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"Blockchain and Advertising Transparency" - MIT Presentation

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"Blockchain and Advertising Transparency" - As the digital ad industry has grown the ad fraud issue has grown to $16 billion and after 10 years the major executives in the industry say the problem continues to grow and there hasn’t been a complete solution just yet. For example, there was a bot farm that took millions of dollars of revenue from video advertisers and what it did was automatically open the same video over and over and each video view represented $0.05-$0.10 of revenue. So with many millions of automated views the farm took millions of dollars. Clearly, this is an untenable situation. But technology has come of age to solve it, and with the distributed ledger (the blockchain), one can create a tamper-proof record of where ad quality is high and where it is low. An explanation of this paradigm shift is the crux of this presentation.

Veröffentlicht in: Technologie
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"Blockchain and Advertising Transparency" - MIT Presentation

  1. 1. “Blockchain and Advertising Transparency”
  2. 2. $209 Billion Global digital media and advertising industry
  3. 3. $16+ Billion ANNUAL FRAUD
  4. 4. 2017 DIGITAL SURPASSES TV $209 BILLION$178 BILLION < Source: Recode
  5. 5. of Total ad spend by 2020 50% Global digital ad spend will continue to climb to Source: MAGNA
  6. 6. 10 years on - Ad fraud becoming more pervasive without a complete solution….yet 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: EConsultancy
  7. 7. Ad Fraud: A quick overview
  8. 8. Ad Fraud: A quick overview What makes up the world of ad fraud? Ad fraud has one or more of these characteristics: ● Nonhuman traffic (i.e., bots) ○ Bots are able to create fake clicks and fabricated traffic ● Zero chance of being seen (i.e., zero percent viewability) ○ Fraudulent publishers “hide ads” to fit criterion using “ad stacking” or “impression stacking ● Intentional misrepresentation (e.g. site spoofing)
  9. 9. Source: Zerohedge Methbot - 2016 ● $5 million/day lost to fake ad views ● Bots "watched" as many as 300 million video ads a day ● 6000+ publishers affected z Publishers impacted
  10. 10. Source: CNBC; WSJ HyphBot - 2017 ● Potentially 3x larger than Methbot ● Created more than 34,000 different domain names and more than a 1M different URLs ● HyphBot cost businesses between $262,000 and $1.28 million a day Publishers impacted
  11. 11. Ad fraud impacts businesses large and small ● 70 percent of small to medium sized businesses plan to increase their digital marketing budgets. ● Ad fraud can more than double the cost of conversion to a business making advertising unprofitable altogether ● Result is stunted growth of businesses altogether ● Impact to society as a whole Source: Entrepreneur; PPC Protect
  12. 12. Programmatic accounted for nearly four of every five US digital display dollar spent in 2017. Source: Mediative
  13. 13. By 2025, the global cost of ad fraud is projected to rise to $50 billion Source: World Federation of Advertisers
  14. 14. How Do We Make Every Dollar Count...
  15. 15. Harnessing the blockchain!
  16. 16. It might surprise you to read this, but the most subversive, controversial, anti-authoritarian idea in the world of finance, an idea so powerful every government on the planet is trying to figure out whether to co-opt it or outlaw it, the dream of the most fervent libertarian, dark- Web denizens, is a ledger. Like, an accounting book. - The Truth Machine: The Blockchain and Future of Everything
  17. 17. Is this revolutionary?
  18. 18. Blockchain 101 - how it works
  19. 19. Blockchain in finance
  20. 20. Blockchain beyond finance
  21. 21. Shares rose as much as 289 percent after the unprofitable Hicksville, New York-based company rebranded itself Long Blockchain Corp. But maybe not every industry...
  22. 22. Powering the Paradigm Shift
  23. 23. Blockchain will power the paradigm shift for the digital ad industry... Current pain points: Too much work to make media buys from different sources Negotiations and transactions are painfully slow No single marketplace for small and large players Lack of streamlined supply chain in global advertising
  24. 24. Programmatic: Current State
  25. 25. Opening up the programmatic black box for the first time ● Blockchain’s tamper-proof record allows for measurement of ad quality ● Crucial metric, but historically unavailable until now
  26. 26. ClearCoin uses Blockchain to solve this problem
  27. 27. ClearCoin works with the supply chain of the $563 billion media and advertising industry. The ClearCoin tokens power its distributed ledger blockchain technology that can improve the supply chain. Building a better supply chain
  28. 28. The ClearCoin platform tracks all transactions on its distributed proof-of-history ledger to create a system of trust and transparency in the digital advertising community. By recording all digital advertising impressions that the platform has access to, the ledger is able to separate real impressions from fraudulent ones. Creating a system of transparency
  29. 29. Powering the Blockchain Web ClearCoin is a technology company that powers the real- time buying and selling of media on decentralized applications and the broader digital environment.
  30. 30. It’s all about creating trust When marketers can monitor ad performance via the blockchain, they can trust the dollars that they spend are translating to genuine performance.
  31. 31. Let’s connect tammy@clearcoin.co @TammyLKahn @ClearCoinHQ