Home / Blockchain / Advertising fraud falls flat against transparency: how can Blockchain help you?

Advertising fraud falls flat against transparency: how can Blockchain help you?

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The expansion of the digital realm has been fueled by digital advertising, but a growing number of Internet users is the reason why this fuel exists. As the global audience moved behind their computer screens, brands, businesses and services were followed, using digital aids to refine their efforts.

The problem is even though online advertising can be much more niche and focused, it can also be falsified and fraudulent. Those companies that try to make digital advertising are paying for certain levels of commitment, looking for numbers for which they pay dearly.

However, being online means that there are a multitude of ways in which these numbers can be falsified and sent fraudulently. Ad farms, pixel stuffing, botnets, and ad stacking are all tools for scammers who try to exploit a system without transparency.

This is a key word in the fight against advertising fraud – transparency. In the beginning, brands and companies were quick to be online when it was clear that the audience was there, but since they became more cautious and secure in space, their demands became more calculated.

Striking the desired and paid numbers is one thing, but companies are also looking for evidence and certainty that those numbers are being hit, not fraudulently. However, the standards of transparency of online advertising are grossly inadequate as it is.

Advertising fraud costs a estimated $ 3 million to $ 5 million a day from advertisers who are forced to believe and accept what publishers say they are happening on their sites.

Because there is this desire for transparency in the online advertising ecosystem, we need to look at what blockchain technology can offer to address these problems. There are already too ambitious projects that want to cut the whole intermediate ecosystem of advertising space, but this is hardly plausible.

However, there is no doubt that at some level, blockchain and its transparency can help to reduce the high level of digital fraud that occurs continuously in advertising.

Fight a battle

The fraud of advertising revenue that currently exists is large, but also something that is well documented. Google recently broke a million dollars advertising fraud scheme which used over 125 Android apps.

Google uses different filters and machine learning models. It also works with advertisers, agencies, publishers, advertising technology companies, research institutions, law enforcement agencies and other third-party organizations to identify potential threats. However, even with all this effort, the crux of the matter is the lack of transparency.

It is the relationship between publishers and brands / companies that need to be addressed at the grassroots level, not the problems that will come after this have to be resolved, as is currently the Google directive.

"The lack of standards and requirements regarding the reporting led to the hypothesis of an average expense of $ 120 billion in question due to problems of trust and transparency" explains Anda Gansca, CEO and co-founder of the analysis platform knotch.

The information that brands retrieve from publishers is often misunderstood or intentionally fraudulent, leaving companies with no choice but to accept the number provided by those publishers.

There are many problems associated with these relationships in online advertising, especially when starting to consider agencies that also play their role between the parties, but the issue of transparency is growing.

"Three main conditions contribute to the waste of advertising spending" Daniel Trahtemberg, Founder and CEO of Zinc, a blockchain advertising protocols company, explains. "The first is the lack of a reliable and reliable transaction layer between all the companies involved – advertisers, agencies, exchanges, networks, publishers, and so on – so there is no one source of truth about you can count on none of the players ".

"The second is the lack of control of user data, privacy and accuracy, and thirdly, fraudsters exploit the defects mentioned above to make a profit, exponentially increasing their impact."

A blockchain catalyst?

As the system stands up, brands and companies know that they need to be online to reach their audience and can only do so by involving publishers who have the right market for them on their sites. All of this leaves the power in the hands of publishers and allows them to call the shots.

Fraud and falsification of numbers when in sterling places is easy. Furthermore, this is why transparency is the key to changing this dynamic. "Dialogue and education are necessary, but we also desperately need concrete steps that brands can take to take the reins of the content marketing channel and make the Internet a better place," adds Gansca.

"There's an energy around transparency, honesty and the real interest of all the parties that I've never heard before." Marketers are ready and excited to move towards a controlled balance between the digital buyer and the seller, "said Gansca.

So, blockchain can be the answer for this required transparency? Many blockchain companies have undergone strong fluctuations in the restructuring of the entire advertising space, but this honestly can not work only on the back of the blockchain alone.

"The digital advertising ecosystem is composed of a group of technologically specialized companies that have developed solutions over time.A lot of new companies operating in the digital advertising sector aim to" cut out the intermediary ", which at my opinion is completely contrary to the decentralized vision of a blockchain ecosystem, "said Trahtemberg about ICOs and overly ambitious startups targeting this ecosystem.

"Any application that proposes a solution that aims to be the one stop shop for all advertising needs: from the purchase of announcements to the communication with the user, including the request of the user of free content. They are telling you that they are aiming to be a bigger monopoly than the one combined with Google and Facebook – as they will be the only provider of everything that has to do with online advertising. "

This approach that the blockchain can destroy and recreate an existing system is too oversized and, in most cases, completely false in the current climate. Trahtemberg explains that the system itself does not need to change, but a further layer of the blockchain, with its transparent nature, could be of great help.

"I do not think we need a new model of digital advertising – as all related services will not be magically resolved using blockchain," Trahtemberg said.

"Advertisers will continue to need agency support to manage their budgets, generate ad units and creativity, and demand-side platforms will continue to bid on exchanges to get offerings from supply services that help publishers and publishers app developers to manage and optimize their inventory, networks to allow publishers to have a technological level to monetize ads and manage their digital real estate, in other words: at this time, every piece of the industry puzzle of digital advertising has a function. "

"If one of those specific functions becomes obsolete, it will disappear or be consolidated … using Blockchain as an infrastructure layer will allow all these applications and services to function reliably, transparently and verifiably".

Excessively exaggerated

It's easy to get excited about the potential of the blockchain with its ability to target many different industries, including online advertising. However, one should instead look at its central structures; decentralization, transparency and immutability and see where these beneficial processes of blockchain can be used.

As Trahtemberg explains, there is already a structure for online advertising that works; he just needs some nodes to solve. Furthermore, as Gansca states, one of those nodes is the lack of transparency.

The use of blockchain in online advertising has enormous potential, but this potential should not be taken out of context. The blockchain space is still very nascent and experimental, because an entire advertising market, of such magnitude, to be expected on this technology would be catastrophic. However, using technology to ensure transparency could revolutionize space with few interruptions.

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The expansion of the digital realm has been fueled by digital advertising, but a growing number of Internet users is the reason why this fuel exists. As the global audience moved behind their computer screens, brands, businesses and services were followed, using digital aids to refine their efforts.

The problem is even though online advertising can be much more niche and focused, it can also be falsified and fraudulent. Those companies that try to make digital advertising are paying for certain levels of commitment, looking for numbers for which they pay dearly.

However, being online means that there are a multitude of ways in which these numbers can be falsified and sent fraudulently. Ad farms, pixel stuffing, botnets, and ad stacking are all tools for scammers who try to exploit a system without transparency.

This is a key word in the fight against advertising fraud – transparency. In the beginning, brands and companies were quick to be online when it was clear that the audience was there, but since they became more cautious and secure in space, their demands became more calculated.

Striking the desired and paid numbers is one thing, but companies are also looking for evidence and certainty that those numbers are being hit, not fraudulently. However, the standards of transparency of online advertising are grossly inadequate as it is.

Advertising frauds cost from $ 3 million to $ 5 million a day from advertisers who are forced to believe and accept what publishers say they are happening on their sites.

Because there is this desire for transparency in the online advertising ecosystem, we need to look at what blockchain technology can offer to address these problems. There are already too ambitious projects that want to cut the whole intermediate ecosystem of advertising space, but this is hardly plausible.

However, there is no doubt that at some level, blockchain and its transparency can help to reduce the high level of digital fraud that occurs continuously in advertising.

Fight a battle

The fraud of advertising revenue that currently exists is large, but also something that is well documented. Google recently broke a multimillion-dollar advertising fraud scheme that used over 125 Android apps.

Google uses different filters and machine learning models. It also works with advertisers, agencies, publishers, advertising technology companies, research institutions, law enforcement agencies and other third-party organizations to identify potential threats. However, even with all this effort, the crux of the matter is the lack of transparency.

It is the relationship between publishers and brands / companies that need to be addressed at the grassroots level, not the problems that will come after this have to be resolved, as is currently the Google directive.

"The lack of reporting standards and requirements led to an estimated average cost of $ 120 billion due to trust and transparency issues," explains Anda Gansca, CEO and co-founder of the Knotch analytics platform.

The information that brands retrieve from publishers is often misunderstood or intentionally fraudulent, leaving companies with no choice but to accept the number provided by those publishers.

There are many problems associated with these relationships in online advertising, especially when starting to consider agencies that also play their role between the parties, but the issue of transparency is growing.

"Three main conditions contribute to the waste of advertising spending", explains Daniel Trahtemberg, founder and CEO of Zinc, a blockchain advertising protocols company. "The first is the lack of a reliable and reliable transaction layer between all the companies involved – advertisers, agencies, exchanges, networks, publishers, and so on – so there is no one source of truth about you can count on none of the players ".

"The second is the lack of control of user data, privacy and accuracy, and thirdly, fraudsters exploit the defects mentioned above to make a profit, exponentially increasing their impact."

A blockchain catalyst?

As the system stands up, brands and companies know that they need to be online to reach their audience and can only do so by involving publishers who have the right market for them on their sites. All of this leaves the power in the hands of publishers and allows them to call the shots.

Fraud and falsification of numbers when in sterling places is easy. Furthermore, this is why transparency is the key to changing this dynamic. "Dialogue and education are necessary, but we also desperately need concrete steps that brands can take to take the reins of the content marketing channel and make the Internet a better place," adds Gansca.

"There's an energy around transparency, honesty and the real interest of all the parties that I've never heard before." Marketers are ready and excited to move towards a controlled balance between the digital buyer and the seller, "said Gansca.

So, blockchain can be the answer for this required transparency? Many blockchain companies have undergone strong fluctuations in the restructuring of the entire advertising space, but this honestly can not work only on the back of the blockchain alone.

"The digital advertising ecosystem is composed of a group of technologically specialized companies that have developed solutions over time.A lot of new companies operating in the digital advertising sector aim to" cut out the intermediary ", which at my opinion is completely contrary to the decentralized vision of a blockchain ecosystem, "said Trahtemberg about ICOs and overly ambitious startups targeting this ecosystem.

"Any application that proposes a solution that aims to be the one stop shop for all advertising needs: from the purchase of announcements to the communication with the user, including the request of the user of free content. They are telling you that they are aiming to be a bigger monopoly than the one combined with Google and Facebook – as they will be the only provider of everything that has to do with online advertising. "

This approach that the blockchain can destroy and recreate an existing system is too oversized and, in most cases, completely false in the current climate. Trahtemberg explains that the system itself does not need to change, but a further layer of the blockchain, with its transparent nature, could be of great help.

"I do not think we need a new model of digital advertising – as all related services will not be magically resolved using blockchain," Trahtemberg said.

"Advertisers will continue to need agency support to manage their budgets, generate ad units and creativity, and demand-side platforms will continue to bid on exchanges to get offerings from supply services that help publishers and publishers app developers to manage and optimize their inventory, networks to allow publishers to have a technological level to monetize ads and manage their digital real estate, in other words: at this time, every piece of the industry puzzle of digital advertising has a function. "

"If one of those specific functions becomes obsolete, it will disappear or be consolidated … using Blockchain as an infrastructure layer will allow all these applications and services to function reliably, transparently and verifiably".

Excessively exaggerated

It's easy to get excited about the potential of the blockchain with its ability to target many different industries, including online advertising. However, one should instead look at its central structures; decentralization, transparency and immutability and see where these beneficial processes of blockchain can be used.

As Trahtemberg explains, there is already a structure for online advertising that works; he just needs some nodes to solve. Furthermore, as Gansca states, one of those nodes is the lack of transparency.

The use of blockchain in online advertising has enormous potential, but this potential should not be taken out of context. The blockchain space is still very nascent and experimental, because an entire advertising market, of such magnitude, to be expected on this technology would be catastrophic. However, using technology to ensure transparency could revolutionize space with few interruptions.

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