The Death of the Middleman in Digital Advertising

Marketing has swiftly gone from being the realm of the “expert” sitting in a publishing room next to spinning printing presses to an endeavor that the average business owner could dive into with great ease. However, these experts were not willing to give up their control over access to the public. They morphed into middlemen that governed what was presented to the people and how much the message was going to cost the business.

This system incentivized rapid bidding wars that often placed budgets above content, flash above substance. It also created a persistent headache for content producers–forced to show ads through a relatively small selection of networks that dictate when, and even if, the site would be compensated for showing the advertisement.

Kind Ads was founded with the simple goal of solving these near intractable issues.

By leveraging the power of the blockchain and having completed a successful private ICO of $20MM, the company has its eye set on removing the middleman and directly connect advertisers and content producers throughout the world while incentivizing end-user participation.

The end goal?

win-win-win for all parties – for advertisers, less fees for publishers more revenues and for users better targeted and less intrusive ads. The loser? The Ad network giants or middlemen.

The Broken Advertising System

Traditional online advertising works by clients purchasing ad space from major vendors, such as Google AdWords or Bing Ads. These companies then contract space on sites worldwide, using a combination of: geo-fencing, demographic analysis, and real-time bidding to determine which ad appears where.

The problem with this system is that both the content producer and the advertisement creator has no control over where the advertisement appears. For instance, it is very well possible that material that goes against a site’s TOS (for instance, adult products for sale on a site targeted towards young children) would be shown merely because someone using the same browser visited an adult-oriented site sometime in the past.

Kind Ads’ Solution

The solution to these issues revolve in a radical rethinking of what constitutes an effective advertisement platform. Kind Ads works with content producers and advertisers to determine the most effective way to reach consumers without collecting the level of information that poses a fundamental risk to end-user privacy.

For instance, advertisements are only shown on platforms that the publisher and end-user both find most effective, such as push notifications and email.

Decentralized Scoring

Kind Ads utilize an algorithm that utilizes historical campaign effectiveness across a variety of advertising platforms to help inform advertisers and site owners/content producers as to what will work best for their unique situation. By making this system completely transparent, it reduces the barrier to entry and creates a true marketplace outside of juggernauts like Google, Facebook, and Microsoft.

However, this system will only work if site owners and end-users get behind it. The mechanism that will encourage participation is another decentralized aspect of the Kind Ads platform: a tokenized rewards pool.

Putting Users in Control

The decentralized ad scoring system utilizes end-user data just like older advertising networks, however, the data is carefully controlled by the end user. Users are able to determine what will be shown to publishers, up to an including restricting all data from being shared. However, they are incentivized to share through a reward system that provides increased numbers of “tokens” to the end user. This provides a simple metric that enables publishers to see who is considered “more valuable” from an advertising perspective and charge accordingly.

Since the end-user is compensated, it turns them from being a product to being a valued participant in the system. Thus, the combination of an open platform and incentivized participation can repair the modern marketing system we use every time we go online.

Coinschedule Staff
This is a guest post, the contents including text, images, opinions and views are provided by the author.