Unilever used IBM blockchain system and reduced advertising costs by eliminating intermediaries

In the middle of August, 2019 IBM published results of the first year of the work a blockchain system in Unilever. Thanks to this technology the producer of foodstuff and household chemicals could cut down expenses on online advertizing thanks to elimination of intermediaries.

In an interview to the VentureBeat edition the marketing director of IBM Michelle Peluso noted that savings from use a solution blockchain make 2-3%. When the companies spend huge amounts of money for advertizing, economy is essential.

Unilever implemented a blockchain system of IBM and cut down advertizing expenses due to elimination of intermediaries

Advertizing on the Internet is considered very effective owing to the personalisation. It is expected that in 2019 the amount of this segment will for the first time exceed a half on all the advertizing market. However the way to this growth was followed by vital issues.

So, according to Michele Peluso if on the dawn of the 20-21st centuries about 85 cents from each dollar spent by the advertiser arrived to the one who placed advertizing, then by 2019 this indicator fell up to 40%. It happens because of a large number of intermediaries, such as advertizing agencies and exchanges. The situation was worsened by the growing fraud (for example, the wound clicks and transitions) in the advertizing sphere which causes to brands a considerable loss.

The Unilever company taking the fourth place in the world on advertizing expenses decided to take measures and to make the advertizing market is more transparent. For this purpose it used a blockchain platform which is going to implement full-scale operation in October, 2019 after a year of testing.

In addition to Unilever, the project supported some other the large companies, including Kellogg, Pfizer, Kimberly-Clark and AT&T. The number of partners will grow, are sure of IBM.

Michel Peluso says that the blockchain allows to increase the speed of reconciliation and drawing of accounts and also to reduce the number of intermediaries and to considerably reduce fraud in the course of interaction of the advertiser with the platform for his declarations.^[1]

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