5 Problems Ad Tech Solves Using Blockchain

Even though the ultimate aim of Blockchain is a security, fairness, transparency, and openness of operations, the technology hasn’t reached the multitude of economic spheres yet, over the fact that its reputation has been heavily affected by the unstable image of cryptocurrencies.

The greatest merit of Blockchain technology is, undoubtedly, transparency that solves one of the main problems associated with fraud loopholes plaguing ad tech sphere. According to certain sources, 50% of ad traffic is generated by ad bots today, that with other fraudulent activities cost advertisers $7 billion losses a year.

Blockchain is technology that represents a decentralized system for information storage. With millions of users having the access to the system at the same time the fraudulent transaction will never go through without matching results with the rest of the chain. As well, this technology will change the way networks obtain their revenues. Let’s take a deeper look at all forthcoming transformations.

No click-fraud shall pass

A distributed transaction ledger offered by the blockchain technology can provide not only totally safe transaction ecosystem, but also delivering a digital signature for the identification of people. The user won’t have to provide personal data that can be misused or processed for criminal purposes. Hence, without using user’s personal information, blockchain provides a total clarity on who clicked on the ad or who was served an ad impression.

As known, Microsoft is already building its own blockchain-based digital identification system and the rest of the media giants are getting largely interested in the potential of such technology integration. In the end, the advertisers will receive higher profits and return on investment after eliminating fraud.

Transparency over all

Conventional advertising platforms offer programmed purchase of advertising to the client in real time. This way people utilize the tools independently, plan budgets and monitor how the marketing campaign performs.

Such model obviously explains where all the money goes, but not sufficiently to understand how it’s getting spent. Such model doesn’t specify how much a publisher gets and how money is distributed.

In blockchain-based transparent system, each party of the transaction, - the seller and the buyer will have the picture of the whole process of the transaction.

Getting freedom from third parties

The execution of online transactions today is only possible with a help of the third parties, such as Paypal, Worldpay or others.

Normally, the intermediary takes the commission for every transaction and for the most part, they appear quite reasonable as it is a kind of compensation the third-party gets for their care of the transaction’s success and clarity.

The blockchain technology enables you to transfer any amount of money, regardless of its size, completely free of charge. There’s no room for intermediaries in such type of transactions because you don’t have to pay for servers, employers who assist you or to the marketing personnel. All transactions are inside the blocks, which are distributed to all members of the Network.

Obtaining valid clicks

The reality doesn’t really provide advertisers with an opportunity to find out if ad networks are telling the truth when they promise that the ad placed with them will be seen by millions and clicked by thousands. The trust is a golden key that opens almost any door in ad tech industry, knowing that, Google created Google Display Network and the sphere became budding with arbitrators and other trust guarantees.

Such trust arbitrators act as intermediaries gathering the advertisers and the audiences together, guaranteeing the trustworthiness of the clicks and taking out the share of profits from advertisers. In the blockchain, where each user is identified, the advertiser does not need an intermediary, saving the money and getting access to the trusted auditories in the first place.

The power of automation

Normally the advertisers purchase the traffic from advisers, creating the list of safe publishers that then gets updated and renewed. The publishers that are proved to deliver a high-quality and safe traffic are joining so-called “white” list, and the publishers who don’t belong in them can be automatically blocked by advertisers.

With blockchain, the advertisers can take a little rest and get rid of those actions that were formerly implemented manually. With a help of blockchain technology, advertisers automatically obtain impressions and high-quality traffic utilizing the benefits of system’s smart contracts, enhancing the ad campaign as a whole and improving its delivery.

The last word

Ad tech market has modified a lot during the past 5 years and the blockchain is one of those technologies that brought in the largest share of benefits for the market participants. Advertising platforms based on Blockchain will finally reach that level of transparency that is sufficient for the successful ad market functioning. With its secure smart contracts, blockchain removes the intermediaries, ensures a totally safe environment for the transactions, tracking them at every point of a chain.