Xiaomi Uses Blockchain to Solve Programmatic Advertising’s Problems with Fraud and Transparency
Blockchain, the backbone tech of bitcoin, is considered an enabler of the 4th industrial revolution. Commerce & Financial institutions are working to develop blockchain applications to cut costs and improve efficiency. Marketing & Advertising sectors, however, haven’t done much to tap into the potential of this magical tech. Xiaomi aims to lead the efforts to provide blockchain solutions to intelligent marketing.
In an effort to do so, they will focus on solving three problems.
At Digital 360 China 2017 in Shanghai, Xiaomi says it is going to explore uses of blockchain in programmatic advertising. Specifically, they will work on three aspects.
Before, Xiaomi worked with an international company to build a Data-Management Platform (DMP) where user info would be accessible to both sides. The problem was that neither of the two sides was willing to share their users ’info first, worrying about possible privacy leaks. So they had to find a third party in the end. This has become a norm. DMP companies are developing their own digital signal processor and DSP companies are working on their own DMP, which has made things too complicated and costly.
Blockchain, however, could serve as a transparent and decentralized platform where companies can exchange data without a third party.
Xiaomi has developed a highly effective anti-fraud system with the help of big data and intelligent hardware.
They work on three aspects concerning device validation, user behavior and unusual behavior.
But our pain point is that we are unable to output this solution to an ecosystem outside of the Xiaomi community. With blockchain, we hope to find some way to popularize the solution.
When it comes to programmatic advertising, chances are IP address could be shifted as the result of time difference and the number is about 7%-8%.
Blockchain can go a long way to reduce inconsistency by connecting different parties involved in the buying and selling process.
Xiaomi adds that they wish to work with more industrial players to build a community where standards are made by all.