NYIAX, a firm that supports software to facilitate the sale and trade of digital ad space as guaranteed contracts through blockchain technology, this year will bring the technology from digital media into out-of-home (OOH), over-the-top (OTT) and linear TV ad inventory.
In the past year the company has been working with a large unnamed holding company, possibly GroupM, which works with NYIAX on an Interactive Advertising Bureau (IAB) working group, to build out a strategy for mid-tier agencies.
For the first time, NYIAX in 2019 will deploy the technology with a large unnamed independent agency and holding company.
NYIAX got its wings after forming a partnership with NASDAQ in 2015 to power more than 115 platforms within the capital markets. It now supports media and advertising, proving that the technology has the capability to work in other areas, according to Richard Bush, president of NYIAX.
Bush and NYIAX cofounder Carolina Abenante said that early on, NYIAX co-created a patent with Nasdaq in 2017 and they expect the USPTO will release a full patent number in June 2019. The patent was filed globally.
During the past few years, the industry has seen a surge into programmatic automation for real-time bidding, which created challenges. The idea is to connect agencies with the buyer without a middleman. This connects agencies with buyers without the middleman, does not serve the advertisement to the viewer, but it does push the contracts into the delivery systems, among other things.
NYIAX acts as an open forward trading market for advertising that allows the industry to automate the process of requests for proposals to negotiate and then buy ad space. The software makes the publisher’s inventory visible, so ad agencies and advertisers can directly buy the inventory from the publisher.
The software is not a blockchain, but rather software that enables the integration of most open-source blockchain technologies such as Ethereum and Hyperledger. The company’s developers also wrote pieces of the primer for the IAB on smart contracts.
This seems something of a departure from where NYIAX started, as a platform to trade futures in online ads. As I recall, it was not fully defined at the time.
Hi Henry - Not a departure at all. Our platform is built to trade any complex asset class, not just online ads. In addition to trading other media types such as DOOH and OTT, our technology can easily be adapted for other industries, such as (hypothetically, of course) shipping and logistics or real estate, for example.
We'd be happy to go into more detail with you outside of the comments at your convenience.