This article was based on the interview with Matt Wasserlauf of Blockboard by Greg Kihlström, Marketing Measurement keynote speaker for The Agile Brand with Greg Kihlström podcast. Listen to the original episode here:
The advertising industry faces a significant challenge: ad waste. With nearly two-thirds of every advertising dollar spent going towards end inventory and up to 15% of total spending wasted on fraud or low-quality content, marketers are increasingly pressured to maximize their budgets and achieve optimal outcomes. The staggering figure of $84 billion in wasted advertising, as reported by Juniper Research, underscores the urgency for innovative solutions. One promising approach to tackle this issue is the integration of blockchain technology into the advertising ecosystem.
Understanding Ad Waste
Ad waste primarily arises from inefficiencies in the digital advertising supply chain. Traditional verification services, such as DoubleVerify and Integral Ad Science, have been employed to analyze ad delivery and assess where funds are being effectively utilized. However, these solutions are often manual, cumbersome, and provide results only after the ad campaign has concluded. This reactive approach has allowed the problem of ad waste to proliferate over the years, leaving marketers grappling with ineffective spending and suboptimal campaign outcomes.
The consumer experience is also negatively impacted by this waste. High-frequency ad placements lead to repetitive and interruptive viewing experiences, particularly on streaming platforms. While consumers may not be the primary victims of ad waste, they certainly bear the brunt of its consequences, as their engagement with brands becomes increasingly frustrating and disengaging.
The Role of Blockchain
Blockchain technology offers a transformative solution to the ad waste dilemma. By providing a decentralized and transparent framework for digital advertising, blockchain can enhance accountability and efficiency across the entire supply chain. Blockboard, a pioneer in this space, has rebuilt the digital ad ecosystem on the blockchain, combining it with artificial intelligence to deliver improved outcomes for marketers.
One of the key advantages of using blockchain in advertising is its ability to provide real-time data and insights. Unlike traditional verification methods that analyze results post-campaign, blockchain technology allows for continuous monitoring of ad performance. This real-time analysis enables marketers to make informed decisions on-the-fly, optimizing their campaigns and reducing waste as they go.
Moreover, blockchain’s inherent transparency can significantly mitigate issues related to fraud and low-quality content. Each transaction is recorded in an immutable ledger, making it nearly impossible for fraudulent activities to go unnoticed. Advertisers can verify the authenticity of their ad placements and ensure that their budgets are directed towards legitimate channels. This level of transparency fosters trust between advertisers, publishers, and consumers, ultimately leading to a more efficient advertising ecosystem.
Benefits for Marketers and Consumers
The benefits of implementing blockchain technology in advertising extend beyond just reducing waste. For marketers, the ability to track and optimize ad performance in real time translates to better resource allocation and improved return on investment (ROI). By eliminating inefficiencies and ensuring that every dollar spent contributes to tangible outcomes, marketers can achieve their goals more effectively.
For consumers, the impact is equally significant. With reduced ad waste, the frequency of irrelevant or repetitive ads can be minimized, leading to a more enjoyable viewing experience. Advertisers can focus on delivering relevant content that resonates with their target audience, thereby enhancing engagement and fostering brand loyalty.
As the advertising industry grapples with the challenges of waste and inefficiency, the adoption of blockchain technology presents a viable solution. By leveraging the power of decentralization, transparency, and real-time analytics, marketers can significantly reduce ad waste and improve campaign outcomes. The integration of blockchain not only benefits marketers by optimizing their budgets but also enhances the consumer experience by delivering more relevant and engaging advertisements. In a landscape where every dollar counts, embracing blockchain could be the key to building a more agile and effective advertising ecosystem for the future.
