Armacoin is a new solution to problems in advertising.

Smart Contracts and Performance-Based System of Payment in Advertising 

The native digital advertising industry has gone to rack and ruin, all thanks to middlemen who have infiltrated the system. The great potential of the web and media has been dampened systematically. It has almost become impossible to release advertisers from the strong grip of middlemen and their commissions, sometimes an unfair price to pay for being a part of the digital world and leveraging the possibilities of modern technology. 

How many of us have dived into digital marketing with much enthusiasm and optimism only to be disheartened by the less than expected ROI? You could argue that it is still higher when compared to traditional advertising, but how is it any better than the latter or contrastive if middlemen have only grown stronger with their demands on both platforms? 

Who do we put the blame on for the gradual decay of the advertising industry? Middlemen, yes, but more so the system itself. Let’s go deep down and examine the system from a better perspective. How did we even come to expect that a centralized system was going to be safe from the hands of middlemen and looters, in the first place! Whatever the industry faces as a whole today has begun years back. A centralized system has its own share of shortcomings which will only grow bigger and more evident with time as the clasp holds in custody more and more advertisers. They become prey to the taunts of the few, lose trust and rebuke the industry. 

The Perils of Centralized Digital Advertising

Although traditional digital advertising boasts low investment costs and expenditure, the reality has been far from that. If your attention shifts, obscurely even, you might end up losing a huge sum of money. Monitoring, without batting an eye is the first and foremost prerequisite while signing up on a digital marketing package for your business. This might seem a little far-fetched, but let’s take a look at an example. 

You have decided on trying your hands at search engine marketing. Paying a clever sum and winning the bid war, you are finally listed on top of the SERP, which your competitor somehow comes to know of. They decide to turn this against your favor. Their employees deliberately click on your ad for a few days. While you are patiently waiting for leads and conversions, your cost-per-click charges are being accumulated, large enough to give you a panic attack!

Sounds like a scenario that might happen?

Even if you don’t have a vicious competitor counting the days to throw you out of business, it is a hard-hitting truth that clicks don’t always convert to leads or sales. Pay-per-click advertisements are unreliable unless you have a website that casts spells on your visitors and converts each of them into clients. Pay for what you get they say. But in reality, you pay whether or not it brings you results while middlemen make a heap of money. 

If you are occupied with other activities and don’t have enough time to monitor and optimize your digital marketing campaigns, that is money gone down the drain, without a tiny speck of uncertainty. Unlike SEO where time and skills are the investment, you have to throw money if you want to survive in the industry or else you might as well not enter the platform at all. Digital marketing is for people who have money and a dedicated team constantly monitoring the trends and variations. It is draining, to say the least.

But it doesn’t necessarily have to be. No matter how substandard things look at the moment, digital marketing has potential outstretching our imaginations. 

How long can they dominate the digital world? Not much, it seems. When the industry is under the influence of a particular section who charges its members more than they can handle, gradually limiting their earning potential, the end results look bleak for all parties involved.

When Decentralization & Revamption Go Hand in Hand

Blockchain is expected to become a $176 billion industry by 2025. It wouldn’t have been possible if not for the wide opportunities and positive changes the system guarantees to bring. In fact, the impact of blockchain technology in various industries has been revolutionary. The advertising sector is no different. How is the essentially decentralized nature of blockchain technology going to be beneficial to the advertising industry? Let’s see. 

The decentralized ledger in blockchain technology is used to frame smart contracts, which are also referred to as digital contracts, blockchain contracts, and self-executing contracts. Before we dive into the edge smart contracts have over its traditional counterparts, it is a prerequisite that we know what smart contracts are. 

What is a Smart Contract? How does it Help the Advertising Sector?

As we all anticipate, blockchain is going to be an indispensable technology infrastructure in the near future. And along with blockchain, smart contracts are going to bring about a huge change too. The term smart contract was coined by computer scientist, lawyer, and cryptographer Nick Szabo. While the scope and purview of smart contracts have changed considerably since then, the crux of the word still remains the same. 

Smart Contracts: 

A computer protocol forged with a view to digitally facilitate and verify contracts. Terms and conditions in the physical contract are brought to force with ease. Negotiations and performance of a contract are done without delay and complications. 

That is, traditional contracts are converted into computer codes, stored and replicated on the blockchain platform. Later they are monitored and supervised by a network of computers that run on the blockchain. But how is any of this relevant to advertising?

This is how. Smart contracts facilitate genuine and authentic transactions of assets and values, without the intervention of third parties, who pose a major inconvenience when it comes to traditional marketing - digital or otherwise. Smart contracts enable us to exchange money, property, shares, or any other form of asset transparently. The ledger feedback lets us transfer and receive all properties with peace of mind. 

Armacoin - Blockchain Advertising Platform Fortified by Smart Contracts

While blockchain and smart contracts have proved their competency in a spectrum of industries from insurance and banking to finance, the advertising industry had rarely been touched upon. This is where Armacoin comes in. Armacoin, understanding the wide range of possibilities blockchain has in store has been working towards improving the current advertising system. 

Here are 4 reasons why Armacoin smart contracts give you a comparative edge in advertising. 

1. Cost-Efficiency

As we discussed, cost-per-click and cost-per-install advertisements have a very negligible ROI. Clicks, installs, and downloads, don’t always bring money. In fact, they drill a hole in our pockets and pump our resources to middlemen. Armacoin hopes to put an end to this.

With smart contracts, the terms and conditions can be framed and tweaked as the parties desire. Advertisers can decide the preferred parameters based on which they should be charged, after consulting with publishers. This way, they can make the most of their advertising budget without putting publishers in trouble. 

2. Autonomy

The platform is drawing the agreement and enabling the contract, thus, there is no room for doubts or concerns. It is as transparent as any system can get. There is no need to rely on human beings to confirm the authenticity of the contract. You can sign up on an agreement without the help of brokers, lawyers, and other intermediaries. This cuts down the cost significantly too. 

3. Trust 

Blockchain facilitates an essentially trustless platform. You don’t have to trust a party in order to enter into a relationship with them. Since all documents are encrypted on a shared ledger, no one can claim that they have lost the documents and leave the other party to suffer. Smart contracts rule out all chances of fraud, embezzlement, and manipulation in advertising. The network manages the execution automatically, letting no third party dip their hand and adulterate the system. This is the prime reason why most advertising industrialists believe that there will be a rapid shift to blockchain technologies in the coming years. Centralized platforms are only growing more unreliable with each passing day.

4. Accuracy 

Manual contracts won’t be error-free. Even if the service of a reputed and highly-skilled lawyer is availed, there will still remain some minor glitches. Incidents, where they become lethal for the existence of a business, are not unheard of. The errs of filling out heaps of forms manually can efficiently tackled by computers through smart contracts. They are not only faster and cheaper but also accurate. 

Key Takeaway 

Smart contracts define the terms and conditions in an agreement just like traditional contracts do, but more importantly, they enforce the obligations and negotiations in the agreement on default. The rules exist between all parties involved automatically. In short, smart contracts save us both time and conflict. Smart contracts are going to bring a wave of change in the advertising industry. They will make the system more transparent, affordable, and democratic. 

To know what we are building at Armacoin, visit us at www.armacoin.info

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