https://www.zedo.com/wp-content/uploads/2014/12/ZEDO-Logo2.gif 0 0 Roy de Souza https://www.zedo.com/wp-content/uploads/2014/12/ZEDO-Logo2.gif Roy de Souza2018-08-08 14:05:132018-08-04 19:31:01How the Blockchain Might Help Advertising
The media industry is still a long way from realizing the dream of digital advertising: the ability to target customers and know whether the targeting or the messaging worked. Although many metrics exist for measuring the effectiveness of digital ads, we still don’t now which ones are the best.
Wrap into that some industry specific problems like fraud and viewability, and you get a somewhat disturbing picture, one that makes brands reluctant to pour large dollars into digital. And yet, the largest demographic today is millennials, and they are digital natives. We’re just not going to reach them any other way than digital, and within digital, mobile, and within mobile, video.
So print is gone as a tool, as is desktop. Display is not far behind. The most promising forms of advertising today (and we say today because things change rapidly) are in-app ads, native ads, and incentivized ads.
At the same time these changes have been happening, the industry has been plagued with an epidemic of bots and click fraud. Because there isn’t much transparency during the online auction process through which ads are now bought and sold, advertisers have had problems finding out where or even if their ads have appeared.
This has led to a new emphasis on contextual advertising: the ability to target ads based on where target customers might already be.
Blockchain might also help here, because blockchain transactions are both transparent and encrypted. Unfortunately, not enough is known about how blockchain could be used, so we’re just in the pilot stage. One problem with current blockchain implementations, such as those used in cryptocurrency, is the inability of today’s blockchains like Ethereum to handle transactions at the speed with which ads are currently served. We’re assuming this will be solved in the future, as it is a technology problem.
More important is the issue of customer experience. Taken by the ability to reach millions of people, advertisers decided they wanted to reach audiences “at scale” all the time, regardless of the wishes of those audiences. It has taken the better part of two decades for the industry to realize that — just like with print or TV–less is more. Loading up pages or streams with advertising has led to a boycott of advertising altogether by the 25% of consumers who run ad blockers.
In surveys of people who do run ad blockers, to them the most offensive part of digital advertising isn’t the actual ad, but the tracking of information and the sale of that information to third parties (data brokers). A common statement from about five years ago, “the value is in the data” overlooks how the provider of the data, the consumer, might feel about how her data is being used. This oversight has led to what Doc Searls calls the greatest consumer boycott in history — the boycott of digital advertising.
For consumers to trust advertising again, they have to be assured that their data will not be bought and sold against their will. This is the objective of the GDPR (General Data Protection Regulation). While the GDPR nominally applies only to Europe, because of the global possibilities that come with digital advertising it has engendered compliance in companies that are not headquartered in Europe but may have European customers, like Facebook and Amazon.
Ideally, data privacy will one day be coded into a blockchain that guarantees each consumer the right and ability to control her own data and decide when to make it available. Companies like Digi.Me are already giving consumers the ability to control and share data at will, and when the blockchain matures, we will finally have a totally trustworthy advertising ecosystem again.