IAB Explores the Future of Blockchain for Video Advertising in New Comprehensive Whitepaper

NEW YORK–(Business Wire)–The Interactive Advertising Bureau (IAB)
today released “Blockchain for Video Advertising: A Market Snapshot of
Publisher Buyer Use Cases,” an in-depth whitepaper that uncovers
strong use cases for blockchain technology in digital video advertising,
with a focus on over-the-top (OTT) advertising. The paper acknowledges
that blockchain has captured the public’s attention through the
skyrocketing growth of cryptocurrency, but also illustrates that the
technology is a natural fit for the digital advertising supply
chain—potentially enabling increased efficiencies and a more trustworthy
supply chain, as well as reducing cost and fraud for publishers and
buyers.

The report outlines the foundational structure of blockchain technology,
including terminology and then deep dives into blockchain use cases in
digital advertising, exploring applications such as FreeWheel’s
initiative BlockGraph™, XCHNG from Kochava, Ads.txt Plus from MetaX, and
NYIAX (New York Interactive Advertising Exchange). After laying that
groundwork, the report spotlights blockchain use cases and proofs of
concept for video and OTT advertising, investigating new platforms using
the technology, including MadHive’s MAD Network.

Alongside these real world blockchain case studies and insights from
executives at the center of these cutting-edge deployments, the report
identifies the key advantages of using blockchain for digital video/OTT
inventory:

  • Low queries per second (QPS) compared to digital display advertising
  • High value, premium asset class with well-established standards and
    transactional processes
  • Fewer suppliers, most of whom are known to each other
  • Market is still nascent so players are motivated to innovate
  • Suppliers have lived through the first phase of automation
    (programmatic) and are more willing to be transparent, and more wary
    of intermediation
  • Lots of content delivery networks (CDN) are involved in the supply
    chain, and the CDNs are already peer-to-peer

The paper also cites some challenges to overcome:

  • OTT inventory is already in high demand with sellers—who, as a result,
    may be less open to experimenting with new business models and
    processes
  • OTT digital video is already a high margin buy, so the inefficiency of
    multiple intermediaries is less obvious
  • Typically OTT has a complex set of endpoints, or clients, to serve the
    advertising to
  • Shared taxonomies, definitions and standards will be needed to enable
    “smart contracts” of the future, with flexibility to fix current
    problems and bring incremental improvements

Nonetheless, the potential benefits for publishers and advertisers far
outweigh the hurdles and calls for IAB and IAB Tech Lab members across
the ecosystem to join the organizations’ business or technical working
groups examining the future of blockchain, to bridge gaps and meet
challenges head on.

“Blockchain seems to be the new ‘siren’s call’ in the business world—but
there is no doubt that this technology holds tremendous promise for
digital video advertising,” said Anna Bager, Executive Vice President,
Industry Initiatives, IAB. “This paper is a first of what we anticipate
will be many reports from IAB exploring the future of blockchain in
digital video. Tapping into our members’ pioneering work and insights
from across the ecosystem, we plan to offer thought leadership,
guidance, and inspiration that will steer the new course for digital
video, OTT, and blockchain.”

“Blockchain presents the opportunity for us to approach the digital
advertising landscape and its current challenges from an entirely
different perspective. Our adaptation has required not only a
recalibrating of our view on the ad buying process, but also the
creation of a new protocol designed to address the needs of all the
players in the ecosystem,” said Charles Manning, CEO, Kochava. “With a
focus on creating new transactional efficiencies, we see an opportunity
to replace the standard paper-based agreements with a new form of IO,
manifested between buyers and sellers through smart contracts. Through
these and other innovations, we see a future for a next generation
consensus model, supported by a protocol that will be able to handle
millions of transactions per second. We look forward to working with IAB
and others in this space to push blockchain beyond its current nascent
state towards a more efficient, distributed and trusted way of doing
business.”

“Blockchain for Video Advertising: A Market Snapshot of Publisher
Buyer Use Cases” can be downloaded at iab.com/blockchain-for-video-advertising.
To learn more about how to join IAB and IAB Tech Lab working groups
devoted to blockchain, go to iab.com/blockchain.

About IAB

The Interactive Advertising Bureau (IAB) empowers the media and
marketing industries to thrive in the digital economy. Its membership is
comprised of more than 650 leading media and technology companies that
are responsible for selling, delivering, and optimizing digital
advertising or marketing campaigns. The trade group fields critical
research on interactive advertising, while also educating brands,
agencies, and the wider business community on the importance of digital
marketing. In affiliation with the IAB Tech Lab, it develops technical
standards and best practices. IAB and the IAB Education Foundation are
committed to professional development and elevating the knowledge,
skills, expertise, and diversity of the workforce across the industry.
Through the work of its public policy office in Washington, D.C., IAB
advocates for its members and promotes the value of the interactive
advertising industry to legislators and policymakers. Founded in 1996,
the IAB is headquartered in New York City and has a San Francisco office.

The Interactive Advertising Bureau
Laura Goldberg, 347-683-1859
laura.goldberg@iab.com

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