The global AdTech market is expected to grow to $2.9 trillion by 2031 with a compound annual growth rate (CAGR) of 14.7%, according to Allied Market Research. In a scenario where digital advertising is becoming increasingly complex and fraught with challenges, advertisers look for solutions to help save money. According to PwC research, the digital advertising ecosystem could lose almost $19 billion in ad fraud. In such a situation,blockchain technology emerges as a beacon of hope for transforming the industry.
What is blockchain exactly?
Imagine a big, transparent notebook that everyone in the advertising world can see but no one can change. This notebook keeps a record of every ad transaction—like who bought the ad, who showed it, and how much was paid. Blockchain is similar to this transparent notebook. It is a digital record that is visible to every participant in the network. Once a record or a data is entered into this digital record, it cannot be deleted or changed. This feature provides a level of transparency previously unseen in digital advertising.
Traditionally, the ad ecosystem involves multiple intermediaries, from advertisers and publishers to ad networks and data brokers. Each player has their own record of transactions, which can fall into a big blunder like the game of chinese whispers leading to jumbled messages. When blockchain technology is used, it consolidates all these records onto a transparent ledger that everyone involved in the trade can access. In simple words, everyone involved can see exactly where money is going and how ads are being delivered, fostering trust and reducing misunderstandings. By leveraging its decentralized and immutable ledger, blockchain promises to address some of the most pressing issues in adtech, including transparency, fraud, data security, and efficiency.
The advantages to using blockchain technology in adtech
One of the main advantages of using blockchain in adtech is its ability to combat ad fraud. According to Statista, the costs related to digital advertising fraud will amount up to $172 billion in 2028. Ad fraud has been a persistent issue in the industry, with fraudsters manipulating data to create fake clicks or impressions. From what is understood, blockchain’s immutable ledger makes it nearly impossible for fraudsters to alter the transaction history. Each ad interaction is recorded in real-time and can be traced back to its origin. This not only helps in detecting fraudulent activities but also in preventing them, as the transparent nature of blockchain makes it difficult for bad actors to succeed without detection.
Data security is another segment that blockchain aims to make a substantial impact in. With the current digital scenario, data breaches and unauthorized access are major concerns. Blockchain enhances data security by decentralizing the storage of information and employing advanced encryption techniques. Basically, with blockchain technology intact, the chances of your personal data getting leaked or stolen is very less.
Despite the given benefits of blockchain technology in adtech, it is yet to grow into the advertising world.
