“Revolutionizing Digital Advertising: The Application of Blockchain Technology”

A recent study published in the Journal of Business Research by researchers at the University of Georgia has found that blockchain technology can be used to protect users from invasive and predatory advertising, combat ad fraud, and increase transparency in the digital advertising industry. This technology, which is known for securing cryptocurrency systems, is now being considered as a revolutionary tool for digital advertising. The study highlights the importance of protecting the consumer experience, ensuring trust in advertising, and protecting profits by securing ads.

Protecting the Consumer Experience

Many consumers do not understand how their data is used in digital advertising, which can be a mystery. On the other hand, advertisers and publishers can face the negative impacts of ad fraud, ranging from unauthorized ads to bots that overtake ad traffic and divert profits. To combat these challenges, blockchain can be used. The automated nature of blockchain means that consumers can maximize their control over exposure to ads. Blockchain links together user information and transactions, while also tracking changes and making modifications visible. This results in greater transparency and accountability for companies than traditional hosting services. Customers can also fall victim when a fraudulent ad is placed on top of a legitimate ad. If the customer clicks the ad hoping to learn more, they are then taken to a fake website. This can negatively impact user experience and make people more distrusting of digital ads.

Ensuring Trust in Advertising

Blockchain increases trust in advertising, as control is put in the hands of consumers. They get to opt-out of some ad categories and craft an experience that appeals to their needs, in addition to tracking how their data is used. While blockchain might not completely prevent fraud from the beginning, it clears a path to stop it. When a fake ad is recognized, it can be traced back through the blockchain to the source and stopped. Blockchain also allows us to track down the bad players in the advertising ecosystem, which can prevent advertising from fraudulent companies.

Protecting Profits by Securing Ads

Fraudsters can utilize bots to defraud ads. These bots can repeatedly click ads, depleting the advertisers’ budgets. Digital advertising fraud schemes contribute to an estimated USD 100 billion in losses worldwide in 2022, not to mention the wasted attention of consumers and increased potential threats for them. Blockchain can stop these fraud schemes by identifying fake ads and tracing them back to the source. Furthermore, blockchain can confirm advertiser identities or restrict access to user data, which can prevent the placement of fake ads from the beginning.

Challenges and Growth

While some digital advertising products already utilize blockchain to confirm advertiser identities or restrict access to user data, this is only done on a small scale. Growing these ad networks and implementing blockchain-based digital advertising will also face challenges, according to the study. One critical challenge is speed and scale. Purchasing cryptocurrency through blockchain network, for example, can take hours because there are safeguards in place to confirm the purchase. However, in digital advertising, where ads are placed within milliseconds of a consumer opening their browser, speed is crucial.

Conclusion

The use of blockchain technology in digital advertising can revolutionize and enhance the industry by making it more effective, efficient, and trustworthy. The application of blockchain technology can protect users from invasive and predatory advertising, combat ad fraud, and increase transparency in the industry. Blockchain technology can also give consumers greater control over their data and the ads they see, ensuring trust in advertising and protecting revenue by securing ads against fraudsters. Implementing blockchain in digital advertising can be challenging, but the potential benefits for the industry far outweigh the challenges.