CryptoAds Aims to Tackle Digital Ad Fraud Using Blockchain Technology
Originally published on: CoinSpeaker
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May 24, 2018
The rise of the digital advertising has not only provided great opportunities for businesses to reach their target audience, but has also brought opportunities for fraudulent activities. While brands continue to spend big sums on advertising, their budgets are often simply wasted. Due to the use of malicious tools, like click farms, bots and ad stacking, ads remain unseen and thus cannot reach the right audience. Besides, the need to deal with intermediaries results in higher fees for advertisers.
According to a study by Business Insider, at least 50% of all digital ad revenue is lost in the ad buying ecosystem before it reaches the publishers. The amount of money spent on fraudulent traffic totaled $16.4 billion last year and in the next ten years the cost of ad fraud is forecast to hit 50 billion.
CryptoAds is an Ethereum-based advertising platform that is set to solve these issues. By using the blockchain technology, the company will be able to ensure transparency of all transactions realized on the platform and eliminate third party participation. CryptoAds provides bandwidth and compute capacity to verify the legitimacy of clicks and impressions in exchange for a percentage of the token payments. Collectively, the platform serves as a decentralized referee of the transactions between advertisers and publishers.
Today, even large corporations can’t always prevent fraud, because they can’t guarantee users a public loyalty confirmation. Despite using cookies, they can’t guarantee that this user will stay out of fraud. CryptoAds’s in-house developed multi-level fraud prevention system will enable protection against bot traffic and fraud.
Using the platform, advertisers will be able to directly engage with consumers, store the history of advertising rewards, view ratings of agencies based on the accuracy and amount of reward payouts, and see a full-fledged ad campaign from different points in different agencies. Besides, they’ll benefit lower advertising costs and greater control over their content. Publishers, meantime, will obtain higher transactional revenue from advertisers avoiding intermediaries with their high margins and non-transparent pricing. To protect advertisers, the platform will also help to detect fraudsters via its reputation tracking system.
The platform is powered by its own Ethereum-based ERC20 token CryptoAds that will be required for interactions between users. To launch an ad campaign, advertisers have to create content and offer the amount they are willing to pay media sources for ad space. They can also specify where and how their ads should be delivered. After publishers agree to display the content on their websites, they receive payment in CryptoAds tokens. The publishers can specify criteria for ads they want to display, including rates per click and per impression, ad type, price range, duration of display time, etc.
CryptoAds taps on the B2B market sectors of Native Online Advertisement (estimated at $36 billion by 2021), Online Research ($40 billion market size), and Big Data analytics ($232 billion market size) with imminent blockchain-driven disruption. With modest 1% fee, the marketplace will collect over 220 million dollars in fees per year, if it would capture only 10% of global digital advertisement spending.
To fund further project development, CryptoAds has launched the first stage of its crowdsale, which will continue until June 15, 2018. The main ICO is planned for June 16-July 16, 2018.
Unlike other ICOs, CryptoAds model is already implemented inside the real CFC.io project (launched in 2005) with 7 million registered users. The platform is backed by several high-profile blockchain experts, including serial entrepreneur Jason Jung and the Head of Network Products at Ericsson, Anders Larsson.