Blockchain Provides Much-Needed Transparency in Advertising, Affiliate Marketing
However much the advertising and marketing industry has evolved over the years to be able to produce data analytics that make it possible to target specific consumers and markets, the fact still remains that there is no clear line between the brand and consumer. Furthermore, there is this mountain of data being generated, and there is no effective way of organizing it to maximize its value.
These issues were discussed by a panel composed of industry experts during the most recent CoinGeek Conference broadcasted live from Samsung Hall in Zurich, Switzerland last June 9, 2021. The panel discussion is participated by promotion marketplace TonicPow co-founder and CEO Luke Rohenaz, advertising agency Net Conversion co-founder and Managing Partner Frank Vertolli and affiliate marketing firm AffiliateINSIDER founder and CEO Lee-Ann Johnstone, moderated by Becky Liggero Fontana, a lead gaming industry reporter who has roots in affiliate marketing.
“Even without privacy regulations and concerns with that, there’s still just this giant, never-ending volume of data coming at us as brands and advertisers. Organizing that is an advantage and just makes the entire system better,” Vertolli said.
“There’s so many people on the planet all creating content. Every single one of those people could potentially learn how to become an affiliate. And then, how do you work with all of those people? The database just keeps growing and growing and growing. So, I think, reporting transparency is something that can really, really be beneficial in the affiliate space… It’s starting to become a very messy ecosystem that we’re all waking in and we need to start looking at solutions to fix when I say that the Internet is broken, because we need to find ways to scale with transparency,” Johnstone added.
Enter BSV blockchain. Because it is a public ledger that records data in an immutable manner, issues with data transparency and integrity are resolved. And because all data are timestamped arranged chronologically, it is easier to organize and analyze the data and eliminate instances of data manipulation.
“Imagine how would you try to manipulate the system. Well, you could, okay we’re going to add in a bunch of clicks that didn’t happen after the fact or something like that. Well, it’s also a timestamp server, so every time a transaction happens you know exactly when it happened; and it would be very visible on the timeline, these anomalies,” Rohenaz pointed out.
On top of this, with the BSV blockchain being continuously scaled to accommodate big data, everything can just be recorded on it without having to worry about the server being overloaded and crashing. BSV also offers micropayments that allow for the cheapest transaction fees—with the current median fee per transaction only at $0.000086. With this kind of system in place, payments will be instant no matter the amount.
“The benefit is that the money earned can be redistributed and reinvested to scale campaigns because you’re receiving payment immediately and not a month later. I think that’s probably one of the biggest touch points that is still a problem in the affiliate space… Because the payment system takes so long to credit, they can’t scale when [affiliates and influencers] are on to something good,” Johnstone revealed.
According to Vertolli, a technology such as the BSV blockchain allows for industry professionals to make sense of the data and view it with a more objective and wider perspective. For instance, whenever a tourist travels, they are categorized in different profiles. If they fly Delta, they become a Delta customer; and if they stay at the Hilton Hotel, then they become a Hilton customer.
“But what I think is becoming more possible is larger data sets or more visibility into what happened along that consumer’s journey and how to compensate accordingly for attention, for engagement and for actual conversion. So I think that what the technology does, it kind of creates a higher level single source of truth, which is ubiquitous across all industries. Everyone’s looking for that,” Vertolli explained.
Many companies across different industries are already building their platforms on the BSV blockchain. It is now up to advertising firms to maximize this technology in order to resolve their long-standing issues.