Kachingle Crowdsourced Advertising Placement Platform

Summary & Contact Prototype Video System Flowchart Information


A cloud-based "big-data" advertising platform which enables brands with loyalty programs to leverage members' web/app usage to place ads strategically, and at the same time accelerate customer retention by offering points for active opt-in participation. The system is based on Kachingle’s existing production micropayment platform.


Cynthia Typaldos, CEO | 650 215-8406 | cynthia@kachingle.com

Prototype Demo Video

(Note: Virgin Elevate is not currently a Kachingle partner, we just used their UI to mockup the demo.)

System Flowchart

So how does this all work? See the guide below. (Click image to enlarge)

{1} Vendor’s Loyalty Program “charges” participants’ Kachingle-powered sub-accounts with “endorsement points” (green “+++” lines) so they can “endorse” the sites/apps/etc. they choose to support.

{2} Usage data for those participants flows from Kachingle back to the Loyalty Program (purple lines), so the Loyalty Program can reward active participants with more points/miles/etc. (This data is broad usage info, not specifics like which sites were visited.

{3} Kachingle APIs interact with Vendor’s Loyalty Program, with Advertising Network, and with Sites/Apps/etc.

{4} Participants’ “endorsement” activity — visiting and contributing “endorsement points” to their chosen sites. This demonstrates how a “critical mass” forms when multiple participant visit the same site. The top of diagram also shows endorsement data being shared with the Ad Network.

{5} Ads for the Vendor are placed on the sites Participants visit, and when a “critical mass” occurs, the Vendor's advertisements display for everyone on the site, not just Participants.

Additional Information

Kachingle's Crowdsourced Advertising Placement is cloud-based platform that accelerates customer loyalty, and the opt-in gathering of big data, by enlisting advertisers’ best customers to identify ad placement locations.

It’s crowdsourced ad placement, where the “crowd” are members of advertisers’ loyalty/rewards programs. Because this system is agnostic as to the content of the sites, it may be especially beneficial for high-traffic, high-valued sites* (e.g. news) where the content cannot be directly correlated to the advertisers’ products or services.

In any case, because the placement is independent of content and based on a simple, even automatic, “endorsement” mechanism by advertisers’ best customers, the placement of the ads could be superior to current mechanisms which rely on demographic analysis of the sites’ visitors.

(*Note: “sites” is a generic term which could mean content, news sites, blogs, apps, videos, podcasts, etc., either mobile or web or both.)

Kachingle History

Kachingle built a sophisticated usage-based subscription micropayment system and initially targeted the online content/media industry. Due to a variety of factors, including and especially the unwillingless of old media to experiment with new business models, the system failed to gain traction with producers. Kachingle then added a bundling capability and pivoted to the app market. The Kachingle website reflects this new focus.

However, the Kachingle team had an epiphany recently and realized that our micropayment system could be adapted to manage advertising micropayments rather than direct micropayments by simply 1) connecting the subscription front end to advertisers reward systems, and 2) connecting the micropayment backend to advertising networks. We believe it is unlikely this concept has been explored by others since we essentially backed into it by having a working micropayment engine and are looking for market fit. It’s unlikely someone in the ad technology space would envision an advertising display system powered by a micropayment engine.

Patents Pending


Online Advertising Industry Background

All advertising-supported applications and content reliant on the internet — and all their advertisers — face significant hurdles to effective advertising, and therefore effective advertising revenue. For example, considerable demographic research is required to effectively place advertisements where target users might see them — and even when advertisements are placed effectively, users often ignore them or employ ad-blocking software to hide them leading to an “arms race” in which more advertisements, and more intrusive advertisements become prevalent, driving more users to adapt blocking options.

Currently the existing online advertising ecosystem suffers from major difficulties including:

How Kachingle solves the ad industry woes

Kachingle Crowdsourced Advertising Placement is an advertising ecosystem in which participating advertisers’ best customers — the kind who participate in their loyalty or rewards programs — are used to bypass traditional site/app-based demographic analysis and directly determine the best placement of a company's online advertisements, in web pages, videos, apps, games, and other forms of online and internet-connected products.

The Kachingle Crowdsourced Advertising Placement system helps place advertisements anywhere frequented by advertisers’ target customers, and the placement is driven accurately, automatically, and in real-time, by the online activities of its rewards program participants. Because this system is effective, higher-than-traditional prices may be charged for advertisements, resulting in valued revenue for the sites/apps/etc. on or in which the advertisements are being displayed.

Because this system is so effective and focused, the network serving the ads (and the sites displaying them) could make more money from higher prices for ad placement. The advertiser no longer needs to know where the ads appear, since if their best customers are going to these places (or are using these apps or watching these videos) then by definition these are places where they and others that matter to this advertiser are likely to be found.

Ads displayed by this system could be more attractive to users since 1) users know they are collectively determining which ads appear, and 2) therefore the ads should be more relevant. It’s possible some users would be willing to turn off ad blocking for sites that are part of the Kachingle Crowdsourced Advertising Placement Ad Network. Additionally, some users will be relieved that their online behavior is no longer being tracked by the advertisers.

Kachingle Crowdsourced Advertising Placement is built on the backbone of our Kachingle’s existing bundling, subscription and payment engine that is already live and working. All that needs to be added are connections to advertisers’ existing rewards programs, and connections to existing advertising networks.

Why Kachingle's Crowdsourced Advertising Placement system could be a game-changer where everyone wins

The Advertiser Wins

  • No more “I know 50% of my ad budget is wasted, but I don't know which 50%.”
  • The advertiser no longer needs to figure out which sites their customers, and future customers visit. Ads automatically appear on those sites by their rewards users voting with real ad $.
  • Internet advertising costs are lowered dramatically by eliminating labor-intensive conventional method of ad placement and poor CTRs and conversions. But the value of the ads goes up!
  • The dynamic nature of this technology means that as trends shift in user behavior, ad placement automatically shifts along with it.
  • The advertiser realizes a marketing advantage and prestige in funding and supporting crowdsourced funding of the web, helping bloggers, content sites, and app developers thrive.

The Ad Networks Win

  • The networks serving the ads benefit greatly from a system that automatically determines ad placement on sites most likely to yield the best ROI for their clients. This means happier clients.
  • And the networks realize greater revenues, and can offer greater payments to member sites for these targeted ads.
  • Users are less likely to ignore ads or block them since they know the ads that appear have been “voted” in by them as a group, and the ads should be more relevant. They are also doing good by supporting free stuff.

The Rewards/Loyalty Members Win

  • Members see ads that for goods and services they actually care about
  • Members are given extra reward points that are redeemable only if they actively participate
  • Members get to help fund their favorite web sites and apps without having to lift a finger — save for a single click that tells Kachingle to note that this is a site or app they want to support. Then their usage will determine how the advertising revenue is distributed to that site.

The Sites and Apps Win

  • Participating sites and apps get revenue fairly distributed
  • Their users play an active role in generating and distributing this revenue, with little effort. Users can share their “kachingling” socially too.
  • And they earn higher ad revenue, because the ads placed on their sites are targeted and proven to be well-suited for their userbase
  • Users are less likely to ignore ads or block them since they know the ads that appear have been “voted” in by them as a group, and the ads should be more relevant


Ads placed through Kachingle Crowdsourced Advertising Placement could have a special branding, so that users know they are crowdsourced.

The ads could also appear on the landing page for a site article in the aggregators (this is one reason why branding would be important, it would indicate that at least some of this ad revenue is going to the content provider, not the aggregator).

There is something going on called “acceptable advertising” concept being promoted by the Ad Block Plus developers as a way for customers and consumers to pre-vet/approve advertising that conforms to their needs and tastes. Kachingle Crowdsourced Advertising Placement could be the first ad system to adhere to their guidelines/rules.