Can Blockchain Transform Targeted Advertising?

Blockchain is a hot commodity, yet it’s often dismissed as a solution looking for a problem. Every day, more cases for adopting the technology come to light, which makes this statement seem outdated.

In the very simplest terms, blockchain core technology provides an open and protected source with a decentralized peer-to-peer transaction network. Data can be manipulated without compromising on security, as each transaction is time-stamped and no-one can alter the data on the blockchain once it has been created.

To date, it’s mostly used within the financial industries for transferring money over local and global networks. But in recent years, other industries like gambling and music services, such as Aurovine, have started to use blockchain to verify transactions, improve consumer trust and help artists to get a fairer deal.

Creative industries are starting to realise the technology’s potential benefits in innovating their systems. And there’s already widespread talks that blockchain could prevent ad-fraud by analysing and managing consumer data… But what role does blockchain play in terms of campaign distribution; could it tackle targeted advertising?

There are many ways that blockchain can be used to incentivise consumers to interact with brands. Perhaps a brand could create its own cryptocurrency to reward customers for completing actions? A clothing brand could gift shoppers at a launch event with coined tokens to spend in-store, for instance.

Putting these ideas into practice takes time, but one company proves that it’s tecnology worth investing in.

Buzzbike is a connected cycle scheme in London, that launched last year. It provides thousands of Londoners with free bikes and plenty of perks – such as lights, lock, insurance, servicing and discounted kit, which they receive when they sign up.

The catch? Users are rewarded the more they ride as their journeys are tracked by an app connected to the bike.

Thanks to partnerships with organisations who offer fully integrated sponsorships of the scheme, Buzzbike can afford to subside the cost of riders and even offers its members redeemable coffee and gig tickets.

The brand has identified a reward zone beyond the cycling community, instead rewarding riders for carrying the Buzzbike brand while they journey within a specific location. Buzzbike receives targeted exposure and detailed analytics; and riders receive instant rewards… win, win.

So where does blockchain fit in? The technology keeps a ledger of all of the user’s journeys, guaranteeing that all actions are correctly logged, before the ‘coins’ are released and transferred into the rider’s e-wallet.

Responding to the onslaught of ad blockers and targeted social media content that the industry currently faces, it’s no surprise consumers are becoming more selective about the advertising they do interact with. Buzzbike encourages (and motivates) users to engage with brands to reap the rewards.