Many people think that blockchain is about Bitcoin. It’s not. It’s much bigger than that. In fact, it will be a $176bn* industry) by 2025 (*Deloitte ‘The Growth of Blockchain Technology’.
Up to now blockchain technology has generally been synonymous with cryptocurrency and fintech but this is just one small function of the technology. It is the core technology underlying blockchain that will pervade everything just like the internet has over the last 30 years.
It will be transformative in the tech sector and will open up a plethora of investment opportunities. As the technology gets used by more people in more industry sectors, blockchain will become a huge part of daily life, making it a smart investment.
It is time to understand the scope and potential of blockchain in the adtech industry.
Why does blockchain matter in adtech?
Data is central to many businesses. Yet ensuring that data remains safe, secure, private and
authentic has become an ongoing challenge.
Certain media agencies may disagree but adtech is a murky and secretive world and the
industry has a big problem with trust and transparency. Ad fraud has become a serious
issue for advertisers, and something needs to change. There has been many a data breach, data discrepancy and manipulation scandal with millions of pounds being reaped by fraudsters.
Blockchain is the answer to this lack of control of data and lack of transparency - enabling
real-time, trusted data and a safer environment for advertisers and publishers while
providing consumers with more relevant ads and stronger privacy rights.
Blockchain provides a solution eliminating doubt and uncertainty helping advertisers
maximise their investment and ROI.
What does the blockchain tech do?
In simple terms, blockchain technology (such as that developed by AdWatch), guarantees
transparency and traceability by introducing encryption at the advertising source. The
resulting tags can be followed and analysed throughout the ad journey all the way to the
destination before being verified and launched. This essentially provides complete control
and clarity. After the campaign launch, the subsequent data can be encrypted and stored
on the blockchain, ensuring it remains safe and secure.
Blockchain applications – the benefits in adtech
The digital advertising ecosystem could lose up to $19 billion in fraud (PWC report -
Blockchain in advertising). Blockchain offers a solution and has the ability to address some
major pain points in the industry:
1. Fraudulent bot traffic means advertisers pay over the odds and makes customer data
more difficult to track. A block chain network could prevent fraudulent players in
the advertising ecosystem.
2. Ghost sites lead to ads being placed on non-existent sites. Blockchain can track
exactly where an ad is placed and determine if that location is legitimate.
3. Lack of trust in the supply chain limits the data that is shared meaning business
decisions are not as good as they might be. Blockchain can enable enhanced data
sharing without the risk of fraud.
What does the future hold?
The rewards for investing in blockchain are becoming ever clearer. Its business value lies in
its power to reverse the trust issues in adtech. It is now getting some serious attention from
big companies across a wide section of industries. As Covid has forced a rapid shift to
digital, blockchain will continue to grow alongside AI, IoT and cloud technology.
By 2026, the business value added by blockchain will grow to just over $360 billion, then by
2030 grow to more than $3.1 trillion* (*https://yorksolutions.net/the-future-of-blockchain-
technology/) and with stats like this it becomes impossible to ignore.
Paul Laurence Sweeney