Everyone is trying to “fix” digital advertising. And now the “geeks” who “disrupt” things have entered the picture, which always reminds me of how the geeks realize healthcare, too, is broken and needs fixing. But the geeks don’t know much about healthcare and have a tough time building products that really offer value to that industry, and the same thing will happen in advertising.
A few months ago, we learned about the launch of the Brave Browser, a browser that blocks ads and pays content providers with something called a Basic Attention Token (BAT), which is a form of digital currency. As a visitor to sites, you buy BATs and they are paid out to content providers in micro payments when you use the browser. Although we’re following this, we’ve seen too many attempts to replace advertising to believe any of them will work. People want their free digital content.
Now we’re seeing another attempt to use the blockchain to fix the digital advertising ecosystem. This one is called Papyrus, and it doesn’t attempt to replace advertising, but merely to make it safer and more transparent. It hasn’t raised its money yet, but here is an excerpt from its whitepaper:
The Papyrus project aims to provide just such a next generation ecosystem for a fair exchange of value between users, publishers and advertisers. We aim to deliver a postIndustrial marketplace where users control which ads they want to see, who has access to their personal information and market determined compensation for their data, attention and actions. In the decentralized Papyrus digital advertising market ecosystem, all parties will be incentivized to find equilibrium between their interests and resources to obtain maximum value for themselves or the organizations they serve.
That sounds fair. It takes into account the publisher’s need to have revenue, and the user’s need to control of her data, in addition to the advertiser’s need to reach its markets.
Its objectives are laudable:
Preserve sensitive data that users want to keep private while still enabling precise audience targeting using appropriate data processing; Compensate users directly for voluntarily sharing their personal data; Build a sophisticated value-based reputation system that significantly decreases the level of non-human traffic and other types of fraud between participants; Minimize the risks for advertising businesses from excessive government regulation, criminal attacks and security breaches; Increase the agility of all business processes by enforcing everything in real-time via blockchain smart contracts and state channels 3 to eliminate transactional bureaucracy, corresponding offline paper work and the need for traditional bookkeeping; Create an economy that incentivizes the developer community to produce more and more efficient applications that solve practical tasks in advertising; Dynamically balance the interests of users, publishers, advertisers and developers for smooth, accelerated and economically viable progress towards new and more efficient advertising products.
However, scanning the team we think that the company is probably located outside the US, which means the tech stack may be first rate, but the marketing will be slow. Adoption of the blockchain won’t happen tomorrow, but it will probably eventually happen. While this is nothing to think about today, but at ZEDO we constantly think of both today and tomorrow. It’s how we keep our product development teams ahead of the game.