Making A Change With Blockchain: Revolutionizing The Advertising and Publishing Industry

in adtech •  last year

24 hours ago, I witnessed one of the most fascinating crowd funds in my life. Brave’s Basic Attention Token (BAT) ICO raised over $35million in just a few seconds! Amazing right? We are surely onto an astonishing time in the history of the financial sector.

Something More Fascinating


For many who follow my blog, you would observe that I write mostly on tech areas and their impact on human lives. From Biotech, Foodtech, 5G, Nanotech, Greentech and artificial intelligence, my articles delve into the fascinating ways technology has been touching various aspects of our lives.
For a couple of months now, I’ve been investing in a lot of cryptocurrencies (Who hasn’t been doing that these days? Lol :) ). Initially, it was just for the thrill of predicting cycles rightly but over time, I started spending more time researching various tokens use cases.
So for the next couple of articles, just like I did for AI, I will be doing a series of how the blockchain is transforming different sectors of the economy.

Creating A Better Deal For Content Creators – Revolutionizing The Advertising and Publishing Industry With The Blockchain


10 months ago, I wrote this article, The Truth is in danger! The Death of Investigative Journalism and What We Can Do About It. {Making Steemit A Journalism Hub}. In it, I looked at the current decay in the publishing industry and how Steemit can help revitalize it.

Since then, a number of blockchain apps have sprung up attempting to solve the age-long problem - capturing and rewarding attention in the right manner.

Battling A Hydra-Headed Giant


The advertising industry is a multi-billion dollar sector and it will be overly-enthusiastic to say blockchain tech is going to wipe it out instantly. Mobile Ads spending is increasing annually. Also, more money is being pumped into Social Media especially video ads.
However, blockchain apps can attempt to chip away small essential niches and slowly become the de-facto way to reward attention capturing.

Perhaps the biggest competitors of decentralized ad options are the “too big to fail” middlemen. Facebook, Google etc. These centralized organizations take a huge chunk of the global market spending so any attempt to negatively affect their earnings will be met by stiff competition.

She tells me that for every $1 an advertiser spends on digital, they get about $.44 of value

The quote above relays the current pathetic situation of the advertising industry. The content publishers who put in massive efforts to create engaging content are given peanuts. With the rise of adblocks, publishers literally have to beg to be able to fund their operational expenses. Content consumers are also not rewarded for the ‘massive eyeballs energy’ they spend every day.

There must be a way out. A solid way of creating a better user experience and ad model for content publishers.

Current Blockchain Offers – The Battle Testers

I saw a picture shared by @andrarchy a couple of weeks ago and in it were the leaders of blockchain startups currently championing the fight for better ad revenue model.

Content Producers and Consumers Should Be Paid Better


A key similarity between Steemit and Brave Browser idea is the belief that content producers and consumers should get the largest chunk of the pie.

Steemit makes it possible for content producers to be paid in Steem and SBD to reward them for their intellectual efforts. Also, Brave Browser not only makes it possible for advertisers to deal directly with Content producers, it makes it easier for content consumers to tip content producers for doing a good job. Steemit does this too through upvotes.
The two blockchain solutions also make it possible for consumers to be paid to watch ads.

Fighting Ad fraud and Creating Trust

One of the major reasons why centralized companies (ad networks) like Google and Facebook still rule the roost is the massive undertaking of risks they perform. It’s very risky for an advertiser to directly deal with a content publisher without fear of ad-fraud. Ad bots clicking and misrepresentation of traffic numbers are common misfortunate occurrences that make advertisers lose lots of money. Thus, the presence of “middlemen” with verifying database systems is highly necessary.

In 2016, ad fraud created by Internet bots cost advertisers $7.2 billion, up from $6.3 billion in 2015.

A number of blockchain companies are creating platforms that will help decentralize the whole process. Cutting out the middlemen and making a risk-free link between advertisers and producers.

Madhive uses a private blockchain to create a data aggregation database to connect advertisers and producers together. This database is secured using smart contracts and cryptographic keys thereby making it possible for advertisers to effectively track their ad points risk-free. This, in turn, helps mitigate ad fraud and helps build trust.
MetaX is also launching a private blockchain that tackles these problems –ad fraud and lack of trust.
They are releasing Adchain - a private blockchain that tracks encrypted ad impressions. These impressions are then validated by the advertisers and producers points upon factual confirmation.

Decentralization of Data Storage and Control

Imagine this scenario: You upload your data to Facebook and save it. A week after, you need the same data on Twitter and it gets difficult to move it in its original form. This is because each social network creates a walled garden over data put into its database making it impossible for others to access it except through provided APIs.

Think about it. Data created by you but owned and controlled by a corporation that leeches off it for massive profit.

Enter Userfeeds.io

Userfeeds believes that the next Facebook should be owned by you. It uses its' blockchain platform to encourage decentralized digital creation and ownership of value.
User controls their feeds (as against the current FB streams) and only allow others access their feeds when they provide an incentive. In order to receive the incentive, the blockchain verifies the hashes inputted into blockchain and acts basically as an escrow.

Fight against fake news


UserFeeds is also releasing an engine that will help public rank contents in a manner that will be used to combat fake news. It’s basically like Google only that its ranking system is publicly available for audit and incentives are earned only by users.

Conclusion


There is no doubt that the current advertising system is in shambles and there exist several beneficial uses cases of blockchain to solve this ache. However, blockchain based solutions are not without their own issues.
Apart from the attendant problems that come with an infant technology, in reality, the blockchain tech is not immune to security risks like hackers et al.
It is however believed that the decentralized nature of the cryptographically-made blockchain will help infuse a breath of fresh air into the decaying ad industry.


Inspirations: 1 - 2 - 3 - 4 - 5


Over to you:


Do you use ad blockers? And what's the most ads-infested website you've visited?

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Great post, as someone that does advertising for a living I watched this ICO myself. Ad blockers are huge now but of course there is plenty of ways around them and the main one being good content. I like their concept and Steem is already rewarding its publishers :)

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This is a wonderful place to be, i love every of your post, it's so educative. Good job

Great piece as always from you @infovore! Blockchain tech has so many application that its simply astounding!

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Thanks man. It's so cool to have you drop by. How are you doing these days?

Thanks for the great piece again, as you know, I'm definitely a fan by now!

Namaste :)

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Yes, I know. And I'm always happy to see you drop by whenever I release a piece.

This is an extremely interesting view on paid advertising, especially from my experience and expertise when it comes to buying ALOT ad space with Facebook. Over the last 2 years I have spent over $800,000 USD advertising my products and sales funnels with Facebook.

Early on in my experience we would spend $2000-$5000 a day with FB, which yielded insane conversions. During the Holiday's we would rattle off $20,000-$30,000/day on our e-commerce stores selling various items of apparel.

Now, 2 years later those kind of conversions are unheard of. Facebook has drastically changed becoming extremely more competitive. Lead generation and conversion costs can get very high if you haven't adapted.

Awesome article, i would love to indulge more into this topic specifically with Facebook & Instagram

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Wow.. Thats lots of money on advertising. It's amazing how FB had a huge impact on the success of companies early on. Now the conversation rates /$ are poor.
Thanks for dropping by, man. Really enjoyed your insight on the issue. You should write about your experiences more often.

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First off just want to say this has been my favorite article I've read since joining steemit and you got a hard follow from me @infovore!!! It's refreshing to see an outlook on this industry because a lot of people don't really understand this niche.

Early on when I first found success with FB ads there certain styles of ads I was running that contained viral content, and Facebook's algorithm couldn't really track the conversions like they do now. I'd have ads go so viral they would reach over 1,000,000M people and have engagement through the roof. Most ads had over 500,000 likes, etc.

Facebook's Ads Manager (which is their internal interface where you manage paid ads, etc) has now drastically changed. Don't get me wrong, it's still a super powerful source and my main revenue driver but to experience the changes and see it first hand with serious money on the line is eye opening.

You can still find ways for cheap conversions and be super lucrative, but need to know what you're doing. You need to watch your ads like a hawk because at the end of the day you set the budget and FACEBOOK technically can spend that budget however they want once your ad is approved.

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What an interesting comment is yours brother, as a student of online commerce, and digital marketing, is very rewarding ans instructive to know that Facebook isn´t so good anymore. I was thinking in starting my own page on Facebook to share content, focused on digital currencies economy ( and sorry for my english, i´m from Brazil), Blockchain technology, it´s possibilities and social impact, present and future, nanotechnology and Artificial Intelligence, since i feel that those 4 themes will dominate human society in the 21th century. With your experience, do you still think that is worth to invest my time and resources in facebook?

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@rexgeorges just want to clarify that Facebook is absolutely still a catalyst in the industry of social media, and an absolute necessity if you really want to spread your message, knowledge, brand, product etc.

Don't be discouraged from my previous post that insight i provided is based on paid advertising with FB and knowing how to convert physical product into a profitable online campaign that pushes volume.

As for what you want to do you should absolutely start a page on Facebook and share your content and ideas. I will let you know though there are crucial steps you must take to build your page and by no means will you immediately find success. If you initially focus on delivering really good content, then your audience will find you but some money will need to be spent for this to happen.

Absolutely start by creating your page and name. If you want more insight on the other beginning steps please contact me! If this is a subject that people would like more knowledge and insight on I might start writing here on my blog some Beginner Guides to follow!

Hope this helps!

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"I was thinking in starting my own page on Facebook to share content, focused on digital currencies economy" why dont you use steemit ?

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hahahahahahahaha! Nice suggestion brother! I will do it also

Blockchain can be integrated into any sphere of life and vice versa. Now it's like a historical choice of man - to be honest and transparent about your work without any capacity to drive out of track

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Hhmn.. I like this perspective. Thanks for dropping by.

One massive complaint around the BAT is that 99% of tokens sold during the ICO belong long to less than 200 unique wallets. They may have generated a lot of money, but it seems heavily monopolized already.
https://www.reddit.com/r/BATProject/comments/6euenv/explain_to_me_how_this_token_even_has_a_future/

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I agree with you. I remember prepping for days on how to get a share only to be disappointed when the big boys swoop in.
I think it's an interesting idea and it will cool to see how it plays out. There were a lotta doubters of Steem during the pre-july 2016 days too

That was a wonderful read.
Facebook advertising can be very expensive trying to discover your audience, how advanced are these new innovations at delivering content to the right people without the 'facebook pixel' approach disseminating the passive information they gather on everyone ?

I do use an ad blocker but I am selective about its use. I have found that trying to use eBay has become so slow while it loads their adverts that I recently started using an adblocker. Incidentally I am sick of eBay's email spamming as well.

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Thanks for the compliment.
You're right. One needs to constantly test various conversion tips in order to find the sweet spot with FB ads. One need to remember that the massive success FB enjoys is a culmination of years of siloing hard-to-find-elsewhere data of Internet users.

I do believe with time blockchain companies will evolve truly decentralized options of reaching out to potential consumers.

@infovore WoW... Excellent post !! Have to go to work now, but will come back to this post to fully absorb all of the insights & research You've compiled into this one post. Will also go back and read Your previous posts, especially the ones You suggested in this post.

UpVoted, ReSteemed & Following... Thanks Again !!

Have a Great Weekend !!

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Thanks. Would love to get your feedback when you do so. Hope you had a great time at work? And do have a splendid weekend too.

I work with a few companies that are simply sick of Facebook and Google advertising. The fees continue to rise while the behind the scenes algorithms are constantly tweaked so as to force the advertiser to pay more to reach the same people they did previously. It is maddening and it is sad at the same time.

Maddening that it is allowed to happen but these are walled gardens, so to speak. They control, 100%, what happens within their little sliver of the overall Internet.

Sad that people continue to pay more in hopes of reaching real people. Has anyone looked into the ratio of fake Twitter and Facebook accounts versus real people? It is rather interesting. Same thing for Google. You can be charged full price per click whether that click was a mistake on the part of the visitor or not. This is particularly sad in the fact that when it is obvious the click was a mistake (less than a second or two on the site, or the page didn't finish loading) you lose that money and Google/Facebook, etc giggle all the way to the bank.

At least with Blockchain technology, there are ways to verify everything. Google and Facebook and the others don't like that as it removes their curtain of mystery.

Awesome post, thanks for excellent work! For the question, I always use some type of ad blocker simply because nowadays most current sites like Facebook and YouTube and general browsing. YouTube is specialy annoying since most of the ads are on the middle of the video we are seeing. I get that the content creator's need it for their income but I think there is other ways to do that without being so aggressive with the advertising. Keep up with the good posts I followed :)

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Thanks for the follow. I agree with the YT. Sadly, many content creators earn paltry amounts of money than the views they bring onto the platform,

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Exactly but there is another ways of making their earned money like the affiliate market where they get some discounts for the buyer's and earn a little % of the sale. And that is way better then an annoying ad on the middle of your video or stuff like that.

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advertisement is getting more aggressive again. i developed a routine on twitter to block every ad, even if i might be interested...

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i cant tell you how much i've seen this "American Gods" ad while watching videos.
it's really anoying

Very interesting post, thanks

It will indeed be interesting to see where the BAT platform goes from here. As a few others have pointed out, the Brave browser team is very capable but the proposition of value is still murky. Will people be willing to drop their Firefox and Chrome for Brave on a promise of compensation? Only if they see other people actually earn with it first. One thing is for certain, the economic space of advertising is evolving, and the paradigms are shifting monumentally. You should check out a crypto-coin called INCENT. The whitepaper states that the project seeks to build on existing customer loyalty platforms. Following your content from here on out. Thanks for your insightful post!1q9pa3.jpg

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You're right. People are always reluctant to try new stuff unless they know someone has benefited from it. It's going to be tough to acquire users but BAT is a step in the right direction. Thanks for the coin recommendation. Checking them out.

Do you use ad blockers?

  • I stopped using ad blockers because they slowed down my computer. I'm evaluating the Brave Browser now. Faster than FF and looks like a good replacement for Chrome.

And what's the most ads-infested website you've visited?

  • Youtube. When I get retargetted by some marketer. Nothing against marketers. I just not NOT like to have every video I hope to read preintroduced with an ad.

I really liked the idea of blockchain verification of ad delivery. Also the article really does a good job of conveying the latest developments happening in online advertising world and role of blockchain in it. As for your question of adblocks, I never use them. Mostly because I appreciate their role in making the internet as we see today. Without ad revenues, most sites coould never have existed. So I personally think we should not use ad blocks, except may be on mobile, but just because of annoying pop-up ads.

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Wow. That's an interesting perspective. I've got a number of websites I turn off my adblock for. But some websites are just not worth it. Thanks for chipping in . And for the compliment too.

Really nice read. I'd be interesting to read an article of yours talking about 5G. Do you have any links to any you've posted?

Cheers,
@clayford08

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yes thats great info

I believe everyone uses ad blockers these days. With the blockchain technology we just mute what we don't like right? :)

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Yup :) I love the opera browser with its inbuilt ad blocker and turbo mode. It also has an inbuilt VPN.

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never tried it. i think i might now :)

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" inbuilt VPN" ? i will definitely give it a try.
thanks for the tip

This is actually the first article i read here at Steem. I'm completely new to all of this, but i'm amazed by the quality of the content. You did a really good job explaining the future of advertisments.

Thank you!

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Wow. Welcome to Steemit. I'm sure you will have a nice time. Just some consistency needed.

It would be interesting to see if any agencies accept this as one of their exchanges.. it would be a huge business if they even got a small percentage of the space.

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True. A small slice of the pie. Then slowly become the standard way of getting ad revenue.

I was wondering if there are different versions of the blockchain that behave differently. Do all the different cyrptocurrencies develop their own version or do they reuse the original? Just curious and don't really get it!

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Hi. Many coins today are a fork of the original BTC code with some little reiterations. Some tokens are built based on the Ethereum blockchain. While some are built from scratch using various concepts. What however is common is the presence of a public(sometimes private) , immutable ledger called the blockchain.

Good post, I used to be active in posts on yuotube. But after knowing the existence of Steemit, I automatically leave unfavorable activities in mass media. I feel challenged in steemit.

That's cool – we just partnered our site (https://www.adaptnetwork.com) with Brave browser. It will be interesting to see how many people start using it.

I don't think that Brave browser should turn ad block on automatically, though. I thought the idea is that users can decide to contribute a small fee (in cryptocurrency) to support sites while running ad block.

Thoughts?

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Yup. You're right. The tokens are there as incentives to turn off the inbuilt adblocker. Cool of you to join the network, btw. Let us know about your experience soon.

Great posting! So when will trading of the token start? I use addblock pro but i add all the sites i choose to support to the exception list. I like to give to those that i like.
Brave seems like a good alternative, will consider using that.

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Thanks for the posting. You should give it a try. BAT trading has started yesterday. You can check out https://liqui.io/

Thank you for an informative read. Sadly, most news and content publishing sites today are cluttered with adverts and clickbait. I understand the professionals need to be paid adequayely for their work, and agree there must be a better way for content publishers and consumers.
With the current model, poor publishers are rewarded using somewhat blackhat techniques, and provide generally a poor user experience for content consumers.

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I totally agree with you. It's for the sake of truly rewarding engaging content creators that one would hope these blockchain-based startups become successful.

Really awesome post, very interesting and informative. This is such an interesting time to be a part of the evolution of the attention economy. Hope you are well bud!

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Wow! It's so nice to hear from you again, bud. How have you been doing?

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Really well thank you! Flat out as always :)

I can't remember that website as I have installed Ad Blocker really long time ago. Thanks for sharing this awesome post, @infovore!

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You're welcome. Thanks for stopping by.

Oh my goodness! Anytime I read your posts, I get intimidated. You are such a great writer.

I use ad blocker too.

Awesome piece. I look forward to seeing more of your posts.

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Haha. You flatter me, sis. Me too.. Keep rocking!

Good read indeed. For me, facebook and even google ads are too expensive for most of us and add less value. Blockchain tech is the future

Great read, thank you for this amazing work, help gain a lot of insights into the business models that most of these online companies pursue.

Hats off I am a fan now will be following your feeds please keep us posted with such work.

Thank you!

very interesting post thank for sharing

I resteemed this post :)

thats is really amazing.. looking forward to it.. :)

Thanks ^^

Great work.

interesting Content ... Steem and other projects it just the beginning. It will be change so many things. Tanks for your content ;)

Very interesting @infovore. Thanks for the information.

Thanks for sharing this knowledge i was looking for this all along

Good article.

Nice article!
I don't use ad blockers but sometimes I thought about them on youtube ;)

Even after 8 months, this post is still very powerful and insightful

Gread read, thanks for sharing. Blockchain tech is the future

Congratulations @infovore!
Your post was mentioned in my hit parade in the following categories:

  • Upvotes - Ranked 3 with 607 upvotes
  • Pending payout - Ranked 3 with $ 950,82

We will soon be free

Great post! thanks for sharing.

This is great

Thank you very much for taking the time to put up this information!

Very informative post, thank you!

you could say BAT hit a home run... "cheeky smile"

@infovite, excellent post. I use brave browser sometimes. But, I will use it much more when they finalise brave ledger. Upvited and follow ;)

This is a great post.. It is helping me to understand how tokens works and to have an idea of what is going to become.. thank you very mucho.

We are just starting to see the potential. Traditional advertising models will be replaced with blockchain tech. The future is here.

I had to read it twice since the first time was just to much to comprehend, or I will need to read it again - great great piece , thanks

Quite an insightful post. Thanks for sharing! I look forward to reading more :D

Great post. I am sure there are some things we don't even imagine yet about what blockchain can do, guess we just have to wait and find out. That is if this technology does not get controlled and regulated by laws, loosing it's independence to some "centralised" rules.

You rock, again great job. Like when someone puts so much effort in what they do. And we can read and just enjoy!!! :) Big fan :)

Amazing how in-depth study you have done and helping us with us, Great to see your work..

Great article, just retweeted this to our new platform to host RESTEEMS for the Steemit community. Awesome job, very informative so you well earned my follow...can't wait to see what you do next

Your RESTEEM TWEET is here:
https://twitter.com/steemitbc

This is so interesting. I'm going to have to re-read this and I'm learning so much about blockchain, thanks to you. Followed.

Excelente lectura

interesante muy buena publicacion besos saludos joha ;) :*

I was (and still am) very excited about this project, woke up early, and tried to go all in. It was all in vain though :( I still hope this project is a success for the team and the people who were able to buy in the ico. So many exciting ideas in crypto these days!

Blockchain social media platforms definitely look like they're the future. In my humble opinion, FaceBook and other media giants will be a thing of the past within the next ten years.

This here is the cutting edge.

Amazing post man! Right on the money.

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Thanks man. Where have you been these days.

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Same place man :)

We need to chat more like before.

Hope all is good with you!

Better buy up the ethereum before is skyrockets!

Your post is quite interesting and captivating. Hoping to more and more of your post

Blocking is not a point, the ads must be visible or it’ll be like in a room without light: one never knows where a window is or the door to close or to open

nice...your post deserve upvote and resteem...

thank for sharing very lovely post

This great info, must be resteem. Thank you so much @infovore

Thank you for this informative post!

awesome write-up. I just missed the crowd sale for BAT, wish i hadn't!

yes i do use ad block, its very helpful man... now i don't have to watch ads on youtube. And your blog its cool bro. keep posting

Nice article. Thanks for bringing this to our attention. The popularity of the cryptos is currently determined by the biggest group of uneducated investors in man kind. It's an interesting world we live in. Do you know this interesting site? https://www.coincheckup.com Supposingly they researched every crypto coin in the scene based on: the team, the product, advisors, community, the business and the business model. They even score the coins stengths. On: https://www.coincheckup.com/coins/Basic Attention Token#analysis To watch Basic Attention Token Report.

Great post,upvoted and followed

Great informative article

Nice read. Upvoted and followed!

"Do you use ad blockers? And what's the most ads-infested website you've visited?"

BusinessInsider, Tech Insider, New York Times, my favorite social platform 4chan and perhaps every major news website.
I get it that ad revenue is necessary but i think there is no concern about content quality and whether the ad in place is good or not for you, this thing has gone out of control.

I decided that it is not enough to complain as it is to take attitude, so i am shifting to wikipedia news, medium and of course #steemit.

#WeAreNotRevenueGeneratingMachines

A really good read thank you for sharing.

Wow, this is a very interesting article.
I am going to follow you!

nice informative post!!! followed you for more!

Excellent and complete article worth spending my time reading! I learned about a current issue I did not fully understand and am excited about the solutions laid out. Way to add value. Go Steem!

This is the best post. I think, this post can make anybody interest to read until ending.

Nice Introduction. Thanks for taking the time to explain this.

The more you grow the more rewards you recieve, the more steem power you have the faster you grow.

Thanks for the Awesome article im a fan from now

awesome content :)

I've been hearing a lot about Brave’s Basic Attention Token (BAT) can you tell me more about it?

Great information!!Thanks for this article. I love the cryptos and the metals. I spent several hours putting this mining stock investigation together. I hope you find it of value. I think silver and gold may be ready to start moving up again very soon. This is an article I wrote breaking down some mining companies, the better of which should outperform the metals themselves by a wide margin. https://steemit.com/money/@motowngold/i-think-gold-and-silver-are-staging-for-a-run-here-are-some-mining-stock-ideas

I think BAT is very promising coin for the future! Everyone who buy it now,will be very happy after few years :) Upvote!

The only time that ads really get my dander up is when they're the kind that pop out on the page in such a way that I can barely move my mouse around a page without suddenly being whisked off to their site while I'm trying to read something or -- even worse -- trying to leave a comment with the whisk action resulting in what I've written dissolving faster than a soap bubble.

Good article and great value. Thanks a lot !

Thanks for the update great information!