Blockchain advertising: Making ads ethical

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  Quantumrun Foresight
• February 12, 2025

Insight summary

Growing interest in digital ad methods based on shared ledgers is driving demand for transparency and safer data management. As a result, people could earn direct rewards and develop new skills, while businesses could refine strategies using tokens, specialized analytics, and alliances with smaller tech providers. Meanwhile, governments might adapt tax rules and invest in research to support trustworthy ad verification, possibly shaping international cooperation and opening up new economic streams.

Blockchain advertising context

Blockchain advertising relies on distributed ledger systems to create a more reliable environment for brands, publishers, and users. Digital advertising continues to grow, with spending predicted to surpass USD $1 trillion by 2027, according to Statista. However, the industry faces issues like ad fraud and data privacy risks, driving researchers and businesses to look for new methods. 

In advertising, blockchain serves as a shared database maintained by multiple nodes, making data transparent and reducing dependence on central authorities. Open ledger tech company Verasity's Whitepaper 2024 states that ad fraud caused USD $84 billion in losses in 2023, and this figure may climb to USD $170 billion by 2028. As a response, platforms like those pioneered by IBM and Mediaocean are testing blockchain to track clicks and impressions and curb suspicious activity. Companies like web browser Brave are also exploring how to use blockchain to distribute fairer compensation for everyone. For example, Brave's Basic Attention Tokens are given to users for viewing promotions.

US-based think tank Pew Research released a 2023 survey indicating that more multinational corporations are exploring distributed ledger technology to boost transparency in promotional campaigns. Brave already has 30.1 million daily active users and 1.6 million content creators, showing that blockchain-based advertising tools can attract considerable attention. As more organizations evaluate these methods, blockchain ads may become a practical way to address transparency, privacy, and equitable revenue sharing.

Disruptive impact

Individuals may gain direct earning opportunities through blockchain-based ad platforms that reward them for viewing ads. However, they might encounter new challenges in handling digital wallets and ensuring their data remains secure. Additionally, they could explore specialized skills to understand how the system records and verifies ad transactions, leading to new career paths.

Enterprises may expand their services by creating custom tokens or loyalty programs that foster deeper connections with consumers. They might integrate blockchain-driven analytics to refine their product lines and match real-time market demands. Additionally, companies may form strategic alliances with smaller tech providers to build exclusive ad marketplaces and bypass industry gatekeepers. However, adopting such approaches needs caution because technical glitches and high development costs can pose risks, especially for smaller operations.

Public agencies may reevaluate tax rules around token incentives and digital assets, leading to new revenue streams for economic development. They can also invest in blockchain research labs that focus on secure ad verification, bridging technology gaps across national borders. In addition, governments might promote frameworks that ensure fair play for both established companies and emerging startups in this domain. However, potential conflicts over data sovereignty and regulation might arise, demanding new levels of global cooperation.

Implications of blockchain advertising

Wider implications of blockchain advertising may include: 

• Social networks implementing localized language in blockchain-based ads, increasing acceptance among communities seeking trustworthy digital channels.
• Ad firms switching from lump-sum payments to micro-transaction models, empowering smaller content creators to compete with major platforms.
• Developers producing open-source ad verification protocols, fostering cross-industry collaboration for transparent data usage.
• Companies hiring blockchain ad analysts with specialized expertise, creating new roles that decode smart contract insights.
• Tech providers adopting distributed computing for ad hosting, lowering carbon footprints linked to high-power data centers.
• Startups deploying decentralized bidding systems, shifting competition and lowering barriers for small businesses entering the ad space.
• Consumer advocacy groups urging safer blockchain ad interactions, driving policy reforms that prioritize ethical data handling.
• Ad platforms using climate-friendly tokens in reward programs, motivating advertisers and users to support green initiatives.

Questions to consider

• How might you adjust your daily habits if ads rewarded you for your attention and data?
• In what ways could small businesses in your neighborhood benefit from a more open advertising system?