It has become essential for businesses to have an online presence in order expand beyond its local territory. However, mere online presence is not enough for most of the businesses who seek to target the audience worldwide. An appropriate online marketing strategy is necessary as well. The online advertising gives convenience to the advertisers to reach potential customers. Also, it works as the primary or in some case the only source of revenue for many publishers or hosts of websites.
However, it can be said that the online advertising structure is not working with its real potential and it is not providing the adequate benefits to the advertisers and publishers, who play the lead roles in the industry. This inefficiency is a cause of multiple disadvantages and shortcomings of the current market structure.
The advertising networks slice out over 40% share ($227.8 billion) of the total online advertising spending ($534.79 billion). The two most popular advertising networks, Google and Facebook dominate the market with over 45% combined share of the total digital ad revenue of the ad networks. This reduces the revenue of publishers drastically and leads to an increase in the cost to the advertisers.
Along with the high commission, the ad networks place some pricing restrictions. Due to the presence of a middleman, there is no direct communication between a publisher and an advertiser, and hence they cannot negotiate with each other for the desired price.
Some of the ad networks give the option to select the type or category of the advertisement that a publisher wants to be displayed on his/her website. However, one cannot pick the advertiser he/she desires. An agent is solely responsible for the selection of an appropriate advertiser and advertising for the publisher’s ad space. Often, there is no payment flexibility to the advertiser. Also, there is a minimum withdrawal limit for the publishers, due to which, he/she cannot withdraw the funds instantly.
Many times, ads are displayed in places where they are not much effective or are irrelevant. Moreover, some advertisements don’t meet the standards of the publishers’ webpage/website. Also, many times ads are displayed alongside inappropriate content, or inappropriate ads are displayed on the publisher’s property. This leads to poor conversion rates as well as reduced brand value.
Most of the ad networks have a small, prescribed list of payment options for the advertisers. The advertisers are compelled to pay in certain fiat currencies like dollars and through bank accounts or debit/credit cards. This leads to lack of flexibility in the hands of the advertisers.
All of these put high-quality creators at a financial disadvantage, and favours publishers of cheap media: fake news, propaganda and conspiracy theories, quickly re-written stories with sensationalistic spin, shady offshore content farms, algorithmically generated content, and pirated videos. Hence, there is a need to change the way market works currently and to replace the advertising networks.
AdSigma’s blockchain based platform
Addressing the above-mentioned disadvantages of the traditional advertising model, AdSigma is building a blockchain based platform to connect the publishers and advertisers. Using the smart contract and other features of the blockchain, AdSigma will directly connect advertisers to the publishers. As a result, not only the above disadvantages shall be addressed, but also they will be benefited with many advantages of the technology.
The advantages are as follows:
- The publishers will be at liberty of deciding his/her own pricing policy.
- The publishers will have to bare ZERO commission and hence gets to keep 100% of the revenue.
- Due to increased margin, the cost of advertising reduces in favour of the advertiser.
- There will be a direct communication, and hence the parties can negotiate on the terms of the contract.
- AdSigma is based on the blockchain technology, and hence all the information is decentralised. The advertisers can trace every component relating to the campaign, and therefore, the publisher or anyone else won’t be able to manipulate the results.
- Advertisers will be able to overcome the issue of lack of bidding transparency in case of the advertising network.
- AdSigma shall provide ad moderation services, and that ensures inappropriate ads are not allowed to be rendered.
- Advertisers shall be able to display their ads alongside relevant content leading to a higher conversion rate.
- The ethereum based Smart Contracts shall ensure the fulfilment of the service agreed upon in favour of the advertiser and the payment to the publisher.
- Once entered into the contract, parties shall not be able to manipulate its terms, and hence the contract is binding.
- The entire initiative is based on the idea of open source projects and aims to help the market to operate without the intervention of ad networks
- Since it is based on the blockchain technology, AdSigma will ensure the transparency, trustworthiness and security of the transactions.
ADSi, AdSigma’s utility token shall be used to complete all the transactions within the platform. The value of token shall rise with the growth of AdSigma, and the industry shall be benefited from the same. Due to the growing popularity of the cryptocurrencies and compatibility to trade globally, ADSi tokens will prove to be a convenient option.
More details about the sale will be published on AdSigma’s website.
