How Blockchain-based Applications Makes Advertising Industry More Accessible?

Blockchain applications have come to stardom because of their indispensable technological structure. Blockchain-based applications have penetrated virtually all the industries, and the advertising industry is not an exception.

The significance of online advertising on the internet’s economy cannot be underestimated. The online advertising industry is currently at its peak. It is estimated that by 2021, the cumulative marketing budgets for companies in the United States of America (USA) will be a whopping $120 billion. In 2015, IHS technology reported that half of the revenue of online video in Europe were done via advertisements. There are more ad-funded free camps compared to ad-free paid apps. The revenue generated by online advertising is skyrocketing and presently pegged at double-digit over the past ten years. In 2016, online advertising generated $72.5 billion as revenue.

The ability to connect a considerable number of publishers with a comparable request of publicists in a computerized way, together with the guarantee of precisely focused on promoting, has made digital marketing quickly advance into an overwhelming environment where various intermediaries are concentrated on streamlining specific capacities. The three primary players in this ecosystem are advertisers, publishers, and users.

The digital marketing (online advertising) ecosystem has been bombarded with numerous intermediaries, who have dubious business models, from taking advantage of users data to verification companies with the promise of helping advertisers manage their budgets properly. For a while, the three key players in the online advertising ecosystem have unanimously pointed out the irregularities in the activities of the intermediaries. Advertisers are challenged about fraud and misplacement of advertisements, publishers are worried about the less share of their advertising budgets, and users are disturbed about the usage of their data (privacy). Earlier, the efforts of the online advertising sector in curbing the fraudulent acts perpetrated by the intermediaries had been proved abortive. A recent study reveals that about 7.6 % of all the impressions of displayed ads in 2017 were fraudulent. Over the past few years, $6.5 billion was lost to ad fraud.

The feasible solution to the problems faced by the online advertising industry is blockchain. Various applications have materialized where companies can bring out their marketing campaign budgets to use on blockchain. A blockchain application can connect advertisers and publishers more accurately than other existing sites for online advertising.

Blockchain App? What does that even mean?

Blockchain apps are applications that run on a blockchain — still confused? There are specific software applications that run on android. Those applications are called android applications. The same analogy applies to blockchain applications. Blockchain App Development Company helps to build blockchain apps. These apps will perform transactions that are controlled by any central body (decentralized transactions), which are documented in a shared ledger that is easily accessible by the key players in the advertising sector.

Blockchain-based applications have been used to rattle different industries like:

  • Financial and payment services e.g., cryptocurrencies
  • Online advertising e.g., Brave
  • Instant messaging encryption e.g., DigitalNote
  • Supply Chain e.g., Skuchain
  • Investment e.g., Abra

Advertisers have Direct Connection with Consumers

The primary “selling point” of blockchain is its decentralization. Blockchain apps can be run anywhere in the world without central control. The transactions carried out on the app are registered on the distributed ledger. Blockchain-based apps, therefore, permit advertisers, and publishers to carry out operations efficiently.

Facebook and Google control most of the advertising ads. Blockchain will not only make these two companies less powerful, but might end up rendering them useless concerning advertising.

A typical example of this disruption is Basic Attention Token (BAT) mentioned earlier. BAT, in collaboration with Brave, enables advertisers to pay users based on the efforts they put in viewing an ad.

BAT and other similar applications have stopped advertisers from going through Google and Facebook. They also connect (BAT and others) advertisers with their potential customers in an effective way.

What this means is that Company A will not have to pay Google to display ads to users (potential customers or clients), Company A can pay the actual users viewing their ads directly.

Apart from the money advertisement fraud cost companies to lose, it breaches the trust between brands their clients.

Less Invasive and More Efficient Ads

Blockchain Apps can resolve yet another major problem of online advertising industry-Ads. Most users agree that the ads are invasive, not only that it drains the battery of the mobile device and waste a more significant percentage of their mobile data.

Blockchain applications like those that were measured earlier can alter how users interact with the ads in the first instance. BAT, especially, allows users to “opt-in” to view ads on the content(s) they have an interest. This feature does not only make users information available in an anonymous way to advertisers, but the users also get to see limited ads of good quality that are specific to their interests.

Therefore, ads are less intrusive and are more efficient in eliminating mobile data and the drainage of cell batteries.


The major companies in the online advertising industry have gloomily made a humungous profit. These companies are centralized. Blockchain is visible, and the transactions carried out on it are immutable. Blockchain applications can verify the authenticity of genuine users, which implies that owners of the website are charged for valid clicks on their websites.

The efficiency of advertising will be efficient with blockchain because advertisers will be able to build the profiles of the clients directly from the voluntary information shared by the customers. The removal of intermediaries will reduce the cost of advertising.


The blockchain-based application will solve the problems associated with the current online advertising by matching publishers and advertisers accurately. The smart contract will pass judgment if the adviser does not get the impressions he or she promised earlier. The blockchain solutions for digital marketing is still in the early phase of development and will go through many developmental changes.