Block chain May Be Coming to the Online Advertising World

Block chain technologies are becoming increasingly popular for financial markets and traders, but there is evidence that they are entering into the world of online advertising and will be part of the future of the industry. To understand how block chain technology can help to change the internet advertising model it is important to understand what block chain is and how digital advertising works today.

Digital advertising companies (ad tech) companies tend to operate by linking advertising agencies with brands looking to advertise online. Since digital advertising is the only form of advertising that is increasing in size today, big dollars and attention is being devoted to this industry. Digital advertising companies will provide metrics on the performance of the ads that are verified by third party companies and plenty of middle men along the way measure the performance of the ads.

Block chain technologies operate as a transparent way for recording and tracking deals and trades that are kept and monitored by third party companies. The presence of block chain technologies helps to regulate markets by keeping track of trades and presenting transparency for all of those involved in the process. As a result, financial markets operate smoother and there is a disinterested third party available to monitor them.

For digital advertising, block chain technologies will allow brands to have greater transparency when buying ads and will help to cut out the middlemen who often secure discounts and other refunds that the advertising brands are able to use to lower their prices.

One newly formed company based in Philadelphia named Amino is developing an block chain like electronic ledger that allows brands and advertisers to understand ad spending better and clear up the uncertainty in the online digital advertising market. While many companies may find themselves pushed out as a result of this technology the end result will be lower costs and more effective transparency for advertising brands.

Digital Advertising has Flight to Quality

Brands are becoming more cautious with how they advertise online and are considering disassociating themselves with controversial websites that may lead to damage to their brand. Part of these concerns arise as a result of a political environment that has become increasingly divisive. Overall, this is leading brands and digital advertising companies to a flight to quality websites do not have the potential to damage their brands the way other sites might do so.


One of the critical lessons was the abuse that Kellogg received when they tried to withdraw from advertising on Breitbart, a right based conservative news website. Breitbart pushed for a boycott of Kellogg as a result of their ceasing advertising on their site which led to poor news and possibly a reduction of sales.


Most brands will not select the websites that they advertise with directly and use a third party digital advertising company. Brands will either work through an advertising agency or directly with a digital advertising company and will use an insertion order to select the types of digital ads that they want to place as well as the geography and target audience that they want to reach. The digital advertising company will select the websites that offer the impressions that allow them to reach the target market that they have highlighted as desirable.


Digital advertising companies are coming up with solutions for the brands that advertise through them. One digital advertising company, Kargo, focuses on brand safety and is considered to be one of the top ranked digital advertising companies when it comes to the safety of the online publishers that they place their customers’ ads on. Kargo indicated that they typically rejected ninety percent of the publishers that approach them and this push for quality is helping them to protect the interests of their clients.


It is also helping to increase the rates that premium publisher websites are able to charge for their digital ad space. Well known websites like the New York Times and Hearst Properties are able to charge premiums for their digital ad space due to the safety that these more professional sites offer brands, while lesser known publishers, particularly those with controversial content are finding it harder than to obtain advertisers willing to spend significant amounts of money to advertise on their websites.


Twitter Has Started Using Stickers On Ads For Brands

Twitter has introduced the use of promoted stickers for advertising other brands both on people’s content feeds and the actual content. While social media advertising primarily uses the strategy of brands placing adverts on people’s content feeds, Twitter has taken its model a step ahead to advertise brands into the actual content. Twitter is responding to what its competitors such as Snap-chat and Facebook are doing to increase their advertising revenue

Twitter is also considering introducing ads on the photos people post on its network. The ads are the branded version of the stickers that Twitter introduced in the mid-2016 for people to add to their photos. The new branded labels enable individuals to click on them to see photos made by other people in the category. Pepsi has already embraced the idea and it has already rolled out ads using Promoted Stickers on Twitter network. Recently, the company posted about fifty branded stickers to Twitter’s stickers library which were accessible in Russia, Mexico, Egypt, Saudi Arabia, India, the United Arab Emirates and the US to promote user engagement with the branded stickers.

Twitter has now said that only certain brands with their sales reps on Twitter will be able to buy Promoted Stickers. Brands will have the choice to buy four or eight stickers which Twitter will display in its library. Twitter has not revealed the price of these Promoted Stickers which seems weird. However, it is proving to be an effective advertising strategy because if a brand pays for the sticker added to a photo, there are impressions created from the person’s followers. If on the other hand a brand has to pay for everyone who views the branded photo, it could be less of a deal.

For Twitter, the deal is increased sales assuming that people will embrace the idea and that brands are cool with its pricing structure. It is not the first attempt Twitter has tried this advertising strategy. Twitter had already unveiled the sponsored emojis which brands could also pay for. Earlier in the year, Twitter launched the conversational ad format that would be used by advertisers to enable people to tweet a branded message.