Background

Traditional traffic distribution models in the advertising industry are plagued with several key issues that hinder fair and efficient operations. These problems include centralization, lack of transparency, and inefficient cost settlements. As a result, both advertisers and traffic providers face significant challenges in establishing direct relationships, while intermediaries dominate the market, leading to unfair practices and increased costs.

Centralization

In traditional traffic distribution models, a few centralized intermediaries hold significant control over the flow of traffic. This concentration of power leads to a lack of diversity and options for advertisers and traffic providers. Advertisers often have limited access to quality traffic sources, while traffic providers struggle to connect with potential advertisers directly. This centralization creates an uneven playing field and stifles competition.

Lack of Transparency

Transparency is a critical aspect of any advertising ecosystem. However, traditional models often lack transparency, making it difficult for advertisers and traffic providers to assess the value and effectiveness of their campaigns. The lack of visibility into the actual distribution channels and the absence of real-time performance data prevent informed decision-making and optimization.

Inefficient Cost Settlements

The process of cost settlements in traditional traffic distribution models is often complex, time-consuming, and prone to errors. Advertisers and traffic providers struggle with delayed or inaccurate payments, leading to financial disputes. Additionally, the involvement of multiple intermediaries in the cost settlement process adds unnecessary fees and administrative overhead, reducing the efficiency of transactions.

Lack of Direct Relationships

Advertisers and traffic providers find it challenging to establish direct relationships in traditional models. The presence of intermediaries creates barriers and complexities in communication and collaboration. This lack of direct interaction inhibits the ability to negotiate terms, customize campaigns, and build long-term partnerships based on trust and mutual benefits.

Unfair Practices and Increased Costs

Centralized intermediaries often impose arbitrary rules, high fees, and opaque pricing structures, leading to unfair practices and increased costs for both advertisers and traffic providers. Advertisers may face inflated prices, while traffic providers may receive disproportionately low payouts. These unfair practices discourage innovation, restrict market access, and hinder the growth of small and medium-sized businesses.