Music blogger, SEO and digital advertising dork, and above all - corgi aficionado
If you have been conscious over the last year then you have no doubt heard the term ‘blockchain’. Most commonly it is used when discussing cryptocurrency but blockchain technology has several applications, especially when considering how it could be used in digital advertising. At this point, though you may be asking, what even is a blockchain? Well, we are here to help.
Blockchain Technology – What Is It?
There is no doubt that the biggest new trend in digital advertising will soon be blockchain technology. I am sure reading that made some people nervous, as well, blockchain technology is confusing. So what exactly does this buzzword mean? Well in the most simple of terms, a blockchain is a decentralized ledger that keeps a record of all transactions that occur on a peer to peer network. It is a simple concept, but the technology behind it is what makes it intimidating.
The way blockchains work are when computers arrange the transactions into big chunks of data which are called blocks, that are then linked together in a chain. They keep things secure, safe and functional by using certain codes and incredibly high-level programming language like Solidity to make the processes legitimate.
TL;DR – blockchains link transactions together and secure them using high-level mathematics that is achieved by using complex code languages.
Applications In Digital Advertising
Ad Fraud is a huge issue in digital advertising. Many ad companies are getting railed for the realization that bots are clicking on ads more than actual potential customers, therefore campaigns have unrealistic results. When this happens money is burned as information on those clicking the links is skewed and demographic information cannot be collected.
This technology is a possible solution to the issue, as a chain is transparent and encrypted. As an added bonus companies can easily pin down if the people viewing their ads are members of their targeted audience — or not — saving millions in ad spend every year!
Creating trust in digital advertising can be tricky, it is an unfortunate reality that advertising professionals are associated with manipulation at some level. Blockchain can help build trust as it assures customer information cannot be sold without approval if it is coded into the chain. Furthermore, consumers may even be able to own and sell their information to authorized companies!
The possibilities of this technology in digital advertising are very real. It is time to get ahead of the curve and make sure you are ready for when these practices are no longer just the new and hip thing to do, but actually the best practices. Here are some resources on ‘blockchain’ tech.
Wikipedia Entry on blockchain