Lydian™: Blockchain & Smart Contracts
Recent research estimates that the global advertising revenue lost to ad fraud was over $16.4 billion in 2017 (Marketing Week, 2017). In 2018, this number is believed to be higher. In 2018, the buzz of the blockchain has increased to gain traction within the digital ecosystem. Blockchain sector itself has grown tremendously in the past few years as such we could see over $2 billion dollars in investment in the technology this year alone. While many sectors have their eyes and investment focus pegged on the blockchain development, so has the digital marketers. Matter of fact, blockchain technology within the digital advertising sector could change the landscape as we know it.
Lydian™ developers have been exploring blockchain to combat the ad fraud, and cut out the middleman, thereby enabling the brands to buy directly from the publishers and content providers. This aims to enable the digital advertising ecosystem to be efficient, drive more revenue to the content providers and will ensure there is transparency for the brand marketers. To do this our developers are testing the most efficient adoption of the smart contracts by the various stakeholders. No doubt, the smart contract will provide transparency and ensure when the pre-defined rules are met, the agreement is automatically enforced. Thus fulfilling the objective to ensure the smart contract facilities, verifies and enforces the negotiations of the terms of the advertising transaction. Thus, this is the simplest form of decentralized automation.
This is a welcomed news to the industry that still operates using the IAB's (Interactive Advertising Bureau) standard terms and conditions, which could be an example of a "dumb contract." To date, the industry has been handling ad fraud and discrepancy issues by letting the media agency and publishers negotiate their middle ground over 10 percent discrepancies. A smart contract would in theory eliminate discrepancies all together, and would enforce the rules of the insertion order automatically.
Stay tuned as the Team Lydian™ continues to develop and change the digital advertising ecosystem and eliminates the ad fraud.