What can blockchain really do for advertising? A perfect use case with SaTT – Benzinga

In a highly competitive and rapidly digitizing business ecosystem, advertising plays a major role in the success of a brand. So much so that according to MarketingDive, global ad spend is expected to increase by 5% to reach $ 600 billion by the end of 2019, almost half of which will come from digital ads.

Besides the direct use of technology, the boom in social media has largely contributed to this growth. After all, advertising is about making people aware of a brand: the more targeted, the better. With an expected global user base of 3.43 billion by 2023, social media platforms are among the best resources for doing so.

But despite rapid growth and increasing importance, traditional advertising models have dark sides.

The pitfalls of traditional advertising

According to Juniper Research, by 2020, marketers around the world could lose an estimated $ 44 billion to ad fraud – by far, the biggest problem with traditional advertising. This is largely due to the fact that the industry is highly centralized and opaque.

Advertising agencies often act as intermediaries between advertisers and their audience. Often, advertisers have to pay a high upfront fee and monthly subscription to run their ads. The advertiser has very little or no control over where their ads are placed or who clicks on them. Hence, they bear the cost of inefficient agency placement, while the overall cost of advertising ends up being significantly high as well.

While social media is a major space for running advertising campaigns, traditional methods do not encourage platform users to participate. End users of social media are seen simply as consumers and not as contributors. To a large extent, this limits the reach of ad campaigns on platforms that run primarily on user-generated content.

The promise of decentralized advertising

Most of the shortcomings of traditional advertising are due to the centralized nature of the industry. In this context, distributed ledger technology, particularly blockchain, enables a more user-centric approach to advertising.

In blockchain advertising, advertisers can interact directly with end users who, in turn, can contribute and monetize content and efforts for an advertising campaign. Before we try to understand this better with an example, let’s briefly describe the main benefits of using blockchain for advertising.

First, eliminating middlemen leads to cost savings. Usually, a significant portion of advertising spend pays the fees and other costs of intermediaries. By using blockchain, advertisers don’t need to rank high on Google, which eases the vicious cycle of constantly investing time and money to rank at the top of Google search. In turn, this also greatly expands the scope, as advertisers no longer depend solely on certain agencies or oligarchies.

Second, thanks to the transparency and security features inherent in blockchain (like smart contracts), it is possible to restore consumer confidence in advertising. More importantly, it makes ad fraud virtually impossible, while making the industry as a whole more accountable.

Third, in blockchain advertising, consumers have full control over the data they share with advertisers. In addition, blockchain technology ensures that advertisers cannot use this data in any way other than what has been previously agreed.

A Perfect Blockchain Advertising Case Study: The SaTT Platform

The SaTT solution was developed by Atayen, Inc and is an Ethereum-based platform that uses smart contracts and an ERC20 token to facilitate advertising transactions. Along with secure, instant, and automated transactions, the decentralized platform uses robust applications to transparently quantify campaign results.

Through this incentive platform, advertisers can launch campaigns in which other users can participate by sharing related content on their social networks. In return, they are rewarded with predetermined SaTT tokens, based on multiple KPIs such as views, likes and shares.

Anyone using the app can apply to promote a product or service they like and be rewarded with SaTT tokens and act as an influencer.

Since companies are very attentive to their most engaged followers on social networks, SaTT is positioned as a revolutionary solution to reward them and considerably increase a company’s exposure on social networks, without depending on a centralized entity.

Centralization, opacity and high costs are some of the major problems with traditional advertising. In addition, there is a serious lack of user participation. Using blockchain technology, innovative startups come up with innovative solutions to these issues, ultimately helping to revolutionize advertising.

As any user with a large social network can create and monetize content for advertising campaigns, these blockchain-based platforms are also enabling a paradigm shift in influencer marketing.

Disclaimer: Please consult your financial advisor before investing in cryptocurrencies as they are volatile and present risk to the average investor. This message is informative in nature and does not constitute financial advice. The author of this article does not and has never held any position within SaTT.

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

The post What can blockchain really do for advertising? A perfect use case with SaTT – Benzinga appeared first on USNewsRank.

  • Leave a Reply