Josh Engroff @jengroff the Chief Digital Officer of @themediakitchen has presented a truly innovative way to solve the current tedious back end issues for billing and record keeping for Programmatic advertising. Use the Blockchain. We’ve covered Blockchain Technology before on MediaJobs.com but this is the first time I have heard it applied to Ad Technology.
Josh states that the use of the Blockchain would “1), improve programmatic advertising efficiency, and 2) evolve static business models.”
Programmatic advertising has done a great job minimizing the inefficiencies of the media buying and placement process (ie: placement, speeding execution) as well as now provides an amazing array of data never before available in one place.
However when it comes to the backend, Engroff states that “The process by which payments are settled between parties in these transactions – brands, agencies, and media companies – has not evolved in decades. I’s is still a laborious process requiring invoices, accounts payable and receivable, payment terms (30, 45, 60?) and many, many people.”
We’ve all heard of Bitcoin but most do not realize that Bitcoin is powered by the Blockchain, which is a distributed database of data records. It’s this approach to managing all the back end requirements that could help substantially reduce the hours as well as minimize the errors between all the different parties involved in Programmatic advertising transactions.
Engroff talks about using Bitcoin in the Blockchain as well as other options including loyalty point programs. But, instead of using Bitcoin, why not use the good old US Dollar? I think the use of the Blockchain to address these issues is very smart and has enormous potential for the business.
You can read Engroff’s article Programmatic Media And The Blockchain on MediaPost.