Advertising has become unimaginably complex over the years with so many intermediaries in the supply chain. But, says DAVID BUTT, Consulting Director at Acceleration, blockchain may restore trust in the ad supply chain.
“Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”
Many of us can identify with this well-known lament from John Wanamaker, a pioneer of marketing. He said it almost 100 years ago, but it’s still painfully applicable today.
Advertising has become unimaginably complex over the years. There are now so many intermediaries in the supply chain – including programmatic advertisers and ad tech companies – that fraud is increasingly difficult to keep at bay.
The problem is that there is very little visibility and transparency when it comes to reporting on things like when and where an ad was shown, how many views it received, and how many of those views were from actual human beings from the advertiser’s target audience.
Advertisers just can’t be sure how much of their spend is translating into actual results (clicks, subscribes, sales) and how much is going to fraudulent activity (bot traffic, click farms, domain spoofing, inflated prices and pixel stuffing).
Did you know:
Juniper Research expects wasted ad spend to reach $51 million per day this year – or $19 billion for the whole of 2018.
· Forrester calculated that $7.4 billion was wasted on display ads alone in 2016 and that 56% of all display ad dollars were lost to fraudulent or non-viewable inventory in 2016.
These numbers are frightening. It’s no wonder that more and more businesses are bringing their media function in-house so that they have greater control over their budgets.
Blockchain: Simple and transparent
What is blockchain?
A blockchain is essentially a digital ledger in which transactions made in bitcoin or another cryptocurrency are publicly, permanently and securely recorded. It is transparent by design and cannot be ‘owned’ by any single person. Rather, the ledger is distributed among all parties, including ad tech vendors, buyers and publishers, who have complete visibility into every transaction and must collectively approve any changes to the data.
Blockchain would enforce a level of accountability and transparency that is badly needed in the ad supply chain. As a result, advertisers would be able to see exactly who bought their ad, when and where it was displayed, and who saw it. And publishers would be able to regain control of their ad space, boosting revenue.
It’s still early days
The adoption of blockchain in the ad industry is still in its infancy because as many people are wary of adopting something so new. There are a number of start-ups however, that are experimenting with the blockchain and seeing promising results. Once they can prove the value of the blockchain to advertisers and publishers, and once we have solid standards and protocols in place, I believe we will see bigger vendors start to show an interest.
With blockchain, we will be able to re-establish trust, visibility and transparency into the ad ecosystem. I believe that this will lead to the next evolution in advertising: where advertisers again feel comfortable handing over control of their budgets to trusted consultants and agencies.
Getting future ready
The underlying technology of blockchain has vast potential in many aspects of business, not only to combat ad fraud. Blockchain can support new trust models around regulatory compliance, data integrity, device integrity and distributed operations to name but a few.
It’s important to understand that blockchain, like any technology, requires an ecosystem to support it. This includes technical solutions, operating models and, most importantly, people.
The best way to prepare is to ensure you understand blockchain. Then you can begin to identify relevant use cases, map-governing principles, and test use cases against the most appropriate technology.
If you want to future-proof your business, now is the time to start understanding blockchain and proving the case for its use.
Cisco gives pre-owned tech a Refresh
In a market of constant upgrades, Cisco Refresh aims to keep quality product away from landfills, writes BRYAN TURNER.
When one gets a new smartphone upgrade, the old device may be used as a backup or can be used by someone else. In business environments, equipment upgrades may not be conducive to keeping old equipment around, which may send older, working equipment to landfills.
This is where Cisco’s Refresh initiative comes in. At Cisco Connect in Sun City this week, Ehrika Gladden, VP and general manager of Cisco Refresh, lifted the lid on a little-known aspect of the company’s strategy.
“Refresh is Cisco’s global pre-owned equipment business unit,” said Gladden. “It is certified to meet the quality and engineering standards of Cisco. It is licensed for software and it’s also inclusive of a services warranty.
“Our responsibility in 80 countries around the world is tied to both the recovery of assets and the ability to leverage those assets at a lower price point. This ensures our sustainability and proper usage of the Earth’s resources while providing access to small and medium businesses. The products are typically in the range of 20-40% cheaper. The products represent the entire portfolio for Cisco in some part, the majority of that product set is 2+ years in terms of generation.”
Cisco’s Circular Economy initiative ensures a sustainable loop through businesses willing to pay a premium for the latest, cutting-edge solutions, while Cisco markets older, working equipment for resale to those who don’t require the latest solutions. This ensures far less new components need to be used in a product range.
“We are leveraging the model of remanufacturing, refurbishing, recycling, and reusing,” said Gladden. “Depending on the product set, there is a certain set of product yield that we expect. They vary from product to product, but we do have a percentage that doesn’t make it through.
“Those are always reused, meaning we will look at those products and decide to use them completely differently, leveraging the components, remanufacturing back into the overall build process. If that can’t be done, we will go into a recycle process where we melt those products down to reuse them.”
Repairing and refurbishing older products isn’t just that. Cisco is creating repair centres that are owned by third-parties to uplift local ownership.
“The repair centres, as a global manufacturer, is Cisco’s entree into local ownership,” said Gladden. “I want to be precise about what I mean by local ownership. It’s critical for us to have a localised presence, but doing that through ownership. When you look at inclusive economies, those that are participative, to be sustainable – not in the product set, but generationally.
“The ability as a global manufacturer through a local ownership model isto create a repair centre where a product can be returned, screened, tested, and repaired, leveraging the talent that the Networking Academy is creating.”
Cisco is working closely with local governments to understand where it operates and how to leverage the skills in the market.
Gladden said: “We are also super excited about the National Development Plan and African Union statements which with we align: eradication of poverty, job creation, ownership, healthcare, education, it all fits in the model. So we were very excited to have the opportunity to come to Africa first to announce this. Over the next twelve months, we want to establish our first repair centres, and in the next 3 to 5 years, build that vision into a reality.”
Why Data Privacy has become a Pipe Dream
If you’re active on WhatsApp, Facebook or any other social platform, you’re not as safe as you thought, writes
AARON THORNTON, MD of Dial a Nerd
As you begin to read this, let’s perform a quick experiment! How many active conversations are you engaged in – right now – on WhatsApp? When was the last time you shared a picture or video on Instagram? Is Facebook currently open and active on one of your devices? And how many internet- connected devices are you using at this moment? Chances are, you have multiple devices running multiple applications most of the time. So what’s the problem, you ask? Since when did checking in with a high school buddy in Australia via Facebook become a dangerous act?
In reply, we say, read on if you can stomach it!
Nation-State Hacking & You
It might seem like a laughably long shot to say that you are a key player in the increasingly sinister and sophisticated world of nation-state hacking. Well, you are. Given that individuals, businesses and governments are now constantly connected, round the clock, consumers and businesses have become fair game in cyber espionage. And as we create and share more and more data, both the value and accessibility of that data increases. According to a report by McAfee, IP theft now accounts for more than 25% of the estimated $600 billion cost of cybercrime to the world economy.
With data having become the ‘new gold’, nation states are naturally pouring investment and key resources into building advanced cyber warfare tools. Indeed, entire divisions of armed forces as well as the upper echelons of corporate leadership are devising ways to harness data to gain economic, political and social power. At the highest level, tools and platforms are being developed with the specific aim of perpetrating cyber espionage and data theft. No surprise then, that the consumer and business environments are rife with increasingly advanced malware, ransomware and many other malicious hacking tools and methods.
Still not convinced? Yes, we can smell the scepticism from here! So let’s take a moment to see how this has already played out, beneath our noses.
Remember the Facebook–Cambridge Analytica data scandal of early 2018? For many, this was a watershed moment in the emerging war for consumer data – and the ensuing tensions between privacy, power and profit. Need a refresh? Well, in 2018, Facebook exposed data on up to 87 million Facebook users to a researcher who worked at Cambridge Analytica, which worked for the Trump campaign. In essence, the data was harvested without user consent and used for political purposes.
Another chilling but less direct example can be found in Russia’s meddling in the 2016 U.S. elections. According to Politico, Russia launched a massive social media campaign to ‘sow discord’ leading up to the elections. The website reported that as early as 2014, an infamous Russian “troll farm” known as the Internet Research Agency – a company linked to Russian president Putin – developed a strategy using fraudulent bank accounts and other fake identity documents to “spread distrust towards the candidates and the political system in general.”
When referring to the Russian hacks and their impact on election results, one U.S. Representative sagely noted: “They didn’t just steal data; they weaponized it.”
Ignorance is not bliss
Okay, so data is being ‘weaponized’, and ordinary people and businesses are being caught in the crosshairs of cyber warfare. A little bit frightening, but the good news is that savvy individuals like you can take steps to protect personal data and actively combat the creeping influence of juggernauts such as Facebook and Google.
Now that we’ve left you sufficiently spooked, you can get back to those demanding WhatsApp/Facebook/Instagram notifications (same company, by the way)…albeit, we hope, with a slightly altered [cyber] worldview!