Blockchain start-up BitClave has begun a presale of it’s tokens (CAT) in advance of its September initial coin offering (ICO). The company’s goal is to enable a “decentralized” form of online search to rival search engine giant Google. Instead of running a search via Google and letting Google intermediate (give your data to advertisers and pitch you appropriate ads), for example, you could search via BitClave and receive payment for the data you’re willing to share in exchange for targeted ads.
In other words, BitClave wants to make it so you, not Google or Facebook, can manage and sell your data.
When it comes to online advertising, businesses are forced to pay exorbitant amounts of money to “middlemen” in order to reach a captive audience for their promotions. The promotions, however, often get placed among many other ads clogging up the space on crowded banners, or simply end up in someone’s spam box. Businesses also have little to no guarantee that the traffic they generate on their promotions is genuine. In fact, nearly 50% of all advertising traffic is generated by bots, essentially defeating the entire purpose of advertising.
Offline advertising is a similar story. More often than not, offline advertisers promote content with a “hit or miss” mass mailer mentality. Hoards of messages are slammed into users’ faces with little or no targeting, resulting in a dubious correlation between offline ad dollars and return on investment. This, along with other factors, contributes to extremely low conversion rates. Promotions are largely delivered to those who simply do not care for the product or whose attention is likely focused on something else.
These ineffective measures, both offline and online, negatively impact the whole service value chain. The more companies are forced to pay to “middlemen”, such as Google and Facebook, the more money consumers have to pay for the products. Businesses end up losing money, and consumers end up paying more for less value, creating a lose-lose situation.
Categories: ICO Spotlight