Mindset, not tech, holding back blockchain in ad ecosystem, say experts

New Delhi: The first appearance of an advertisement on the internet was way back in 1994 when AT&T put up a banner of one of their campaigns on Hotwired.com. Since then, digital advertising has ballooned into a billion-dollar machine.  

According to GroupM’s (Now WPP Media) TYNY report, the overall advertising revenue in India is expected to reach Rs 1,64,137 crore in 2025, out of which digital has the largest chunk - Rs 99,137 crore. This figure for digital for 2024 was at Rs 88,912 crore. The sheer capital of digital advertising is evidence of its magnitude.  

With the proliferation of digital advertising, challenges pertaining to this space - ad frauds, bots, misleading metrics, and its ilk - have also spiked. 

For context, the estimated cost of digital ad fraud in 2024 was a staggering 100 billion dollars. According to Statista, this could balloon to 172 billion dollars by 2028 (for the US). 

Tejas Apte, Head of Media and Digital Marketing, Hindustan Unilever (HUL), highlighted the issue of ad frauds at an ad fest recently. “There are credible audit reports suggesting that as much as 25–30% of media investment is wasted, either because ads are served to bots or simply not seen by real people. 

That’s a substantial erosion of value, especially in a medium where marketers are increasingly shifting budgets,” he said. 

He added that in the case of influencer marketing, the problem is often worse. “There are instances where influencers are buying phone numbers or fake followers. In such cases, up to 75–80% of engagements may have no actual impact on business,” he noted.

One technology showed promise to eradicate all these challenges with ease - Blockchain. It claimed to provide transparency of data flow and immutability of data that would curb ad fraud to a minimum. 

But for a technology that promised to be the saviour of digital advertising, blockchain has had a surprisingly slow start. Blockchain technology has been around for years now. And rather than becoming a magic bullet for ad tech’s deepest problems, it remains, in most places, either a buzzword or a lab experiment. 

Bottlenecks

According to Rohit Sakunia, Founder, ArtE Mediatech, the widespread adoption of blockchain is limited due to a range of persistent bottlenecks. “Key technological hurdles include low scalability, slow transaction speeds, high energy consumption, and lack of standardisation and interoperability across networks,” Sakunia said. 

“Moreover, regulatory uncertainty further complicates adoption, with concerns around privacy and security loopholes. Additionally, a shortage of skilled professionals and general public awareness impedes integration into mainstream operations.” 

He also hinted at reservations in the industry. “Agencies also fear disruption to existing revenue models.” 

This was echoed by Vijay Shenoy, Deputy Vice President - Growth, LS Digital. “Blockchain’s potential is clear, but adoption faces hurdles; widespread adoption remains limited due to challenges such as high integration costs and scalability issues, and the industry is still building consensus on standards, which slows implementation.” 

For Mona Jain, Chief Growth Officer, Brandpulse Global, the problem is also about comprehension. “Blockchain concepts do not come easily to marketers. It is perceived to be a long, complex and risky process. Without success stories and proven cases, it feels too experimental, and there is hesitancy to take risks,” she said.

Promising yet unproven?

Shenoy pointed out some cases that showed tangible results when frauds were mitigated. Toyota's partnership with Lucidity led to a 21% improvement in campaign performance by reducing fraud. Similarly, AB InBev used blockchain to track ad campaigns, verify ad impressions by partnering with Kiip, Shenoy told BestMediaInfo.com.  

But in India, most applications still remain exploratory. As Sakunia shared, “We explored blockchain in select cases but did not scale further due to integration and scalability challenges. While the tech offers transparency and fraud control, real-world impact remains limited amid broader adoption hurdles.” 

Jain added that though she has heard of food conglomerates using blockchain for fraud prevention, she hasn’t seen examples of industry-wide adoption.

Darrell Fernandes, Senior Vice President - Client Partnerships, White Rivers Media, acknowledged that blockchain is starting to offer “concrete operational advantages.” He noted that brands are already using it to verify ads and track products but admitted that widespread implementation is tempered by organisational caution and scalability issues.

Misaligned mindsets

So if blockchain works in theory, why is it not translating into live campaigns? 

Sakunia believes the biggest hurdle now is a mindset. “Cost is still a factor, but the bigger hurdles are mindset and lack of industry consensus,” he said.

Shenoy agreed, stating, “Costs for infrastructure and integration are barriers, especially for smaller players. But the bigger hurdle is mindset: getting all stakeholders to align on the value of transparency and long-term trust over short-term returns.”

Jain offered a similar perspective. “Cost is less of a barrier now. The bigger issue is industry hesitation and a lack of alignment on how to move forward. Many companies are still uncertain about the value it brings and are not in a hurry to change existing systems,” she said. 

Fernandes chimed in, saying, “A preference for proven paths often overshadows innovation, and the absence of unified standards creates hesitation. Advancing blockchain adoption relies heavily on a collective shift towards embracing its practical advantages and building collaborative frameworks.” 

Blockchain vs regulations

Besides mindset, established as a real challenge for blockchain adoption, there are other challenges brewing.

Transparency, an attribute that promotes and propagates blockchain as a lucrative tool, is the very feature that is birthing legal and operational challenges in today’s privacy-sensitive environment. 

This was highlighted by Sanjay Soni, General Manager - Tech, Nazara Technologies. He noted that in sectors like gaming, especially those involving children, regulations like COPPA and GDPR induce operational challenges. 

In the case of blockchain technology, data privacy regulations can be a major roadblock, according to Soni. “Today’s privacy laws are becoming stricter - data sharing and storage are under scrutiny. 

This goes against blockchain’s core design, which emphasises transparency. Also, the industry has seen sudden regulatory changes in sectors like real money gaming, and it fears that similar overnight shifts in blockchain could disrupt operations.”

Risks, incentives, and trade-offs

Blockchain’s transparency, verifiability, and fraud resistance are attractive on paper. But the ecosystem remains cautious.

Shenoy listed the incentives: reduced ad fraud, increased brand safety, enhanced data transparency, and compliance with privacy laws. But the disincentives are real, too: high initial costs, lack of interoperability, and a steep learning curve.

Soni agreed, adding that discrepancies in ad reporting remain a persistent problem. “Nazara often sees mismatches between internal metrics and ad network reports. Blockchain could reduce this risk with tamper-proof ledgers. Efficiency would also improve, especially with newer ad networks,” he said. 

Jain noted that the complexity of onboarding to blockchain itself can deter adoption. “There is resistance to change, and taking on a more complex ecosystem could be a primary disincentive,” she said.

Fernandes observed that implementation costs and technical intricacies still create friction. "A cautious outlook, shaped by evolving regulations and limited scaled examples, defines the current state of blockchain in advertising," he said.

From pilot to platform

While current projects are mostly pilots, there is consensus on what it will take for blockchain to move from experimental to essential.

On the way forward, Sakunia contributed his two cents, saying, “For blockchain to become essential in Indian digital advertising, clear regulatory frameworks, unified industry standards, and proven ROI are crucial. 

These elements will empower agencies, marketers, and brands to adopt the technology with confidence, ensuring more effective, scalable, and efficient integration into existing advertising ecosystems.” 

Shenoy stressed the need for early success stories. “Blockchain’s mainstream adoption will need industry-wide standards, scalable tech, and demonstrable ROI. Government guidelines and innovation grants could also help accelerate adoption,” he said.

Jain added that tangible benefits such as cost efficiencies and fraud reduction are crucial. "Nothing works like success stories," she said.

Fernandes said, “For blockchain to become foundational in Indian digital advertising, key developments are needed. Efficient scalability, clear industry standards, and a supportive regulatory environment are paramount. Widespread understanding of its benefits, alongside.”

For Soni, the key is education and alignment. “It starts with mindset. People need to understand and utilise blockchain’s incentives. Unless it’s applied at scale, the benefits won’t be realised,” he said.

On whether the hype around cryptocurrency has affected blockchain's image, Soni, without mincing words, said, “Possibly, but I see that as temporary. Blockchain’s broader capabilities still hold strong, irrespective of crypto’s ups and downs.”

And yet, despite its promise and technical readiness, blockchain remains on the sidelines - tested, discussed, even admired, but rarely deployed at scale.

Until there is a collective shift, the technology will continue to be what it is today: a powerful tool waiting for its moment.