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.
Subscribe for an exclusive and inner look at what's happening in the video industry delivered to your weekly inbox.  "We are looking at the blockchain but more in terms of how it helps us as an advertiser's distributor," said Pierre-Yves Calloc & # 39; h, global director of digital acceleration at Pernod Ricard. "We are participating in discussions with the World Federation of Advertisers on Technology, but we are not leading them in. Blockchain is not the fastest technology today as far as the speed at which ads are traded, so we must first see it work in a real-world scenario. The potential, however, for the blockchain to be used in programmatic purchases is undoubtedly present. "
Calloc & # 39; h alludes to the cost-versus-value debate that advertisers must consider before pouring money into emerging technology. The advantage of Blockchain is clearer for advertisers like Procter & Gamble, Unilever and Nestle who spend so much on the media that they will make the initial waste on technology in cost savings in the media.
"The application of blockchain into programmatic is still in its infancy, and factors such as legacy contracts, preferred purchasing processes and relationships mean that for many, realizing the benefits of blockchain could be slower than they want "said Sam Fenton-Elstone, CEO of the media agency Anything is Possible. "With the blockchain technology in place throughout the ecosystem, publishers, agencies and brands will have access to centralized, scalable and efficient monitoring that will bring the budget holders back."
There is a growing sense among advertisers that there are few blockchain companies in the market with a genuine product. The Tech Lab of the Interactive Advertising Bureau announced a program last month to address the issue by allowing its members to test blockchain startup technologies like MetaX, FusionSeven and Lucidity.
Despite reservations about the practical aspects of technology, some advertisers like GameStop think they've found a way to make it work.
Over the next 18 months, the retailer plans to collaborate with blockchain advertising startup Lucidity and its technology partners AppNexus and Integral Ad Science to use technology for all aspects of its purchase planning including fraud detection and verification
The GameStop advertising agency, the Richards group, tested technology with its technology partners in June, when it was able to purchase less fraudulent impressions for a campaign through the blockchain. Having this insight also meant that the retailer could block certain sites by trying to promote fraudulent impressions.
In the future, GameStop plans to use the platform to monitor its IAS auditors, making sure that the way in which click-match frauds are seen matches the way both the side platforms and the offer platforms on their requests are met. media plans do it. Basically, the retailer wants to manage a private market of trusted partners to trade in the blockchain.