I’m Andrew Playford and in this video I’m going to talk about video on the blockchain and more specifically about Native Video Box, a new project that is currently doing an ICO.
Video advertising is exploding. In fact video makes up 80% of all internet traffic. Of that 80% almost half is being consumed on mobile. It’s not hard to imagine which properties are responsible for this supply: Facebook, Google, Netflix, SnapChat and of course Amazon.
According to marketland.com, over 70% of markers believe video ads are either as good as TV, or better. This makes sense. Video bests leverages all our human senses.
These amazing numbers don’t mean there aren’t major challenges. For example.
According to AdAge fraud cost advertisers over $7 billion in 2017. That’s 50% of the total spend for the year. Think about it, for every dollar you spend on video advertising, 50c is lost to fraud. That’s really just unacceptable.
Middlemen. A Forrester analyst recently estimated that nearly 80% of ad revenue lands in the hands of middlemen and not publishers. Also unacceptable. Making it worse, some of those middlemen are the ones perpetrating the ad fraud.
The technical costs of delivering video are high. Its estimated that over 30% of revenues are used to deliver video. That’s expensive, just ask Netflix.
So how does the blockchain fix this?
By leveraging smart contracts to process clicks and impressions trust with ad buyers would increase significantly and cause them to spend even more.
Tokenized billing would bring complete transparency to how the revenue pie is getting divided. Costs to middlemen would come down dramatically.
By decentralizing content delivery and making it part of the ecosystem, content could get delivered more cheaply and efficiently.
Now more on the Native Video Box project. It’s very important to understand what they do and do not do.
Native Video Box allows publishers to create an area on their site for video with an API, much the same way that say, a logger would open up an area on her site for ad banners. The native Video Box system will use machine learning algorithms to understand the context of the page and serve up videos supporting that content. In those videos, will be pre-roll containing advertising. So a visitors to a Food and Lifestyle blogger might see videos on cooking recipes or home design. Best part is the publish gets 60% of the ad revenue.
Native Video Box is not trying to create a centralized Youtube or Facebook competitor. A publisher, for example, might want to try that by using their technology but Native Video Box is simply providing the video infrastructure backbone to quite literally decentralize video distribution.
Now here are some more interesting facts about the project.
They already have a working platform and its already connected to over 100,000 advertisers via ad network integrations
They have started to make revenue already. They take 25% of the ad spend.
They have a hard cap of $15million.
Their token, Native Video Box Token (NVB) is the underlying currency of the service, which is used to reward publishers and content creators, pay fees and serve as the currency of deposit that is required to participate. Basically a robust ecosystem where there of lots of reasons for participants to seek, keep and spend the token.