Effect of Blockchain on Online Advertising

Home Assignment Answers Effect of Blockchain on Online Advertising

Hike in the competition has been emphasizing every field, and in digital marketing one of the most impacted sectors is of advertising. The business owners are making it a stronger part of the pushing the sales and as per the recent study by Forrester, the importance of the online advertising is increasing. The budget for the advertisers has also seen a shift from a small amount to more than $120 billion per year in most of the developed countries. Yeah, the amount is less likely to fall.

The tech giants, Amazon, Facebook, Apple, think online advertising sector has to be flexible, otherwise investing money in it is useless. All the efforts will go in vain. The malleability factor is the strength as well as the weakness of online advertising. The advertisers have to handle a lot of data in a smart way making informed decisions about what will work and will not. This also needs organic connections with their audience, but the online advertising is a sector which is on a cusp of transformation. The fakeness and fraud problem prevailing in the sector is also one of the reasons behind it.

According to a study, in 2017, around 7.6% of the online advertisements displayed impressions were deceitful. It is not a small issue as there had been a loss of $6.5 billion in the year as per the fraud detection organization White Ops and Association of National Advertisers. Along with the loss, the fraud tends to erode the sense of trust between the customers and the brand and that is an obvious thing. Therefore, the potential and the longevity are also affected. Before reading the effect of online advertising, read Role of Blockchain in Manufacturing Industry and have an idea of the power of the technology.

In all these situations, blockchain is the solution you have been looking for.

See How-

  1. Directly connect to the customers-

Google and Facebook control digital display ad inventories, the middleman of both the end user and the advertiser. But they become irrelevant with the advent use of the blockchain. Basic example is a BAT (Basic Attention Token). The people are paid as per the mental effort required to view an ad by the advertisers. Along with mitigating the need of the middle companies (Google and Facebook), BAT and the similar disintermediation also connect the advertisers to the potential customers in a simpler way as compared to middle platforms.

The advertisers also get the critical visibility that if the customer has viewed the ad before the currency exchange.


  1. High effective advertisements-

Blockchain help in saving the device battery as well as the incredible amount of bandwidth. BAT technology has the real potential to change the way how the people interact with the ads. The opt-in feature of the Brave browser powered by BAT let the customer see the ad content based on their likings. In this way, the number of ads also decrease and the ads viewed are of high quality. Therefore, the bandwidth waste is eliminated along with saving the device’s battery.


  1. Transparency-

Blockchain ledger system has tamper-proof and superior visibility nature which help in empowering the search engine markers precisely. Now, with the help of the blockchain, the advertisers can build customer profiles directly from information customers. It will improve the target and the relevance of the advertisement. As a result, the revenue and the conversions will see a drastic change.

When you are viewing an advertisement as a customer in a blockchain-powered model, you don’t need to think that whether you are falling into someone’s trap. You can see the source of the ad, and you can buy the product directly from Amazon, or from the marketplace.

People have started putting blockchain across the online advertising space. It is the reason behind Google’s announcement of its own blockchain for transactional and cloud services.

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