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Startups see blockchain opportunities in ad industry

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Only one percent of companies around the world are starting to research the application of blockchain in online advertising, but the potential is great, including in Vietnam.

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Nguyen Minh Thao, CEO of Umbala

 

According to Zenith, in 2018, the global ad market had revenue of $579 billion, of which online ads brought $269 billion. The revenue from online ads is expected to reach $350-400 billion by 2022.

The potential of the online ad industry is great, but according to Bigbom’s CEO Nguyen Van Vung, there are four problems that the world online ad industry is facing.

First, the rampant invalid clicks. The situation is so serious that many companies have developed a tool to discover invalid clicks and report them to Google.

Second, the statistical frauds. No one can say for sure if Facebook and Google’s reports are 100 percent exact, because no one can penetrate into their systems for examination.

Third, the money repudiation. The repudiation ratio in Vietnam is very high. Fourth, the incorrect implementation of contracts. Each side implements in its own way.

WFA (the World Federation of Advertisers), which includes big brands such as McDonald’s, Visa and Unilever, predicted that the online ad industry would lose $50 billion a year from now to 2025 because of fraud. 

Facebook users do not have the right to use the content created by them. Only the owners of Facebook, Instagram and Youtube have the proprietorship.

“Social networks use your data to build their ad systems and make money on the data. Vietnam’s big content firms such as Orion and Cat Tien Sa produce good content and join YouTube, attracting users. But can they do business on the network of users? The answer is no,” said Nguyen Minh Thao, CEO of Umbala.

All these problems would be settled by blockchain. 

The number of companies using blockchain in advertisement and marketing is modest, just one percent. Vung from Bigbom, which is developing technology apps for advertisement and marketing industry on the basis of blockchain, said that opportunities are available for all.

To date, there is no blockchain platform that can settle the problems in the ad industry. Blockchain is growing but not developing in depth. However, Vung said a specific blockchain app for the ad industry will be available in three to five years.

Of four problems the ad industry is facing, Bigbom decided to deal with the third – the repudiation and late payment. It has built up Bigbom Eco, an ecosystem for platform, product and services related to digital advertisements.  Advertisers, ad platforms, ad agencies or publishers could join the system.

 

Source: VietNamNet

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