Introduction
Have you ever heard of Google AdWords or Google Adsense? Probably not all of you.
Have you ever noticed the ads which are shown on Youtube? Those ads which are displayed at the top, borders and bottom of your favourite websites? I’m sure you did.
These ads are rarely placed individually because, with nearly 3 billion web pages, advertisers would have a hard time reaching out to every single webmaster. Therefore, the advertisers flock to ad networks. These networks gather all the website owners who want to rent their space for money and then sort them based on their niche and preferences. Then they sell the collective advertising spaces to the advertisers.
Now, the money the advertiser pays is not what the website owner receives. They receive only a fraction of what the advertiser is paying due to the ad networks high fees.
There are two major disadvantages of this process. Firstly, advertisers and website owners, both, must comply with the network’s requirements and rules. Secondly, the chunk the network takes away is often very high due to the lack of competition.
The Solution
Welcome to AdEx. AdEx is short for Ad Exchange. Like hundreds of other blockchain technologies, they are offering a P2P solution. This means, both advertisers and website owners are free to place their bids. Once they agree, they can close the deal. There is no involvement of AdEx in this. This is P2P at its best. AdEx also gives the users the freedom to watch, skip or pick the ads they wish to watch when they surf, which vastly improves user satisfaction and makes ads less annoying.
AdEx coins are the native currency so the website owners and advertisers must place their bids in AdEx coins, as well as pay and receive using these coins.
Like traditional advertising charging methods, AdEx supports different payment models. The advertiser can pay for every time his ad is displayed, every time it was clicked on or even every time the user purchases something from the Advertiser. The Smart Contract takes care of the agreement between the two parties as well as the payment processing – making it hassle-free and easy for both parties.
Why AdEx?
Why would anyone invest in AdEx coins? Frankly, the market has very little competition. For social media, you would have to go to Facebook, Twitter or Microsoft (LinkedIn). For ads on search engines, you would have to use an AdWords account (Google) and a Bing ads one. This is a dangerous oligopoly which AdEx wants to disrupt by connecting the actually involved parties. Consider the following reasons…
- Online advertising market has a potential value of $220.38 Billion by 2019. Just this year, only the US market is of $83 billion and growing at a rate of 16%. If AdEx can grab a share of this market, the coins will be extremely valuable.
- AdEx has the potential to be popular to the mass as well because while it offers every facility of a traditional ad network, it doesn’t eat the commission. So the advertisers pay less and the real beneficiaries get the whole amount.
- The ad networks do not care about the user experience! Think of the intrusive pop-up banners, full-page redirections, flashy banners and even adult ads on G-rated pages which you handle every day. AdEx is the first network to consider user comfort and offer complete control on what they want to watch and what they don’t!
- AdEx utilises Smart Contracts and this is one positive feature for us because we envision the world to run on Smart Contracts by 2030. Will it be the pioneer in decentralised, Smart Contractual ad industry? If so, their coins will be the extremely valuable. Moreover, without reinventing the wheel, they utilise the Ethereum network which has proven its worth a hundred times already.
Did you get the idea of AdEx? More questions? We love questions. Feel free to comment and we will answer as soon as we spot them!
Stay safe, invest wisely and be sure to keep an eye out for our next Coin Review!
Be sure to check out their official website!
