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AdSigma to change the existing market structure in favour of the advertisers and publishers

Over the last two decades, there has been a major shift of businesses to online platforms. Every industry has been affected by the growth and popularity of the internet. The businesses feel the need for the online presence. The backbone of the internet-based industries is digital advertising. Online advertising is the sole/major source of revenue for most publishers, and the same is an essential medium for the advertisers to attract potential customers.

Ad Network is the platform that connects the publishers and advertisers. Google and Facebook are the most prominent Ad Networks, and they clearly dominate the market. With combined revenue from advertising crossing $100 billion in 2017, they have formed a duopolistic condition in the market. There is a need to find an alternative medium for advertising as the current market structure has become very inefficient and unprofitable for both, the publishers and advertisers.

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 AdNetwork or the publisher might commit ad frauds like dummy clicks in order to boost their revenue.

To overcome the above shortcomings of the traditional advertising model, AdSigma is building a platform to connect the publishers and advertisers, on the blockchain. 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 publishers will be at liberty of deciding their own pricing policy. The publishers will have to bare ZERO commission and hence gets to keep 100% of the revenue. Eventually, due to increased margin, the cost of advertising reduces in favor 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. 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 favor 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.

For more details about the sale, stay tuned here AdSigma’s website.

For more updates, you can join AdSigma’s Telegram group.

About the author

Kyle Hill

Health optimizer, cryptographer, bona fide aesthete. Ethereum-centric fan from Mother Russia. Here I represent solely my views and opinions on things. To know more about Kyle, follow him on Twitter.

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