Currently, there is a lot of enthusiasm concerning the blockchain technology and its potential to disrupt many industries. It can also help eliminate frauds from the digital advertising indusrty.
According to Juniper Research, it will cost brands $19 billion internationally for ad frauds in 2018. The blockchain could solve this problem, according to eMarketer.
In December 2017, The World Federation of Advertisers determined that only 3% of advertisers made a priority to understand how blockchain can diminish ad frauds, while 21% of the advertisers decided to make it a major priority for 2018. Also, 41% of the advertisers consider according it a smaller priority level.
The blockchain technology is a decentralized and distributed ledger where all the transactions are recorded securely. When new blocks are added to the chain, they are verified cryptographically on the network. Since the ledger is decentralized, there is no need for intermediaries and the process is transparent and trustless.
With a blockchain, brands would be able to know exactly where their digital media dollars goes since every transaction is recorded and the ledger is open-source.
“A blockchain-based solution to digital advertising fraud could include not just a record of the transaction, but the transaction itself, so brands and media buyers would always have a clear record of payment to parties they intended to transact with,” stated eMarketer.
“Using blockchain in this way will help brands optimize their overall digital ad supply chains and spend more efficiently via programmatic channels,” they added.
The blockchain can help reduce ad frauds considerably, which could be an interesting tool to help brands avoid advertising-related frauds.
Also, many experts believe blockchain will be used to revolutionize digital marketing.