Nunatak at the BIG DATA Marketing Day: How blockchain technology will transform advertising
“Blockchain technology will fundamentally change the digital economy” – A statement that is being increasingly seen in today’s media. The disruptive effect of blockchain often raises more questions than answers. Although cryptocurrencies like Bitcoin already demonstrate how blockchain can rattle the entire financial sector, building the bridge to other industries has proved to be challenging. Establishing and clarifying possible bridges was Dr. Stefan Hopf’s goal while speaking at the BIG DATA Marketing Day in Vienna on February 27th.
Figure 1: Blockchain based transactions work without intermediaries
Decentralized transactions without intermediaries: This is the basic idea of blockchain technology. It enables collaboration between two or more parties without a common basis of trust and without a neutral mediation authority. In a blockchain, the elements of “trust” and “authority” are taken over by a machine. The digital currency Bitcoin, developed and launched in 2008, is considered as first real implementation of the blockchain principle. The basic idea was to enable safe and forgery-proof monetary transactions without traditional banks or other intermediaries via a cryptographic currency. Security and counterfeit protection is ensured by a ledger: A digital register that contains the entire history of transactions. This register is distributed among all participating computers and is accessible to all parties. Therefore, a blockchain is also referred to as ‘distributed ledger technology’.
The use of blockchain technology for payment processing has long since ceased to be a prototype. In addition to financial transactions, blockchain also can enable any other transaction type and offers new solutions to numerous complex business problems. In the marketing world, for example, there a many blockchain platforms that face certain challenges in the advertising market: NYIAX is a blockchain-based trading platform for future advertising placements. The platform adChain deals with the growing problem of bot traffic and ad fraud. The goal of a Basic Attention Token is to capture users´ attention to online advertisements using their own web browser Brave. This project aims to use the measured attention as a currency within an extended ecosystem for advertisers.
Figure 2: Basic Attention Token
There is no shortage of ambitious blockchain projects in the field of advertising. But Dr. Stefan Hopf also made the audience in Vienna think outside of existing blockchain Start-ups. Among other things, he discussed the possibility of direct business between advertisers and publishers without intermediaries, the personalization of Ads via an advertising blockchain or the redundancy of expensive auditing processes due to the transparency of the technology.
How exactly blockchain will transform the advertising industry is still impossible to predict today – it’s almost certain though that we won’t get around the technology in the future.