The Tech Revolution Is Coming To Advertising! Just Someone Forgot The “Engagement” Bit!

The Tech Revolution Is Coming To Advertising! Just Someone Forgot The “Engagement” Bit!
SHARE
THIS


What best describes you?

In this guest post, Chee-Wee Tan and Eric Lim take a look at the tech revolution that’s changing the face of advertising and why it’s now all about big data, chatbots and blockchains…

This article originally appeared on The Conversation…

While technology has been making more devices “smart”, and we carry phones with all sorts of sensors, these haven’t yet been systematically applied to advertising’s central problem – engagement. The blockchain, however, will make advertising much smarter.

Traditional advertising – think of posters on bus stops and TV commercials – is easy to ignore and its effectiveness is hard to measure. Even online advertising has problems measuring engagement. But with the blockchain, advertisers will be able to tap into the data in our devices, automatically pull together multiple sources of information, and even offer rewards to consumers.

What Is The Blockchain Again?

Think of the blockchain as a kind of a public spreadsheet. This spreadsheet is stored simultaneously on a bunch of different computers and is encrypted.

When someone transfers a Bitcoin (or anything else you’re trading on the blockchain) the transaction is verified by all of the computers, encrypted and added to the spreadsheet, where everyone can see. The encryption and transparency are what make the system secure.

Bitcoin and other cryptocurrencies, such as Ripple XRP and Ether, sit on top of the blockchain. They can be used as currencies, transferred between people just like normal money. Or they can be used as a kind of token, the transfer recorded to signify when something has been exchanged.

A computer program known as a smart contract has evolved out of this system. It can execute specific actions when predefined conditions within the blockchain are fulfilled – such as automatically paying a farmer when crops are delivered. But smart contracts could also have huge implications for advertising.

Advertising Is Going To Be More Complex

Advertising in the age of blockchains and smart contracts will be something more like an ecosystem. Information and value will flow and be captured in numerous directions. Using smart contracts, many different entities and data streams will be brought together.

Let’s imagine Jane sees an advertisement for a pair of shoes on her smartphone. The advertiser asks that, in exchange for Bitcoin, she reveal her identity by turning on her camera and taking a selfie. She must also allow the advertiser to access her SIM and verify with the phone company that it is indeed Jane who owns the phone. The advertiser would also like to know where Jane is located using the Google Maps application on her phone.

Individually, none of these actions are new. What will be new is having a smart contract to tie it all together.

At the initiation of this advertising effort, the parties involved in the smart contract are Jane, the advertiser, the phone company and Google. A predefined reward (in the form of Bitcoin) promised by the advertiser will be released to Jane only once all parties fulfill their part of the contract. Jane must take a selfie and send it to the advertiser, the phone company must confirm with the advertiser that Jane indeed owns the phone used to take the selfie and Google must release Jane’s location to the advertiser.

There are a few implications from this example.

Consumers like Jane will now be empowered to choose whether they want to give up their privacy in exchange for something. Jane could choose to block Google Maps from revealing her location, for example.

Advertisers will know exactly how consumers interact with their ads. By specifying actions for Jane to perform, like taking a selfie after watching an ad, advertisers will overcome the crucial problem of not being able to verify whether people are actually paying attention.

They will also know whether consumers have adhered to every part of the agreement. If Jane does not allow Google Maps to reveal her location, the advertiser will be aware of this and may release only some of her reward. This is an efficient and cost-effective method of piecing together the profiles of customers.

Finally, the blockchain will enable advertisers to capture value they could not previously, because they could not track or measure interaction with ads.

For example, let’s say the advertiser’s request is more ambitious, and Jane decides to reveal she is using a cab from company X and dropping by cafe Y to pick up a latte before going to the shoe store. The original advertisement has now generated value not only for the advertiser but also for those other entities.

Using the blockchain means all parties will have access to information about what happened. The advertiser could collaborate with other companies like cab company X and cafe Y to boost business. They could even demand those companies chip in to cover the costs.

A Few Years Off

At this point we must go through a reality check.

While some parts of this picture are already being experimented with – Nasdaq has built a marketplace to buy and sell advertising on a blockchain, and others are building the tokens to sit on top – technologically and politically we are still sorely lacking.

There are also many digital blind spots that, like missing links among security cameras, allow some actions to go unobserved and unaccounted for during the advertising process.

But it is possible that in the future, once the infrastructure and our societies have caught up, every digital device will be connected to a blockchain-like system so that all digital actions are accounted for. When that happens, advertisers won’t know what hit them.

Please login with linkedin to comment

Latest News

ABC Replaces Lateline With New 10.30pm National News Bulletin
  • Media

ABC Replaces Lateline With New 10.30pm National News Bulletin

The ABC has announced it will replace its axed current affairs program Lateline with a half-hour news bulletin to be hosted by seasoned presenter Jeremy Fernandez. The 30-minute late-night edition news will air Monday-to-Friday Australia-wide from 29 January. Fernandez will also continue to present the NSW 7pm News on Fridays and Saturdays. ABC Director, News Gaven […]

On Air sign in a studio broadcasting via radio, podcast or wireless transmission.
  • Media

ARN Announces Departure Of Content Director & Radio Veteran

Australian Radio Network (ARN) has announced that Charlie Fox, content Director for WSFM and The Edge, and WSFM morning announcer Ron E Sparks, have departed. Fox has been with ARN since 2005, and Sparks joined WSFM in 2002. ARN national content director Duncan Campbell said the departure of Fox and Sparks are part of the […]

OMD Announces New MD For Melbourne
  • Media

OMD Announces New MD For Melbourne

OMD unveils new Melbourne MD, and it certainly wasn't among any of B&T's picks. Not that we were picking, mind you.

Sydney Festival Chooses Brightcove To Enhance Online Video Content
  • Media

Sydney Festival Chooses Brightcove To Enhance Online Video Content

Video cloud service Brightcove has announced that Sydney Festival has selected the platform to improve its user experience through online video content. Brightcove will do so by removing third-party branding and pre-roll ads, as well as adding autoplay functionality, ahead of the event in January. Leveraging the Brightcove video platform to host and publish video […]

Does Your Christmas Marketing Suck?
  • Opinion

Does Your Christmas Marketing Suck?

Remember the old Palmolive soap ad that asked, "Don't wait to be told"? This is sort of similar, albeit sans any suds.

Opinion

by Peter Harris

Peter Harris
Queensland Anti-Porn Crusaders Cop Ad Ban
  • Campaigns

Queensland Anti-Porn Crusaders Cop Ad Ban

We have a strident anti-pornography policy at B&T. Earphones must be worn at all times and strictly no little people.

by B&T Magazine

B&T Magazine
Nature’s Way Celebrates Big Things Little People Do In UCG Videos Via Wavemaker & Storyful
  • Advertising
  • Campaigns
  • Marketing

Nature’s Way Celebrates Big Things Little People Do In UCG Videos Via Wavemaker & Storyful

Health and wellbeing company Nature’s Way is celebrating the achievements of kids in a series of relatable and entertaining online videos that tug at the heart strings of parents. Instead of using actors to tell the brand story of Nature’s Way’s Kids Smart supplement range, Storyful has helped Wavemaker to license user-generated content clips of […]

DEC PR Wins Hisense Account
  • Marketing

DEC PR Wins Hisense Account

Electronics and whitegoods specialist Hisense has announced it has appointed DEC PR to lead its strategic communications remit in the local market, following a competitive tender process. DEC PR will work to support its brand building activities and managing corporate communications. The agency’s work will integrate closely with Hisense’s other marketing partners. Andre Iannuzzi, marketing […]

QMS Media Expands Presence In Melbourne With New Digital Billboard ‘The G’
  • Advertising
  • Media

QMS Media Expands Presence In Melbourne With New Digital Billboard ‘The G’

Outdoor media company QMS Media has strengthened its digital outdoor presence in Victoria, unveiling an iconic digital billboard in the heart of Melbourne’s famous sporting precinct. The launch of ‘The G’ sees QMS’ landmark digital portfolio ‘bookending’ arguably one of the most iconic and in-demand digital outdoor locations in Australia – Richmond Station Bridge – […]

HSBC Sydney 7s Creates New Visual Identity For 2018 Via Digilante
  • Advertising
  • Campaigns
  • Marketing

HSBC Sydney 7s Creates New Visual Identity For 2018 Via Digilante

As part of the HSBC World Rugby Sevens Series, the Sydney 7s event returns in January complete with a new brand identity, creative strategy and media campaign. With the 2017 Sydney 7s a sell-out event, the challenge for 2018 was to carry that momentum into the third year, defining Sydney’s place as the new ‘go-to’ […]

Bound Round Launches Family Travel Publication for Aussies
  • Media

Bound Round Launches Family Travel Publication for Aussies

Family travel platform Bound Round has announced the launch of its first e-magazine to Australian consumers. Travel Bound is a family-focused, digital quarterly publication available on all Virgin Australia flights through the carrier’s in-flight entertainment system, and is also available for consumer download via the Bound Round website. Bound Round founder and CEO Janeece Keller […]

SBS Unveils New Look, New App For SBS News
  • Media

SBS Unveils New Look, New App For SBS News

Do you like say "I only watch SBS" in an attempt to sound smarter than you are? Well, why not pretend to read this too?

by B&T Magazine

B&T Magazine
Ex-Samsung CMO Joins Amazon Australia As Marketing Director
  • Marketing

Ex-Samsung CMO Joins Amazon Australia As Marketing Director

Amazon Australia has appointed former Samsung Electronics chief marketing officer (CMO) Arno Lenior to lead its marketing division. Lenior worked as Samsung’s CMO for more than three years before departing in 2015. According to his LinkedIn profile, he has also held CEO roles at VR company Virtical and brand consultancy Blue Ocean Brands, and joined […]

by B&T Magazine

B&T Magazine
News Corp Names Its Car Of The Year
  • Marketing

News Corp Names Its Car Of The Year

News announces its annual Car Of The Year and it's not what you'd expect. Well, we certainly didn't expect it anyway.

Aussie Tennis Open & Country Road Announce New Partnership
  • Marketing

Aussie Tennis Open & Country Road Announce New Partnership

The Australian Open has partnered with iconic Australian clothing and lifestyle brand Country Road to supply the uniforms for next year’s tournament. Confirmed today as the official fashion lifestyle Partner of Australian Open 2018, one of Australia’s most loved brands will be worn by thousands of tournament staff at Melbourne Park in January. On-court officials including the chair and […]

Andrew O’Keefe Quits His Weekend Sunrise Duties
  • Media

Andrew O’Keefe Quits His Weekend Sunrise Duties

After 12 years with Weekend Sunrise, Andrew O’Keefe has decided to step away from his hosting and reporting duties. O’Keefe will continue his full-time role as host of Seven’s quiz show The Chase Australia, as well as focus on other projects with the Network. “The ideal job is doing work you love with people you love,” O’Keefe […]

Study: Brand Loyalty Hinges On Customer Support Experiences
  • Marketing

Study: Brand Loyalty Hinges On Customer Support Experiences

Fast and effective support will be a competitive differentiator for companies looking to win over digitally transformed customers and employees, new research has revealed. According to a study by IDC and LogMeIn titled Support Services as a Competitive Differentiator, nearly 67 per cent of consumers said that customer satisfaction was more important than price when […]

OMA Appoints Red Ant Design To Build Industry’s First Automated Proposal Platform
  • Advertising
  • Media

OMA Appoints Red Ant Design To Build Industry’s First Automated Proposal Platform

The Outdoor Media Association (OMA) has announced the appointment of Red Ant Design to build the out-oh-home (OOH) industry’s first automated proposal platform (APP). After an extensive global search and industry consultation, the decision to build the system in-house with a local Australian company was made. The APP will be built in an agile process, […]