Despite the fact that popularity has grown significantly, leading Google’s search trends given the recent halving, the coronavirus pandemic, and general reporting, The crypto industry has been somewhat removed from the world of advertising through online advertising networks, social media platforms and even national governments.
In 2018, Facebook banned cryptocurrency advertising amid the hype of the initial coin offering. Later in March of this year, Google followed and banned all cryptocurrency ads, especially ICOs, and binary options. In the same month, Twitter also banned all cryptocurrency advertising, with the exception of some public companies.
Several social networks in China have also banned cryptocurrency advertisingafter the Chinese government introduced restrictions. Of course, these bans were not accidental attacks on cryptocurrencies, but a general measure to prevent fraud and illegal fundraisers from attracting users through these platforms.
In fact, it is possible to advertise on Facebook if, for example, the user submits a formal request on Facebook. This measure is used to force potential scammers to go to Facebook instead. Milo McCloud, creative director of Paradox Group – a crypto-focused marketing agency – told Cointelegraph:
“With the latest developments on both platforms [anuncios de Google y Facebook] This is the first step in the right direction for the general acceptance of blockchain technology as an important industry that can address many of the problems we are facing. This enables advertising for blockchain-related content only after thorough examination. we are currently in the lead. “
The consequences of the crypto-apocalypse
The industry struggled with the many bans and restrictions on crypto-related advertising. In fact, several companies in Russia, China and South Korea have merged to form the Eurasian Blockchain Association and subsequently filed a lawsuit against some of the social media companies behind the bans.
Although the situation for cryptocurrency advertisers has improved somewhat, there are still many restrictions. Tanya Petrusenko, director of business development at Bitmedia, a crypto advertising network, told Cointelegraph:
“Things have changed today and now allow some announcements. However, to start a campaign, a crypto company has to go through a series of procedures, have multiple licenses, and there is still no guarantee that even if everything is in Google or Facebook will end up approving the ad, which will limit the freedom of marketing for many companies, since even if someone runs a business that uses crypto as a form of payment, it will be difficult for them to use traditional digital channels advertise. “
Innovation out of necessity
Given the bans in large ad networks, the emerging cryptocurrency industry had to adjust. Along with many other marketing and PR agencies, several crypto-focused networks have been set up to meet advertiser demand in this area and improve the profits of crypto-focused publishers by showing ads more specifically and more relevant. Tiberiu Stingaciu, the CEO of Coinzilla, a crypto advertising network, told Cointelegraph:
“As a specialized sector, the crypto advertising industry focuses primarily on consolidating partnerships with leading financial technology publishers. This helps expand the potential audience that advertisers can reach, while doing a lot of work in more technologically advanced advertising tools such as programmatic advertising, RTB and general optimization of advertising campaigns. “
While advertising companies and even publishers have been able to circumvent these restrictions and even develop innovations themselves, The problems in the advertising industry go far beyond the world of cryptocurrency and blockchain technology. The centralization of the industry by IT giants like Google and Facebook has led to a lack of really threatening competition and there is no reason to fight for improvements. However, some blockchain projects have attempted to find ways to bring advertisers, publishers, and the general public for immense benefit, which creates an incentive for significant change.
The many challenges in the online advertising industry
There are many fundamental problems in the advertising network, such as an excessive number of intermediaries and external service providers required to navigate the space towards a lack of transparency and even widespread advertising fraud in the industry. As Cointelegraph previously discussed, Publishers only get around $ 0.35 for each US dollar of advertising revenue, which of course leads to lower earnings for publishers and higher prices for advertisers.
Ad fraud is also a major problem in the industry as ad fraud will lose $ 44 billion by 2022This leads to enormous losses on all sides, including the end user, and even higher prices for advertisers. Transparency is also an important issue when it is not actually fraud. Advertisers may have no idea how their money is being spent. as Petrusenko explained:
“I think transparency is and has been the main problem. Lack of knowledge of where the advertiser’s money is going is creating a great vacuum for fraudulent traffic. Censorship is now another big problem as traditional ad networks restrict a lot of ads, especially when the subject is crypto-related, which prevents the growth of many online businesses and dramatically limits their reach. “
Along with these issues, consumers are increasingly concerned about their privacy, even when it comes to online advertising. The above technology giants collect an immense amount of data from and about their users and preferences. While this leads to more targeted advertisements, it is generally not very well received by consumers whose data “sells” without their full knowledge or consent, or even the ability to monetize such data.. Stingaciu told Cointelegraph that Ad blockers have become a problem“Users are saturated with ads from all directions, and more and more people turn to ad blockers to escape the flood of ads that are presented to them.”
Blockchain technology in the advertising industry
Although crypto has been excluded from the industry, Blockchain technology has made waves in the digital advertising space in the same way as in many other industries: eliminating unnecessary intermediaries, Streamline direct relationships between taxpayers and provide monetization tools.
Companies want to eliminate intermediaries by providing a self-service platform based on a blockchain network. Ivan Manchev, communications manager for AdEx Network, told Cointelegraph how this system uses the Ethereum blockchain: “On a self-service platform, advertisers can launch a graphic advertising campaign in less than five minutes and send their ads. to certain publishers, “he added:” Both parties receive real-time reports and payments flow directly between them once the impressions are verified. “
Another company in space, the Brave web browser, has tried a different approach and positioned itself as a competitor to Chrome and other browsers. You have created a utility token called the Basic Attention Token, which acts as an incentive mechanism for users to share their data with advertisers. Brave Browser enforces this by giving users more privacy by blocking online trackers.
While Brave is indeed an innovative solution and has gained ground, it certainly has its shortcomings. Reports about links that have been replaced by referral links have recently been published. While these have no devastating effects on end users, they have forced the company to apologize and remove this feature.
Other blockchain companies like All.me and Atayen have also pushed this type of model forward. All.me, a digital network with an integrated wallet and exchange, wants to share 50% of all advertising revenue with its 600,000 users. The Smart Advertising Transaction Token (SATT) was developed by Atayen to reward influencers and other users who create personalized advertising campaigns and receive payments directly that target a more specialized corner of the advertising industry with a model similar to Brave.
What the future holds for crypto and advertising
Will blockchain technology be able to change online advertising? Although the prospects are extremely promising, these alternatives still have a long way to go when it comes to competing with giants like Google or Facebook, which dominate the online advertising market due to their large user base and reach.
However, there are many signs of the increasing use of blockchain technology in the advertising industry. For example, The Brave browser recently joined the PayID global instant payments network, and IBM has even worked with large advertisers to develop a blockchain-based solution that can reduce inefficiency, fraud, and the digital advertising industry.. According to Manchev, the immutability of blockchain technology and direct payment functions can really revolutionize the world of online advertising, says Cointelegraph:
“The immutability of data and the consensus about instructions and terms of payment before delivery can help reduce steps in the supply chain and lower costs for advertisers and publishers. On the other hand, crypto payments can introduce new payment methods. […] This can increase publishers’ liquidity, eliminate the need for advertising networks to hold funds, and increase security for both parties. “
As blockchain technology continues to take over the advertising industry and the cryptocurrency itself is striving for a more regulated and transparent market, it is likely that cryptocurrency companies will be able to re-engage in the “ad party” and reach a target audience market plus mainstream Audience, which may be a must for the widespread adoption of Bitcoin (BTC) and cryptocurrencies as a whole.