Advertising spending worldwide is expected to reach approximately $667 billion by 2024, including the surge in advertising associated with the US presidential election.
According to ISBA’s Programmatic Supply Chain Transparency Study, 15% of digital ad spend is “unaccounted for, which equates to approximately one-third of supply chain costs.” I don’t know where it disappeared to.
Tech giant Google is facing scrutiny from the US federal government, which is trying to break up parts of its advertising business. The Department of Justice (DOJ) claims that Google has acquired online advertising companies such as DoubleClick, providing services that allow ad buyers to target users, and essentially forcing advertisers to use its services to increase audience penetration. It claimed it manipulated display advertising prices by forcing them to compete.
About 90% of online publishers use Google to display ads, but Google claims that competitors such as Meta and Amazon offer additional options to advertisers.
But if the big Web 2.0 technologies are causing problems by limiting buyer choice, how can the Web 3.0 industry leverage the potential of blockchain to create better, more transparent products? Can we provide a solution for higher, more efficient ad spend?
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Build better advertising campaigns with blockchain
Non-blockchain companies are beginning to realize blockchain’s potential to increase advertising transparency and efficiency, and industries are beginning to explore their own solutions.
For example, in the second quarter of 2024, luxury brands such as Moët Hennessy Louis Vuitton (LVMH), Prada Group, Cartier, Mercedes-Benz, and OTB Group will unite to form a blockchain-agnostic group, the Aura Blockchain Consortium. Established. Transparency in blockchain advertising.
But companies like Alkimi Exchange, a vertically integrated app built on top of Ethereum ETH/USD, are making the value of blockchain available to every industry. We spoke to Benjamin Putley, CEO and co-founder of Alkimi, which bills itself as the world’s first decentralized advertising exchange.
Benzinga: How is Alkimi changing the equation for advertisers?
Putley: “Alkimi operates the proprietary Ads Explorer, which provides real-time visibility into all transactions spent on advertising. Advertisers now have real-time visibility into their ad spend, ensuring every dollar is accounted for. It eliminates the guesswork and opacity often associated with traditional programmatic advertising.”
B: What problems are you solving with a blockchain-based marketplace for programmatic advertising?
P: “Traditional advertising methods are often inefficient, costly, and lack transparency. We cut out the middleman and reduce commissions from as high as 43% to just 3% to 8%. This is especially important for large brands and companies with global networks of partners, distributors, and contractors. By leveraging this, we ensure that all transactions in the advertising process are notarized, ensuring 100% transparency of media spend and helping businesses regain trust in the industry.”
B: Is your solution primarily a crossover Web 3.0 solution for Web 2.0 businesses?
P: “Our main focus is on the Web 2.0 market, where there is a huge need for transparency and auditability. You’re often navigating the advertising process, but often you can’t keep track of it. Targeting this area will not only streamline the process, but also restore trust and save you money on all your advertising dollars. We aim to provide solutions that ensure that information is traceable and used efficiently.”
B: Web3 projects make it difficult to run traditional advertising. Is your platform optimized to help them in some way?
P: Our platform is fully optimized to support both Web3 and Web2 customers. We have built a strong advertiser network that allows us to bridge the gap between traditional and emerging industries. It is clear that Web3 Business faces regulatory challenges in the digital advertising space, but this is an area we are looking forward to and well positioned to develop. As the same advertising principles apply across all sectors and the Web3 industry gains both legitimacy and regulatory clarity, we expect demand for our platform to increase. ”
B: What are your long-term goals?
P: “We want to rebuild and transform this $600 billion-plus industry into a fairer, more responsible and sustainable place. Our mission and what we do Everything we do is focused on transforming programmatic advertising by restoring trust, confidence and value to advertisers, publishers and consumers.”
summary
The mainstreaming of blockchain technology will take many forms, with B2B use cases becoming more and more It may drive adoption just as much as a central solution.
Regardless of the outcome of the Justice Department case with Google, few will deny that Google has tremendous influence over every industry it touches. The technology sector is known for providing new solutions, so it makes sense that blockchain should be part of the advertising equation.
New solutions like Alkimi’s ad exchange are a welcome addition to Web 3.0. It may be difficult to migrate users from Fortnite to GameFi, but companies will advertise wherever they can get the best deals, and blockchain is unbeatable in providing transparency and efficiency. .
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Image by Pepe Linforth from Pixabay
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