DAD (DAD) ICO Review
DAD is a decentralized social networking platform that is putting users privacy and satisfaction as its first priority. It is an innovative approach towards transparent and independent means of user data ownership, reward on ads and free of speech. It is the first get paid to content creation and sharing ecosystem that leveraged OCR token payments for its reward system.
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More about DAD (DAD) ICO:
Built on Ontology – a new high-performance public blockchain project & a distributed trust collaboration platform. Using Smart Contracts and Token Economy, DAD achieves data openness, transaction transparency and revenue sharing with users. With improved ad quality and delivery efficiency, DAD aims at building a new generation of blockchain ad system and reshaping the ad industry as we know it today.
Online digital advertising has reached a huge market size after many years of rapid growth but is plagued by many fundamental problems. Advertisers spend a huge amount of budget on invalid traffic and lack trust in the ad network. Users as the ultimate value creator do not receive any reward and have no decision-making power. DAD blockchain will be built on top of Ontology, the new generation public blockchain and distributed trust collaboration platform. Via smart contract and token economy, DAD achieves data openness, transaction transparency and user revenue sharing, to improve ad quality and delivery efficiency, building a new generation of blockchain ad system and reshaping the ad industry as we know it today.
Online ad market size and development
Global online ad revenue has reached 200 billion US dollars in 2017 – an 11% growth over2016. The annual growth in China’s online ad revenue is 29% in 2017.
The global ad market is already huge and keeps growing at a rapid rate. Facebook alone makesup almost 20% of the total revenue, as much as 29.9 billion dollars. Industry giants occupies themajority of the market share.
Fraudulent and invalid traffic
The global advertising spending wasted on fraudulent traffic and clicks automatically generatedby bots was $16.4 billion in 2017, according to a recent study commissioned by WPP and citedby Business Insider. 78% of brand marketers are concerned with ad fraud and bot traffic. Overthe next 10 years, the global cost of ad fraud is projected to rise to $50 billion, according to theWorld Federation of Advertisers.Ad agents and publishers are accused of reporting exaggerated traffic and clicks for higherrevenue. Bot networks are prevailing, producing fake traffic and ad impressions. With interestsaligned, some publishers don’t apply restrictions even if they know the requests are coming from bots. Malware, zombie network and darknet manipulators have formed an organized fraud trafficsystem.
Ad cheating is a global problem
Not a single place in the world can escape from the swamp of ad cheating. Pixalate pointed outin the first quarterly report of 2017 that on overage 24% of the traffic is fraudulent across theglobe, which is a 4% growth over the prior year. Japan is on top of the list with 80% fraud trafficwhile Brazil, United States and Germany are also above 35% Obviously, traffic cheaters go to great lengths to hide their tracks, making it almost impossible toanalyse data in a thoroughly and accurately fashion. Therefore the statistical data shown aboveshould be considered only part of the actual digital ad fraud. It nonetheless gives us a sketch ofhow astonishing the scale, the influence and the loss can be.
Trust issues between advertisers and the ad network
According to reports by CNN and other websites, Unilever condemned that digital advertisinglacked transparency and threatened to pull its advertising from digital platforms like Google and Facebook due to the swamp of fake news and other misinformation and might wind up usingblockchain technology from IBM to deter fraud.Due to data isolation of ad agencies, advertisers have no way to obtain the original data forverification. The ad supply chain may involve many intermediary agencies like DSP, SSP orDMP, etc. The number of participants and their beneficial connections makes traffic statisticsand result attribution untraceable. Industrial data show that discrepancies between differentparties in the supply chain can be as high as 20%. All these makes it hard for advertisers,platforms and publishers to trust each other.
In advertising, a significant portion of the budget is wasted on fraud traffic, another portion iswasted because of poor placement that has no effect. When an advertiser notices low ROI, theplatform can only provide aggregated statistical report and attribution analysis is difficult due tothe lack of data. “Half the money I spend on advertising is wasted; the trouble is I don’t knowwhich half” — This is the famous question by John Wanamaker.According to AdMaster’s Anti-Fraud White Paper published in 2017, more than 29.6% of thetraffic was invalid in the first half of 2017. Moreover, IAB’s estimated that invalid traffic caused4.6 billion dollar loss in digital ad industry in 2015, of which 169 million were spent on invalid orfraud traffic. “Frankly, there’s, we believe, at least 20 to 30 percent of waste in the media supplychain because of lack of viewability, non-transparent contracts, non-transparent measurementof inputs, fraud and now even your ads showing up in unsafe places,” says Marc Pritchard,P&G.
Users are excluded by ad economy
Users pay their time and attention to ads and generate conversions. They also pay for the extranetwork traffic and processing power consumed by ads. But they share none of the revenue.There is no place for users to express their disturbance and disgust caused by low quality ads. Without any decision-making power, users are in a very passive position. The blatant unfairnessinevitably causes user resistance and that’s why ad blocking software has become so popular.
User privacy leak and poor user experience
10% of the internet traffic is used to transmit ad and ad related data. According to statisticaldata, mobile users spend as much as 20 dollars on ad traffic each month. Battery life of mobilephones is also greatly shortened because of extra processing of ads. Big data powered trackingrenders user privacy protection useless. Millions of users have adopted ad blocking softwarebecause of frustration and anxiety.
According to a study by the research group eMarketer, 28% desktop and 11.8% mobile internetusers are using ad blocking software in the United States.
Ad review and censorship
If platforms or publishers don’t do a good job reviewing their ads, users will be exposed to illegalor nonconforming content. For example, one leading search engine company in China ispublicly denounced for displaying fraudulent medical ads. This kind of problematic ads can notonly harm user experience but also cause financial or even physical damage to users. Thepublisher who accidentally displayed such ad will also suffer reputation damage. Advertisers,platforms and publishers all have the obligation to review and censor their ads properly.
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