Can Blockchain Standardize the Adtech Industry?
The article discusses how the adtech industry's current fragmented and vulnerable data systems lead to misinformation, fraud, lost revenue, and poor consumer experiences, and proposes that blockchain technology—by providing a secure, immutable, and real-time shared ledger—could standardize adtech data, enhance trust, improve targeting, and increase profitability, supported by a study showing 92% of industry respondents recognize the need for such technological standardization.
The advertisements that follow me around the internet are very freaky. Now, even with over a decade of experience in digital marketing and advertising, I’m still in awe of the data we collect about consumers in order to serve them personalized ads. Today, constant product placement means brands (plus the adtech they purchase to track us) fight for our attention everywhere.
This consumer data directly impacts major business decisions. In fact, it’s how Amazon chooses the design of the latest Echo, how Tesla prices vehicles, and the tone Nike takes in their latest campaign. However, this accumulation of data is highly vulnerable to fraud and mismanagement.
Also, there’s no single account of real-time metrics from all adtech platforms. Today, this can cause:
- The spread of product misinformation.
- Extensive fraud and other trust-related issues.
- Lost revenue for both brands and adtech companies.
- Customers inundated with repetitive ads. Nordstrom, please. I already bought the Gen Z-approved jeans, you can back off now…
At last, it’s time to standardize the adtech industry. And blockchain could help.
Before we dive in, let’s review the syllabus. First, blockchain’s system records information to make it difficult or impossible to change, hack, or cheat. It’s a digital record of transactions duplicated/distributed across a network of connected systems (called, you guessed it, a blockchain). From there, each block in the chain contains a number of transactions, and every time a new one occurs, it’s added to everyone’s record.
Thus, this system could enable real-time, trusted data. It serves consumers hyper-relevant ads and simultaneously raises profit and improves the experience, too.
In a study by research firm Industry Index, and commissioned by AdLedger and MadHive, called Next-Generation Solutions for Ad Tech, 92% of survey respondents see a need for tech standardization. In addition, only 6% said they’re satisfied with the current system, while 14% see the need for a complete change.
As for the kind of new technology, 73% said that blockchain “is viable for industry-wide standardization.”
Below, check out three adtech companies that help collect better data through blockchain technology.
1) BitClave
First, I love the transparency — BitClave rewards consumers who share their personal data with marketing teams. The BitClave Active Search Ecosystem (BASE) enables users to control their identity and decide who can and cannot access their information.
2) Havas Blockchain
Next, the digital marketing arm of the advertising giant Havas Group provides PR and advertising campaigns for the blockchain community. Now, Havas Blockchain develops strategies for initial coin offerings (ICO) and crypto launches by defining the right channels and using blockchain-backed platforms to fulfill outreach and create content.
3) IBM
Finally, it’s no surprise that the tech giant verifies its supply chain with its own blockchain platform. The company partnered with advertising/analytics platform Mediaocean to give marketing teams better data insight. This partnership helps businesses eliminate wasteful spend on unnecessary third parties and discover fraudulent data, as well.
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