Digital advertising is an emerging industry, and the spending by the advertisers worldwide has been consistently increasing over a decade. In 2017, the global spending crossed $530 billion. However, that is not how much the publishers earned. Out of this, around 40% of the revenue went to the advertising networks as commission, with Google and Facebook’s combined share crossing $100 billion. The unjust commission is just one out of the many shortcomings of the advertising networks.
Problem with the advertising networks
The most popular advertising network, Google charges a commission of 32% for online content marketing whereas Facebook charges whooping 45% commission. 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. Further, an advertiser pays to the agent, which after cutting its commission passes it on to the advertiser. 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, advertisements are displayed at places where they are not much effective or are irrelevant. Moreover, some advertisements don’t meet the standards of the publishers’ webpage/website. This leads to poor conversion rates. 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.
To attain the maximum benefits of the online marketing and to avoid the loss of revenue in the hands of the ad networks, in the form of commission, the publisher must have an option to sell the ad space directly to the advertiser. AdSigma brings this solution to the advertiser and publisher. To prevent the advertisers and publishers from the disadvantages of advertising networks and to provide them with the benefits of a B2B business structure, AdSigma is building a platform based on the blockchain technology.
The publishers will be at liberty of deciding their own pricing policy. Also, they will be benefited from the ZERO commission and hence gets to keep 100% of the revenue. Eventually, 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. Hence, this will help the advertisers to overcome the issue of lack of bidding transparency as in case of the advertising network.
Relevancy of ads is another benefit. AdSigma shall provide ad moderation services, and that ensures inappropriate ads are not allowed to be rendered. Further, the 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 fulfillment of the service agreed upon in favour of the advertiser and the payment to the publisher. Also, once entered into the contract, parties shall not be able to manipulate its terms, and hence the contract is enforceable. 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 and at a ZERO commission fee. 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. Since there is no cross-border acceptability issue involved and since almost everyone can trade into cryptocurrencies, ADSi tokens are very convenient.
Soon, more details about the sale will be published on AdSigma’s website.
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