Blockchain technology is a ‘natural fit’ for video advertising with potential to increase efficiencies, ensure a more trustworthy supply chain, and reduce costs and fraud for publishers and buyers, according to the Interactive Advertising Bureau (IAB).
A report from the online and mobile advertising trade association states that using blockchain for digital video and OTT inventory results in low queries per second in comparison to digital display advertising, while offering well-established standards and transactional processes. It outlines that there are fewer suppliers, of which are more willing to be transparent after living through programmatic, and there is more motivation to innovate in the space. Furthermore, there are lots of peer-to-peer content delivery networks.
Despite this, the paper also addresses the potential challenges of blockchain and digital video. It says that, due to the existing high demand for OTT inventory, sellers may be less open to experimenting with the process. There is also already a high margin buy, meaning inefficiency of multiple intermediaries is less obvious, and OTT’s complex set of endpoints present a problem.
The report also outlines the use cases of blockchain in digital advertising as a whole, and takes a look at how these concepts could be applied in video and OTT advertising.
“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 of industry initiatives at 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.”