Perhaps the biggest problem facing advertisers – and the brands they represent – can all be summed up in a single word: fraud. Tackling advertising fraud with blockchain could be the solution.
Yes, it’s true that the attention of target audiences is more competitive than ever. CBS News reports the average person was exposed to roughly 500 or so ads per day in the 1970s. That number has grown to 5,000 or more per day over time. Additionally, more people are using ad blocking software than ever. As many as 615 million devices around the globe have ad blocking software.
The damage ad fraud is causing
More importantly the damage that ad fraud is doing alone to both users and the industry is something that cannot be overstated enough. According to a recent study from PPC Protect, about $7.2 billion was lost to digital ad fraud in 2016. For every $3 that someone spends on digital advertising, about $1 of it is lost to fraud. Approximately one out of every five websites serving ads were being visited exclusively by fraud bots.
It’s a devastating problem, yes – but it’s also one that several companies are working hard to fix as we speak.
Tackling AD Fraud
There are several blockchain companies like the NOIZ Ad Network, Taboola, Outbrain, and others are creating systems to prevent this type of fraud. NOIZ in particular bills itself as a re-engineered advertising network. The company believes it can avoid fraudulent ad clicks by implementing the blockchain protocol.
Furthermore, completely transparent data is necessary for brands to determine the actual return on investment for its ad spend. By utilizing the transparency of blockchain, it will allow advertisers to collect user data more accurately.
The artificial intelligence aspect of this technology empowers the cognitive ads on display while filtering out the spam clicks. The blockchain element keeps all interactions with users organized, accurate, secure and transparent.
Advertisers may now have a better, more accurate and holistic way to track data and minimize fraudulent clicks. According to the company NOIZ, it aims to reclaim a massive $19 billion from fraudsters by implementing this technology.
The Trust Element
All of this helps address another one of the most pressing issues that advertising professionals are facing today: trust. Brand loyalty is perhaps more fragile than it has ever been. 46% of people saying that they are far more likely to switch from one brand to the next today than they were just ten years ago. Likewise, customers are far more likely to remember a negative experience than a positive one.
If one of your ads is hijacked and gives the user a virus, they’re going to blame you. They’re not going to know – or care – that it isn’t technically your fault. They’re going to remember that they got a virus from clicking on an ad with your brand displayed on it.
Remember that trust breeds loyalty, and loyalty breeds customer retention. Increasing customer retention levels by 5% can translate into an increase in profits between 25% and 95%.