Australian website Finder.com.au has revealed that one out of 10 advertisers have purchased their advertising space on blockchain platforms. The survey was conducted by Advertiser Perceptions, a data-driven solution provider to advertising companies, and XCHNG, a blockchain-based digital advertising platform.
Out of the total 300 advertisers who took part in the survey, 66% found blockchain platforms to be suspicious and difficult to use. People who have no prior knowledge of distributed ledger technology often find the entire industry overwhelming. Moreover, these people shy away from the new technology after looking at the various scams online.
50% of these advertisers held a meeting with blockchain solution providers; however, only 10% completed the purchase. When asked whether these advertisers would recommend the new technology to other users, 90% of them responded negatively.
Upon close inspection of the results, the survey noted, “By design, a blockchain is a self-policing, verifiable ecosystem, but privacy and security considerations vary by offering. Advertising decision makers are split on whether or not blockchain is a secure method for transacting media buys.”
Blockchain advertising platforms such as Brave, created by the co-founder of Mozilla Firefox and funded by Pantera Capital, and DCG, among others, offer advertisers an opportunity to use advertising solutions on an authentic platform.
However, the paper adds that advertisers hesitate to use these platforms due to the abundance of “attention-grabbing, alarmist headlines in the crypto-currency arena”.
Advertisers need to analyze these platforms based on their business models. Brave allows advertisers to create and target audience in order to achieve higher Returns on Investment (ROI). Users in turn receive Basic Attention Tokens (BAT) for viewing these advertisements (while Brave protects their privacy). Lastly, publishers get paid in BAT based on the number of views they receive.
On the other hand, XCHNG gets rid of intermediaries and ensures that advertising costs are reduced by introducing a decentralized advertising platform.
Successful DLT advertising platforms make sure that an incentive is provided to the user as well as the advertiser. This is the only way to filter out fraudsters, and create a flexible and affordable industry.
Image Credit: Deposit Photos