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SRAX’s (NASDAQ:SRAX) blockchain technology targets specific audiences

Tony Zerucha

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If you are curious about how the blockchain can help you target your customers with precision, choose a company with proven audience targeting capability, Chris Miglino said.

Miglino is the chairman and CEO of SRAX (NASDAQ:SRAX), a provider of proprietary ad technology tools offering brands, agencies, publishers and content owners new opportunities to target, reach and monetize their audiences. NXTalpha recently spoke to him and COO Kristoffer Nelson about SRAX, its many initiatives, and data transparency in the age the Facebook data scandal.

Chris Miglino

SRAX has a solid foundation in target audience identification. In the 1990s Miglino founded Centerlinq, a company that tracked consumer data in shopping malls via an interactive kiosk network and frequent shopper program. Later he founded companies which distributed yoga and socially beneficial content to a growing community of enthusiasts. Miglino then served as CEO of Lime Ad Network and LOHAS Integrated Media, an online ad network helping marketers reach green, healthy living and cause-related audiences while providing them with full-service contextual and behavioral targeting programs and broad-based media buys.

“I’ve been in advertising technology a long time, identifying different audiences versus specific vertical sets,” Miglino said.

At SRAX those verticals include medicine, where SRAXmd has mapped data down to the cell phone number of more than 300,000 verified MDs. That information is sold to advertisers from industries such as pharmaceuticals and technology. For the automotive sector, SRAXauto tracks potential customers for dealerships via lease, loan, purchase, car registration, and real-time dealership visitor data.

Another key tool is SRAXshopper, a stack of CPG tools allowing brands to influence shoppers with intent-based geotargeting and personalized shopper ad experiences at scale through the use of information such as real-time social signals, purchase and browser history and shopper intent signals. SRAXsocial helps companies schedule their social media marketing efforts while SRAXfan lets brands target fans in playing venues, restaurants and bars while delivering campaigns during peak engagement windows.

SRAX began the data gathering process by purchasing and aggregating dozens of data bases, but in early 2017 the company began a significant shift.

“Eighteen months ago we wondered what if, instead of buying data, we just paid the customer directly for their data and had them opt in to letting us have it,” Miglino said.

From that question arose BIG (standing for blockchain identification graph), a blockchain-based, wholly-owned SRAX subsidiary that manages and distributes data with the goal of becoming a consumer-powered data marketplace where people will own, verify and sell their own data. Via an app, consumers earn rewards for sharing and verifying their personal data, and every time companies buy that data.

The BIG token addresses key obstacles both within SRAX and out in the greater marketplace, Nelson said. Within the company it allowed them to control for data quality by controlling the sourcing. That is in contrast to acquiring it from outside sources who may employ multiple, and in some cases substandard, collection techniques.

“If you have a direct relationship you can solve the quality issue, you can know them,” he explained.

Kristoffer Nelson

Externally SRAX addresses the increasing sense of advertising violation consumers feel as they are constantly bombarded with messaging. The differentiator of being able to select which messages they receive and when will be highly valued by brands.

And the blockchain makes that depth of relationship possible. SRAX spent most of 2017 designing the architecture before commencing alpha testing early in 2018. Through the blockchain SRAX can efficiently deliver rewards and payments.

That time was well-spent, as the Facebook/Cambridge Analytica scandal and the European Union’s GDPR legislation highlighted the importance of corporate honesty and transparent data management. Facebook got caught violating the trust of its users, all the more reason why those users should have full control over all of the data they generate.

“The press coverage of major hacks didn’t shift sentiment too much beyond a brief period,” Nelson said. “Cambridge Analytica and Facebook shifted the narrative and perception, the outrage was at the forefront for a much longer period of time.

“The challenge was there were no solutions. People were upset and wanted change but had little direction. The BIGtoken is an outlet to manage that frustration.”

The material is not to be construed as an offer or a recommendation to buy or sell a security. See full Terms of Service.

Tony Zerucha

Tony Zerucha is an alternative finance journalist with more than seven years experience in the space. The author of more than 1,000 articles, Tony was named LendIt's 2018 Journalist of the Year.

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