Blockchain allows the Ad tech industry to move from content based sales to least fraudulent audience based sales.
In the world of social media, where the majority of the population is using the internet, there are applications that give infotainment for free. These applications generate revenue from the ads. Hence ad tech is one the biggest global industries today. With the integration of technology and advertising industry , the consumers’ internet space and time is usually taken for granted. There is very less study on which ad would work where and to which consumer. It’s high time that this kind of generalisation stops and ad placing becomes smart.
Moreover the media buyers pay a huge amount to the third party agencies and the chances of ad frauds are increasing every single day. Lack of transparency and audit on how money is spent, becomes a major issue.
Blockchain is here to disrupt the ad tech industry as well. Making it a more fair, secure and authentically executed industry.
Some of the major Issues in Ad Tech sector in the conventional system
There isn’t much clarity on the placement of advertisements at the correct audience site. Hence majorly, even without the notice, there occurs a domain fraud of the advertisement.
More than 50 percent of the internet audience is bot traffic. This is a clear fraud that happens with the advertisement sales. It’s absolutely a waste of money and resources altogether.
Lengthy Payment models
Due to the middleman and other processes involved, it costs not only a huge amount but also a lot of time for the payment processes. There is risk of fraud in this scenario as well.
Data Privacy Risk
Ads that collect internet user data directly or indirect access to the cookies, do not promise data confidentiality. This is a clear intrusion of the data privacy, many a times where the user is not even aware of the same.
Low Importance on Consumer Feedback
As mentioned earlier, the audience choice of ad view or audience feedback is generally taken for granted. As the end user plays a major role in the sales of the product and service, this becomes a major breach in the conventional system.
Partners involved in Smart Contract for Ad Tech
In the smart contracts of the blockchain system, predefined sets of conditions get executed whenever a particular action or transaction triggers in the system. The execution occurs only when all the authorized parties permit the action. Thus smart contracts become completely self-executing, fast and fair mechanisms.
The partners involved in the smart contract for ad tech blockchain systems can be Publishers, advertisers, third party contractors, financial institutions and other related organisations.
How Blockchain can help overcome the issues and improvise the system
A completely transparent and auditable blockchain based ad tech system will generate foolproof operations,making it a fairer deal.
Decreased Ad Frauds
The integration of AI with blockchain allows to differentiate between bot traffic and actual human traffic. This would reduce the ad fraud to a major extent.
High Transparency and Security
As the factual data of current and past transactions is present on all the peers of the network, a more safe, transparent and highly secure system falls into place.
Knowing how and where the ads are placed the blockchain based system allows easier audits throughout the system.
Customized ads for target audience
Not depending on the theory of “Let’s throw it on the wall and see what sticks” anymore, the new system would allow a better audience engagement, knowing what type of audience is looking for exactly what kind of product or services.
Simpler and fair profit sharing
As the system becomes more transparent , the involved parties get a view of where the ads are going and how much is incurred on the same. This creates a simpler and fairer profit sharing mechanism.
The effect of ads is over all the devices that engage through the internet. This can allow creating infinite possibilities , opportunities and idea generation. The blockchain system promises a win-win for all.