An Introduction To Decentralised Advertising And Its Benefits
March 6, 2022
Advertising will always be critical for every business, whether digital or traditional. Marketing and advertising play an essential part in efficiently offering your services and products to a wide range of users. They also help people identify appropriate products and services, making their lives much more accessible.
The digital advertising industry is facing several challenges that make it inefficient
The advertising economy in Web 2.0 began as a marketplace governed by publishers, advertisers, and users. However, it is currently dominated by ad exchanges, complex behaviour monitoring systems, and cross-device user tracking. On top of that, the exponential rise of content on the internet has resulted in ongoing, fierce rivalry for viewers’ attention. The exponential growth of online marketing has resulted in a fierce battle for the attention of customers. Users are frequently bombarded with algorithmically targeted advertisements based on their browsing behaviour and personal information. Furthermore, users have discovered ways to avoid these commercials by utilising ad blockers, which has resulted in advertisers receiving insufficient data and targeting while brands are losing billions of dollars because of inefficient advertisement, all while ad fraud is on the rise.
A new reality is emerging just beyond the horizon. Web 3 is based on the concepts and aspirations of the original worldwide web, which is a decentralised world powered by peer-to-peer networks and driven by community-based interactions. The ethos of decentralisation and transparency requires brands and users to engage directly with each other in the Web 3 world. As marketers, we must adapt to this transformation by changing our behaviours and rethinking best practices in the decentralised society we are now advertising.
If you want to read more on Web3 and how it has affected the digital marketing landscape, please check out a previous article of ours.
The ad tech business can build trust and transparency through decentralised advertising
Blockchain applications have grown in popularity due to the belief that blockchain would become a critical technology infrastructure. A blockchain is a digital ledger with a transaction history that is shared across network members and does not have a centralised owner. This open, decentralised approach increases the authenticity and ownership of digital assets. The blockchain is a perfect fit for the digital marketing supply chain since it is a distributed, immutable, and transparent record. We can dramatically enhance efficiency and transparency, decrease expenses, and prevent fraud using blockchains.
While most programmatic ads are launched through a small number of major ad exchanges that control the flow of data and are highly opaque in terms of their algorithm, under decentralised advertising, advertisers will have their micro exchanges that communicate with one another in a network. Buyers would connect to this network, allowing them to continue buying advertisements programmatically across a vast number of exchanges while there is no one in charge of this process.
Decentralised web supporters claim decentralised advertising will allow users and marketers more control, privacy, and openness. Since ad requests do not have to transit via opaque exchanges, decentralisation would allow marketers more significant control over their programmatic sales and more information about ad spending. Instead of relying on tracking signals provided by ad-tech, digital advertising has the potential to become more efficient as marketers can listen to signals from users who have control over the flow of advertising into their browsers, apps, and devices and they can send signals of interest and disinterest to brands and marketers
If marketers have more control and transparency over how their advertising is sold, they can provide users with more detailed privacy controls, such as displaying which data was being used for advertising purposes and which advertisers are bidding for ads.
Benefits of decentralised advertising
Fraud prevention and transparency in the ad supply chain
For a long time, digital advertising has been plagued by ad fraud and transparency issues. Blockchain technology has the potential to eradicate ad fraud and verify that marketers only pay for genuine click-throughs. Decentralised advertising can ensure that marketers get more outcomes for less money. The blockchain's user-controlled privacy, data traceability, and permissioned information transmission improve efficiency and transparency. This enables advertisers to determine the success of their advertisements more efficiently than non-blockchain digital advertising platforms.
Smarter ad optimisation
Advertisers and customers do not have meaningful connections with one another. Advertisers have less knowledge about the audience they want to reach, and consumers are unaware of how third parties utilise their data without their permission. Decentralised advertising reinvents the marketing by providing a transparent advertising environment that connects advertisers with users. It offers a real-time, operational platform that efficiently executes ad campaigns for brands and agencies. It means that marketers and other stakeholders will view results in real-time.
The consumer will regain control, and marketers will create more qualified leads
Increased customer access and control over data does not always imply decreased information. Instead, customers will be able to choose when, to whom, and for how long their information is made public. Users will be able to trade their data for rewards in decentralised advertising. However, the advantages do not stop with the customer. It will assist marketers in gaining greater information autonomy. Although the number of leads may be reduced, the quality of those leads will surely increase.
Complete anonymity of customers
Many of the websites and social media platforms we use today have access to tonnes of data, ranging from browsing history to banking details. However, in the case of decentralised advertising, blockchain-based verified signatures can help digital marketers keep their client's data anonymous on their servers as well as servers managed by third-party applications. This can assist users in maintaining their anonymity and improving their privacy when using the internet.
Decentralised advertising is causing a shift in digital marketing
As marketers, we must brace ourselves for this significant transition in digital marketing. We must adopt new technologies and systems and capitalise on the innovative potential they provide. The web is growing and possibly moving apart, but this decentralisation can bring us closer together in some ways.
If you're looking for collaborators to help you explore the fascinating potential of decentralised advertising. Please go to our contact us section to reach out. We will assist you in rethinking your marketing approach to prosper in this new decentralised environment.
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