BPC CEO and co-founder Pavel Cherkashin shares the ideas of potential advertising market evolution at the interview with Alex Krol
BPC CEO and co-founder, Managing Partner at GVA Capital, venture investor, startup sponsor Pavel Cherkashin had an extended interview with Alex Krol, entrepreneur, blockchain enthusiast and founder of Serendipity blockchain community journal.
Pavel Cherkashin discussed with Alex the modern challenges of advertising industry and presented the strategic ideas behind the Blockchain Programmatic Corporation platform project, that is approaching to ICO 1st November -1st December. He also answered the questions from blockchain enthusiasts.
“200 B digital advertising market is now experiencing deep stagnation due to a very simple thing. It looks like a medieval fight between the small principalities for their particular and small interests, while they lose the more strategic purpose in this fight. The same in digital advertising — there is a huge quantity of advertising agencies, ad exchanges, and other organizations, they work without common protocol and any trust to each other. So the advertiser needs to hire a special digital agency, that will control the traffic quality, prevent fraud and be responsible for the quality of ad services. In such chaotic ecosystems only big organizations like Google and Facebook can provide the control on ad process quality and provide reliable services, so that’s why digital advertising market has been actually monopolized by them”, — Pavel said. “But these organizations have created a private and closed system, that does not provide the end users and client with transparency, access and control to their data”.
Mr. Cherkashin describes the main challenges of the industry: “There are main challenges that are stating before the industry face now. First of all there is no trust between participants of the market, there are a lot of middleman agencies, and this structure eats most of spends in advertising, and does not provide enough margin to publishers, so they are trying to get it via super-commissions paid by advertisers”.
“Now with raising blockchain technology involvement in this industry it is possible to create totally transparent end-to-end processing, that provides control at spends, prevents frauds and provides the new quality to the targeting process”. “The next level of possibilities raised by blockchain, when the transparency will be achieved, is opening door to the marketers, scientists, and many others that now can create new models and processes based on this data systems”.
“We are aiming to create a kind of Wikipedia analogue for advertising industry. The assets will be created by crowd-founded contributors. And advertiser can choose the best models, for example, for controlling the data quality, or preventing traffic or data fraud”. “This is the second possibility provided by blockchain. We create a motivational market for multiple contributors.” “The third possibility opened by blockchain is cross-border payments, quality of content and opening market for small and medium publishers. From one side, it is opening the market for small publishers, now there is no possibility to pay for services, for example, in Bangladesh, that costs 3 USD. From another side, it will allow advertisers get much more precise and qualitative targeting”.
“BPC mission is to provide this evolution shift to the market with our solution. In our estimation, we can get bring back to the market up to $20B annually. We have strong technology behind, where, for example, our dev team has managed to resolve the classical issues of blockchain related to the quantity of transactions. We have strong team of tech specialists with more than 12 years of programmatic RTB platform development, US patented technology, and strong team of business advisors. With this idea and our team now we are approaching to ICO that is planned for November”.
“We are launching our ICO in November. We issue 500 000 000 CPM tokens, they will be distributed to the investors who join during the ICO period at 1st November-1st December. We do not control the final cost of the token, but we believe it will raise at this hot ad market”.
Alex Krol: “How you are going to motivate all crowd-founders, investors and other participants?”
Pavel Cherkashin: “First of all, it will be financial motivation, we introduce our CPM token, so the best experts can be motivated by prize, like it is done by Kaggle, for example. From another side, the best contributors will get visibility, they will get multiple offers and proposals for their knowledge and skills. People can contribute to the $20B ad market shift, working at our platform, creating intellectual assets. Advertisers or publishers can get very specific products, when raising the request at our platform”.
Alex Krol: “From the business perspective, how the lead generation costs will change with your solution? This is a standard economical efficiency metric. Will the lead costs decrease?”
Pavel Cherkashin: “Now digital agency sell the views, not leads. I believe we will add the additional instrument to the market, that will create very precise targeting. Here is the space for transformation of views, clicks and other metrics to the lead. I believe, in future digital agencies will transform into research institutions, that will research and investigate the new approaches to reach customer with the big data. We are not going to become a digital agency, but we can provide a tool for them”.
Alex Krol: “Very last question. People in general hate ads, and now the market of AI-based ad-blocks is growing. In the future it might raise the situation, where valuable audience will pay to block all ads. So there are multiple threats to the advertising market in long-term perspective”.
Pavel Cherkashin: “Well, I believe people do not hate ads — they hate bad, not relevant and obsessive ads. Advertising has a future, and in this future advertising will evolve. It becomes more targeted, more native, and more transparent. With blockchain based solutions we can provide more comfortable ads for end user, with ability for end user to control what he want and does not want to see”.
“Advertising is the matter of trust. And we are going to bring this trust back to life”, — Pavel Cherkashin said.
See the full interview (in Russian): https://youtu.be/wpwYmX5wyLI