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The affectionate relationship of advertisers with all that blockchain could cool when they realize that the potential of technology to bring integrity back to the ad purchase will take time.
It's been a year since the blockchain advertising train reached advertising. The ups and downs of bitcoin price fluctuations in 2017 convinced many advertisers that blockchain powering was a sort of solution due to the lack of clarity on how the media are bought and positioned. Since then, however, the hype has vanished.
Not only advertisers divide when blockchain will be widely adopted by the industry, but they are also unsure whether a technology that records transactions between buyers and sellers in a way that does not need third-party authentication will alleviate their concerns about undisclosed taxes, fees for advertising technologies, fraud and opaque trade agreements. Blockchain falls somewhere between a game changer and a trick in the eyes of some observers of the advertising industry.
"The application of the blockchain in advertising is still very nascent, and so while it is being explored, we only have a handful asking for information [from advertisers]," said Eamonn Maguire, world leader in KPMG's blockchain. "I think it will be two or three years before the blockchain becomes a dominant force in advertising, given that adoption is now more like a smoke signal than a blinding glare."
While blockchain is on the radar for Lego marketers, there is no company program for this yet, said the head of the advertiser of the emerging platforms James Poulter.
"There are some brands that experiment with blockchain on programmatic purchases, but I think we have to ask questions to press agencies and if they can get together on a shared platform that is on something like Ethereum, for example," said Poulter . "The problem is that everyone has to trust the system they will use and this will only happen if the industry can consolidate around some standards in terms of solutions [blockchain] that they will actually support."
Before it even gets to that point, there are several long-standing obstacles that technology has yet to overcome.
Blockchain evangelists pride themselves on the ability of technology to process thousands of transactions per second. Ad exchanges process millions of transactions per second. That scale is too much to handle for most variations in technology. Blockchain is also a loss of resources. Because blockchains extend to include multiple members and process multiple transactions, the cost of managing those also expands, particularly for startups that want to innovate the technology. Some of the advertisers are skeptical of the blockchain because of the promises of solution providers in the last 18 months that have not come true.
