How Basic Attention Token (BAT) Aims To Decentralize Digital Advertising
The online advertising industry may soon get the blockchain treatment in the form of Basic Attention Token (BAT)— and it could soon compete with big online advertiser such as Google and Facebook.
Currently, cryptocurrency investors can take advantage of the low price of the token (as I’m writing this the Basic Attention Token price is $0.7145). And how to buy Basic Attention Token is relatively straight-forward as there are several exchanges that offer BAT (here’s a list).
Middleman ad exchanges, complicated market behavior, and audience segmentation have overtaken advertisers and publishers in the fight for user attention. Users face privacy violation and malicious advertising (malvertising) when browsing the web.
Mobile advertising is also expensive. Advertising on mobile platforms cost users and estimated $23 per month on data charges and about 21 percent less battery life.
Right now, more than 500 million desktops and mobile devices use ad blocking software to hide annoying ads. Ad-blocking software’s causes tradition publishers to lose more of their revenue, and publishers’ profits are on the decline. Users have less control over the content shown to them– which many see as a privacy violation.
Google and Facebook remain the big players in the world of advertising. They charge publishers for clicks, views, downloads, and sales. Many publishers make net positive revenue, but the reality is that users spend less time on engaging with redirect links. This is problematic for publishers, who earn income according to the rate at which users responds to ads.
Basic attention token and what they bring to the table
Basic Attention Token (BAT) is a new token for online advertisement. BAT allows advertisers, publishers, and users to connect in a transparent and decentralized way on the blockchain platform. BAT aims to reduce or eliminate users’ privacy violation, fraud, and malvertising.
In simple terms, BAT allows users to control the ads they view. Users can choose to revive advertisement if they do their attention will be monitored by the Brave browser without tracking. Publishers will receive rewards according to BAT tokens of utility in a private, secure, and anonymous advertising network, and users will receive a share of the browsers token for participating.
Unlike some of the bigger players in online advertising, BAT promises to not sell users’ data to other companies. BAT aims to keep data, encrypt data and shield users’ identity. One of the keys to BAT’s long-term success will be how it forms trust with users and helps them realize the value of their data.
Also, publishers are not left out as they earn more revenue, receive less fraud and obtain better reporting. By all accounts, BAT is better for publishers and users alike.
How BAT works through your web browser
Right now, BAT will be tied to the Brave browser (a fast, open source, privacy-focused browser that block ads meant to disrupt user’s privacy) and with other verified publishers. The browser has millions of users and is available on IOS, windows, Linus, and Android devices. According to BAT’s website, the integration will reduce fraud through cryptographic secured transaction. Everything from publishers’ payment to the protection of users’ privacy will be through the BAT system.
Here’s a chart from BAT’s about how their token functions:
In conclusion, here’s are some of the key characteristics of BAT that give it the potential to snatch a large chunk of the online advertising space:
- The token caters to publishers, advertisers, and users.
- Initial rollout of BAT token has already started (you can use it right now).
- BAT has resolved the conflict between advertisement and privacy.
- It create transparency across different networks.
- The token creates useful and relevant advertisement for publishers.
- It rewards users for participating in advertisement.
While I’m personally not comfortable offering a Basic Attention Token price prediction, some experts such as WalletInvestor give a one-year forecast prediction of $0.722 as of this writing.
BAT has the potential to improve and redefine digital advertisement for the better and for everyone. The current advertisement model has become deeply cumbersome for publishers, advertisers, and users– take YouTube’s recent controversial changes to their advertising policy for example. This new Blockchain advertising model will better respect users choices and still serve them relevant ads, which in turn increases revenue for publishers.