Blockchain has become quite popular recently because of its ability to help customers maintain a high degree of privacy, including which ads they see. Digital marketing fraud is also a growing concern for businesses who spend a large sum of their marketing budgets on mobile app advertising on online platforms. Increasing number of firms are using blockchain digital advertising platforms to cope up with this problem.
What is digital advertising fraud?
Companies that want to increase their customer base and their bottom-line pay a digital advertising platform to place their ads and promote themselves. Facebook, Instagram, Google, Twitter, etc. are all famous ad platforms that an endless number of companies use to put their message across. Google allows any website owner to sign up for its Adsense program which allows the site owner to earn a commission from Google depending upon the total views and clicks the ad generates. Some of the ads in the publishing space try to manipulate the entire working of the system. They install software that uses real-time bots to keep refreshing the website and create fake clicks on the ads. This increases the commission paid to the website owner but of course, it doesn’t result in a conversion rate for the company who is funding for the promotional ad.
This kind of fraud is very common in the digital space and results in exceeded inefficiency of the marketing campaigns. One reported estimated that the digital marketing fraud is likely to hit $20bn by 2019.
Blockchain advertising platforms used by large corporations
Majority of the world’s largest organizations spend a great part of their budget on the advertisement of their products. A great many companies are trying out blockchain to rule out advertising fraud forever.
The world’s largest food manufacturer company, nestle spends about $9 bn each year in their advertising efforts. The company tested out a new startup called Amino in an effort to cut the proportion of the advertising expenditure that goes to fraud. The Amino system uses the blockchain to be able to track ad impressions and keep a track of payments throughout the entire media supply chain. Bayer is also testing this system.
Another blockchain system attracting significant organizations is MetaX. The solution contains a list of websites that support ads.
IBM & MediaOcean
MediaOcean is a famous advertising campaign management software that creates transparency and accountability across the entire media supply chain. The system runs a custom-developed blockchain by IBM in combination with the existing Media Ocean framework.
The blockchain is already showing positive signs in helping to reduce digital advertising frauds and counterfeiting across different mediums. Digital advertising platforms are also exploring that a database is an important tool to be able to combat fraud. The increased involvement of massive organizations is a testament to how important combating fraud in this area is. A lot of the budget is spent on the advertisement on a yearly basis, it must be directed in the right way to be able to generate absolute results.