Blockchain Changes the Structure of Digital Advertising
“MadNetwork” announced on August 20 is a permission layer that operates on the Ethereum blockchain and uses the Ethereum blockchain as an immutable recording system. The test net will be operational next month.
Ad tech provider MadHive and ad industry consortium AdLedger have previously worked on a system to integrate data sharing and accounting using the Ethereum blockchain. However, in the last few years, we decided that a layer 2 technology approach was necessary for scale expansion.
Layer 2 technology: Technology aimed at speeding up and expanding capacity by conducting transactions off-chain (outside the blockchain). Only the result of the transaction is returned to the blockchain (Layer 1) and recorded.
Blockchains are often used to automate manual or paper-based processes, but for advertising, the problem is the automation system itself.
The rapidly developing world of programmatic advertising has led to a black box full of fees and inconsistencies.
Programmatic Advertising: The process of automatically buying and delivering inventory for web ads in real time. There are problems such as brand damage caused by being posted on media that is not suitable for advertisement, and fraudulent advertisement display.
With the transition to the world of traditional connected TV devices, the Internet, it’s time for blockchain transparency to solve the challenges of programmatic advertising, according to the Mad Network project. Leader Adam Helfgott said.
“NBC and Fox can’t afford to lose 30% of their revenues by using something like a program vault. These legacy media have been doing very clean deals, and in the middle it’s not always such a black box There is no such thing.”
The Adreasure Blockchain Consortium in which Madhive is a participant is Viacom, Publicis Media, Hearst Television, IPG Mediabrands, Hershey, Major companies such as IBM are participating.
In 2018, Adreasure conducted a pilot project with IBM, investing a portion of its advertising budget in a system that uses the Hyperledger Fabric, a blockchain promoted by IBM.
In addition to clarifying the function of the web advertising mediation system, Mad Network will also have the function of providing information to the supply chain related to programmatic advertising in the coming era of data privacy regulation. Adviser and executive director of Adreasure Christiana Cacciapuoti said.
“There is growing demand for information about what data is being sent to which players, from which consumers, and how to share and get consent from customers. Blockchain-based accounting systems exchange money. You can track data movement and be more privacy sensitive, just as you can track business performance.”
Touch point with truth
Mad Network will use the Ethereum blockchain as a “touchpoint to the truth,” Helfgott said, and Mad Network will be used by ConsenSys’ John Wolpert and EY (Ernst & Young). It was likened to the Baseline Protocol created by Paul Brody.
The node deployment will be handled by Madhive’s partner, the Node Service provider Blockdaemon, he said.
Regarding the roadmap, “We are releasing a testnet around September 1st and we are considering launching a mainnet in the fourth quarter,” said Kachiapouti.
In the not too distant future, most people will be watching IP-delivered video on TV, says Helfgott.
“Without the entry of companies like Madhive and Mad Network, it’s inevitable that Google will continue to use the existing mobile media infrastructure that it has in a sense. Adtech is paying for the Internet built by Google. But now it’s like paying to build a blockchain at scale.”
Blockchain that Changes the Structure of Digital Advertising - /10
"MadNetwork" announced on August 20 is a permission layer that operates on the Ethereum blockchain and uses the Ethereum blockchain as an immutable recording system. The test net will be operational next month.