Web3 Marketing Startup Spindl Launches On-Chain Ad Network

As a data analyst specializing in the digital advertising landscape, I’d describe this solution as follows: Similar to off-chain ad networks in the Web2 era, this platform facilitates interactions among advertisers, publishers, and attribution service providers – entities that trace the origins of customers. In this context, the “publishers” are unique players in the crypto sphere, offering wallet services akin to social apps. These wallets feature news feeds and “discover” tabs for an enhanced user experience.

As an analyst, I’d explain it this way: In my analysis, advertisers would continue serving ads off-chain as normal. However, they would transfer campaign funds to a smart contract instead of directly to publishers. The smart contract, upon verification from the attribution provider using on-chain data that an ad resulted in a sale, would then release the funds to the publisher. This method offers advantages for all involved parties based on my observations.

Garcia Martinez, the CEO of Spindl, whose main offering is attribution, stated, “It’s more open and honest. It’s equitable. It runs natively on the blockchain. To put it frankly, it’s superior for protecting privacy.” Spindl does not employ questionable Web2 data like browsing history or personal information to tailor campaigns. Instead, they solely use on-chain transactions, which are already accessible to the public.

“We’re not doxxing anybody,” he said.

This article is part of CoinDesk’s Web3 Marketing Week series, presented by Cookie3.

What’s in it for advertisers

Instead of the “cost per impression” model in web advertising where advertisers pay based on the number of times their ads are displayed, regardless of whether any purchases result, this network allows advertisers to only pay for transactions that occur directly on the blockchain. Examples of such transactions might include a user creating an NFT or exchanging tokens via a decentralized exchange, as well as depositing crypto into a DeFi liquidity pool.

As a crypto investor, I can tell you that the abundance of publicly available information regarding crypto wallet activity opens up new opportunities for advanced prospecting strategies. This data allows us to gain valuable insights into market trends and identify potential investment opportunities with greater precision. By leveraging this information effectively, we can make more informed decisions and increase our chances of success in the crypto market.

As a researcher exploring targeted marketing strategies, I’d suggest an advanced approach that goes beyond traditional methods: instead of focusing on people who follow both Louis Vuitton and Web3 accounts on Twitter, consider using on-chain data for more precise targeting. Begin by identifying users who have minted a Non-Fungible Token (NFT) within the last 24 hours. Narrow down this list to those who paid an amount close to the project’s target price. Further refine your results by reducing the list to approximately 50,000 users. Finally, from these 50,000 users, select around 12,000 that have fashion-related NFTs in their digital wallets for more accurate targeting.

“Currently, our audience is particularly receptive and has a strong likelihood of making a purchase based on our data.” – Banon.

What’s in its for publishers

As a analyst, I’d rephrase Garcia Martinez’s perspective by saying: In the not-so-distant past, wallet services were primarily thought of as simple tools for storing and managing digital funds. However, according to Garcia Martinez, who held a pivotal role at Facebook during its early days as an ad targeting manager in the first half of this decade, these platforms are poised for rapid evolution into something much more akin to portals within the emerging Web3 landscape. A la Yahoo’s impact on the late-1990s Web1 era, these wallet services can generate income through advertising, serving as a valuable supplement to their existing transaction fee revenues.

In today’s highly competitive wallet market, businesses are driven to offer more than just transaction services, according to Garcia Martinez. He predicts an increasing trend where social experiences and transactional wallets will merge.

As a crypto investor, I can tell you that on this side of the market, Collab.land and Daylight are making waves as the leading participants in the new network. They will be responsible for selling ad inventory for crypto wallet services. Unfortunately, Garcia Martinez didn’t reveal the identities of these wallet providers himself.

As a crypto investor, I’ve noticed that traditional publishing platforms, including crypto news sites, are now leveraging the power of the blockchain network. I’ve personally seen Decrypt and RugRadio experiment with network campaigns.

Collab.land is renowned for facilitating sign-ins to crypto communities’ token-restricted websites, Discord servers, Telegram channels, and more, using users’ digital wallets. The platform proudly displays over 10 million linked wallets on its website. Additionally, Daylight contributes an extra 5 million active wallet addresses through its partnerships, according to Garcia Martinez.

What’s different, what’s next

Other advertising networks boast about being native to Web3, but according to Garcia Martinez, this is merely an exaggeration. In reality, they only work with a few cryptocurrency publishers and sell their ad inventory through them. There’s no actual activity happening on-chain.

As a researcher examining the developments at Spindl, I’ve discovered that they currently don’t have any intentions of launching a native token for their network. However, Garcia Martinez has left open the possibility that this could change in the future. At present, users can make transactions using stablecoins such as USDC or other existing tokens.

The network isn’t restricted to a specific blockchain. Instead, advertisers have the flexibility to select the preferred blockchain based on their requirements for tracking events or making payments. Majority of the clients opt for Ethereum Virtual Machine (EVM)-compatible chains or establish their own chains.

Currently, Spindl serves as the sole attribution provider within the network, confirming that an ad impression resulted in a conversion and acting as the oracle for smart contracts in return for a revenue share. In the upcoming months, according to Garcia Martinez’s plans, the network will be expanded to include competitors.

As a researcher, I’ve encountered a significant mindset transformation in moving from an environment characterized by relentless competition to one where I must extend a warm welcome to numerous companies. This shift can be quite challenging, but it’s essential for navigating this new landscape effectively.