Applying blockchain to digital advertising

 Intriguing application.

Applying blockchain to digital advertising

by Erica Techo, University of Georgia

Credit: Unsplash/CC0 Public Domain

The same technology that secures cryptocurrency systems could also protect users from invasive and predatory advertising, according to a new study from researchers at the University of Georgia.

Many consumers don't understand how their data is used in digital advertising. Which devices gather what information, how companies use that information and how to block certain ads can be a mystery. And on the other side of the coin, advertisers and publishers can face the negative impacts of ad fraud, ranging from unauthorized ads to bots that overtake ad traffic and divert profits.

Blockchain can combat both of these challenges, researchers said.

"Because the advertising ecosystem is vastly big, its size and complexity mean there are always bad players," said lead author Jooyoung Kim, a professor of advertising in the Department of Advertising and Public Relations in the Grady College of Journalism and Mass Communication and director of Cox International Center. "Advertisers and publishers cannot track them effectively, and consumers are concerned about their personal data."

Protecting consumer experience

In the face of digital ads, some consumers try to opt out entirely, Kim said. They'll use an ad blocker to stop ads from appearing before videos or in the margins of a web page. Others pay for premium streaming packages that cost more but forego ads.

"When we consume media, it's sort of our personal domain, and you don't want to be interrupted by advertising," Kim said. "But without advertising, media companies cannot survive, which in turn will increase the cost for consumers to access entertainment, news content, as well as information about the products and brands they might need. Blockchain's automated nature means that consumers can maximize their control on exposure to ads."

This could increase trust in advertising, as control is put in the hands of consumers. They get to opt out of some ad categories and craft an experience that appeals to their needs, in addition to tracking how their data is used.

And because blockchain links together user information and transactions, while also tracking changes and making modifications visible, users experience greater transparency and companies face greater accountability than traditional hosting services, said Kyu Lee, the second author of the study who is an associate professor of the UGA's School of Computing and associate director of the Institute of Cybersecurity and Privacy.

Customers can also fall victim when a fraudulent ad is placed on top of a legitimate ad. If the customer clicks the ad hoping to learn more, they are then taken to a fake website.

This can not only negatively impact user experience and make people more distrusting of digital ads, but it also diverts potential profits from advertisers.  ... '