Until today, audience delivery has been primarily based on online consumer profiles built from search engine browsing records. However, the process employed by data brokers is one large question mark, a black box, which makes it difficult to assess the reliability and accuracy of the online profiles and target market identification being provided.
A new field study, published on June 25th 2018, examines the efficacy of black box digital consumer profiling and audience delivery for the attributes of age and gender. The study revealed that among all the major data brokers, inaccuracies are rife. For example, male consumers are correctly identified only half of the time!
Advertisers are in an impossible position. Global ad spend wastage has almost hit $7 billion with advertisers paying for 3rd party digital profiles that are often inaccurate with frequent audience misclassification. The study concludes that the solution lies in the introduction of new standards with greater transparency and improved verification.
Some recent developments may provide a ray of hope. Firstly, in May 2018, the General Data Protection Regulation (GDPR) took effect. It states that the user is the rightful owner of their personal information. They can access a digital copy of the data collected on them and must provide their consent for its use. Secondly, the emergence of blockchain technology is presenting some interesting new avenues for the Adtech industry, particularly regarding issues of transparency.
Let’s see how these developments can provide a solution to the problems of data verification faced by the ad industry by taking the example of the Liberdy Data Foundation. Liberdy is a non- profit that is leveraging the power of both the GDPR and blockchain technology to disrupt the ad industry and introduce reliability to the ad marketplace, by allowing for direct relationships between users and advertisers. Users benefit by being paid for their personal information, while advertisers gain access to first hand, verified data.
Users download the app and automatically extract their data from the digital companies that harvest it. It is then segmented, encrypted and anonymized before being shared with the advertiser. Users get to receive relevant personalized advertising. They also profit every time they share data such as demographics, location, gender and likes from across all online platforms that Liberdy can use to build mega-profiles and provide advanced targeting capabilities. The advertiser receives a previously impossible to access wealth of accurate, time-stamped, verified data.
As a blockchain powered project, Liberdy can ensure transparency on a secure, decentralized network, where every piece of data that users share is published publicly, on the blockchain.
A new revolution is underway that will benefit every stakeholder in the global data marketplace. Liberdy, and others frustrated with the current reality, are exploiting developing technologies and the growing power shift being driven by new regulation to create new opportunities for standardization and verification.
To learn more check out Liberdy.io, join our communities via Telegram, Twitter, Facebook, Linkedin to get the latest updates, or email us at info@liberdy.io