Connect with us

News

How blockchain solves online advertising problems

Published

on

The use of the blockchain in areas far from fintech is not new. Blockchain is successfully used in real estate , logistics and even government services .

One of the most promising markets for blockchain solutions remains online advertising (digital advertising). Nevertheless, there are a number of problems in this industry, solutions for which are offered by both traditional companies and blockchain startups.

Industry problems

Online advertising problems include:

  • user privacy: advertisers buy users' personal data, but users themselves are not rewarded for it;
  • fraud: fake or inconspicuous banners, cheat views and clicks, etc .;
  • opacity and complexity of accounting: to evaluate the effectiveness and cost of an advertising campaign can be difficult.

The traditional online advertising industry has offered solutions that are designed to level these problems, for example, AdSense or AdWords from Google. However, their effectiveness in practice is often relative. The question of user remuneration for providing personal data or viewing ads is often not at all on the agenda. Fraudsters invent new ways to make illegal money on other people's campaigns. Advertisers still face difficulties due to non-transparent bidding and the lack of a single set of metrics on the platforms.

In the cryptoindustry also there are projects designed to solve at least some of these problems. Their common feature is the use of native tokens, rather than popular cryptocurrencies, so these solutions have not yet become widespread. However, some of them were able to become quite popular.

Decentralized solutions

One of the most famous blockchain solutions in the field of online advertising is the Brave browser. The project tracks user-visited sites and uses this information to improve targeting, and users receive BAT (Basic Attention Token) tokens for viewing advertisements or visiting certain sites. Thus, the system gives the user a financial incentive to view ads.

The advertiser can set up his monthly expenses for paying for views in the Brave browser. The user sets the number of ad views that he is ready to perform in the same month. After viewing the advertisement, the advertiser's tokens are moved to the user's wallet. In addition, developers plan to implement BAT in other browsers using extensions.

The decentralized ad exchange AdEx offers a solution focused on the issues of campaign effectiveness and minimizing fraud. Smart contracts are used for direct interaction between the advertiser and the advertising website. The blockchain technology ensures the transparency of all metrics and facilitates their accounting.

The platform interface is intuitive, even for a beginner, and allows you to immediately create a campaign, place the necessary advertising materials and monitor the effectiveness of their publication. You can use the platform as an advertiser and publisher from a single account. To do this, the user needs to switch the “toggle switch” in the menu. Registration on the platform is done through the Metamask plugin.

AdBank platform is designed to solve the problem of fraud in online advertising. The company has patented a method for determining fraud actions using artificial intelligence and blockchain technology.

AdBank requires e-mail and personal data to register, and you cannot switch between advertiser and publisher modes. To do this, create two different accounts. In the account, the user gets access to analytical tools and, depending on the chosen role, can manage an advertising campaign or the publication of an advertisement. The platform also has an internal wallet that allows you to manage funds “on the go” and take them out of the platform. At the same time, the use of mail during registration can create a vulnerability for user funds, since the account is easier to hack.

findings

Blockchain solutions for the online advertising industry are not very common. This is most often associated with the reluctance of large companies to use cryptographic tokens due to regulatory risks. However, if blockchain solutions prove to be effective in practice, we can expect an increase in their popularity in the coming years.

Subscribe to the BlockchainJournal channel on YouTube !

<< aside id = "unisender_subscribe_form-10" class = "widget unisender_form">

BlockchainJournal.news