In an announcement that signals not only how far blockchain technology for advertising and media has come, but portends its influence in the industry’s future, a groundbreaking blockchain consortium focused on ad tech has been launched.
The AdLedger Consortium will consist of leaders in advertising and publishing who aim to utilize blockchains to address the ways that the internet has changed their industries, increase transparency and security and prepare for the future in media. The group is hosting its inaugural meeting in New York City today.
Among the founding members of the consortium are IBM, MadHive and TEGNA, companies that have taken the reigns in guiding blockchain adoption in media. With a commitment to collaboration, they hope AdLedger can become a forum to discuss the benefits and roadblocks that a blockchain ecosystem presents to ad tech. Representatives from various ad tech companies will also be attending to learn more, including Integral Ad Science.
“The overarching goal of the consortium will be to harness the potential of a real-time, blockchain-based, peer-to-peer network to lower costs for publishers and increase ROI for advertisers,” per a press release announcing AdLedger. “AdLedger’s mission is to bring together advertising industry players to collaborate on creating standards to the end of improving transparency and data portability throughout the supply chain. Ultimately, the consortium aims to transform the advertising industry with blockchain-powered solutions.”
Fraud and supply chain weaknesses in advertising costs the industry an average of $8.2 billion per year, according to the release. Blockchain technology offers a solution to these losses through cryptographically-secured campaign execution and measurement, the removal of inefficiency in technology stacks and cross-network identity management and attribution. But beyond these known pain points, the technology seems to offer unknown potential to revolutionize the way advertisers and publishers engage with audiences, a potential that can be explored through the consortium.
"We at IBM believe that blockchain [technology] will do for transactions what the internet did for communications," said Babs Rangaiah, executive partner of global marketing for IBM iX. "We are particularly interested in [the] blockchain's potential to solve many of the issues facing programmatic buying today."
AdLedger plans to use open source code as it develops its blockchain protocol, in order to encourage consensus, security and reliability.
As the consortium launches, it will bring new focus to the advancement of distributed ledger technology in an industry that has long seemed like a natural fit for it.
Disclaimer: MadHive is a sponsor of Distributed.com.
According to ICORating, 64 percent of all attempted ICOs failed and startups raised 48 percent less through ICOs as 2018 came to a close. As a result, many companies are now pivoting to raise money through security token offerings (STOs), but there are questions about whether investor demand is going to be any different.
Ahead of announcing an official strategy for leveraging blockchain technology more widely, the German government has opened a process for receiving recommendations around the technology from local companies and industry groups. Germany is Europe's largest economy and Berlin is home to numerous blockchain startups. The solicited recommendations could lead to official legislative action in the near future.