What is Blockchain Advertising? Why does it Matter?

The world economy has come to a major halt. The COVID-19 pandemic is doing its rounds sparing no country or city. Businesses around the world, regardless of their size, are clueless as to how things are going to transpire in the coming months.

This is a tough time for everyone. Many enterprises, hostile to the idea of work-from-home previously, have given nod to it. Even if the pandemic is not planning on leaving the planet anytime soon, making employees work is not going to be an issue! Great, but something else is still a cause of concern.

How to acquire clients? How to make sure that the business has a stable source of revenue?

Blockchain digital advertising is the answer. Enterprises, who make the most out of the situation and strengthen their digital marketing game with the advanced features of blockchain technology won’t have to worry about the lasting impact the pandemic leaves.

Don't really get how blockchain advertising is different from conventional digital advertising? Let's find out!

Blockchain Advertising: An Introduction

The influence of blockchain technology can be seen in a spectrum of industries today. Although many have been a little skeptical about it initially and steered clear of it, those who did plunge into the technology have been reaping the benefits.

The changes brought in by blockchain technology in fintech and logistics have prompted other industries, including advertising, to integrate blockchain. The tiny steps have aided in redefining the enterprise operations, management, accounting and communications with users.

Advertising is a stand-alone industry today. It is estimated that digital ad expenditure globally could reach a total of $427.26 billion by the year 2022. More than conventional means of advertising, digital advertising has been gaining popularity in the last two decades. But with expansion comes its own set of problems.

Advertising, especially digital advertising is infected by fraudulent activities. Insufficient transparency is also a major cause of concern. We will venture into that in the next section. It goes without saying that the industry is yet to gain great efficiency, which can only be achieved with advanced technology. This is what blockchain has been trying to bring about.

How can the Digital Marketing Sector be Revamped with Blockchain?

Bot Invasion & Unrestrained Ad Frauds Brought Under Control

Ad frauds are an incessant problem in the advertising industry. It could come from publishers or exterior parties with a view to increasing revenue by misrepresenting online advertising impressions, clicks, conversion or data events.

The most prevalent among ad frauds is bot traffic, which is essentially non-human traffic to a website. They are software applications efficient enough to run automated tasks and perform repetitive tasks at a rate unimaginable to human beings. Bot traffic is the result of software applications running automated tasks. While there are good bots crawling on the internet, bad bots, which make up 28.9% of the total traffic, are what really cause the pain.

Although they mostly are an inconvenience to advertisers who have invested in pay-per-click advertising, they sometimes cause huge traffic to websites and take them down. Bot traffic is false traffic to websites, which means they cause more expenditure to advertisers. There have been many efforts to tackle the issue within the industry, but none have been 100% efficient. This is where blockchain technology comes in.

Blockchain technology verifies each and every traffic coming to the website. Advertising agencies which integrate the technology into their operations and services will not just be able to cut down a major share of their costs, but also improve their reputation in the market.

Apart from bot traffic, there are also other ad frauds corroding the industry. Secured with cryptographic hashes and bolstered with smart contracts, blockchain technology will be efficient in combating their threats.

Transparency Guaranteed

Advertisements that make an impact are the result of collaboration. It is important that all parties involved, including advertisers, publishers, and the audience are put in the loop regarding the activities and transactions that concern them.

The essentially centralized nature of the advertising industry and technological limitations don't provide much scope in terms of transparency. While we are used to the lack of transparency across all industries, the positive changes blockchain technology has brought into the arena will make us think otherwise.

Blockchain has already begun to transform the way we transact and do business. Trustless economies facilitated by blockchain platforms open up exciting new possibilities. Every single transaction is viewed and tracked through immutable distributed ledgers.

Do they survive? The growth graph of bitcoin is a testimony to the success of trustless economies. With blockchain-enabled advertising, parties can form agreements with ease of mind. Agencies can use their human and financial resources to better use and focus on growing their business.

Middlemen Dealt with

A few tech giants like Google and Facebook control the digital marketing industry. Penetrating the industry has become almost impossible. Being pioneers, it is solely upon them to run the industry. Despite taking the market with a storm as an inexpensive alternative to conventional advertising, the cost-efficiency of digital advertising through these platforms is in question today.

With the rising costs of advertising on online platforms, the value they provide is ambiguous. Middlemen's costs, soaring new heights every quarter, have become a huge inconvenience. If only we could get them out of the system, a major slash in expenditure can be brought about.

Blockchain technology will disrupt the essentially centralized nature of the digital marketing industry and the set of hurdles that come with it. Since the decentralized ledger on a blockchain is monitored by multiple beneficent networks, middlemen can be eliminated along with their unreasonable costs.

Instead of that, the money saved can be redistributed among advertisers and the audience. Advertisers can use the money to acquire more clients and expand their business.

Engagement Ensured

We have lost count of the number of times we have cursed the internet and the ads that interrupt our online activities! We don't think twice before uninstalling the app that frequently bombards us with ads that have been unasked for. We take a vow to never use the product that keeps showing up on our social media pages and the websites that we visit.

Despite splurging a hefty sum on advertising, many enterprises fail to see tangible results.

The reason?

Of course, the lack of engagement. What good is allocating a major share of your revenue towards advertising if the audience doesn't engage with it? Or worse, they hate it. There is a fine line between pestering and advertising, which many advertisers fail to see. If advertisers don't get that right, all their efforts will backfire.

Why don't we hand over the opportunity to choose the advertisements they wish to watch to the audience? This is far more efficient and result-oriented than publishing advertisements with eyes blindfolded across a wide range of audiences.

Despite offering advanced features for filtering, conventional digital media platforms come across as an inconvenience to the audience. This is what the blockchain platform addresses.

Not only does the audience get to choose the ads they want to watch, advertising platforms built on blockchain like Armacoin, rewards the audience in tokens to incite further curiosity and engagement.

It is about time advertising platforms stopped manipulating the personal data and privacy of users for their personal benefit. Blockchain technology will inevitably change this scenario.

Armacoin, the Pioneers in Blockchain Advertising

After keeping a close watch on the progress of blockchain technology and its influence on various industries, the Armacoin platform was designed to integrate the same into the advertising industry.

Armacoin redefines advertising agencies and the way they were known to work. The platform will pave the way for the growth of all parties involved ensuring a trustless economy. It will enable advertisers to leave a message in the contract line for a fee in GZM.

Our token, the Armacoin GZM coin, will be used for transactions inside the platform. It intends to bring blockchain technology to every household. It is about time, people let go of their apprehensions about blockchain technology and embraced it into their everyday life.

The cryptographically encrypted smart contracts will revive the industry as a whole, reduce fraudulent activities, increase transparency, and engage more active participants. In addition to that, the platform will reward its audience for the time they spend watching the ads in Armacoin GZM coins. As they attain more power over the ads they are shown, it increases their trust and confidence in the product and the brand.

In short, the Armacoin platform will bring together advertisers, publishers and the audience under an umbrella. Armacoin will truly be a decentralized, democratic alternative to the conventional methods of marketing.

Conclusion

The integration of blockchain to the advertising industry is no longer an adventure or luxury, it is the need of the hour.

Blockchain advertising has the capability to withstand the fluctuating nature of the industry and combat the rampant frauds in the digital marketing sector. Let us develop an advertising platform that incites curiosity in the audience with blockchain and Armacoin.