The digital advertising industry is growing fast. The combined global market is expected to reach $232 billion by 2020, according to Statista. And with the rise of social media and digital content, advertising has shifted from traditional TV ads to online ads, such as those that appear on websites or in mobile apps. In the last two decades, digital advertising has grown rapidly. In 2018, advertisers spent a staggering $123 billion on online ads (excluding video ads). Moreover, the increasing popularity of social media platforms like Facebook and Instagram has led to an increase in influencer marketing and native advertising as well. However, at this point and time, there are many issues with current forms of advertisement, from trust and transparency concerns (with regards to users being tracked for targeted ads) to a general annoyance factor among consumers due to over-exposure. This is where Blockchain technology comes into play. With its ability to create trustless networks and tokenize almost anything
What’s wrong with the current state of advertising?
The biggest issue with the current state of advertising is that users are not given an option to opt in or out of receiving ads. In other words, if a user searches for a certain product online and clicks on an advertisement, he or she is being tracked and profiled for targeted ads. This means that users are then shown ads related to their interests and online behavior and are not compensated for this. This lack of transparency and user consent is what has led to a general user distrust of online ads. According to a study by the Pew Research Center, 51% of U.S. adults have “little to no trust” in the ads they see online. This distrust is due to the fact that most users are not aware of how their data is being collected, who is collecting it, and how it’s being used.
Consumer data is being collected without consent
Another major issue with the current state of advertising is the issue of user privacy and trust. There is a general misconception that data privacy is being protected when in reality, it’s not. While advertisers can track users’ online behavior, they cannot track the actual identity of the user. This means that advertisers have no idea who exactly is viewing their ads and are tracking the behavior of a “random” user who has no connection with them. This is not only an invasion of the user’s privacy and trust but also a waste of time and money for advertisers since they are paying to reach and engage with random users.
Excessive use of ad blockers and malware risk
Another major issue with the current state of advertising is the risk of malware and ad blockers. Advertisers are often accused of supporting malware because some advertisements (paid for by third parties) direct the user to malicious websites. This results in a general distrust of advertisements and the adoption of ad blockers by users. Advertisers have responded to the use of ad blockers by fighting back in court and starting to demand money from advertising networks that serve the content that ends up being blocked by the user.
Metaverse is an advertisment Disneyland
Metaverse is a virtual land to flourish advertisements. Many brands are preparing for the next digital trend, and NFTs are preparing for the crypto boom. You may not view advertisements in any content rather than shopping in Metaverse in the future. Any exclusive experience can be built in the Metaverse with a full advertisement that you can integrate and purchase through rather than only viewing that purposely inserted into the online content.
The current state of advertising is lacking on many fronts. From a lack of transparency and user privacy to excessive use of ad blockers and malware risk, it’s clear that it’s time for a change. This is where blockchain technology comes into play. With its ability to create trustless networks, as well as its potential to tokenize almost anything, blockchain technology can disrupt the current state of advertising and change it for the better. With blockchain technology, advertisers will be able to reach their targeted customers with ads that are actually relevant to their interests. At the same time, users will be able to track how and when they were targeted and even get paid for ads that are relevant to them. Overall, blockchain technology can change the current state of advertising for the better and make digital ads more beneficial for all parties involved.