Advertisers, consumers, and publishers are at a loss when it comes to advertising. Consumers are often exposed to ads that are irrelevant and they have to worry about data harvesters profiting off of their personal information, publishers use bot farms to boost their viewership and ad-traffic statistics, and advertisers fall victim to ad fraud as a result of the bot farms. This ineffective style of advertising takes a toll on the advertising industry as a whole. It is estimated that $19 billion a year is lost to the deceptive tactics that fraudulently boost statistics in the ad industry; and as a result, advertisers, consumers, and publishers all share in the suffering.
When it comes to advertisements on social media, news publications, and websites, consumers have no say in the ads they are exposed to. Afterall, it wasn’t up to the crypto community when Facebook decided to pull all advertisements promoting cryptocurrency. Yet, Facebook continues to allow persuasive political ads to be published on their website. Consumers are powerless when it comes to the advertisements they are exposed to, and this often leads to the consumer being exposed to ads that are irrelevant to their lives. To add insult to injury, when consumers sign up on some websites and input their personal information, the website they sign up for harvests this data and sells it for a profit. Sometimes, this happens unknowingly to the social media/website user, as was the case with the Facebook/Cambridge Analytica data leak. So not only do consumers have no power when it comes to the content they are exposed to, users are also viewed as a profit-making tool by corporations who know how to sell a users personal information and consumption patterns.
Even advertisers can be at a disadvantage in the advertising industry. Although advertisers do have more power than consumers, they are still at the whim of ad networks and publishers. Advertisers are subject to ad fraud; deceptive tactics used by publishers to boost their viewership and traffic statistics.
Although these boosted stats are attractive to advertisers hoping to optimize the return on their ads, in reality, these numbers are hollow. It will appear as if an advertisement is doing numbers on a website, however, most of the traffic is fraudulent with a 0% chance the traffic will lead to sales.
Some advertisers are excluded from ad networks entirely and have no shot at getting their ads out to the world. For example, when Facebook banned cryptocurrency ads, advertisers who specialize in that space immediately lost an ad network. Similarly, GoogleAdwords and Adsense banned advertisements for “cryptocurrencies and related content” in June. Excluding blockchain and cryptocurrency, advertisements from some of the biggest ad networks like Google do not benefit these advertisers in any way.
Publishers in the advertising industry also face complications when it comes to securing advertisements for their website. It is hard to compete with the big names in publishing who have already established themselves. Everyone is familiar with names like the New York Times, the Wall Street Journal, and Forbes, but there are thousands of small publishers that exist too. The small publishers cannot be as competitive as big names when it comes to acquiring ads for their website. When publishers have low viewership statistics and website traffic, they may be barred from working with some of the best ad exchanges and servers; even if their low amount of traffic has a high yield when it comes to interacting with ads that lead to sales.
A Solution on the Blockchain?
Blockchain technologies provide a cryptographically secured decentralized ledger that restores power to the consumers, advertisers, and publishers in the advertising industry. NoizChain has been working on a blockchain solution to fix some of the problems that are prevalent in the advertising industry. NoizChain has created a cognitive ad network that utilizes a proof-of-engagement consensus algorithm that empowers users, and protects advertisers and publishers from cooked books. By utilizing an AI-driven ad network (named NIKOLA), consumers interact with an AI directly. When users share the information with the cognitive AI, NIKOLA is able to advertise directly to the consumer with content that is relevant to their conversation, making it more likely the ad will lead to a sale. Consumers will also have an opportunity to earn revenue by interacting with NIKOLA, the more they engage with the robot, the more tokens that will be released to the user.
Source: Edgy Labs
Consumers can use these tokens to redeem discounts or unique experiences that are exclusive from participating brands or partners. Because Noiz has chosen blockchain as their medium, a user’s data is protected by cryptographic proofs. And because users have full control over their blockchain address, they get to pick and choose which information they are sharing with companies. Consumers no longer have to worry about data harvesters selling their information for a profit unbeknownst to them.
Advertisers and publishers will also benefit from the ad industry moving to the blockchain. Because blockchain technologies can be used to create immutable ledgers, advertisers will have more transparency when it comes to a publisher’s viewership statistics. If something in the publisher’s growth appears to be unnatural according to the record, advertisers could further investigate to see if the publisher reached these numbers naturally or by way of ad fraud.
And because the blockchain is peer-to-peer, publishers can connect to advertisers directly instead of working through third parties like ad exchanges and servers. This gives any publisher access to the ad market, regardless of their viewership and website traffic statistics.
The advertising industry is currently inefficient for every player involved. In the advertising industry, there is no clear winner because everybody is playing by their own rules. A research studyconducted by Juniper Researchdiscovered that “ platforms leveraging AI for targeting purposes will account for 74% of total online and mobile advertising spend by 2022.”. Players in the advertising industry are going to have to move away from the current model in the advertising industry to operate more efficiently. Noiz has found a way to combine the features of the future of advertising: AI for targeting–with features of the decentralized internet–blockchain technology. These two progressive innovations will likely be the technological standard of the future. If you are in the advertising industry looking to become a leader in the space, and looking to relieve yourself of the problems that riddle the industry, you might just want to begin researching cognitive AI’s like NIKOLA and begin developing blockchain technologies like NoizChain has.