Advertisers, in turn, lose billions of dollars each year. Advertisers are estimated to have lost $42 billion in international advertising spending in 2019. This year, profit losses are expected to increase to more than $45 billion due to inefficiencies in the source chain and losses due to the COVID-19 pandemic. By 2023, virtual advertisers can lose $100 billion in year-consistent earnings.
Chad Andrews, IBM’s global leader in advertising and blockchain solutions, told Cointelegraph that blockchain generation can address a number of advertising source chain challenges, specifically to achieve some transparency about where and whether classified ads are noticed or not:
“Advertisers and their agencies will have to run virtual classified ads on thousands of media properties, resulting in millions or even billions of impressions. To achieve this on a giant scale, you need a giant and complex technological ecosystem of intermediaries. Blockchain’s unique ability to serve as an unbiased and decentralized record for all prices and abstract ad processing data, as well as an identity verification platform, makes it an effective solution to the challenge of wasted advertising expenses.”
According to Andrews, the number of intermediaries involved in the advertising chain, adding call for andArray knowledge control platforms and real-time online auction exchanges, creates complexities. In addition, there are other intermediaries who use their own knowledge to identify, purchase, label and resell advertising inventory.
Andrews noted that these complexities and lack of transparency make advertising much more expensive. “To run a linear TV ad, advertisers pay between 2 and 3% of every advertising dollar for implementation costs. To get a virtual ad on a website, advertisers can pay 25% or more,” he said.
Andrews noted that blockchain generation works to eliminate the darkness of the provider’s additional actions, fees and prices while verifying your identity and other data. In turn, this can help ensure that the contracts are completed.
For example, Andrews commented that an advertising contract may have traditional terms to succeed in certain audiences, appear only next to branded content, and be visual for a minimum of time. By collecting data from each vendor at the time of ad delivery, it is possible to collect this data across multiple agencies, geographies, and platforms. “For the first time, blockchain means that advertisers only pay for what can be verified at the time of delivery as original and quality prints,” Andrews said.
With this in mind, blockchain generation is starting to be implemented slowly but actually to address the inefficiencies of the virtual advertising industry. For example, AdsDax, a self-service advertising platform, uses a blockchain to collaborate with stakeholders in the advertising industry, adding consumers.
Ryan Davies, AdDax’s product manager, told Cointelegraph that the company, in particular, must reduce fraud in the advertising industry by leveraging blockchain generation to eliminate intermediaries in the advertising procedure while ensuring transparency through verified and time-stamped events:
“AdsDax uses Hedera Hashgraph’s distributed ledger generation to record advertising occasions, such as knowledge of advertising functionality and inventory, in an immutable, verified ledger. Advertisers can see those time-stamped occasions to audit their cross in real time.”
Davies noted that while this turns out to be an undeniable feature, it provides an opportunity for advertisers who in the past have not been able to access real-time functionality data: “Events that come directly from a user’s device and go directly to a ledger are a huge boost to confidence in business data.” He added: “As of August 19, we have tracked more than 1.2 billion advertising occasions on the main Hedera Hashgraph network, executing more than 239 million transactions and making an average of 1.3 million transactions consistent with the day.”
AdsDax also seeks to integrate features to praise users with a cryptocurrency for sharing their knowledge with advertisers. In addition, new features are being implemented to make certain consumers more aware. These features are also demonstrated through the Brave browser, which uses its Fundamental Attention Token (BAT) to praise users who see classified ads on the platform. Brave Browser was a success, as new studies from blockchain studio company Flipside Crypto showed that BAT was the most widely used ERC-20 token in the DeFi sector from June 19 to July 2.
In addition to platforms like AdsDax that are already recording transactions, new blockchain responses are being created to address the demanding existing situations facing virtual advertising. For example, on August 20, MadNetwork, a blockchain tailored for advertising generation companies, announced additions to its product roadmap.
Adam Helfgott, the founder of MadNetwork, told Cointelegraph that MadNetwork was introduced in 2018 into the Ethereum blockchain to create a series of products and partnerships that would reshape consumer-advertiser relationships. However, due to the ever-changing landscape of virtual advertising, Helfgott explained that new features were needed for the network to evolve:
“MadNetwork has released a new white paper describing the plans for a Layer Two aspect chain on Ethereum. Basically, the network uses Ethereum for security reasons. But we learned that many mandatory basic pieces were not in Ethereum. For example, the availability of knowledge is a vital component of global advertising and it is very important to write knowledge about Ethereum ».
Helfgott explained that the progression of the new solution will serve as a verifiable source of knowledge for companies, offering key features such as knowledge expiration and garbage collection.
In addition, MadNetwork does not require knowledge to be immutable, which Helfgott says is for virtual advertising companies, as it generates a lot of knowledge from ad impressions consistent with the month. “TV ad impressions can succeed in about three hundred billion impressions depending on the month. Tracking all those impressions will take up a lot of space,” he said.
According to Helfgott, the MadNetwork token, known as MAD, is used as a safe area for the knowledge garage and allows you to execute smart contracts on the network. Miners are paid to bet chips to buy knowledge and collect trash when the bet expires.
Helfgott also noted that a company’s virtual identity is represented through a public or personal key that protects virtual or knowledge assets. “So if a broadcaster needs the industry on that network, it will have to manage a node and produce keys for its virtual assets,” he said.
AdLedger is a non-profit consortium that runs to expand the popular open technicians for blockchain application and cryptography for media and advertising. It strives to outline the regulations of smart and bad habits demonstrated through virtual identities within the framework of the group’s next popular open above MadNetwork. This ensures that network participants do not exhibit fraudulent behavior.
Christiana Cacciapuoti, CEO of AdLedger, told Cointelegraph that, because AdLedger encodes regulations governing a company’s virtual identity, a popular one is created by the way public and personal keys are issued and, in the end, sent through the virtual advertising source chain.
Cacciapuoti also commented that a major partnership is being developed to demonstrate how MadNetwork can be used to combat advertising fraud, intermediaries and create greater transparency in the source chain.
While it is transparent that blockchain generation can provide much-needed transparency for the virtual advertising industry, real-world usage instances that incorporate cryptography can lead to adoption by the general public.
Davies said that if the biggest obstacle for AdsDax to create a generation fast and profitable enough for companies to take advantage of, the next step in overall adoption will be cryptocurrency. He explained that as other people start using cryptocurrencies in their daily lives, the opportunity to update the fiduciary payment pieces was presented: “Progressive features for customer detail of our platform, which rewards users with cryptocurrencies and gives them tactics to use them. . for real-world goods and services, it’s a big step in the right direction.”
Echoing Davies, Helfgott commented that the cryptocurrency industry is recently experiencing a wave of momentary innovation, which can provide enough reasons for establishments to adopt the cryptocurrency. In turn, the new functionalities to move the price will virtually become a concept in development in the area of virtual advertising. “We, that advertising area can ultimately be the building blocks from the big adoption of blockchain,” he said.