications via YouTube, Facebook, Twitter, and Instagram based on the level of engagement it generates.
By adopting decentralization, SaTT connects advertisers and publishers directly, thereby solving most of the challenges that have plagued the advertising industry for years.
The blockchain-based platform will be rounding up its initial coin offering (ICO) and already sold more than $7,000,000 worth of tokens. Finally they are already listed on several exchanges such as Probit & BW since the 24th September. According to the news, SaTT token will be getting listed on several other exchanges in the next few days.
A project to be followed closely for its disruptive potential within the advertising market, I think we will soon hear a lot about them.