ADSIGMA - The Next Generation Revolution in Digital Display Advertising Technology Blockchain

Introduction

As per SmartInsights.com, E-commerce is growing by 23% percent each year; 53% of marketers say blog content creation is their top inbound marketing priority. As per emarketer.com, internet advertising revenues surpassed TV ad revenues in 2017 and lone in the United States, internet advertising revenues totaled $83.0 billion, a 14% rise from the previous year. The increasing craze for the internet-As per SmartInsights.com, E-commerce is growing by 23% percent each year; 53% of marketers say blog content creation is their top inbound marketing priority. As per emarketer.com, internet advertising revenues surpassed TV ad revenues in 2017 and lone in the United States, internet advertising revenues totaled $83.0 billion, a 14% rise from the previous year. The increasing craze for the internet-based advertisements pose an attractive opportunity for the publishers.

People are rapidly adopting an online ad revenue based model to run their businesses. Having merely an online presence isn't enough for a business to leverage the advantages of internet. In order to reach a mass audience and to achieve the business goals, it is essential to take adequate marketing decisions which best suits the organization and is further based on accurate statistical criteria. Selection of the most suitable marketing channel is a multidimensional aspect. There are various influencers to the decision, some of the most effective are:

Demographic factors.
Geographical factors.
Cost of advertisement.
Turnover rate.
Bounce rate.

What is the Adsigma Platform?

AdSigma is the next generation Digital Display Advertising platform that is carefully driving blockchain technology to revolutionize the digital display advertising space. We aim to disrupt the existing digital advertising space and address the significant problems it faces, such as unreasonable commission, lack of negotiation power and a shortage of choice for the publishers and advertisers.

Overview of Existing Online Market
What is the Current Online Market Structure?
The most popular structure of the online marketing involves three parties:

Publisher
Advertiser
Ad network
A publisher integrates advertisements into his online content. He gets paid for selling ad space or for showcasing the content of the advertiser on his own website/app along with his own content.
An advertiser is the one who provides the advertisements to be displayed alongside the publisher's content via an ad network.

An advertising network helps generate and place the ad copy, delivers the ad and tracks the statistics. However, the involvement of a third party, i.e., an ad network is optional, and the publisher can opt to manage to publish the advertisement, which is to be displayed along with his content himself.

Reason for Popularity of Ad Networks?

The popularity of ad networks in digital display advertising platforms is because of the following reasons:

The ad network acts as a middleman and verifies the credibility of the publisher and advertiser for one another.
It is responsible for the payment collection from the advertiser. Even in case of a default from the advertiser, the publisher is entitled to the payment from the ad network.
It verifies the content and ensures that a right advertisement is displayed at the right place and to the right person.
It has a broader reach to the potential customers for a publisher as compared to the reach of the publisher himself. This helps the ad network to fetch a better deal.

Issues With The Existing Market Structure?

Commission: The advertising network charges a very handsome commission to the publishers for providing these middlemen services. Did you know? The most popular advertising network, Google, charges a commission of 32% for online content marketing, whereas Facebook charges whooping 45% commission. Along with the high commission, the ad networks place some pricing restrictions.
Direct Communication: Due to the presence of a middleman, there is no direct communication between a publisher and an advertiser, and hence they cannot negotiate with each other for the desired price.
Choose Advertiser: Some of the ad networks give the option to select the type or category of the advertisement that a publisher wants to be displayed on his website.
However, one cannot choose the advertiser he desires. An advertising network is solely responsible for the selection of an appropriate advertiser and advertising for the publisher's ad space.
Payment: An advertiser pays the fee to the ad network, which after cutting its commission passes it on to the publisher. Often, there is no payment flexibility to the advertiser. Also, there is a minimum withdrawal limit for the publishers, due to which, he cannot withdraw the funds instantly.

Why Should Businesses Change Their Revenue Model From Time To Time?
For any business to survive, there is a need for continuous and comprehensive evaluation of the model, activities, and results; and over time it needs to grow more and more favorable towards both - the consumers and the organization. Therefore, the revenue model may need to change on a timely basis to benefit them to the most. With the development of technology, we at times see some drastic transformation in the way a business runs and there takes place some major shifts from the traditional methodologies.
Due to the unjustifiable higher commission rates, the absence of flexibility in price quotation, lack of ability of negotiation between the publisher and the advertiser, delay in receipts due to the minimum withdrawal limit clause and various other reasons as explained above, there is a need as well as a scope of improvement in this business model.

Our Vision Adsigma

We, at AdSigma, aim to restructure the existing arrangement in business model by removing the need for the middleman that exists in the form of ad networks, and help the publishers and advertisers to get the best out of online advertisements. We want to provide the benefit that publishers and advertisers receive from the ad networks but without making them pay for it and to let them relish the privileges of a B2B model alongside.

Problem:
Due to the presence of advertising networks as a middleman, the advertisers and the publishers do not experience the freedom of negotiation. There is no real direct communication between the two parties. Also, majorly, advertising networks frame and control the pricing policies, to which the advertisers, as well as the publishers, are compelled to agree. There is no transparency with regards to the bidding procedure. The real-time bidding platforms offer no information about the bids, but just the bid amount.

Solution:
On our platform, the publishers will have the liberty of choosing their own pricing policy and shall not be restricted/ interfered by any middleman. Also, the advertisers would be able to negotiate on prices and terms of service.

Advertising Revenue Share (in percentage)

TV advertisements had dominated the advertising industry for many years by bagging the highest share of revenue. But after the digital revolution, the viewership of television has fallen, and the world has seen the rise of the internet. Owing to the viewership, it's share in the global advertising revenue has also declined. In 2017, digital advertising revenue surpassed the television ad revenue to end its reign. The digital media is expected to continue its rise against other advertising platforms.

Advertising Revenue of Ad Networks

In this digital era, where everything is going online, the online advertising platforms have made headway. Since past decade, the digital market has been rising steeply and steadily, and it continues to do so. The growth of the market means more options for the advertisers and more business for the publishers. The publishers must enjoy the higher profit margin, and the advertisers must be benefited with the competitive pricing.

Some of the major reasons are:
-Higher commission rates.

Dependency of advertisers and publishers on the ad networks.
Lack of competitive alternative platforms.
Dominance of few companies in the market.

The AdSigma Implementation

AdSigma will be built on top of the Ethereum platform in order to leverage the engagement of the community and the incredible technological advancements the Ethereum team has made so far. AdSigma will utilize the Ethereum blockchain to construct a variety of smart contracts, like escrow contracts and history contracts, to facilitate transactions within the ecosystem.

As diagrammed above, this is how a smart transaction with advertisers will be made via AdSigma:

Along with smart contracts, the AdSigma ecosystem consists of three account types in the
ecosystem:

Advertisers: creates an ad campaign.
Publishers: shows relevant ads to its users and get paid.
Relayers: facilitates bidding and matches advertisers with publishers.

Ad Serving and Ad Rendering

AdSigma SDK.
Ad Serving.
Ad Rendering.
Payment.
Blockchain Transparency.

THE ADSIGMA TOKEN (ADSi)
The AdSigma Token (ADSi) is a utility token which can be used to buy digital display advertisement on web/app properties, and publishers can monetize their apps/ websites using AdSigma platform (They get paid in ADSi tokens). The platform is based on the Ethereum’s Smart Contracts, which guarantee secure transactions based on the parameters set by the participants (Advertisers and Publishers) themselves.

The Blockchain technology ensures that one entity alone can’t control the platform. This decentralized system prevents the possibility of any data manipulation and ensures that nobody can interfere with transactions or give preferences or privileges to one advertiser or publisher over another. The network is verified and maintained by each participant and by all participants together.

TOKEN PRE-SALE AND CROWD-SALE ADSIGMA