Graybeard
Well-Known Member
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The problem
On the one hand, online ads are highly effective because they’re more personalized than other forms of advertising. The sector has exploded, and this year online ads will for the first time account for more than half of the total advertising market.
But that growth has been accompanied by significant problems.
Just 20 years ago, Peluso explains, about 85 cents of every dollar spent by an advertiser made it to the publisher. The reason it wasn’t 100% is because an advertiser would pay modest fees to a creative agency, and perhaps a media placement firm. Today, at most only 40 cents of every dollar is getting through to the publisher, Peluso says. (The Association of National Advertisers cites similar numbers.)
This is largely because of the increasing number of intermediaries taking a cut along the way. A typical campaign now involves fees paid to an agency trading desk, an ad exchange, a demand side platform, a supply side platform, and various other networks. And that doesn’t include losses from things like click fraud or account for brand damage caused by an ad inadvertently appearing alongside objectionable content, not to mention obstacles like adblockers. “It’s gotten really cumbersome and less understandable,” Peluso said.<<<
source: IBM-Unilever blockchain pilot cuts wasteful ad spend
This article is about squeezing a few percentage points of waste out using bloclchain -- novel approach but it's only a band-aid for a bigger problem ...
The problem
On the one hand, online ads are highly effective because they’re more personalized than other forms of advertising. The sector has exploded, and this year online ads will for the first time account for more than half of the total advertising market.
But that growth has been accompanied by significant problems.
Just 20 years ago, Peluso explains, about 85 cents of every dollar spent by an advertiser made it to the publisher. The reason it wasn’t 100% is because an advertiser would pay modest fees to a creative agency, and perhaps a media placement firm. Today, at most only 40 cents of every dollar is getting through to the publisher, Peluso says. (The Association of National Advertisers cites similar numbers.)
This is largely because of the increasing number of intermediaries taking a cut along the way. A typical campaign now involves fees paid to an agency trading desk, an ad exchange, a demand side platform, a supply side platform, and various other networks. And that doesn’t include losses from things like click fraud or account for brand damage caused by an ad inadvertently appearing alongside objectionable content, not to mention obstacles like adblockers. “It’s gotten really cumbersome and less understandable,” Peluso said.<<<
source: IBM-Unilever blockchain pilot cuts wasteful ad spend
This article is about squeezing a few percentage points of waste out using bloclchain -- novel approach but it's only a band-aid for a bigger problem ...
