There's already one large company out there that's saved $1 million dollars doing it.
The "it," in this case?
Using a blockchain-based solution for advertising.
To be clear, we're in the very early stages of this decentralized revolution, in general, and for marketing, in particular.
However... from the way the industry is shaping up, the first technology/market in the cross-hairs of this wave of disruption is: ad tech.
The pain in advertising today
Recently, I had a great conversation with Stacy Huggins, CMO of MadHive (which focuses on OTT advertising). She tells me that for every $1 an advertiser spends on digital, they get about $.44 of value. Why?
Because of all the middlemen/intermediaries that have become part of the digital ad ecosystem.
Where there's friction, there's opportunity
Bottom line, there's a ton of friction and waste in the digital ad ecosystem because of the number of intermediaries.
(If you want a tremendous overview on the existential threat to agencies, see Ben Thompson's great piece, "Ad Agencies and Accountability.")
And what up and coming technology is inherently designed to remove intermediaries, friction, and cost?
Yep, you guessed it...blockchains.
Like I said, it's very early and there are certainly barriers to adoption.
- Ad Tech is a market with a ton of entrenched interests and money at stake.
Expect the "violent opposition" of Schopenhauer's Stage 2.
- The technology is still new and, let's be honest, not quite proven.
- Even using digital tokens adds another layer of complexity for many publishers.
Most people are simply not familiar with the concept yet. That will take time.
The blockchain genie isn't going back in the bottle.
Whether it's one of these companies or the next wave that follows them, the efficiency and effectiveness of the solutions make it a foregone conclusion.
Throw in the additional benefits to the brand (i.e. potential to ensure your ads aren't shown next to controversial content) and you have the makings of a pretty compelling value proposition.
Here we go....
Jeremy Epstein, CEO of Never Stop Marketing, has 20 years of international marketing experience in helping to bring innovative technologies into the mainstream. Most recently, Jeremy was VP, Marketing at Sprinklr. In December of 2016, he edited and published a collaborative eBook with 33 of the top influencers and thought-leaders called “Blockchains in the Mainstream: When Will Everyone Else Know?"