Fraud and wastefulness are rightly considered the main difficulties of the digital advertising market. Blockchain can help solve both of these problems. The specialists of Boosty Labs, who provide outstaffing in Ukraine, will help us to consider the problem in detail.

According to experts, the growth of the advertising market is 6% per year. But, at the same time, the issues of the industry are growing, because the number of players and offers are growing too. Finding the right tool in such a situation is becoming increasingly difficult for employers. The same applies to predicting the results of advertising campaigns.

In addition, advertising technologies using views and clicks are a great opportunity for scammers. After all, it is very difficult to check the reliability of the data, and their effectiveness.

That is why blockchain is seen as an opportunity to improve the quality of digital advertising.

First problem.

Classical advertising of the end of the last century is commercials on television or radio. Tracking the impact of such advertising on the target audience was extremely difficult.

With the advent of digital media came the possibility of targeting. Now the advertiser could track the impact on their audience. At the same time, digital exchanges appeared as some intermediaries between the employer and digital media.

The constant division into small segments and highly specialized specialists has made the advertising market a very complex structure. The payback of advertising has become questionable. After all, it is very easy to make a mistake and use the advertising budget in the wrong direction now.

Second problem.

Finding the resource from which the buyer came is quite difficult. Therefore, it is not clear until the end which of the marketing activities brings more results.

A UTM tag can partially solve this problem. But you need to remember that users often have several used gadgets.

Third problem

The cost of advertising directly depends on the number of views and clicks. If we consider ideal conditions, such a system justifies itself. But you need to remember about scammers who very quickly found a vulnerable spot in advertising companies.

The most common types of fraud are:

• Using bots and click farms. These are special programs and real people who only imitate the actions of real users, without a sincere interest and desire to purchase the product.
• Creation of hidden advertising that real users do not see.
• Traffic theft, when after clicking on an ad of one brand, the user gets to the site of another brand, the owners of which paid for the click.

Blockchain capabilities.

The common cause of these problems is the lack of transparency. Regardless of all possible statistical options, it is impossible to accurately determine the quality of ads. But blockchain can solve this problem.

Blockchain is the ability to store digital information that is not afraid of third-party interference. In practice, this means creating real digital statistics on the use of advertising, which will take into account all factors.

Blockchain provides the following features:

• Distributed access, which allows all participants to have the same access to the original data.
• Decentralization, which manifests itself in many network nodes, with peer-to-peer tolerances.
• Transparency of each transaction for all participants in the system.
• The immutability of the transaction after its ending.
• Automation, which manifests itself in the reduction of manual work and the establishment of a system of smart contacts.

Thus, the blockchain allows you to completely abandon intermediaries in the digital advertising market.

Before the advent of blockchain, it was impossible to completely guess the behavior of potential buyers. Of course, advertising led to positive dynamics, but often 20-30% of marketing activities brought the whole result. As a result, most of the advertising budget was wasted.

Using the blockchain, it turns out to track all transactions starting from the start of an advertising campaign and ending with the payment of goods on the site. This enables to build a marketing strategy more effectively.

Moreover, the system itself is able to analyze the advertising campaign and make adjustments to improve its performance.

New market trends

Blockchain can solve many problems. However, some new market trends can further change the market and should be taken into account as well.

The general desire for privacy makes it increasingly difficult to obtain consent to receive user data.

And the presence of all kinds of applications and plugins blocking ads can negate the most thoughtful marketing strategy.

At the same time, blockchain can restore trust and openness to the advertising market. This will not only change the existing system, but also bring it to a new, better level for users.