Abstract

This paper addresses the disruptive potential of the Distributed Ledger Technology (DLT) that can serve to reduce endemic lack of transparency and trust in the digital media and influencer marketing ecosystems. Since online advertising losses through fraud are estimated to be over $45billion by 2026, and almost two out of every three brands are impacted by fraud, the decentralised, immutable and cryptographically secure nature of blockchain provides a solid solution to structural problems like ad fraud, cloudy payment channels and the inability to determine a true interaction. Two key areas of application of DLT, which are the subject of this paper, are, first, auditable and provable systems to track advertising expenditure and performance of the campaign to guarantee appropriate budget allocation and measure. Second, the creation of systems (Decentralised Identity, DID) and features (Verifiable Credentials, VCs) to authenticate the origin of influencers, verify metrics in the audience, and create content provenance, successfully overcoming the threat of bot-driven engagement and synthetic data. The study analyse the technical specifications of implementing the solutions, such as smart contract implementation and approaches to overcoming the technical scaling limitations and regulatory contradictions, such as the right to erasure of the GDPR. The report's conclusion is that the adoption of DLT can create a more transparent, efficient, and trustful digital campaign ecosystem and ensure that marketers are much more accountable and the return on investment.

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