Blockchain Forecast To Create $122B In Business Value For Advertising

According to Media Post, Blockchain technology is forecast to create a business value of $2 trillion by 2030, according to data released Wednesday. The emerging technology also is poised to have a major impact on advertising and media.

“Business value” refers to the cost savings and efficiencies that companies could gain by incorporating blockchain into corporate business strategies, explains Don Tait, senior blockchain analyst at IHS Markit, a market, and analysis firm.

In 2017, the business value created by blockchain technology was estimated at about $12.5 million. Estimates put the “probable” forecasted value of blockchain for the advertising and media industry at $122 billion by 2030 — up from about $10 billion in 2025.

The assumptions behind the probable forecast require adoption within the next two years, as well as high adoption rates by advertisers, publishers, and users, Tait explains in an email to MediaPost.

Other factors that come into play require advertisers and media companies to “embrace” blockchain technology and begin using it as part of their business processes. Governments and regulatory bodies also must take positive steps toward blockchain technology, and large companies embrace blockchain and DLT technology and incorporate it into their business processes to help them gain efficiencies and reduce costs.

The report notes that blockchain in retail and e-commerce is forecast to be led by trade promotions, decentralized marketplaces, payments, smart contracts, supply chain and other applications. As the number of blockchain projects that are launched and become commercially deployed within this vertical sector increase, the business value is projected to reach $164 billion by 2030.

Tait believes that “blockchain and smart contracts can also provide the tools and framework to create a new generation of marketplaces where the supply and demand sides can engage in trusted trading transactions, according to various business rules, without the need for a central brokerage entity.”

What Advertisement clients want

According to PDN, Maren Levinson, founder of the agency Redeye, asked fellow reps and an art buyer why creating treatments has become such a common and important part of the bidding process in the last five years. “We now create treatments even if we are not asked for them,” Levinson says. She asserts that they are yet one more opportunity to show what you are about and the rigor of your creative and production package.

What are treatments exactly? Most of the time they are a 5-10 page PDF with:

  • Intro/Statement
  • Approach/Lighting Technique/Team (Production, Styling, Sets)
  • Casting
  • Reference/Mood Boards/Inspiration. Artists often include their own applicable work as well, marked as such.

Levinson, Carol LeFlufy of Eye Forward and other reps describe just how much time, thought—and also money, if a photographer chooses to hire a copywriter—can go into a treatment, with no guarantee of getting the job. “The good news is that once they have a well-designed template, artists can tweak their treatments for future jobs and customize them according to each bid—be it a motion bid, a stills bid, or a combo of both.”

PDN asked freelance art buyer Karen Meenaghan to concoct a fictitious commercial assignment, then asked two reps to prepare bids for the job. We listened in on their pre-estimate calls. Meenaghan’s brief called for various executions for a “hero” image for print use, including out-of-home advertising, where to buy liquor.

In addition, the brief called for 20 “inset” images for online use, including social media. Meenaghan told Rep2 that the estimate should increase to $120,000 to $130,000 because the estimates for several important line items were too low. “There’s a [bottom line] amount that’s to the bone, and there’s an amount that allows you some wiggle room for bumps in the road,” Meenaghan says.