Various industries are already taking help of the blockchain technology, however, a sector which is quite encouraging is within advertising. By considering only the estimate of 2017, there was a great investment of $550 billion in funds for the global digital ad ecosystems. Until now, along with the investment, there are various issues of inefficiencies and transparency in the system.
Angelo Dodaro, CMO, and Co-founder of AdBank anticipates that the advertisers are losing upwards of $51 million via ad frauds due to reliance on third-party mediators, who are mostly corrupt. However, AdBank uses blockchain to provide a wonderful advertising platform to provide total transparency for payments between publishers and advertising.
In one of its statements to NullTX, Dodaro provided a glance at how much trouble the advertising industry is facing,
“The lack of transparency is what has led to excessive mark-ups by advertising tech middlemen and a new ecosystem where fraud is rampant. $51 million of advertiser money is lost through ad fraud, an issue that is the second-most profitable income source for organized crime after drugs.”
How Blockchain can be utilized?
The use of blockchain is providing an individually verifiable and decentralized way which verifies the transaction process during the ad supply chain. The system within the blockchain doesn’t act as a different layer but instead parallel and finishing the current ad delivery mechanism. Participants inside the blockchain-powered ad ecosystem obtain a higher transparency level into understanding how their payments are passing from the beginning.
As per the Adbank’s Dadaro, the application of smart contracts via blockchain also creates the base for the use of the technology as it provides a secure and effective payment delivery for their services.
However, the brand marketers and agencies who want to utilize the technology have to take the support of media partners who are encouraging blockchain. Various technology giants like Google, Facebook, and Twitter, have still not declared how they will utilize the blockchain technology.
Even though there is very less excitement from important players, Adbank still hopes that all the problems of scalability, privacy, and transparency can be resolved using blockchain technology. Moreover, Adbank is working towards this by collaborating with New-York based ad agency, QNY Creative. From this move, we can expect that Advertising industry will soon accept blockchain technology.