Blockchain can help solve one of the advertising industry’s biggest challenges: opaque advertising practices. Transparency into advertising practices is hard to come by. And fraud plagues the ad industry as a result — it's expected to cost the industry $44 billion in 2022, up from $19 billion this year, per Juniper. Blockchain promises to mitigate this issue through its function as an immutable public database, which allows it to store and validate previously murky information about digital ads.
Despite blockchain's promise, advertiser adoption is extremely limited. Just 11% of advertisers and agency executives have completed an ad buy using blockchain technology, according to an Advertiser Perceptions survey.
This limited adoption is the result of several significant hurdles — like ad executives' skepticism around the technology's usefulness — which must be overcome before blockchain is widely accepted. Chief among these hurdles is advertising executives' skepticism about the potential usefulness of blockchain — only 16% of global advertisers think that blockchain will help solve the lack of transparency in digital advertising. And broader barriers like regulatory uncertainty, lack of standards, and slow transaction speeds also hinder blockchain's adoption.
The blockchain revolution may be far off, but the technology still deserves attention now. Blockchain is heralded as a transformative technology, and while it has that potential, it's not quite there yet for advertisers. Still, it [...]