Indeed, many industries are already making use of blockchain technology, but a sector that is quite promising is within advertising. An estimate indicates 2017 saw the digital advertising sector experiencing an investment of more than $550 billion to fund the global digital ad ecosystems. And yet, with all the investment there still exist well-documented inefficiencies and transparency problems raging that rage within the systems.
AdBank CMO and Co-founder, Angelo Dodaro estimates that advertisers are losing upwards of $51 million through ad fraud due to reliance on third-party intermediaries, most of whom are corrupt. Dodaro's firm, AdBank, utilizes blockchain to provide a revolutionary advertising platform to offer total transparency for payments between publishers and advertising.
In a statement to NullTX, Dodaro gives a glimpse of how much troubles 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 Useful
The use of blockchain is offering an independently verifiable and decentralized way that verifies the transaction process throughout the ad supply chain. The system within blockchain does not act as another layer but rather parallel and completing the existing ad delivery mechanism. Participants within blockchain-powered ad ecosystem gain a greater transparency level into understanding how their payments are going from the initial release.
According to AdBanks's Dodaro, the application of smart contracts through blockchain also forms a basis for the use of the technology since it offers participants a safe and efficient payment delivery for their services.
Still, for brand marketers and agencies looking to use the technology would need to seek media partners who are embracing blockchain. Major existing partners such as Facebook, Twitter and Google are yet to evaluate using blockchain for business with Facebook going as far to even ban ads relating to cryptos but later changed their position.
Despite the lack of enthusiasm from significant players, AdBank still believes challenges such as scalability, privacy, and transparency can be solved if the systems are on the blockchain. Already, the blockchain platform is working towards this by partnering with the New-York based ad agency, QNY Creative. The approach indicates that it's only a matter of time before the whole industry accepts blockchain technology.