The true source of their pessimism


  Ternio logo As a promising technology in marketing, blockchain is facing its fair share of detractors at the moment. While the advertising technology industry has repeatedly abandoned brands and agencies with semi-cooked solutions, some parties have other reasons that fuel their blockchain skepticism. In this article, I will address the common concerns expressed on the blockchain and will discuss why some parties are rooting for adoption.

See also: What does Blockchain mean for marketers

Scalability challenges

advertising creates a massive amount of queries per second (QPS), with larger demand-side platforms (DSPs) that they currently manage over 10 million QPS. E-Marketer predicts that over $ 46 billion will go to programmatic advertising in the United States this year; The advertising industry clearly requires a blockchain solution that works in a high transaction programmatic environment.

Blockchain protocols such as Ethereum are popular due to ease of development, but can not handle programmatic volume buying, as it is limited to about 20 transactions per second. Programmatic advertising needs a blockchain solution that can handle a large number of transactions per second, and there are currently companies that face exactly this challenge.

Read also: How Blockchain technology could break the stronghold of social data

Transparency [19659004] Most brands, advertising agencies, advertising technology vendors and publishers better welcome transparency about who they are working. The ad supply chain is murky and a large amount of advertising budgets are wasted every day due to an inefficient supply chain. Although many brands ask and test blockchain solutions, there are many parts that thrive in the darkness. They have exploited these inefficiencies to their advantage and are making good money with the status quo. Blockchain threatens their position in the ad ecosystem and, for them, transparency is not good for business.

Some companies are worried about the potential costs of integrating the blockchain, while others are wary that the technology is actually real. In my opinion, the only companies that will not benefit from integrating the blockchain into their media buying / selling process are those that have a low value compared to their cost or who participate in some form of advertising fraud.

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Implementation: short-term and long-term

Several big brands and agencies are currently evaluating blockchain to get more transparency about their advertising dollars, remove waste and promote accountability with their partners. Several advertising technology companies are also implementing blockchain-based solutions to gain competitive advantage.

While it is still early, blockchain as a technology has gone from theoretical to actual implementation. Long-term blockchain will play an important role in the transformation of digital media for the better. I believe that – in two years – it will be considered irresponsible by any media buyer not to make sure that 100% of their media purchase takes place on an advertising inventory verified with blockchain.

Read also: Conquer the veracity of data and privacy concerns with Blockchain Technology


The remittance of the month can be a problem for advertising companies that take the time and resources to collect the payment . Many companies also operate with the payment of the float – the collection on a Net30 basis and the payment of Net60. This fluctuating leaves the door open to companies that are not paid at all due to bankruptcy of debtors or international borders. Publishers suffer more in this equation as they are the final recipient. Factoring companies can help offset the cash flow problem, but the end result is a percentage paid to the factoring company for their service.

Blockchain can change all this by functioning as the central truth of the payment point. Having transactions verified with blockchain can make immediate payments not just a possibility, but a reality. The underlying blockchain framework, combined with smart contracts, will allow instant and asynchronous payments to trusted supply chain companies

Read also: Blockchain will transform the global economy. But what will it mean for advertisers?


The adoption of the Blockchain in advertising technology is happening faster than most seem to understand; many marketers, ad-tech companies and publishers are already embracing it with open arms. Recognize that the status quo is not sustainable and blockchain has the power to improve digital advertising for the better. While it requires a level of commitment from all parties to integrate, the end result is a healthier and more robust ecosystem that will continue to grow for years to come. Whether you are a blockchain believer or even on the fence, this is something that I believe all advertising companies should get behind

Read also: Blockchain in advertising: the implications for each player in the system

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