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Blockchain in Digital Marketing: More Customer Confidence – and Innovative Advertising Methods

T-Systems International | April 20, 2021

Concerns around online activities, such as cybersecurity, data privacy, and transparency, are affecting digital marketing. Blockchain technology will help in the stabilization of customer trust in the digital world. It will increase the credibility of online ads, brand honesty, cross-promotion with influencers, and reward customers for data sharing.

Due to the monopoly or duopoly, platform companies such as Facebook pose threats to multiple industry leaders in digital marketing. Furthermore, data scandals fueled skepticism in the digital advertising industry.

Both users and advertisers believe that control over their data is slipping away from them. Blockchain technology allows marketing organizations to work more autonomously in the advertisement industry while also increasing the credibility of their product and corporate communications.

How? The blockchain's key feature is that it maintains data on decentralized servers in several locations rather than in a single centralized repository. These distributed data records (blocks) are inextricably linked together to form a chain. Every computer (peer) in the network receives the same unalterable data copy. This has the advantage of no longer requiring all market players to trust a single repository – and therefore no central point of attack for cybercriminals or vulnerability to technical malfunctions. The concept is similar to an online document held in a decentralized location that can be modified continuously through several computers. This lays the groundwork for more transparent, secure, and reliable solutions in digital marketing.

Brand and product transparency

Any marketing agenda mainly focuses on sustainability. Many businesses claim to be sustainable. But how are they going to prove it? Blockchain technologies can enhance brand integrity within the supply chain management process, for example, by ensuring that products have been packaged or shipped sustainably – 2 important conditions when the products are organic.

As a result, an Industrial Control System (ICS, for example, T-Systems) writes all data into a blockchain that is synchronized for all players, including the manufacturer, delivery agent, and retailer. This procedure allows customers to obtain facts about the sources of their products as well as monitoring information.

In reality, the cloud2cloud combination of the Cloud of Things (T-Systems) and the SCP (SAP Cloud Platform) utilizes Internet of Things (IoT), blockchain, and machine learning to monitor the supply chain of the apples used in a smoothie (use case of T-Systems, pdf). Consumers can trace the direction and origin of organic apples using IoT data, supply data, and origin data – and do a fact check on the brand's value proposition. This enables businesses to sell their products as sustainable with much greater credibility.

Blockchain is on the rise

For the time being, high prices, the failure of real-time apps to attain commercial viability, and a lack of sector-wide initiatives are preventing widespread adoption. While some potential blockchain applications are still unclear, it is beginning to transform the digital world. In the digital advertising ecosystem, blockchain can increase transparency, confidence, and productivity. It will soon become a force in digital marketing rivalry that marketers cannot continue to neglect.

T-Systems has already pioneered individual solutions to help companies get started with blockchain. Several pilot projects have already been initiated, and sector-wide experience sharing will be a critical next step. Marketing organizations who wish to stay competitive can into the processes that blockchain can simplify or even monetize.

Spotlight

A Pay Per Click campaign, also known as a cost per click campaign is an online marketing strategy employed by advertisers and marketers where they pay a specific amount each time one of their ads is clicked. Let’s say as an advertiser, you have placed your ad on a website that might be relevant to the product or service that you provide. The website will display your ad and each time a visitor clicks on your ad, you have to pay a pre-determined amount to the owner of the site.


Other News

Facebook Small Advertisers Win Class-Action Status in Fraud Suit

Meta | March 31, 2022

A lawsuit accusing Meta Platforms Inc.’s Facebook of overstating its advertising audience got a lot bigger Tuesday when a court expanded the pool of plaintiffs to include more than 2 million small ad buyers. Dismissing what he called a “blunderbuss of objections” by the company, a federal judge in San Francisco ruled that the case can proceed as a class action on behalf of small business owners and individuals who bought ads on Facebook or Instagram since Aug. 15, 2014. The decision is another setback for the social networking giant after court filings in 2021 revealed that its audience-measuring tool was known by high-ranking Facebook executives to be unreliable because it was skewed by fake and duplicate accounts. Facebook’s lawyers argued in filings that the social media company has made “updates” to improve its user estimates. They also pushed back against the request for class-action status, saying the ad buyers didn’t show that all class members uniformly relied on the metrics to increase their spending and had ad budgets of various sizes. “It may be that class members differ in advertising budgets and scope of purchases, as Meta suggests, but Meta has not shown that these differences” make the case unsuited to be a class action, U.S. District Judge James Donato said. “It may be that class members differ in advertising budgets and scope of purchases, as Meta suggests, but Meta has not shown that these differences” make the case unsuited to be a class action, U.S. District Judge James Donato said. User metrics have also been at the heart of challenges against other social media companies. LinkedIn is facing a suit accusing it of inflating video-viewing metrics to lure and overcharge advertisers. Snap Inc., the parent of the Snapchat social media app, was sued in 2017 by a former employee who claimed the company was inflating growth metrics ahead of its initial public offering. The case was moved into closed-door arbitration and court records don’t indicate how it was resolved. In 2019, Facebook agreed to a $40 million settlement of a class-action suit brought by advertisers who claimed they overpaid for video ads based on overstated video-viewing metrics shared by the company. The current case was filed in 2018 by an e-commerce business that spent more than $1 million on ads and a seller of firearm accessories who spent around $350. Facebook executives, including Chief Operating Officer Sheryl Sandberg, knew the user metric called “Potential Reach” shown to digital ad buyers to help them set their target audience and budget was inflated and “not based on people,” the advertisers said in their complaint. As a result, advertisers ended up buying ads at a premium price, they said. “For years Facebook repeatedly confronted a choice between telling customers the truth or preserving its revenue: at every turn, Facebook chose its revenue,” lawyers for the ad buyers said in a court filing. Meta didn’t immediately respond to a request for comment on the ruling. The case is DZ Reserve v. Meta, 18-cv-04978, U.S. District Court, Northern District of California (San Francisco).

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ADVERTISER PLATFORMS

Gannett Issues Statement in Response to Wall Street Journal Story Regarding Advertising Data

Gannett | March 10, 2022

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AD NETWORKS

New York Life’s Our Product Advertising Creative Spotlights Caring Relationships Between Company’s Agents and Clients

NEW YORK LIFE | February 16, 2022

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ADVERTISER PLATFORMS

MiQ Makes End-to-End, Carbon Neutral Digital Advertising Campaigns a Reality

MiQ, Scope3 | April 25, 2022

As companies target ways to minimize their carbon footprints and achieve climate goals and commitments, global programmatic media partner MiQ has announced that the company is working with agencies and brands to execute carbon neutral digital advertising campaigns. This new offering, powered by Scope3 – the source of truth for supply chain emissions data – delivers the ability to measure, report, reduce, and offset carbon emissions across the supply chain, helping customers make carbon-aware decisions regarding their digital advertising spend. To date, MiQ has measured the carbon emissions of more than 300 million ad impressions using Scope3's data platform. "Digital advertising is a $455 billion industry that has been overlooked as a source of significant supply chain emissions,” said Brian O’Kelley, CEO of Scope3. "Digital advertising is a $455 billion industry that has been overlooked as a source of significant supply chain emissions,” said Brian O’Kelley, CEO of Scope3. “The reality, however, is that the ecosystem relies on millions of servers to power ad serving, real-time bidding, machine learning, and a myriad of related functions. As more and more companies look to fold digital into their climate goals, sustainable advertising has and will increasingly become part of that equation. Scope3’s data platform powers the carbon-aware planning, reporting, data integration, and decision-making capabilities partners need to drive innovation and climate accountability into every engagement.” MiQ and Scope3 combine the strengths of deep programmatic advertising data with Scope 3 emission modeling to ensure clients have complete visibility into their digital ad ecosystems, programmatic supply chains, and overall contributions to Scope 3 emissions. MiQ’s granular data from customer campaigns identifies exactly where and when ads run online and is paired with Scope3’s accurate, comprehensive, and independent emissions modeling data for clients to effectively assess, reduce, and offset their carbon emissions. “The advertising industry has discussed sustainability for years, but in 2022 and beyond, innovating and advancing the way we actually achieve this will be paramount to long-term change for all,” said John Goulding, global chief strategy officer for MiQ. “MiQ is committed to fulfilling this mission and creating more eco-conscious and carbon-efficient strategies for brands and their advertisers. As such, we believe that the future of campaign measurement must include the ability to understand and minimize the environmental impact of digital advertising, and we’re excited by what we’ve started to accomplish thus far.” Continued Goulding, “That said, we’re only just getting started, and we’re working toward a future where advertisers can actually reduce the impact of their creatives, steer money towards publishers who are responsible and who optimize their sites, and the cultivation of an ecosystem rooted in sustainable business practices from the onset. We look forward to leading these efforts industry-wide and making this a reality for all.” About MiQ We’re MiQ, a programmatic media partner for marketers and agencies. We connect data from multiple sources to do interesting, exciting, business-problem-solving things for our clients. We’re experts in data science, analytics and programmatic trading, and our team of people are always ready to react and solve challenges quickly, to make sure you’re always spending your media investments on the right things in the right places. Headquartered in London, MiQ has offices across North America, Europe and Asia Pacific. We work with the world’s leading brands and media agencies such as Marriott, Dell, Mercedes, Microsoft, GroupM, Dentsu and IPG. We were named to AdExchanger's Programmatic Power Players list in 2021 and 2020, were awarded Most Effective Use of Data at The Drum’s Digital Industries Awards 2021 and named 4th in The Sunday Times International Track 200 for 2019. MiQ operates globally from 18 offices located in North America, Europe and APAC. You can find out more here: wearemiq.com. About Scope3 Scope3 is the source of truth for supply chain emissions data. For organizations seeking to make carbon-aware business decisions, Scope3 is the standard that delivers an accurate, comprehensive, and independent emissions model for every company in the digital ecosystem. Today, companies rely on Scope3 to measure, report and offset their carbon emissions from digital initiatives and move closer to achieving net-zero carbon emissions goals.

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Spotlight

A Pay Per Click campaign, also known as a cost per click campaign is an online marketing strategy employed by advertisers and marketers where they pay a specific amount each time one of their ads is clicked. Let’s say as an advertiser, you have placed your ad on a website that might be relevant to the product or service that you provide. The website will display your ad and each time a visitor clicks on your ad, you have to pay a pre-determined amount to the owner of the site.

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