Blog: How Handles Bots In Ad Tech

Blog: How Handles Bots In Ad Tech

Blog: How Handles Bots In Ad Tech


The digital advertising industry is expected to reach $223.7 billion in 2017, and well over $300 billion by 2020. Yet it continues to face fraudulent bots in online advertising that game the system. These bots artificially inflate clicks, page views and conversions that result in marketers paying for non-existent impressions.

So how big is the problem, and can blockchain significantly reduce fraud in online ads? The World Federation of Advertisers says that online fraud eats up to 30 percent of total ad spend and could cost the industry $50 billion annually by 2025. is a knowledge-sharing platform that lets advertisers identify and reward domain experts with tokens, including experts in advertising and marketing. Advertisers can leverage top talent to identify ad bots and safeguard systems from future attacks. In exchange for improving the system, domain experts can incentives such as tokens that they can save or spend in the Knowledge Marketplace. The team has established relationships with merchants that will provide a catalog of 30,000+ products.

The platform uses machine learning and device information such as IP addresses, algorithmic analysis of gameplay interactions and other techniques that capture various signals about users, interactions and client messaging. More importantly, the platform will implement security protocols for combatting bots that ensure ad dollars are spent wisely.

“The underlying blockchain … takes into account a set of ever increasingly complex algorithms that are used to combat fraud by bots and farms, and these transactions are not rewarded for their fraudulent meta-mining activity,” according to the founders. “The ads.txt standard from the IAB [International Advertising Bureau] will also be used as a way of whitelisting accredited publishers, as part of this algorithm.”

According to the founders, advertisers can shape the underlying blockchain to prevent fraudulent bots and farms. There are various controls that can prevent fraud. For example, ads with complex messages that are intended for expert audiences may be shown to beginners. Or a bot may artificially inflate impressions during an expected down-time when a small number of users use the platform. These cases could trigger a red flag.

There are other ways for advertisers to interact with the platform. They’ll be able to verify that a user meets a threshold score to make sure they’re a real person, and they can identify those who make in-app purchases, which require a real credit card. Two-factor authentication will also be used. Advertisers who have registered users that have used credit cards to make purchases will be able to present that data to improve the network.

Detecting fraud is a priority because token rewards are involved. Like with most IT systems, there’s a need for assurance that interactions are authentic, and that assurance can lead to more advertisers joining the platform. As mentioned earlier, nearly one-third of ad spend can be wasted due to inefficiency or ad fraud. Marketers and advertisers want to spend money on people, not bots.

The platform token pre-sale begins in January.

Authors: Marvin Dumont, Patrick Stafford and the Team

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