Can blockchain put advertisers in control of their ad spend?

New Delhi: For years, the world of media buying has been plagued by whispers of hidden markups and a general lack of transparency.

Founded by Naveen Paul, ad agency Nine Red believes that blockchain adoption in media buying can resolve persistent challenges and restore trust between advertisers and publishers.

"Blockchain ensures that every transaction is transparently recorded, eliminating discrepancies and enhancing accountability in the system," stated Nine Red in a LinkedIn post shared by BestMediaInfo.com for its story, ‘Principal-based trading thrives amid CCI raids, brands raise concerns’.

Nine Red further outlined the benefits of blockchain in media buying:

Transparency in transactions

Blockchain creates an immutable ledger where ad placements, impressions, and payments are recorded and verified. This gives advertisers and publishers full visibility into media transactions, reducing disputes and enhancing trust.

Fraud prevention

Digital advertising suffers from widespread ad fraud, including fake clicks and bot-driven impressions. Blockchain verifies traffic authenticity, ensuring that only legitimate interactions are recorded. "With smart contracts, advertisers can ensure payments are only triggered when actual user engagement occurs," added Nine Red.

Efficient payments and contract execution

Blockchain enables the use of smart contracts, which automate payment releases once predefined conditions, such as verified impressions or conversions, are met. This reduces delays and guarantees fair compensation for publishers.

Enhanced data security and privacy 

As data privacy regulations tighten, blockchain’s decentralised structure ensures that user data is securely stored and cannot be altered or accessed without authorisation. This allows advertisers to leverage audience insights while maintaining compliance with privacy norms.

Supply chain transparency

The digital advertising supply chain involves multiple intermediaries, often leading to inefficiencies and hidden costs. Blockchain enables real-time tracking of all entities involved, ensuring fair pricing and eliminating unnecessary middlemen.

Decentralised ad exchanges

Traditional ad exchanges rely on centralised platforms that control bidding and pricing. Blockchain-powered exchanges operate without intermediaries, fostering direct transactions between advertisers and publishers. "By removing unnecessary layers, advertisers can achieve cost efficiency and greater control over their budgets," Nine Red emphasised.

Brands and media agencies integrating this technology will benefit from increased transparency, fraud prevention, and operational efficiency.

"Blockchain has the potential to redefine media buying by making it more accountable and trustworthy for all stakeholders," Nine Red concluded.