Advertisements: love them or hate them, they’re not going away anytime soon. The digital advertising market continues to add billions of dollars every year. Recent market predictions expect total ad spend to hit a whopping total of $563 billion dollars.
On top of that, there are global advertising platforms billing around $2 billion dollars per year and taking on significant volume in the process. Large companies will do whatever it takes to expose their products to more potential customers. The bigger the profits, the bigger the ad budget!
Advertising is one of the few massive global industries which has routinely proven a capacity to embrace innovation. Utilizing cutting-edge technologies could mean exposure to a new demographic, increased exposure to the existing target market, or cheaper exposure. Using the latest technology to accomplish any of these things is a major win. Small gains in efficiency add up when you’re dealing with advertising budgets of seven figures and above.
The advertising industry has come along way since the printing press, very much because of the ability to adapt and experiment with rising technologies.
The Evolution of Digital Advertising: The Good, and The Bad
The internet created the opportunity for advertisers to target consumers with a kind of precision that had never been seen before, at least not at scale. Digital advertising began with advertisers negotiating ad agreements with publishers directly, but that didn’t last long. As the popularity of the internet spreads, advertising networks were formed to help aggregate supply and demand. The next step in evolution came from the birth of bidding platforms, creating price efficiencies between purchasers and publishers through auctions.
Progression like this rarely occurs without creating some adverse consequences along the way. The digital advertising industry was no exception. Back when advertisers dealt with publishers one-on-one they could survey the website in question to ensure it checked all the boxes they were looking for. Today, aside from the occasional manual review, the process of buying and selling advertising is largely automated.
Automation has enabled global advertising platforms to scale to the point of earning a cool $2 billion dollars of annual revenue, but it’s also opened the doors to ad fraud. Ad fraud is defined as a type of scam in which the perpetrator fools advertisers into paying for something that is worthless to them, such as fake traffic, fake leads or misrepresented and ineffective ad placement.
Recent reports reveal a Russian group of cybercriminals were stealing $3 million to $5 million daily by commanding a bot farm to produce fake views and ad clicks. A study by WPP’s GroupM claimed ad fraud could costs businesses a massive $16.4 billion in 2017.
ClearCoin: A Modern Solution to Ad Fraud
Ad fraud is estimated to be costing businesses over $16 billion today, but things will only get worse if a solution isn’t implemented soon. Advertising blockchain startup ClearCoin has made it their mission to stop ad fraud before things get out of control. By combining global advertising technology with the blockchain, ClearCoin will bring transparency to transactions with their proof-of-history ledger. Built on top of blockchain, the proof-of-history ledger helps combat ad fraud and prevent costly inaccuracies.
Built by a team with a proven track record of building successful advertising technology platforms, ClearCoin won’t find any difficulties picking up steam if able to put a dent in the ad fraud epidemic. Billions of dollars are being poured into the ad industry year after year; it only makes sense that those dollars flow towards innovative and efficient solutions capable of solving the industry most pressing challenges.
ClearCoin has already raised over $4 million during their public crowd sale, accruing 20,000 registrations in the process. There is a total supply of 1 billion CLR tokens, 80% of which are open to being sold to the public. If you want to get involved in ClearCoin’s ongoing crowd sale, read their official guide on how to participate here. Opinions expressed here by Contributors are their own.