Austria is turning its attention to the blockchain to run a digital ad campaign designed to reduce fraud and cut costs to advertisers.
Blockchain Pilot Test
The Austrian National Tourist Office (ANTO) is taking part in a pilot with Adbank, an Ethereum-based ad platform. It’s powered by its ADB token, which is designed to cut ad fraud, reports Business Cloud.
According to the platform, ad fraud will cost advertisers $51 million a day this year. Adbank is working at cutting fees by ad intermediaries, which it claims marks ads up by over 70 percent.
Michael Scheuch, head of brand management for ANTO, said:
We are actively positioning Austria to be one of the premier global destinations to visit all year round. In the pilot with Adbank, one of the more interesting blockchain applications in the advertising sector, we hope to overcome on a global scale various difficulties within classic online advertising.
Speaking of the pilot, Kelsey Cole, co-founder of Adbank and CSO, said “markups and ad fraud cost the tourism industry billions per year,” adding:
ANTO will be the first of many travel-focused partners to mark the beginning of an era where the advertiser has the control they deserve using Adbank’s technology.
Notably, studies show that for every ad seen digital ad networks take 48 cents, on average, out of each dollar spent. Not only that, but that’s before fraud is entered into the equation. Additionally, in 2016 global governments spent $413 billion on promoting their countries, according to the World Travel and Tourism Council.
Yet, as Cole adds, there is “little to no accountability with the current advertising ecosystem.”
Blockchain Use Cases
This is just one of the areas where the technology is being applied to.
Due to its transparency and immutability, various industries are realizing the potential the blockchain can have. Other sectors include food traceability, aviation, humanitarian, and health. These are just a few instances where the technology is being applied.
Yet, the fact that it demonstrates the belief people have in it. However, while it does have its uses, not everyone is of the same opinion.
Karl Hoods said that it’s “not going to solve everything” on its own in the charity sector. Speaking in April, the former CIO at Save the Children said:
Blockchain isn’t the solution on its own. It’s going to come down to policy and lots of other factors.
Do you think the blockchain will help Austria with ad costs? Let us know in the comments below.
Images courtesy of Shutterstock.