The Native Advertising Institute recently published the 2018 version of "The Global Guide to Native Advertising Technology" which maps the entire native advertising technology landscape 2018 with 402 vendors. Besides the fact that the numbers have grown a lot since the 2017 version with 272, there were, especially, two interesting developments.
The first is the introduction of a whole new technology. Blockchain. The other is the prominent growth of the category 'Influencer Advertising', which is the fastest moving category, up 50% from 2017.
So we decided to dive into the world of blockchain and influencer marketing by talking with the world’s first AI-controlled influencer marketing platform powered by blockchain technology, AdHive.
AdHive has created a tool to assemble smaller vloggers and marketers on a single platform, thus mutually benefiting both parties. On AdHive, marketers post their requirements, influencers can take up the project and make native ads. The AI recognizes when the influencer has performed the advertiser’s task and then commands the smart contract to execute the payment. Placement of the ad with 1000 influencers takes as much time as placement with only one.
We reached out to Dmitry Malyanov, AdHive's Co-Founder, to talk about native advertising, blockchain, influencer marketing, AI. And the combination of all.
The entire blockchain system is secure, non-auditable, transparent and efficient.
"The blockchain is a record-storing innovation, which enables users to contribute information to a chain, which is a kind of a “digital ledger,” before it gets locked by other computers in the network. The entire blockchain system is secure, non-auditable, transparent and efficient.
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The combination of these factors develops trust and promotes confidence at every level without having to know the person at another end. The blockchain is essentially a database that exists in multiple duplicates on different PCs.
These PCs follow a shared system, implying that there is no single, centralized database or server, rather the blockchain database exists within a decentralized system of machines, each serving as a hub on that system."
Consumers are tired of disruptive advertisements and their attention spans are diminishing rapidly.
"A survey by Facebook and IHS Inc. found that native ads will make up an estimated 63% of mobile display ad spending by 2020. Furthermore, the research found that media buyers will spend $84.5 billion on mobile ads.
Native in-stream ads will account for $53 billion in digital ad spending by 2020. This proves beyond any doubt that native advertising is the next big thing in advertising and marketing. Consumers are tired of disruptive advertisements and their attention spans are diminishing rapidly.
To revive consumer interest, marketers have no choice but to use “inbound” marketing strategies, like native advertising, which by virtue of it seeming like part of the story, is natural to the point of being indistinguishable from the main content."
The AI module of the platform recognizes brand identity or vocal mentioning and triggers payments from the advertiser to the influencer.
"Since we understood the importance of native advertising, we thought that this field had a lot of scope for improvement with regards to how brands and opinion leaders can associate easily. We also did not want manual methods to serve as transaction methodologies. So we powered the platform using blockchain technology and smart contracts.
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Also, we used AI tools to maintain the project without manual intervention. The AI module of the platform recognizes brand identity or vocal mentioning and triggers payments from the advertiser to the influencer.
This combination of AI and blockchain makes ad placement programmatic like, saves time, money, and makes the entire process of payments safe and secure."
If the entire service platform is on the blockchain, there are no extra manual transactions, no manual intervention and the smart contracts are protecting and serve all parties.
"Blockchain technology has the power to revolutionize almost all aspects of human endeavour. Its simplicity and flexible capabilities make it perfect for flawless and immutable record keeping.
Smart Contracts make transactions borderless, trustless and inherently binding upon all concerned parties. And yet, current methodologies of native advertising are prone to manual errors and a lot of heartburn with regards to contract loopholes and disregard towards manual contracts by concerned parties.
Blockchain technology can play a major role in solving these issues. If the entire service platform is on the blockchain, there are no extra manual transactions, no manual intervention and the smart contracts are protecting and serve all parties. Payments are secure, transactions are fast and international, and everyone is happy."
"The entire platform is based on the blockchain. Blockchain technology provides a real-time, cost-effective and secure tool to protect both advertisers and influencers.
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All settlement and quality control systems of AdHive are built on the Ethereum blockchain and their smart contracts ensure transparent and genuine transactions. AdHive also has its own utility token, called the ADH token, that is the unit of all transactions carried out on the platform."
Making and receiving payments is safe and secure and the entire process is seamless and hassle-free
"Creative bloggers and marketers often don’t see eye-to-eye with regards to KPIs and budgets. Negotiating on the finer aspects of the agreement between the two parties is often a pain and ends with a lot of heartburn.
While marketers are on a strict schedule and have clear-cut terms of engagement, they find it extremely difficult to communicate this to bloggers. The AdHive platform helps save time and a lot of efforts. Marketers can now post projects with very specific expectations and terms.
Only those bloggers that are okay with these terms accept the projects. Making and receiving payments is safe and secure and the entire process is seamless and hassle-free."
With more marketers realising the importance of native advertising, we see an exponential growth in this field powered by technological innovations like AI and Blockchain to revolutionize native advertising.
"We see great potential for the growth of native advertising. Audiences are tired of watching ads that disrupt their activity. Native advertising looks as if it is part of the story they are enjoying. It is much like a “recommendation” that offers value to the reader rather than blatantly selling a product.
With more marketers realising the importance of native advertising, we see an exponential growth in this field powered by technological innovations like AI and Blockchain to revolutionize native advertising.
We believe that many other players will see value in this combination and will come up with more exciting features to take native advertising to the next level."
Download "The Global Guide to Native Advertising Technology 2018" here
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