Fixing Fraudulent Ad Ecosystem with Blockchain

While online advertisement budgets keep growing, the activities of ad bots do quite the same. Roughly estimating, around 50% budgets for online advertisement are wasted yearly because some shady ad market participants generate the cheat clicks with bots instead of real people. As a result, the advertisers suffer from losses not being able to achieve a substantial conversion rate or obtain a good number of incoming leads.

Fraud is not only the issue that troubles advertisers, it is the problem for every ad marketing participant that needs a resolution delivered by the better transparency and audit over internal processes. The traffic suppliers should care about their traffic verification whereas the vendors should disclose if they work in connection to SSPs and have essential means for the traffic quality verification.

In such situation, blockchain as a technology allows members of the entire media chain to coordinate all their actions and work together, register every action or operation, provide information to every party and ensure the total safety of the system.

The biggest areas of improvement:

The integration with a big data. The symbiosis of blockchain and the big data can provide diversified data to the advertiser considering consumers and their preferences. Both technologies offer a new level of data processing and storage.

Improving the buying process. Smart contracts is what enables achieving a certain level of standardization, making the agreements more transparent. The buying is also simplified, a decentralized ledger may serve as a register for inventory booking operations.

Ensuring genuine clicks. The traffic quality will essentially improve as blockchain allows parties to identify every participant and track the origins of the clicks. In such circumstances, the parties can also collaborate directly without the necessity to invite third-parties that ensure traffic quality.

What makes blockchain fraud-resistant?

The decentralized ledger of records is the core of blockchain technology, it registers transaction like an accounting book but with every record safely encrypted in blocks. Decentralization is the main advantage of the blockchain and the key feature that makes it fraud-resistant like any other technology.

Unlike in the majority of cases, when information is stored on the particular server, blockchain locates the information on all computers of the chain. There’s no place for the error or fraud to occur because, first of all, the system checks if the operation matches with all previously made records. Once the records are done they’re impossible to change or delete.

Blockchain appears to be irreplaceable for such sphere as ad tech because trust here is a main concern for multiple participants. For instance, while buying an inventory the buyer regards myriads of suppliers, collaborates with ad networks, media agencies, and platforms.

In such case, demand platforms and brands can create their own chain where the participants have different levels of access to the register. With different levels of access only authorized parties will be able to browse through the transaction records, the vast of the parties will only access necessary aggregated data for analysis.

Blockchain-based ad platforms still appear rather as rarities than commonly used anti-fraud ad solutions. At the same time, the existing ones are already able to provide the decentralized ledger for recording transactions, the ability to execute mass transactions safely, the ability to identify any kind of fraudulent activity real-time via blockchain protocol.

To sum it up

The blockchain-based ad decision is a next step in ensuring transparency and reliability for ad market participants. It allows to automate, streamline advertising activity on the Internet so that advertisers can quickly, safely, and unobstructedly reach all necessary data about advertising process.

Blockchain as an ad technology will also inevitably refine the collaboration, eliminating the intermediate links and unnecessary actions, satisfying the needs of both demand and supply parties.