Why Blockchain Technology is Good for Advertising?

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by Maria Konash · 4 min read
Why Blockchain Technology is Good for Advertising?
Photo: AdAge / Twitter

Digital advertising market is growing rapidly, and Blockchain technologу can help with transparency and efficiency.

According to PWC, 2015 year was the last, when companies spent more money on the traditional advertisement – newspapers, television, etc. Since 2016, digital ads became dominant with more than 50% of the market. Therefore, the last several years we are observing new advertorial platform emerging with advanced programmatic functions and other services.

Now we have a lot of intermediates within the ads buying process: bidding platforms, demand-side platforms, publishers. The process makes almost impossible to check, is the real advertisement place relevant; and every one of them wants his fee. This makes the advertisement buying process more tangled and expensive.

Blockchain technology is a killer-app everywhere the intermediate exists. And there is no surprise, that Blockchain-based startup offered a new approach to sell and buy adds. A distributed system with a proof-of-history Blockchain ledger will store all the impressions, transactions etc., to make digital advertisement more transparent and targeted. And we are speaking not about a distant future: the project already has more than 10,000 registrations and their sales exceeded $3 million.

Blockchain Ad Protocol

Startup ClearCoin leverages the Blockchain Ad Protocol, specially designed and implemented by the company. The idea is to use the ledger along with special smart-contracts between advertisers and publishers. The tamper-proof ledger opens the way for advertising impressions tracking. Therefore, you can pay for the right impression only, without any fraud or inaccuracies. The service is taking a small fee (about 1-2 %), while companies are losing now 20% on ads fraud, according to GroupM research.

Smart-contracts between advertisers and publishers are also considering the Proof-of-History ledger. The ratings for each publisher are changed dynamically. And the Ethereum smart-contract architecture allows defining campaign time, number of impressions, views, actions and some other parameters for the ads.

It solves the ads fraud problem, just as double spending issue for cryptocurrencies. All digital advertising impressions are recorded, and the real ad impressions are separated from the fraudulent ones. The information, collected in the Blockchain network will work like a filter stopping fraud in the whole ecosystem. If the impression is wrong, there will be no payment for the ad – and that’s all.

The ClearCoin Blockchain platform will be integrated with demand-side and supply-side platforms, provide interfaces for marketers, publishers, ad networks, agencies, and data providers. This global advertising technology is planned to operate like a marketplace, taking a small fee to complete ad transactions with CLR tokens.

Now company is already on ICO, and it goes quite well with more than $3 million raised. This money could help building the global advertising platform to record all the ads placement transactions within the Blockchain networks. Even now it is about $2 billion of advertising transactions every year, and the numbers are expected to grow further.

The new platform is designed for Media Planning, Media Buying, and Tracking & Analytics. In general, it allows precise targeting, effective buying, and results tracking for your ad campaign. You can customize the demographic and psychographic parameters; target by the ad format and arrange the Media Buying according with frequency, chosen cost model and publisher profile. After that you can use Tracking & Analytics module to check the ROI and discover the total cost of impressions, clicks, actions, or views (CPM, CPC, CPA, CPV) and even discover how do people feel about the ad.

Finally, ClearCoin can be a universal payment tool to implement smart-contracts and automate the checkout process with a 10% fee for each transaction. For that means the system leverages Ethereum protocol and the CLR token is built on ERC20 standard.

Accepting cryptocurrency and regular flat money, the platform could become the largest ledger for advertorial transactions and provide users with a statistically based information about different sites with integrated bidding and buying tools. According to the company’s representatives, the fraud protection level will be also offered as a service for other market players for a certain fee.

Blockchain News, News, Token Sales
Maria Konash
Editor-in-Chief Maria Konash

Being a successful graduate of Belarusian State Economic University (BSEU), Maria has acquired competencies in economic and social studies. Given Maria’s previous research working experience, and desire to explore what's really shaping the future, the main research focus is placed on FinTech and Blockchain Technology.

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