Blockchain innovation in the ad tech world has begun to gain momentum.
While still clearly in the beta phase, the technology could reshape the online advertising and marketing world.
For instance, blockchain, with its hard verification, could do away with dirty data from bots and hired traffic.
Currently, online advertisers face the crippling problem of not being able to authenticate incoming traffic stats. This is due to the widespread manipulative practices.
It’s estimated that nearly half of web traffic now is generated by bots — not humans. Bot and hired clicker interference cost global brands up to $16.5 billion annually.
Blockchain deployed in ad tech would alleviate the fake traffic problem because it would enable brands to track and authenticate incoming traffic.
The ability to track and authenticate also can be implemented when it comes purchases, too, which would increase security and shopper confidence.
Fashion line Babyghost is already using blockchain technology to help customers verify and authenticate products. Clients can scan items, verify authenticity and receive an item backstory detailing when and where the product was made.
Advertisers and marketers point out that this use of the technology can actually help customers have a more personal connection to the items they purchase.
Moreover, advertisers currently get information about their client base from multiple sources across the Internet.
Collecting all of the pertinent data that a company may need to appropriately market to their customers from one source is presently impossible.
All that changes with the addition of blockchain. Companies will be able to gather customer data in one shot and create highly personalized advertising and marketing materials.
Ad analytics company Kochava announced a blockchain development platform, XCHNG, earlier this month. It said the platform will not go live until later this year or possibly early 2019.
A hurdle that blockchain ad tech companies have to overcome, however, is that potential partners and clients lack education about crypto economics.
Since the success of blockchain ad tech is predicated on the use of volatile cryptocurrency or crypto tokens, this education gap poses major problems for companies trying to pitch blockchain ad tech solutions.
Vendors also need a quick and convenient way to convert their cryptos into dollars and feel confident about executing the process. Nevertheless, it’s clear that blockchain is coming to ad tech, sooner than later.