Blockchain’s AdHive: “People Don’t Respond to Traditional Advertising Anymore”br>
Dmitry Malyanov is the co-founder of AdHive, a mass-scale native video advertising platform.
Malyanov has over 12 years of experience in areas of business development, startup development, investment relations and vc acquisition. As a co-founder at Scorch.ai, Malyanov was responsible for business development, clients acquisition and partnership. Scorch is focused on visual recognition of complex actions and development of human actions detection algorithms. Technological solutions such as Machine Vision, Speech and Sound Recognition are now used at Adhive AI module.
AdHive’s goal is to be the first social video advertising platform with artificial intelligence (AI) and blockchain technological solutions. The AdHive platform automates all steps of interaction with bloggers, which can save a huge amount of time and effort for advertisers. The platform will bring to advertisers an opportunity to place a native video ad on an unlimited number of channels without having to worry about proper execution. Native video advertising becomes easy to run, and new opportunities for blog monetization will power community development and increase audience and advertising capacity.
The start of the ADH Token pre-sale is scheduled for January 10, 2018 and will last until January 27, 2018. The company plans to issue 450,000,000 ADH at the initial exchange rate of 2,000 ADH per 1 ETH. This is the final amount of tokens, and all unsold quantities will be burned.
BLOCK TRIBUNE: Could you tell us a bit how AdHive got started?
DMITRY MALYANOV: AdHive was launched in spring of 2017 by the same team who previously developed a video recognition solution for advertising. The move to influencer marketing came organically, and we decided to use all our already developed video recognition technologies to automate placing native ads with vloggers. This is how AdHive.tv happened. We’d previously encountered difficulties with marketers that build and maintain influence-marketing. It was mostly done manually, so we found out we had a pretty good shot at helping advertisers run campaigns more efficiently.
BLOCK TRIBUNE: How does the AdHive platform work?
DMITRY MALYANOV: AdHive automates all the process of native ad placement on influencer’s channels. We mostly focus on video content on Youtube, Instagram, and Facebook. Advertisers can place tasks on our platform, and for the first rounds, we can provide advice on placement, creative process, and choosing the right audience. After that, the platform will calculate the budget, and if the advertiser accepts it, he needs to buy ADH tokens. After the campaign starts, the platform distributes this particular advertising task among the influencers with a relevant audience. When an influencer is ready to take this task, he applies and executes it. The platform monitors the feeds of each registered influencer. When the influencer has published video containing the completed task, the platform begins to collect the numbers of views of the video.
BLOCK TRIBUNE: How do you measure the effectiveness of an advertising campaign?
DMITRY MALYANOV: After a campaign has commenced, we teach the AI module to recognize objects and words from the task. When an influencer publishes a video containing required objects and actions, platform can recognize it automatically, and then creates a smart contract based on the numbers of views during this day, pulling the relevant data from the social networks via the respective APIs. Then the platform transfers ADH tokens from the advertiser’s account directly to the influencer’s account. Daily transactions are based on numbers of views of the video.
Another crucial part is community members – people who check each video the same day it’s published. They need to assess the quality of the ad content and the value of the ad: how engaging the message is, and how well the influencer has delivered it.
BLOCK TRIBUNE: Do you consider social media to be the most effective form of advertising? Why?
DMITRY MALYANOV: Younger audience prefers social networks such as YouTube and refers to video content much more often; they use YouTube to search for things. Consumption of video content has increased dramatically in the last few years and will continue to grow. People almost don’t respond to traditional advertising anymore, that’s why native video advertising has the best chances to become the new standard and is currently enjoying the highest growth rate.
AdHive can automate the entire process – operations, distributions of tasks, the verification process, payments, and reporting. Advertisers don’t need to negotiate with influencers or manage the interaction manually; the platform will handle all the work.
The significant bit is that the influencers who want to apply for an ad need to submit a guarantee deposit, so they need to have about 10% of potential rewards in their ADH wallets to ensure their ability to apply for tasks. In case they do not execute a job correctly, they lose their guarantee deposits.
BLOCK TRIBUNE: How does it benefit both the advertisers and bloggers?
DMITRY MALYANOV: For advertisers, it brings tremendous benefits. Instead of giving time and effort to do things the old way, they now can spend just 15 minutes to design a campaign, and that’s it. They don’t need to decide which influencers this particular campaign requires; they don’t need to be deeply involved in the process. We create a very standardized product which will connect niche influencers with media buyers who operate large ATL budgets in an efficient, scalable manner.
The platform brings immense benefits to bloggers too, for blockchain makes international campaigns easy to launch: there is no need to employ local agencies just to pay influencers. We are going to work with a “long tail” of blogs and feeds. If an influencer has less than 10 thousand views of their video on YouTube or less than 1,000 followers on Instagram, that’s not easy to monetize their channel.
Today, beginner bloggers with smaller audiences have almost no access to adequately compensated ad campaigns, but AdHive can offer them valuable monetization schemes by managing them on a larger scale thanks to the efficiencies of automation.
BLOCK TRIBUNE: How much are you planning to raise? What is the minimum sum for the project’s implementation?
DMITRY MALYANOV: Soft cap of $3 milion is enough to launch an entirely operational service, but without large audience of influencers and advertisers. To launch an international business in 10th of countries we are going to raise $15 million during 2018.
BLOCK TRIBUNE: Where do you see the value of AdHive tokens in the medium to long-term and the ultimate benefit for token holders?
DMITRY MALYANOV: We believe that value of AdHive tokens will increase with the number of advertising campaigns. The total value of tokens represents the combined budget of all advertising campaigns on the platform.
Token evaluation basically represents success of the company. So by 2020 we’re planning to have $20M in revenue from advertisers only, and in the long term, we think that this number will grow at least ten times because we’re building an advertising product that offers a much simpler access to the big pie of corporate ATL budgets.