More and more businesses are getting conscious about their online presence each day, and this leads to the need as well as the demand for online advertising. The publishers sell ad space on their website to earn money which forms a significant part of their revenue model. Also, the advertisers can attract a huge audience through displaying their ads on publisher’s website.
Currently, there are three main parties associated with an online advertising agreement – Publisher, Advertiser and Ad Network. Ad Network is the one that connects the publishers and advertisers. The most popular advertising networks are Google and Facebook. Due to its broader reach and huge customer base, the ad networks have grown popular. But misusing its popularity, they are corroding the whole online advertising platform. Therefore, there is a need for an alternative of these advertising networks.
The numerous reasons raising the need for an alternative platform are:
- Unjustifiable higher commission rates – Google charges a commission of 32%, while Facebook charges a 45% commission. This inflates the cost of advertising and decreases the revenue of publisher.
- The absence of flexibility in price quotation – The pricing model, is decided by the AdNetwork, and the advertiser and publisher cannot negotiate on the same.
- Minimum withdrawal limit – The receipts are often delayed for the publishers due to the minimum withdrawal limit clause.
- No direct communication – There is no direct communication between the advertiser and publisher, and hence they cannot negotiate on their own terms of the contract.
- Irrelevancy and inappropriateness – Many times the ad is displayed beside content that is inappropriate and this may lead to a poor brand image. Also, irrelevant ads are sometimes displayed on the publisher’s webpage.
- Lack of bidding transparency – The real-time bidding platforms offer no information about the bids, and hence advertisers and publishers have no option, but to rely on that third party.
- Lower conversion rates – The average conversion rate for the ad campaigns is 3%, that means 97% of leads do not turn into paying customers.
- Lower satisfaction – As per econsultancy’s report, only 22% of businesses are happy with their conversion rates.
- Clear chances of ad frauds – There are chances that an Ad Network or the publisher might commit ad frauds like dummy clicks in order to boost their revenue.
AdSigma has taken an initiative to address the disadvantages of the advertising network and traditional market structure. With an aim to directly connect the publishers and advertisers on their platform, AdSigma is using blockchain technology to leverage the use of Smart contracts and distributed ledgers. At AdSigma, the advertisers and publishers holding ADSi, AdSigma’s tokens shall be able to enter into an advertising contract directly, without the intervention of an Ad Network.
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 decentralized. 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 token holders shall be benefited from the same.
Soon, more details about the sale will be published on AdSigma’s website.
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