Blockchain is no longer a new buzzword in cryptocurrency, it is now beginning to reshape the way we think about finance in digital advertising. Though most people immediately associate blockchain with Bitcoin or Ethereum, the huge potential it has to shake up the monetary side of digital marketing cannot be ignored. Offering transparency, weeding out fraud, and making better payments, blockchain has the potential to alter how marketers budget their ad dollars in monumental ways.
Among the major problems in digital advertising, having no transparency over where the money went is a big issue. Advertisers often trigger where their budgets are going, leading to concerns about financial inefficiencies and fraud. Here comes blockchain. Because it records each and every transaction over a decentralized ledger, it gives much better visibility into how money flows throughout the advertising ecosystem. For financial teams, this means better control of ad spend and more accountability in the process.
Another way that blockchain impacts finance in digital advertising is by speeding up and reducing transaction costs. Traditional systems of payments usually mean a lot of intermediaries, which also means higher fees and slower payments. Blockchain cuts out the middlemen in such transactions, allowing direct transactions between the advertisers and publishers. This reduces financial costs and further democratizes advertising, making it increasingly affordable for small advertisers to run campaigns without high transaction fees.
Besides this, the smart contracts of blockchain offer even more financial benefits. These self-executing contracts allow the automation of triggering payments when conditions for such are met, ensuring that money is only spent when those particular goals have been achieved. This will provide a better and safer means of handling financial transactions within digital advertising.