Blockchain technology is making a statement in every industry, most of the industries are happy with the pilot run and are ready to implement the technology in real time. Ad-tech is not an exception, but an important problem in the industry is separating the facts from false hope.
The current model of ad-tech have allowed scams and frauds to reach a higher level, statistics from the last two years reveal that billions of dollars spent on ad goes to the bin directly due to the involvement of bots and click-frauds. Because of all these scams, brands receive only 44 cents from the one dollar investment they make. Scams and frauds in ad-tech have become one of the most infamous activities, persons involved in these scams make a return of around 2500-4100%.
Make way for blockchain
Blockchain technology is making its presence known through social media and eye-popping changes. With its roots penetrating each and every industry the technology has entered ad tech also, a change to embrace for. Even though blockchain technology is around for more than a decade the application of blockchain in ad tech reached its pinnacle around a couple of years ago.
From then on the ad tech talents are discussing the possibility of using blockchain technology to put an end to all the scams and frauds in the ad tech industry. The technology can make middleman a myth and put a proper end to all the fraudulent activities
Hype for the technology is increasing but a practical solution using it is still not within the reach.
Blockchain getting attention or the magic formula is ready?
To know what is happening you first need to know how the technology can be implemented.
Forces joined- blockchain and ad tech
Information that can be stored using the blockchain platform is beyond imagination. Blockchain, the digital ledger is capable of making a note about all the entries that are made in the system, consensus opinion is required from all the involved parties for storing all the new changes made in the ledger. Once data is entered in the system then there is no way to change it or modify it under any circumstances, the technology is immutable.
What can blockchain bring to ad tech table?
This can make the system fraud-resistant, money-making fraudsters will be thrown out. This can help the advertisers to verify if the ads are actually placed or not.
The technology can easily replace trust with encryption, the 256-bit encryption can be cracked but it will take a lifetime to do it. Seeing these features of the blockchain, big players in the industry have pioneered the blockchain movement. The technology can also eliminate the involvement of third parties in the system and thus will reduce the cost of operation. Also, the risk involved in information through third parties will be totally controlled.
Trust has become a major concern in the ad tech industry; blockchain technology can answer the concern raised by the trust. Transparency in operation even at the earlier stages has become an issue for the advertising industry.
- What are the performance indicators? The answer to this question must be clearly explained to the advertiser. Whatever may be the media plan but there should be no doubts pertaining to the key indicators.
- A proper verification procedure should be placed in the system so that the advertisers can verify their ads view.
- An option for advertisers must be enabled, an option to make sure that no bots are involved in the process. The advertisers must be sure of it.
- Monetary flow happening in the system must be transparent, ad delivery process must inform the involved parties about the allocation of cash including commission to the ad tech providers.
The fraud resistant system of ad tech can provide a solution to all the above-mentioned problems with the help of the evolving technology. Blockchain in ad tech can give a great solution to all the pertaining problems. The inherent qualities of blockchain technology have kindled the interest of many companies to create a transparent, fraud-resistant ad tech ecosystem.
An ad-tech consortium based on blockchain technology created by tech giant IBM attracted a lot of interest. This will enable the brand involved to become a part of the system, but the brand at present is just a payer. After blockchain, the brand involved will know everything happening inside the system.
The blockchain-based system was the first milestone for ad tech and the next big step was token based advertising. Introduced by co founders of Mozilla, the browser was named as “Brave” with inbuilt security and privacy features. The browser will not allow the websites to collect user data, cookies; user pattern will be the only thing that can be tracked through the system.
Can blockchain change the tide?
Can blockchain replace the trust factor totally? It can but still, it’s a long shot. Data are fed to the blockchain platform either by people or by individually operating binary machines, so there is still a possibility for false information. Blockchain platform loses its magic formula status due to this; a single solution to all the problems is still a phrase.
Before forming a draft for implementing the technology all the involved parties must be educated about the basic operation of the system, what is what? Everyone involved must be educated properly. This can solve most of the problem in the system. A proper draft must be developed by keeping the practical difficulties in mind. If the draft is not proper then it can lead the project to the trash folder.
Innovations of any kind require funding, that too to merge a rapidly evolving technology with technology at its pinnacle require a lot of funding. After clear and properly functioning regulations are implemented, it will open the door of returns for the investments. The coming year will witness a major breakthrough in the blockchain platform after a legal framework gets into work.
All these implications are not holding IAB’s (Interactive Advertising Bureau) blockchain initiatives. The blockchain group created by IAB is keenly focusing on integrating the blockchain technology with ad tech. The group is trying to find better solutions for all the problems related to the integration. The group is working on programs that can bring out the best from blockchain technology; they have also included a proper set of sources which can provide in-depth knowledge about blockchain working and concepts.
We have witnessed how ideas in a piece of paper can transform the world, now its Blockchain’s turn. The technology is ready to change the future of ad tech industry. Giants in ad tech filed are ready with rolled up sleeves, successful integration will ensure transparency in the entire operation, build a network based on trust, and it can benefit all the involved parties. What do you think? Does blockchain have enough potential to create a new ad-tech ecosystem?