Ad TrendsGuest Expert

The Potential of Blockchain in Digital Advertising | Ending Facebook’s Dominance

potential of blockchain

Blockchain technology is taking over the way the world works. The development of this technology will allow many daily operations of governments, businesses, and individuals to be made more effective and efficient.

What is Blockchain technology and is it just used for Bitcoin?

Adoption levels are still in the beginning stages, as people get to grips with how it works and what potential applications it may offer. A lot of people just associate it with cryptocurrencies such as Bitcoin, but this is only one of the hundreds, if not thousands of potential applications.

One of the areas that has shown a lot of promise when it comes to the application of blockchain technology is the digital advertising sector.

Significant changes are abound for the industry, and this article looks at some of the most promising potential changes.

More Precise Targeting

The advent of advertising platforms like Facebook and Google allowed for more precise targeting for marketing campaigns. As a result of these platforms having significant data concerning the users of their platforms, they could offer these targeting tools.

However, in recent times users have become a lot more concerned about the privacy of their data and how it is being used. Scandals such as that involving Facebook and Cambridge Analytica make users a lot more wary about whom they share their data with.

More about GDPR in our AdTech News Digest

The blockchain will likely be able to offer better targeting tools, as well as being a positive step for those supplying the data. There are projects currently in the works where consumers can earn revenue from adding their own data onto the blockchain, which can then be used by advertisers.

This means that consumers will be more thorough with the data they provide, as they are getting well compensated for it.

Facebook and Google have long dominated the digital advertising space, but it looks like their monopoly of the market is coming to an end.

Real-Time Bidding and Blockchain

There is still a long way to go before the blockchain can become fast enough to keep up with the real-time bidding speeds. It could be a few years away from reaching the required skills, so at the moment it is more tailored towards the delivery ads rather than the bidding process.


One of the main benefits of the blockchain is the trust factor that it provides. There is no way to hack into the blockchain or alter entries. Once it has been recorded, that’s it. This means that it can do wonders for industries that rely on trust and reputation.

The whitelisting process will become a lot more effective and efficient, because any previous indiscretions a party may have had will be recorded on the ledger. There are numerous platforms in the works such as MetaX which provides incentives to people to help evaluate whether or not a publisher can be whitelisted. If brands decide to do so, they can focus all of their ad money on these whitelisted parties.

Ad fraud is a serious issue that costs advertisers hundreds of millions of dollars each year ($16.4 Billion in 2017). Blockchain technology can tackle this problem area and save these vast sums of money that can be better deployed elsewhere. It is a win-win for everybody.

Ad Buying

The likes of smart contracts can be utilized to drastically improve the process of ad buying. All agreements can be quickly cast into a contract, with ad money only being released from a type-of escrow account when all of the conditions have been met.

Contract execution is made automatic with the blockchain, which saves a lot of time, money and energy for both parties. They don’t need to be constantly following up to ensure that conditions have been met and they can plan well in advance when it comes to buying and selling future ad inventory.


At the moment, blockchain technology is still in its infancy, and many of the projects related to digital advertising are still in the beginning stages. It will take time for kinks in the system to be worked out and for the platforms to be running smoothly and effectively.

Blockchain limitations

Image by Juniper

It will also take time for companies to get to grips with these new systems, as they have been doing thing the same way for so long.

There is also the concern that the blockchain is not fast enough to keep up with real-time bidding, something which could be another five years down the line.

What’s next?

It is obvious that there are many potential benefits on the horizon for the digital advertising industry when it comes to the implementation of blockchain technology.

Massive amounts of time, money and energy will be saved, all of which can be redirected in a more positive direction going forward.

While there is still a ways to go before blockchain takes over the industry, you certainly need to be prepared for the rollercoaster that is on the horizon.


View more posts