Blockchain Unlocking Advertisers’ Profit Potential

Whether collective hosts of a remote cloud storage platform or inhabitants of a player-owned VR world, blockchain users are stakeholders in their favorite applications rather than mere customers. Whereas the internet constructed inroads between disparate service providers and content hosts, encouraging more entrepreneurship and access, it also turns its participants into clients of the “internet establishment” by default. Blockchain, on the other hand, represents a network of paths skirting the toll booths installed by these entrenched entities, to achieve better autonomy and equality.

One of the biggest industries in the world, online advertising operates on these old toll roads exclusively. Companies like Google and Yahoo broke ground in the industry first and have benefited from the internet’s centralized infrastructure to institute themselves as middlemen between advertisers and publishers. The services they provide are convenient, but they’re built on a system that is opaque enough to hide some worrisome flaws. Blockchain represents a way out for participants in the status quo, and there are some very clever companies already using it to show these people what they’re missing.

Tipping the Scales Back

In online advertising’s current paradigm, there is an unavoidable conflict of interest that informs the results of any advertising campaign. Advertisers need to know how their ad is performing, yet all the tools they’re given to optimize campaigns are provided by middlemen who also act as platforms where publishers and advertisers connect. Google, for example, sells ad space and illustrates the performance of ads with their Analytics dashboard as well.

The thing is, Google Analytics puts an inordinate emphasis on key performance indicators that benefit Google more than the advertiser. True indicators of ad success are obscured in favor of KPIs like click-through rate, which isn’t necessarily a signal of ad efficacy but is close to the bottom line of Google itself.

Accordingly, advertisers waste money when they don’t have a transparent way to measure ad efficacy, and the unfortunate existence of bots only exacerbate the problem. These are robotic computers that artificially inflate results and give fake justification for high ad hosting costs. Google’s tools don’t separate fake engagement from real participation, and neither does it have any incentive to do so.

Publishers suffer the consequences of this system as much as advertisers. From small blogs to high-volume publications, those who host ads on their site aren’t given enough of the profits, because ad giants use their biased data and oligopoly to increase their own take.

Finally, users – the ones subjected to ads on their favorite website – often tolerate ads that are irrelevant to them and intrusive. They might also choose to ignore ads by abandoning the site permanently, thus harming other stakeholders.

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