2018 Interactive Advertising Bureauiab/blockchain-for-video-advertising
Table of Contents
Executive Summary – Blockchain for Video Advertising: A Market Snapshot of Publisher
and Buyer Use Cases ..... 3
Section One:Introduction ......... 3
What is Blockchain ... 4
How Does Blockchain Work . 4
Key terms ......... 5
Section Two:Blockchain for Business6
The Benefits of Blockchain .... 7
Section Three:Blockchain Use Cases in Advertising8
Digital Advertising ....... 8
Ads.txt Plus
.. 8
XCHNG, brought to you by Kochava
......... 9
NYIAX
.......... 10
Section Four:Use Case Snapshot – Blockchain and Video Advertising (Digital, OTT, and
Unified Video) .... 11
MadHive Proof of Concept Interface: .......... 13
Unified Video (Digital + Linear) ........ 13
Comcast
...... 13
Section Five:Looking Ahead .. 14
The Next Two Years .. 14
2020 and Beyond ....... 16
Section Six: Conclusion ........... 17
Appendix18
2018 Interactive Advertising Bureauiab/blockchain-for-video-advertising
Executive Summary – Blockchain for Video Advertising: A Market Snapshot of Publisher and
Buyer Use Cases
Blockchain technology has ramifications far beyond the financial sector.
As an immutable, distributed, transparent ledger, blockchain is a natural fit for the digital
advertising supply chain.
Potential benefits of blockchain for advertising include increased efficiency, transparency, cost
reduction, and the elimination of fraud.
2018 will be the year that a wide range of blockchain applications will be rolled out across digital
and cross-screen video advertising including linear television, with 2019 likely being the year that
these technologies begin to see broader adoption - provided certain risks can be mitigated.
Long-form, premium video and TV advertising, with their high CPMs and low volume, is a
compelling use case for blockchain. In the coming year, we expect to see some significant beta
tests from both traditional media and new entrants.
Section One:Introduction
When the history of 2017 is written, many themes will jump to the fore, but in the realm of technology
none will prove to be as important as blockchain.This was the year that blockchain, and bitcoin–the first,
and arguably most well-known application of blockchain– entered the mainstream. Financial mavens on
CNBC squawked almost daily about bitcoin, the price of which, at one point, topped $10,000; the first
futures market for digital currency was launched, and venture funding for blockchain startups reached
$3.7 Billion.Perhaps the most tell-tale sign of investment mania was ironically demonstrated by
the Long Island Iced Tea company, which changed its name to the Long Blockchain Corporation,
announced it was going to start mining bitcoin, and saw its shares more than quadruple in a single day.
Blockchain, best known in the context of financial markets and cryptocurrency – traces its origins back to
a 2008 paper called “Bitcoin: A Peer-to-Peer Electronic Cash System”1, attributed to fabled Bitcoin
inventor Satoshi Nakamoto. While that paper presciently addressed issues of trust in peer-to-peer
networks and digital currency, since then new transactional use cases are emerging for blockchain in
many industries including media and advertising.Media companies are exploring blockchain to help
assist with campaign reconciliation, whitelisting authorized sellers of inventory, validating advertising
assets, and as a method to make the buying and selling of media more transparent.
This report provides a high-level overview of blockchain including key terminology and an overview of
how it works. It will address some of the ways the technology is being utilized to bring greater efficiency
into the media and advertising supply chain. The report has a specific focus on the use of blockchain with
OTT, which is particularly suited to reap the benefits of the technology in many ways. We hope this
serves as a useful snapshot of what the blockchain landscape looks like in the digital advertising space
and how it is evolving. We look forward to providing future reports as the technology matures.
1 You can access the Satoshi Nakamoto “Bitcoin: A Peer-to-Peer Electronic Cash System” here:
https://bitcoin/bitcoin.pdf
2018 Interactive Advertising Bureauiab/blockchain-for-video-advertising
What is Blockchain
Blockchain is a ledger, or a database, that is stored in a distributed peer-to-peer network without any
central point of control. While special permissions are required to write entries to the blockchain, in most
cases, the ledger itself is publicly visible. Once an entry is made to the blockchain, it is pushed out to the
network and is immutable, meaning that it can never be changed.
It is important to recognize that blockchain is a generic term. Many blockchains exist, and many more are
in development. The first, most famous, and most widely used is the Bitcoin blockchain which keeps an
accounting of all transactions that utilize bitcoin. The blockchain protocol underlying bitcoin is in essence
a giant spreadsheet whose purpose is to store and exchange value in the form of the bitcoin
cryptocurrency.
Another blockchain, Ethereum, was designed to handle a wider range of applications.Ethereum is the
starting point for many of the applications currently in development for use in the digital advertising supply
chain.Ethereum stores value in its own currency which is called ether.Ethereum has a robust scripting
language and API support. Another important feature of Ethereum is its ability to create and deploy self-
executing agreements between multiple parties. These are known as smart contracts.
How Does Blockchain Work
When new, complex technologies like blockchain begin to enter the vernacular, it’s tempting to try and
compare them with something more familiar (“shared database”, “distributed spreadsheet”).While these
analogies hold true to some extent, they don’t truly capture the essence of the innovation.
Blockchain provides a method for two parties to exchange value securely on a peer-to-peer network.
Blockchain creates a record of the transaction on the network that is indelible and transparent to all
parties. What’s truly unique about blockchain is that the transaction and the value exchange happen
directly between the parties
without intervention from any intermediaries such as a bank or credit card
company.
How Blockchain Works
The network itself validates the transaction through what is called a consensus mechanism. The most
well-known consensus mechanism is used for the Bitcoin blockchain and is known as “proof of work.” But
other consensus mechanisms are possible.
Cryptography—the technology and math used to hide secret messages—plays an important role to prove
identity and ownership in the blockchain.Every person or entity who transacts on a blockchain must own。