Technically, Bitcoin isn’t what us digital media folk truly need to worry ourselves with at this point (unless you were one of the lucky ones to get in early enough to be super rich at this point). What the digital media industry should be keeping an eye on), is the technology that Bitcoin is built on, called blockchain. If you just heard about blockchain today, you’re already behind. This ecosystem is quickly emerging and is affecting the future overall and this doesn’t exclude the digital media ecosystem.
So what is the blockchain?
Blockchain is the technology behind cryptocurrencies like Bitcoin and Ethereum. It takes out the middleman and creates a distributed network for more verified peer-to-peer transactions. It also protects a user’s personal data by using self-sovereign ID, which is an extremely secure form of identification. People can only view information that the user chooses to share. But what does all this mean for digital advertising?
One example relates to the process of media buying and selling. Content producers and content consumers will have more access to each other with less intermediaries in between. Companies will be able to connect directly with their audience and provide payment to their media buying agencies after each impression is received. This will allow companies to save money since they are only paying when advertisements are actually seen by consumers. Eventually, blockchain technology might be able to help companies specifically reach people who are in their target audience.
Another example is self-sovereign ID. This is an important concept in blockchain technology that can help advertisers locate their desired customers. Instead of searching through unreliable sources that might reveal some information about the target audience, blockchain gives advertisers the power to build customer profiles. Self-sovereign ID allows customers to have control over their personal data. They are then able to authorize who can view that data and when it can be revealed. As a result, it permits advertisers to gather accurate data directly from a customer all in one sitting. Once built they can use the customer profiles to improve targeting.
Although Blockchain keeps a user’s information as private as they want, its digital ledger system is also known for being very transparent. Therefore, clients can see exactly when transactions are being made. Since the blockchain system cannot be changed or altered, there is less room for lies and doubt. Overall, blockchain’s full transparency helps clients by giving them the power to track their advertisements and media buys.
This is just the beginning for blockchain technology. It is changing the future and impacting many industries and ecosystems as we speak. Be a part of the conversation and stay updated because this isn’t the last you will be hearing about blockchain technology!
Our final take on the blockchain and advertising – it will likely be a few years before the technology is adopted by enough people to go mainstream, so we have time for now. Until then we’ll just keep our eyes out for more info and what’s to come.
Image from: http://bit.ly/2mEYQLA