How blockchain could help to automate advertising contracts?

Problem: manual governance of contracts

  1. Manual reconciliation of contracts. There is a huge flow of contracts, orders, invoices among media publishers, advertisers and media buying agencies. Not everything in this flow is completely digitalized, for example, some media publishers still manually govern the contracts (check payments, assign penalties or credit lines to advertisers), manually reconcile volume rebates with media buying agencies and individual advertisers.
  2. Manual governance to manage suspicions. There are at least two sources for suspicion — rebates and performance. Advertisers don’t always know and/or get benefits from rebates which media buying agencies receive from media publishers. And there is a suspicion regarding how and whether media publishers fulfill advertisement contracts, e.g. whether there are real clicks or how much people have viewed advertisement? To check and manage suspicious advertisers conducts their own audits or relays on third parties.

Solution: smart contract governance

  1. Algorithms (or smart contracts) for governance of contracts. Media publishers, media agencies, advertisers could established privately distributed ledgers (blockchain). It would serve as an immutable database both for connecting their own business IT systems and for storing algorithms (or smart contracts) that govern contract settlements. Smart contracts could be used (1) to automate invoicing and schedule payments, or (2) to automate governance of contracts like stopping advertising if advertisers exceed credit line or they haven’t paid previous bills on time or (3) to automate reconciliation of rebates — to calculate and distribute rebates automatically among all advertisers and media agencies.
  2. Supervision by artificial intelligence (AI). Imagine that AI oversees any workflow in blockchain and notifies if there is a suspicion of “click fraud” or boosted performance statistics from media publishers, etc. And only these cases would have been investigated by employees.

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Serial crypto startup builder & public speaker

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sandris murins

sandris murins

Serial crypto startup builder & public speaker

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