The blockchain was introduced into the advertisement sphere to solve some very specific problems within the industry. And so far, the solutions fashioned out of blockchain have been effective. They have also found themselves working out practically, fairly extensively. Blockchain has also helped better use of the advertiser’s resources as well as more security for the users. The concept of blockchains in advertisement benefits everyone in the ecosystem and also reduces third-party mediation, which has always been the blockchain’s calling card.
This post discusses how blockchain attempts to solve problems within the traditional medium of advertising, and also its specific applications within the industry at large.
Challenges With the Traditional Medium
- One of the largest problems with the traditional manner of functioning in advertisements is the lack of accountability. The third parties also prove to be an expensive enterprise for all the actors involved in the process.
- Blockchain also provides higher security and privacy for user data than a traditional medium.
- Another major concern within the traditional ad industry is the potential for fraudulent use of data, which can be better managed through blockchain.
- Blockchain advertisement has also been significantly helpful in reducing fraudulent use of data as well as ensured better use of the advertiser’s resources.
Use cases in advertisement
Data protection application
Blockchain advertisement would enable users to set their own policy for usage of their data. This can then be used in a more personalized manner by the users. They are given the scope to devise policy terms on their own, which the advertisers have to adhere to. This works on a larger level at not only giving users more autonomy and control over their data, but also lets them monetize its usage based on their specific terms. This is something which finds practical application through the Parami protocol as well. This project allows for a personalized privacy protocol for its users. It enables easy management as well.
In a large way, this improves the way that users interact with advertisers. It ensures a more horizontal system of advertising where both parties have their interests being regarded with importance. Detecting fraudulent methods in the earlier system was a little difficult, and this aims at higher transparency through the process.
The prior system granted more autonomy into the hands of the advertiser. Introduction of blockchain into this dimension seeks to alter this aspect.
Superior transactions through blockchain
The overall quality of transactions has been improved with the application of blockchain. Advertising entails collating large amounts of data across a plethora of platforms on the web. This is something which is ensured with much ease with the help of blockchain.
A lot of brands, for instance, opt for IBM’s blockchain platform and try to ensure they reduce third party interaction in the digital advertising experience. Even companies like Alibaba have implemented this. It provides for user verification at every stage, as well as more accountability for the money put in by the advertiser.
Source: Disruptor Daily
Quality improvement
On too many occasions, the way that advertising is presented to us is in the form of puffery or sometimes, in rare cases, misrepresentation too. This would leave the users at a major disadvantage, as there is little to no verification which can be done by the users themselves on the representations.
With the help of blockchain, however, companies like say Walmart have enabled a system where more insight is provided to the customers. This is insight into the production process of the product itself. It will empower consumers to make better decisions, demand for more accountability on each stage of the production process as well.
Walmart Blockchain. Source: HBS Digital Initiative
This would be helpful for advertisers as well. There would be higher levels of consumer trust which will develop for brands which exercise this policy and generally increase their credibility in the market as well.
Conclusively, it would be ambitious to think that the introduction of blockchain advertisement has taken the place of traditional systems. It is in its nascent stages in the world today. However, the scope for it is vast and has a lot of spheres which remain completely untapped. The potential for blockchain in ads is what makes it worth comprehensive study.

Hitesh Malviya is the Founder of ItsBlockchain. He is one of the most early adopters of blockchain & cryptocurrency enthusiast in India. After being into space for a few years, he started IBC in 2016 to help other early adopters learn about the technology.
Before IBC, Hitesh has founded 4 companies in the cyber security & IT space.
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