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.