by Guest Post
What do you do when you are faced with a business model that’s so badly broken, up to 50 percent of revenues go to the middlemen? If you are Adbank, you build a completely new business model.
The broken business is digital-advertising; where an estimated 56 percent of website traffic is fraudulent, or generated by bots. Bots, algorithms that generate fake traffic, are just the tip of the iceberg in today’s flawed digital advertising ecosystem. It has been estimated that 50 percent or more of digital-advertising revenues are taken by middlemen.
Fraud, bots, and middlemen exist because there is no way for advertisers and publishers to connect directly, transparently, or seamlessly, in today’s advertising market. Almost all publishers and advertisers are at the mercy of middlemen and advertising networks in today’s broken system.
The Broken Advertising System
Even Fortune 500 companies find themselves at the mercy of middlemen and fraudsters, in today’s broken advertising system. Proctor & Gamble (P&G) announced that it was cutting its digital advertising spend by $140 million in July 2017 because much of that money was being wasted.
P&G stopped advertising on Alphabet’s YouTube; the largest outlet for digital video content, in March 2017 because of pervasive fraud, Ad Age reported. The Association of National Advertisers (ANA) and White Op calculated that 22 percent of all money spent on online video advertising in 2017 will be lost to fraud.
“We serve ads to consumers through a non-transparent media supply chain with spotty compliance to common standards, unreliable measurement, hidden rebates, and new inventions like bot and methbot fraud,” Chief Brand Officer Marc S. Pritchard complained in January 2017.
Adbank Network’s new advertising Ecosystem
The Adbank Network is designed to be a seamless, transparent, fraud-resistant, ad-buying ecosystem based on the Ethereum blockchain. One of Adbank’s goals is to build a platform that takes zero percent of the profit from advertisers and publishers.
Another goal is to greatly reduce fraud by developing patent pending artificial intelligence (AI) into the network. The plan is to teach the AI to detect fake traffic, bots, and fraudulent advertising with help from the Network’s users.
Adbank plans to reward people who spot and report phony traffic in an effort to gather intelligence about ad fraud. The intelligence will be used to show the AI what the frauds look like.
Using the Blockchain to Fix Advertising
The Adbank Team is building a better advertising ecosystem through a marketplace based on their ADB Token. The ADB is an ERC-20 Ethereum token that will be used to pay for ads in the system.
The plan is to fund the building of the Adbank platform with the Initial Coin Offering (ICO) for ADB. Then encourage advertisers and publishers to use ADB for payment. One reason why participants might use ADB is that it can be easily converted into Ethereum (ETH), the second most popular cryptocurrency in the world.
Another Ethereum-based solution Adbank will harness is smart contracts. A smart contract is a digital agreement written in Ethereum that obligates somebody to perform a task. Smart contracts can be written to only pay when a goal is achieved. That means an advertiser might only be paid if the ads generate verifiable traffic.
The Adbank team has created a variety of solutions that will be incorporated in the network. Some of these include a browser plugin that is supposed to block ad fraud and produce AI-generated fraud reports. Full details of this technology and patents pending are available in Adbank’s whitepaper.
Adbank Network Roll Out is now in Progress
The next step for Adbank is the ADB ICO, which is scheduled to begin on December 14, 2017. Adbank will try to raise 50,000 ETH through the ICO by offering 51 percent of the one billion total supply of ADB or 510 million tokens for sale. The sale is scheduled to run until January 21, 2018, or whenever the goal of raising 50,000 ETH is reached.
The ADB tokens are scheduled to be released for use on the Alpha Preview in January 2018. The Adbank Network Ad Platform is scheduled for launch in March 2018.
Adbank plans to start an ambitious expansion of its ecosystem by spending $10 million to acquire existing ad networks beginning in May 2018. Partnerships with established ad networks are also planned.
Experience in Advertising and Technology
The team behind Adbank brings years of practical experience in advertising, digital acquisitions, public relations, and branding to the blockchain.
Founder, and CEO, Jon Gillham owns more than 6,000 advertising websites. That means he has experienced the broken digital advertising ecosystem from both ends of the transaction. Gillham has been involved in digital marketing for over 10 years and he cofounded a successful digital acquisition firm.
Cofounder, and Chief Technology Officer, Chiron Bramberger has over 17 years of experience in deploying client solutions. Bramberger’s experience includes work with Fortune 100 companies; developing portfolios valued at more than $2 million, and creating General Motors’ first-fully integrated vertical marketing software.
Cofounder, and Chief Marketing Officer, Angelo Dodaro is the co-owner of Multivitamin Media, an advertising agency that has created campaigns that generated tens of millions of dollars for clients. Dodaro also created the digital assets for Tesla Motors’ launch of the Model X SUV in Canada, while working as a creative manager.
Cofounder, and Chief Brand Officer, Kelsey Cole was head of public relations at Revlon Canada. Cole is a co-owner of Multivitamin Media she has done brand work for Tesla Motors, Richard Branson’s Extreme Tech Challenge, L’Oreal, Red Bull, Juicy Fruit and Tiff.
Cofounder, and Chief Community Officer, Leon Pereira brings some serious cryptocurrency experience to Adbank. He earned the nickname “Godfather of Ripple” for his work with that cryptocurrency. Pereira cofounded the XRP Exchange, a Ripple exchange in Vietnam.
Based in Collingwood Ontario, Canada, Adbank has assembled a team of developers, designers, and other experts to build its platform and brand. It has also put together a team of well-respected industry experts as advisors.
Full details of Adbank’s proposal can be found in its whitepaper available in PDF format here: https://www.adbank.network/Whitepaper_AdBank2017.pdf.
To learn more about the Adbank Network, ADB, and the ICO please visit https://adbank.network/