The fastest growing industry in advertising is digital advertisement, it currently has the highest market share in terms of advertisement spending totalling $591 billion in 2017 (Statista 2018). This despite losing billions of dollars in potential revenue in the face of obstacles such as AdBlock. Online advertising is a steadily growing industry sector, and it seems to be only increasing further as newer generations spend more time on phones, computers and many other electronic devices. 7 out of 10 US internet users aged 18-70 use social media each month (IZEA 2018). According to AdWeek, 74% of internet users use social networking prior to making purchasing decisions online and 49% of users rely on purchase recommendations from influencers.
However, there are several issues in the standard digital advertising system. Influencers and advertisers spend too much time communicating and handling details, slowing down progress or even putting off potential influencers. Secondly, there is a large amount of uncertainty when discussing rates, many influencers don’t share the rates that they earn therefore making a fair deal is a much harder task. AdHive endeavours to remove all these barriers, making prices more transparent and clearly available to any influencer. AdHive uses new technologies such as their AI machine learning algorithms that can handle communications between advertisers and influencers.
The advertiser can choose the target audience with AdHive’s API, set the advertising task, create triggers, and request explanations of recognition modules. The advertisers do not need to choose a specific influencer, the AI controlled platform does it automatically, saving time and money for both the influencers and the advertisers. The length of the campaign is determined by the advertiser and not limited by the AI. It could last anywhere between 2-3 days to even a year. At the end of the campaign the advertiser will receive a report with the number of contacts and target audience with links to a video of task execution.
The AI platform is designed to work with influencers such as video bloggers from YouTube, Instagram etc. Video recognition modules are included and will be deployed in 2017. All functionality for influencers will be available from the client cabinet with notifications via any channel chosen- email, SMS, messengers and app notifications. The wallet will provide the mechanics for convenient spending or saving of the tokens. The Security deposit is an AdHive Token (ADH) deposit which the influencer should make to ensure a proper task execution. The bigger the potential reward of the influencer, the bigger the Participation balance and Security deposit needed.
The AdHive platform is a web service with integrated AI modules for video and speech recognition and trigger detection. The AI modules control the placement of advertising material on each channel where the channels are monitored daily for video updates. In order to make the platform accessible from the very beginning, the primary communications will be organized via chatbots integrated with new popular instant messengers. It will enable users to submit new proposals, receive notifications about proposals, and inquire about additional information. Co-founders of AdHive, Dmitry Malyanov and Vadim Budaev also worked on project Scorch. AI and Webvane. Scorch.AI is an AI which can use machine vision, speech and sound recognition as well as memory augmented classifiers and time metrics (Scorch.AI 2018). The experience and knowledge obtained from project Scorch.AI will be very useful for creating the AI modules of AdHive. As of February 2018 there are currently 18 team members listed on the AdHive website, including six advisors.
Overall, there are minimal risks included in AdHive with huge growth potential. One of the key risks are that the AdHive AI may not capture the qualitative aspects of unique influencers. An example of this is a YouTuber who focuses on cryptocurrency is much more influential than a blogger with the same amount of views. But even with the minimal risk factors, AdHive has a solid and dedicated team with previous professional experience with Scorch.AI. This experience will serve them well in the development of AI modules for AdHive. Software such as AdBlock and banner ads has resulted in advertisers moving towards influencer marketing. This has become the fastest growing sector of within the advertising industry which AdHive strives to capture.
To conclude, AdHive has a great team of professionals with experience to backup their ideas and visions. This project will be a unique first opportunity for an AI controlled environment, it holds great benefits for both users of the platform and holders of the ADH token. I’m very interested in this project and I know that it will capture the eyes of many investors, advertisers and potential influencers.