Blockchain Technologies in Ad Tech

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Most readers are already familiar with blockchain from the crypto-currency craze.

Blockchain offers transparency and automation, eliminating the need for intermediaries in transactions. Its applications can include its ability to track data ownership and transfer across participants, supply chain management, property title registration, etc.

Blockchain is a disintermediation technology that eliminates the need for a third party to conduct transactions. The open ledger systems helped the transactions that guided the cryptocurrency markets to grow exponentially. The cryptocurrency prices of most coins are soaring near their all-time highs. Numerous people are investing to seek cryptocurrency value.

Smart Contracts

Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller written into lines of code. The code and agreements therein exist across a distributed, decentralized blockchain network.

Smart contracts permit trusted transactions and agreements to be carried out among disparate, anonymous parties without a central authority, legal system, or external enforcement mechanism. They render transactions traceable, transparent, and irreversible.

The idea behind a smart contract is not new at all. In 1994 Nick Szabo came up with this concept called “a set of promises specified in digital form including protocols within which the parties perform on these promises”, maintaining that “the traditional contract form is inappropriate for some agreements such as indirect exchange through money intermediaries.”

Fraud Control

Blockchain has the potential to eliminate bad actors from the advertising ecosystem. A blockchain-based system can prevent fraud by verifying advertising impressions. Thus, payments made by advertisers are secure and instantly flag any fake ones for elimination.

It gets done using smart contracts, which record the details of each transaction on a public ledger that is accessible to everyone. The public nature of these digital contracts ensures that all parties involved can see what is happening in real-time. It provides advertisers with greater transparency and control over their campaigns.

In addition to eliminating fake impressions, blockchain can get used to verify the authenticity of advertisements themselves, especially video ads. A digital watermark containing information about an ad’s origin (such as its publisher) can easily get inserted into each video frame via blockchain technology.

The ad gets flagged as fraudulent or inappropriate by users on social media sites. The users can simply report it using one click to remove it immediately from circulation without waiting for someone at Facebook HQ to manually remove it after spending hours reviewing content policies themselves!

Programmatic Advertising

In simple words, programmatic advertising is the process of using software to purchase digital advertising. Programmatic technology uses software to automate the buying, placement, and optimization of media inventory through a bidding system.

It also helps to automate the work that a human being does. It essentially helps find the right audience for advertisements, thereby bringing efficiency at scale.


Consumer Behavior Modelling

Consumer behavior modeling, a subset of data science, is the process of creating statistical models to predict consumer behavior. With the right input data and model, you can predict both the consumer’s short-term and long-term actions.

Businesses use this technique to increase their efficiency and effectiveness in several areas:

  • Advertising: understanding how consumers react to different advertising
  • Marketing: understanding which marketing strategies appeal most to what types of customers
  • Customer relationship management: predicting how likely a customer is to stick around or go elsewhere

When you buy something online, businesses can look at your previous orders and make predictions about future ones. For example, if you have ever bought anything on Amazon, chances are that Amazon has predicted what other items you might like based on your past purchases. They do this through consumer behavior modeling.

Not Just Television and Radio Broadcasting

According to Cisco, the projected internet traffic will increase three times.

The majority of online advertising revenue gets attributed to search advertising. It makes up a major share of the global digital advertising market. Search advertising will continue to grow over the next 5 years, driven by a shift in consumer behavior towards searching rather than browsing for information on the web.

Display advertising revenue also contributes significantly to the global digital market. Marketers and advertisers use to display advertisements to target potential customers. They use content-rich websites, blogs, and social networking sites.

The increasing use of smartphones played a significant role in the growth of display advertisements. They offer a platform where these ads can get easily viewed on small screens with high-resolution displays.


The advertising industry is evolving with the introduction of blockchain technology. Blockchain technologies have many advantages that can help solve some of the issues discussed in this paper, and these technologies can also help transform the entire advertising industry.


Blockchain technology is changing day by day, and it will be a vital aspect of digital marketing since it is highly secure due to its decentralized nature.


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