Blockchain Technology In Digital Advertising: Transparency, Fraud Prevention And Trust

Abstract

The digital advertising industry, a cornerstone of the modern digital economy, is plagued by significant challenges that undermine its efficiency and effectiveness. Among these challenges, lack of transparency, prevalent fraud, and diminishing trust among stakeholders (advertisers, publishers, and consumers) are particularly detrimental. The opacity of the digital advertising supply chain allows for substantial financial losses due to fraudulent activities such as click fraud, domain spoofing, and the proliferation of bot traffic. Furthermore, the existing ecosystem often fails to establish a trustful relationship between advertisers and publishers, with advertisers unable to verify the true value of their investments and publishers struggling to ensure fair compensation. In response to these challenges, blockchain technology emerges as a promising solution capable of revolutionizing the industry. By leveraging its inherent characteristics such as decentralization, immutability, and transparency, blockchain offers a novel approach to improving transparency, combating fraud, and rebuilding trust. This article aims to explore the potential of blockchain technology in transforming the digital advertising landscape. It will delve into the current issues of transparency, fraud, and trust within the industry, investigate how blockchain can address these problems, and discuss real-world implementations and the implications for future research and industry practices. Through this examination, the article outlines the scope and purpose of leveraging blockchain technology as a foundational element for a more transparent, fraud-resistant, and trustworthy digital advertising ecosystem.