Overview

The Chedar AdChain introduces a revolutionary approach to digital advertising by leveraging blockchain technology to create a transparent, efficient, and effective advertising ecosystem. Here is a look at the history of how advertising works and why blockchain ad buying has major advantages:

History of Ad Servers

Ad servers have been a cornerstone of online advertising since the late 1990s. They were developed to manage the placement and delivery of ads across various websites. Ad servers allow advertisers to target specific audiences, track the performance of their ads, and optimize their ad campaigns in real time. Traditionally, ad servers operated through a centralized system, handling everything from ad placement to reporting.

How Brands Use Ad Servers

Brands use ad servers to purchase ad space and manage their advertising campaigns efficiently. The process typically involves:

• Targeting: Identifying the desired audience based on demographics, interests, and behaviors.

• Placement: Choosing the websites or platforms where the ads will be displayed.

• Delivery: Ensuring that the ads are served to the right audience at the right time.

• Tracking and Reporting: Monitoring the performance of the ads in real time and generating reports to assess effectiveness and ROI.

Competitive CPM Rates

Ad Exchanges and Ad Networks typically require specific Cost Per Thousand (CPM) rates for ad placements. Here’s a breakdown of typical CPM rates across various mediums:

• Display Ads: $1 - $10 CPM

• Video Ads: $10 - $30 CPM

• Social Media Ads: $5 - $12 CPM

• Search Ads: $2 - $6 CPM

• Native Ads: $5 - $15 CPM

CPM: History and Current Usage

CPM, or Cost Per Thousand impressions, is a traditional metric used to measure the cost of advertising. The term originates from the Latin word “mille,” meaning thousand. Brands use CPM to gauge the cost-effectiveness of their ad campaigns based on the number of impressions (views) an ad receives. This model has been in use since the early days of advertising because it provides a straightforward way to budget and measure reach.

However, CPM is an outdated method that does not fully leverage new technologies. While it provides a measure of exposure, it does not account for the quality of engagement. Brands pay for every thousand views, regardless of how relevant or engaging the ad is to the viewer, leading to inefficiencies and wasted ad spend.

Advantages of Blockchain in Ad Buying

Blockchain technology offers several advantages that can transform traditional advertising models:

• Fractional Payments: Blockchain allows for very small, fractional amounts to be instantly paid. Instead of brands paying for every 1,000 views, they can pay for each individual view. This means that advertising costs are directly tied to actual engagement rather than bulk impressions.

• Transparency: Every transaction and ad spend is recorded on the blockchain, providing complete transparency. Brands can see exactly how their money is being spent in real-time, ensuring accountability and reducing fraud.

• AI Optimization: Using AI, the Chedar AdChain can learn and provide powerful targeting results. Brands can now reward the most active and ideal users for their products. Those users who engage with the ad longer and show genuine interest can be rewarded with more tokens, while users who dismiss the ad quickly are not compensated as much.