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AdChain: Decentralized Header Bidding

Behkish Nassirzadeh, Albert Heinle, Stefanos Leonardos, Anwar Hasan, Vijay Ganesh

TL;DR

AdChain is a decentralized, distributed, and verifiable solution that detects and minimizes online advertisement impression discrepancies and establishes trust by employing multiple independent agents to receive and record log-level data, along with a consensus protocol to validate each ad data.

Abstract

Due to the involvement of multiple intermediaries without trusted parties, lack of proper regulations, and a complicated supply chain, ad impression discrepancy affects online advertising. This issue causes up to $82 billion annual revenue loss for honest parties. The loss can be significantly reduced with a precise and trusted decentralized mechanism. This paper presents AdChain, a decentralized, distributed, and verifiable solution that detects and minimizes online advertisement impression discrepancies. AdChain establishes trust by employing multiple independent agents to receive and record log-level data, along with a consensus protocol to validate each ad data. AdChain is scalable, efficient, and compatible with the current infrastructure. Our experimental evaluation, using over half a million ad data points, identifies system parameters that achieve 98% accuracy, reducing the ad discrepancy rate from 20% to 2%. Our cost analysis shows that active nodes on AdChain can generate profits comparable to miners on major blockchain networks like Bitcoin.

AdChain: Decentralized Header Bidding

TL;DR

AdChain is a decentralized, distributed, and verifiable solution that detects and minimizes online advertisement impression discrepancies and establishes trust by employing multiple independent agents to receive and record log-level data, along with a consensus protocol to validate each ad data.

Abstract

Due to the involvement of multiple intermediaries without trusted parties, lack of proper regulations, and a complicated supply chain, ad impression discrepancy affects online advertising. This issue causes up to $82 billion annual revenue loss for honest parties. The loss can be significantly reduced with a precise and trusted decentralized mechanism. This paper presents AdChain, a decentralized, distributed, and verifiable solution that detects and minimizes online advertisement impression discrepancies. AdChain establishes trust by employing multiple independent agents to receive and record log-level data, along with a consensus protocol to validate each ad data. AdChain is scalable, efficient, and compatible with the current infrastructure. Our experimental evaluation, using over half a million ad data points, identifies system parameters that achieve 98% accuracy, reducing the ad discrepancy rate from 20% to 2%. Our cost analysis shows that active nodes on AdChain can generate profits comparable to miners on major blockchain networks like Bitcoin.

Paper Structure

This paper contains 22 sections, 3 equations, 6 figures, 2 tables.

Table of Contents

  1. Introduction
  2. Problem Statement
  3. Brief Overview of the Solution
  4. Related Work
  5. Preliminaries
  6. Header Bidding
  7. Prebid
  8. Our Survey of Major SSPs and DSPs
  9. Description of the Design of AdChain
  10. Setup and Terminology
  11. System Description
  12. Reward and Penalty
  13. Log-level Data
  14. Lazy Voting Prevention and Nash Equilibrium Incentive
  15. Limitations of AdChain
  16. ...and 7 more sections

Figures (6)

  • Figure 1: A Simple View of Header Bidding. CPM is Cost Per Mille
  • Figure 2: An Overview of AdChain
  • Figure 3: Pseudocode for the Host and Verifiers
  • Figure 4: The effect of rate of honesty and the number of verifiers on the total number of propositions created (on the left) and propositions with outcome True (on the right).
  • Figure 5: The effect of the total number of nodes on performance when 15 verifiers are chosen per proposition (left chart) and 19 verifiers are chosen (right chart).
  • ...and 1 more figures