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What blockchain won't solve for advertising fraud? Insightful 2020

Updated: May 27, 2022

Advertising Fraud is a rampant problem. Fraudsters, from faking user behaviours or stealing Organic/Google/Facebook converted users and tagging it as their own using programmatic mis-sequences is become a common problem for performance marketers. People or Group of people committing to advertising fraud in their head feel that they have been completely able to shadow the unethical practices, and have successfully created what we call a black box model. Today, even the most strict KPI's ain't safe, with advertiser paying almost twice for the acquisition of the same customer.

Block-chained user flow, which is programmatically hashing the last attribute to the the next attribute. Any addition, deletion to the flow, can automatically raise alarms of suspicion. Market dominating leaders have already tested flows of block-chaining the user journeys, but are highly unsure on industry vide adaptability and success rates on B2B partnerships. While it seems promising for Google or Facebook to test these new capabilities, it becomes imperative for fraudsters to understand the hashing criteria to reverse engineer and show conversion theft legibly.

Why networks/affiliates want to move in adopting blockchain?

1. Lesser transparency to the advertiser. The advertiser will be made to believe that their technology is cryptic, which is using blockchain, which helps build the trust back which networks and affiliates have lost over last 5 years because of advertising fraud.

2. They want to move away from the big data attribution. Over last 5 years, big data has provided advertisers not just understand how brand consumers behave but also how to create personalised experiences. On the other hand, big data has been a huge game changer for fraud detection. Majority of advertisers today deploy either in house or an outsourced 3rd party effort to keep a watch on fraud spends. This isn't good for networks or affiliates, as it makes their unethical game out in public.

3. Blockchain will give more darkness to the advertising fraud prevalent in the market, as it would become more decentralised and behave like a black box model.

With technology, data science and machine learning creating a bigger view for marketers, now CXO's are looking for tools that can enhance their view further to make much bigger and better decisions.



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