GroupM: ‘blockchain is slow, clunky and expensive’

According to a new report by GroupM, the investment wing of WPP, there is little evidence to suggest that blockchain technology, despite becoming a favourite buzzword in adland, has yet been used effectively by the sector.

The “distributed ledger” technology that powers cryptocurrencies like Bitcoin had been hyped as the solution to the increase in demand from advertisers for efficient, accountable digital media metrics. Late 2017 even saw TMG launch a new global blockchain-based media agency, Truth, which promises “100% transparency” with clients thanks to the technology.

However, after surveying WPP’s vast network, GroupM’s ‘State of Digital’ report brands blockchain “slow, clunky and expensive”. [advert position=”left”]

“It is peddled by self-interested suppliers and advisers, and in its present state could not keep up with the demands of real-time media,” states Adam Smith, GroupM’s futures director and author of the report.

“Its Achilles’ heel is having to keep every participating computer updated with everything. This might be solved by outsourcing – but this reintroduces the problem of the independent third party. The distributed ledger might also create problems with client confidentiality”.

On the other hand, respondents to the survey noted significant development and scaled deployments with another favourite buzzword in adland; Artificial Intelligence (AI).

“Arguably, today’s most advanced marketing tools are the advanced algorithms helping brands analyse which creative or media placement is performing the best, at scale and speed,” states Smith.

GroupM’s report, published today, also lays down expectations to see AI contribute in the future towards the fight against fraud “that evades conventional rules-based solutions”, and praises the emergence of practical AI such as chatbots, image recognition and recommendation engines.