Digital advertising is the easiest and most effective way for companies to monetize their own content. Internet users have come to terms with the continued presence of advertisements, but recent privacy scandals involving Facebook and Cambridge Analytica have become an unpleasant surprise for many.
However, there is good news. Confidentiality scandals are forcing stakeholders to implement smart blockchain-based digital advertising models. Many companies working in the field of block chain technologies are changing the methods of data collection and the practice of using advertisements, providing a higher degree of user protection.
21st Century Digital Advertising
Today there is a new model of decentralized digital advertising, first used in the Basic Attention Token (BAT) from bitmex trading signals. In accordance with his model, promising blockchain-based advertising platforms will pay consumers for their data. All information is anonymized and stored in encrypted form. This method of decentralized advertising will eliminate the need for third-party advertising specialists and reduce the number of privacy violations, providing publishers revenue growth.
The developers of the BAT token implemented this idea among the first on the market. However, traditional advertising channels implement their own protocols, expanding the concept of decentralized digital advertising. For example, the developers of Verasity, a video exchange platform based on blockchain technologies, developed this idea by implementing their own patented protocol for advertisements – Proof-of-View (PoV).
Proof-of-View (PoV) protocol for video sharing platforms
Video sharing platforms like YouTube exist solely through ad impressions. However, their monetization model of advertisements is flawed due to “bad” data, as well as fraudulent and imposed views used to collect data. Is it worth it to stay idle if the quality of the services provided does not suit either the authors of the content or users of such platforms?
The Proof-of-View protocol used by Verasity allows consumers to decide whether they want to watch ads, and publishers are given the opportunity to choose the best way to monetize their own content. Advertisements will no longer be imposed on publishers as a method of monetization. Similar to the BAT decentralized advertising model, Verasity gives publishers and users the right to choose, ensuring that their interests are protected.
Proof-of-View is designed to safely calculate the number of views of content in an ecosystem in a transparent and secure way. If consumers agree to watch advertisements on the platform, their views will be encrypted and only then recorded in a common journal. All information will be anonymized and stored in a decentralized manner. This will avoid data privacy issues. Facebook and Cambridge Analytica had to deal with such problems. All information collected must comply with the General Data Protection Regulation (GDPR), Payment Card Industry (PCI DDS) and ePrivacy. In addition to increasing privacy and data security, The PoV protocol also solves the problem of detecting genuine and false views – YouTube often encounters this problem. The protocol will authenticate the views. When viewing ads, consumers must confirm their flows. In this case, VeraPlayer should be visible. Otherwise, viewing the advertisement will not be counted. All these measures are designed to prevent cases of fraudulent cheating on ad views.
Smart advertising monetization
The blockchain provides us with the tools necessary to optimize the integration of online advertisements. Smart methods of monetizing advertisements targeted at the user / viewer rather than the publisher – the BAT and PoV models – will provide consumers with more control over their own data.
We have witnessed a turning point in digital advertising. Everything indicates that in the near future it will definitely not cease to exist. In addition, there is an optimal way to increase the level of protection of user data and make advertising more effective and acceptable to all interested parties. As already noted, the Proof-of-View (PoV) protocol allows consumers to increase the level of control over their own information, making us one step closer to the decentralized and democratic method of monetizing advertisements.