Decentralised Search Engine & Advertisement Network | AdTech Startup Idea

This AdTech Startup Idea from the 1001 Startup Ideas collection of YoStartups is about building a Decentralised Search Engine & Advertisement Network based on smart contract to connect users and businesses for advertisements. Through this, the user will be empowered with total control over his personal data and the businesses will be able to access genuinely interested target audience without the role of any intermediary.

Market Definition for Decentralised Search Engine & Advertisement Network

At the current rate, the size of the internet is doubling up in every two years. In 2016 start, there was around 7.7 Zettabyte data that was distributed across internet servers. In the year 2020, the amount of data is expected to reach upto 40 Zettabytes. The sheer amount of data on the internet makes the use of Search Engines imperative when you are looking for a bit of information in the data jungle.

In 2017, 46.8% of the global population accessed the internet and by 2021 this figure is projected to reach upto 53.7%. The advertising industry alone is worth about $550 billion, with Facebook and Google taking the lion’s share. Currently, Google has monopolized the market and now controls nearly 80 percent of desktop and 95 percent of mobile searches. In fact, Google handles over 40,000 search queries every second, which translates to over 3.5 billion searches per day and 1.2 trillion searches per year.

Competitor Analysis for Decentralised Search Engine & Advertisement Network

According to Net Market Share the global marketing share percentage, in terms of the use of Search Engines heavily favored Google throughout 2017 – averaging a net share of 74.54%.  This again reinforces the fact that Google is the market leader, however, it also highlights that the “Others” such as Yahoo, Bing and Baidu etc. still hold a large audience and it would be silly to simply ignore them (averaging between 5-10% market share).

It is interesting to note that although Google holds the most market share month on month it has been slowly decreasing from August 2017, with Badui’s share slowly rising to 14.69%. Other search engines like AOL, duckduckgo and Ask all have less than 1% market share.

Bitclave is SaFo based startup offering a decentralized search engine that eliminates any third party advertising intermediaries with the goal of establishing a strong, more efficient relationship between businesses and consumers.

Pain Point & Target Audience for Decentralised Search Engine & Advertisement Network

The target audience for the startup would be any internet user who wants to have control over his digital record and activities over the internet. The other side of the target audience would be businesses who are looking for targeted and cost-efficient online marketing channels.

The internet and online advertising are completely ruled by a handful of players like Google, Facebook, Yahoo, retailers like Amazon. They dictate how we navigate through the vast internet and how businesses should run their online campaigns & advertisements to reach potential customers.

Every time one browse through the internet, a lot of personal information about the user is tracked and logged which is further packaged and sold to the businesses for their advertisements. It is a big privacy concern on the users’ behalf as most of this information is being recorded and sold without their consent or even knowledge.

This information is then used in different advertisements for which businesses pay huge sums of money, hoping that they might get a piece of the billion-dollar online consumer industry. These campaigns are translated into the invasive pop-up ads, and mostly irrelevant, sponsored ads that litter our everyday online experience.

Value Proposition for Decentralised Search Engine & Advertisement Network

The decentralized search engine and the advertisement platform puts the power back into the hands of internet users and the businesses. The users will have complete control over their private data and can choose with whom they want to share. Now instead of Google or Facebook, making money on the users’ private data, the user can get paid directly for sharing his data with the businesses for advertisement.

For the businesses, the cost of online marketing will go down as there will be no intermediaries. Also, the ROI on marketing should go up, as only the interested users will be targeted through this transparent mechanism.

Business Model for Decentralised Search Engine & Advertisement Network

The proposed startup will launch its own digital currency with which it will reward users for each relevant search from the businesses. The businesses will pay for this digital currency which will be transferred directly to the user without any middlemen in between.

The users will be able to use this digital currency to make purchases on the retailers and other online businesses registered with the startup. As the currency will pick the volume in transactions, its valuation will increase over the period of time.

Way to market for Decentralised Search Engine & Advertisement Network

This proposed  AdTech startup would first need to crawl and index the existing content on the internet and set up the algorithm for page ranking for different keywords. There was a time when Google would take a month to index 50 million pages, but now the same indexing can be done within a minute.

Rather than a being a generic and holistic search engine, the startup can choose a niche and build expertise and market dominance before venturing into other domain. For example, the startup can choose to create supremacy in science-related information, or fashion related information, etc.  Once that is done, the startup would need to invest on its own marketing to attract as many users as possible, which would, in turn, help them to attract businesses to come on board and start advertising their businesses.

Milestones for Decentralised Search Engine & Advertisement Network

This proposed Adtech startup should spend first 6 months in indexing the content and setting up & refining the page ranking algorithm. Post which they need to set up their niche segment and start attracting users to their search platform. The startup should target to reach over a million search per day within the next 6 months. Once there is a use case, the startup can look to for ICO as well.

Investment Needed For Prototyping Decentralised Search Engine & Advertisement Network

This AdTech startup should look to raise upto 100k for the product development and marketing. The startup should try to get into one of the blockchain specific accelerators which will not only provide the access to seed fund, but also the blockchain expertise and legal advice.

Investors / Expert Take on Decentralised Search Engine & Advertisement Network 

With the rising awareness and debate over the data privacy, internet users are looking for more than ever the control over their private data and are apprehensive of sharing it with any third party. This sets up the right tone for launching a search engine which eliminates the supremacy of big corporates like Google & Facebook over the internet.

One such blockchain based search platform, Bitclave raised $25.5 Million in just 25 seconds of the official start of the token sale on ICO. This shows the strong trust that the market has in this new age search platform.

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