The Ubex project was designed as a flexible and convenient instrument that is called upon to help millions of webmasters and publishers monetize their channels and resources. As the webmasters are the gatekeepers of the advertising world on the internet, catering to their needs is one of the key functions of the entire Ubex ecosystem.
Currently, publishers are not getting enough revenue from their advertising slots because of a suboptimal sales system. There are several barriers that prevent publishers from maximizing revenue and contributing more funds in the growth of user engagement:
Even in the case of a high volume of high-quality user traffic, whose profile is ideal for certain advertisers, according to both socio-demographic parameters and interests, publishers may experience problems with loading ad slots. Such “gaps” in the effectiveness of current sites, allocated for the purchase and sale of advertising, arise because of the imperfect nature of algorithms designed for distributing offers among publishers’ advertising slots.
Smart algorithms based on neural networks on the Ubex platform are able to optimally distribute thousands of ads from advertisers online. The Ubex algorithm maximizes revenues of publishers with the most effective ad slots on account of their maximum load capacity. Due to the imperfections of the targeting algorithms available on the market, with some rare exceptions, advertisers are forced to adhere to the proverbial strategy of “shooting sparrows from cannons”, trying to reach their target audience with a certain margin to spare. In addition to the irrational use of advertising budgets, the reverse side of this approach is the immense amount of irrelevant advertising on publishers’ websites, which means that each ad slot attracts a relatively small number of targeted actions. In turn, the less targeted the ad slot attracts, the lower the publisher’s revenue via the COST PER ACTION payment model.
The Ubex neural networks solution increases the targeting of advertising, thereby maximizing the likelihood of target actions being performed by the audience of interest to the advertiser. Thus, the revenue for the publishers’ most effective advertising slots is maximized.
Three key risks exist for publishers when working on the basis of the COST PER ACTION model:
(a) Shaving is the concealment, by the advertiser, of the fact of fulfillment of a targeted action by a user, attracted by advertising to the publisher’s website.
(b) Failure to pay for advertising for verified targeted actions by both parties leads to court lawsuits on debt collection, which in itself is an expensive and laborious process for the publisher.
© Late payment of advertising is more common than failure of payment in principle, but also detrimental to the financial performance of the publisher (increase in the volume of illiquid accounts receivable in assets to the detriment of additional working capital).
The solution to the problem of shaving risks, non-payment for services or delays in payments for advertising by advertisers is achieved in Ubex through the application of three mechanisms based on blockchain technology.
When connecting to the Ubex advertising exchange, advertisers and publishers install tracking services. It is possible to track user behavior at all stages of the conversion funnel with the help of such tracking services. If the user sees the advertisement of a particular advertiser (for example, an online store) in the form of a banner on the publisher’s website, and after that they paste the website address of the online store into their browser search bar (instead of clicking on the banner link or making a purchase through a widget), the Ubex algorithm will be able to track the entire route of the user from the display of the promotional offer to payment for the purchase.
A multi-level system of rating of counterparties on the Ubex advertising exchange takes into account all the transactions that system participants had ever concluded, the volume of these transactions, the timeliness of payments, as well as all complaints, claims and reviews following the results of fulfilled or canceled transactions. The rating of each of the participants is used by the algorithm in making decisions about the selection of advertiser offers for displays on specific advertising slots. The rating is considered by the neural network as one of the factors making it possible to choose among several alternative offers aiming for placement on each of the publisher’s advertising slots.
Ubex solves the problem of late payments through the use of a crypto-financial platform allowing instant payments and verification of smart contracts on the one hand and keeping advertisers’ budgets in escrow on the other. An advertiser with a low rating makes an advance payment through their personal account and payment for targeted actions occurs as the actions take place. In turn, the publisher gets detailed information about what targeted actions were taken and to what extent for each particular advertiser for a relevant period. The publisher will also see how much they need to be paid by the advertiser. All information about the targeted actions and their value is stored in smart contracts based on the blockchain system. It is thus impossible to forge any formation by any of the platform participants or even the Ubex team.
Escrow is not the only solution that Ubex offers. In the case of large advertisers, the task of deferring payments in order to fulfill financial KPIs in terms of working capital may be relevant. For such advertisers, Ubex offers a flexible factoring solution. The option of factoring is available only for advertisers with high ratings and no arrears of payments. In case of results of losses for publishers due to non-payment or delays in payments, the advertiser is forever deprived of the right of applying the factoring option. Factoring services will be provided by a third party, called Factoring center. Ubex itself is not involved in the financial transactions, except for ensuring the correctness of the rating system. Thus, Ubex minimizes risks for publishers.
Many publishers lose revenue due to reduced displays of advertising. Mainly the number of hits becomes smaller due to the increased use of adblockers by users (according to the IAB study, penetration of adblockers among desktop browser users is more than 25%). This leads to a reduction in the volume of working capital, which is often limited by long delays in payments from advertisers or digital agencies. Financial difficulties compel publishers to look for new sources of raising funds for contribution, in the development of their websites and increasing future advertising revenues.
Ubex offers publishers the opportunity to tokenize their advertising slots. By utilizing all the statistics of users and advertising platforms available inside the exchange, Ubex algorithms provide forecasts of potential publisher earnings and give an opportunity of forecasting future earnings, provided the necessary rating is available. Thus, through tokenization, publishers can improve their financial performance. The tokenization of future incomes is based on blockchain-based smart contracts, while the amount of potential future income is forecasted by the neural networks.
Thus, by subverting the main issues faced by publishers and webmasters on the advertising market, Ubex allows them to earn on their channels and paves the way for a better industry.
About Ubex
Ubex is the solution — a global, decentralized advertising exchange based on the fusion of Neural Networks, AI and blockchain operated by smart contracts. The mission of Ubex is to create a global advertising ecosystem with a high level of trust and maximum efficiency. With Ubex, the process of acquiring advertising slots and selecting the most effective websites for placement is simplified and transaction risks are minimized.
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