How to use the distributed network to combat advertising fraud


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Lack of transparency is the biggest factor in fraud in the advertising technology industry.n
nAt present, due to the huge size of the industry, there is basically no effective monitoring method. This is why advertisers will pay for intermediaries to verify transactions, and sometimes a transaction to verify 10 times, from the cost and resource point of view are very inefficient.n
nOnline advertising is full of complex dark scams. However, the block chain block can change all this.n
nThe Internet provides online advertising through a complex network of supply and demand platforms. The ad slot sells thousands of ad slots per second to the top bidder.n
nThis produces a few gigabytes of high proprietary data. Different stakeholders hold these data, and no one has a single, direct understanding of the entire transaction. This is a fragmented industry, the only way of doing business is to trust the other participants.n
nBut this trust model is not feasible. Fraudulent traffic is weakening the already sluggish industry profits and undermining the trust between advertisers and viewers.n
nIn many cases, the ad does not meet its intended purpose. Such as a company that would like to go to ESPN or Vogue magazine ads may appear in a fraudulent domain name on the fake website, similar to Methbot (the history of the largest fraudulent activities) such online fraud.n
nThe liar imports fake traffic into its website, allowing advertisers to think that their site is real. To run a similar network of criminals can earn 3 million to 5 million US dollars a day. Such fraud is often overlooked because advertisers can not verify who they are working with.n
nThe combination of fraud patterns has led to the high cost of advertisers. The Internet Advertising Bureau (IAB) report in the second half of 2015 found that fraudulent traffic led advertisers to $ 8.2 billion in annual revenue per year.n
nNo wonder IAB president Randall Rothenberg (Randall Rothenberg) this year at the IAB annual IIP leadership meeting called on the industry to “repair trust.” But where did you start?n
nThe advertising industry faces two major challenges: it is necessary to keep real-time information flowing and allow advertisers and publishers to buy and sell inventory at lightning speed. However, it must also ensure the legitimacy of publishers and advertisers by verifying the identity of publishers and advertisers and what they are doing.n
nUntil now, these two demands are contradictory. Verifying a transaction usually takes a long time.n
nThis is just a block chain technology that can solve a problem. Block chains can be used to connect distributed participant communities to provide transparency and security for each community. Speed ​​up the flow of information while maintaining authenticity.n
nBlock chains can verify different participants and their assets in the system. This idea will bring together previously stored information from various parts of the complex advertising supply chain so that it is visible and assures its integrity when necessary.n
nThis can solve several problems facing the online advertising ecosystem. Advertisers who fear domain name spoofing can encrypt their ads and make sure they can only reach a list of pre-approved scheduled destinations. The block chain can then be checked to confirm that the destination matches the list.n
nPublishers can ensure that ads that reach their pages are legitimate sources, not malicious bidders who advertise malware. By providing full visibility from your ad source, publishers can avoid infecting site visitors.n
nAdvertising technology companies are already dealing with this problem. MadHive is a block-based solution for advertisers and publishers. MadHive is a founding member of AdLedger, an advertiser and publisher consortium that plans to bring transparency based on block chains into the industry, others like AdEx and BitTeaser This is taking their own way to solve this problem, but these companies are hoping to use the block chain to clean up the advertising industry.n
nPreventing industry fraud and introducing some accountability in the advertising ecosystem will help to innovate in areas such as program advertising.n
nCompanies may find it difficult to delegate their advertising costs to an unlicensed algorithm.n
nIf they can rely on transparent networks to validate procedural decisions, they may be more likely to invest in this fast-growing online advertising area.n

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