What Is Telegram’s Ads Network on TON

Telegram has recently launched an advertising platform integrated with the TON blockchain, making it easier for advertisers to pay with cryptocurrency and for creators on the app to earn crypto rewards. This new feature, known as Telegram Ads, allows channel owners to monetize their content more effectively by displaying ads within their channels.

But what exactly is the Telegram Ads network, and how will it affect content creators on the platform? Let's break it down.

What Is the Telegram Ads Network?

The Telegram Ads network is a platform designed to create and distribute sponsored messages on public Telegram channels that have 1,000 or more subscribers. This system offers a way for channel owners to monetize their content, earning a share of the revenue generated from the ads displayed on their channels. Channel owners can earn up to 50% of the revenue from these ads, making it a lucrative opportunity for those managing popular channels.

For advertisers, the Telegram Ads network provides a way to reach specific audiences by paying to broadcast their ads on chosen Telegram channels. This targeted approach allows advertisers to connect with users who are already interested in the content of these channels.

All financial transactions within the Telegram Ads network, including payouts to channel administrators and payments from advertisers, are handled through The Open Network (TON) blockchain. The payments are processed and made using Toncoin (TON), the native cryptocurrency of the TON blockchain. This integration ensures secure, fast, and transparent transactions, adding another layer of trust and efficiency to the system.

How Does the Telegram Ads Network Work?

Telegram is a platform with over 1 trillion views generated across its broadcast channels. However, before the introduction of the revenue-sharing (RS) program, only 10% of these views were being monetized. The RS program aims to change that by making the Telegram Ads network accessible to advertisers in nearly a hundred countries.

How Advertisers Use the Telegram Ads Network

Advertisers can purchase ads through Telegram's Ad Platform, where these ads are displayed as sponsored messages within the app. With just a small amount of Toncoins, advertisers can publish ads and choose the specific channels where they want them to appear. This feature also allows advertisers to promote their bots or channels directly to their target audience.

The process for advertisers to pay for Telegram Ads is straightforward:

Sign in: Advertisers log in to the Ads Platform using their Telegram account.
Set Budget: They determine their advertising budget and upload the required funds on Fragment.
Pay with TON: Finally, they proceed to pay using TON, the native cryptocurrency of the TON blockchain, via the Fragment platform.

What Is Fragment?

Fragment is a self-custodial crypto wallet that handles all TON revenue-sharing transactions. It plays a crucial role in processing payments and ensuring the smooth operation of the revenue-sharing program.

How Channel Owners Benefit

Channel owners who host these ads can earn up to 50% of the ad revenue. This revenue is calculated based on the number of valid impressions—the number of times the sponsored messages are viewed—within their channel.

To collect their earnings, channel owners can follow these steps:

Access Channel Settings: Open the profile page of their channel and navigate to the channel settings.
Check Statistics: Go to the statistics section and proceed to monetization.
Collect Rewards: If a balance is displayed, they can click on "collect" to withdraw their rewards.
Withdraw Earnings: Channel owners can withdraw their earnings without any commission fees.

This system not only boosts the earning potential for channel owners but also enhances the overall utility and adoption of Toncoin within the Telegram ecosystem.

How Creators Will Benefit From the Ad Network?

Telegram's new TON-based ad network is designed to be more accessible and affordable than its previous advertising options. In the past, running a promotional campaign on Telegram required a hefty budget of at least €2 million. This high cost excluded many small businesses, forcing them to rely on agencies to pool resources and place ads on the platform.

The introduction of the Ads Platform has completely transformed this landscape, making it possible for advertisers to purchase ads for as little as 20 TON tokens. This shift has significant benefits for creators on Telegram, especially as smaller businesses reclaim their ability to advertise directly.

Here are some of the key benefits for creators:

Receive Higher Rewards: With the lower cost of advertising, more businesses can afford to post ads on Telegram. This increase in advertising activity means that creators have more opportunities to host ads on their channels, leading to higher payouts. The more ads they display, the more revenue they generate.
Earn Crypto Rewards: Advertisers can now pay for ads quickly and at a low commission, which translates into faster and more efficient payments for creators. These payments are made in TON, the native cryptocurrency of the TON blockchain. Creators can use their TON rewards not only for personal use but also to reinvest in their channels by paying for Telegram ads, buying collectible usernames, or offering premium giveaways.
Promote Their Business: The Ads Platform is not just for external advertisers; creators themselves can use it to promote their products or services. By advertising their own channels, products, or services, creators can attract more users and grow their audience on Telegram.

Overall, the new ad network democratizes advertising on Telegram, making it easier for creators to monetize their content, earn crypto rewards, and promote their own ventures within the platform.

The Role of TON on the Telegram Ads Network

Telegram's choice to integrate Toncoin ($TON) into its Ads network stems from the cryptocurrency's robust and scalable infrastructure. In 2023, the TON blockchain achieved a significant milestone by surpassing 100,000 transactions per second, earning the title of the world’s fastest blockchain. This impressive capability is backed by the blockchain security firm Certik, which has accredited TON for its security and reliability.

Telegram CEO Pavel Durov has emphasized that the TON network will be the exclusive platform for all ad payments and withdrawals on the Telegram Ads network. This decision is rooted in the need for swift, secure, and transparent transactions. By using the TON blockchain, Telegram ensures that all financial operations related to advertising, from payments by advertisers to revenue distribution to creators, are handled efficiently and securely.

Durov also pointed out that Telegram's approach with the Ads network mirrors their strategy with Fragment, a platform where Toncoin is already used for payments. As a result, all ads on Telegram will be sold in $TON, and revenue sharing with channel owners will also be conducted using this cryptocurrency. This consistent use of Toncoin across Telegram’s services reinforces the cryptocurrency's central role within the platform’s ecosystem, further integrating blockchain technology into everyday online activities.

The exclusive use of TON for these purposes not only streamlines the ad process but also supports the broader adoption of Toncoin, making it an integral part of Telegram’s financial infrastructure.

Conclusion

Telegram’s ad network is similar to those of other social media platforms that have introduced advertising features for in-app creators. However, Telegram is setting itself apart by incorporating cryptocurrency technology to make payments more secure and nearly instantaneous. This approach could benefit advertisers, creators, and the TON blockchain ecosystem.

Recently, though, Telegram faced a major challenge when its CEO, Pavel Durov, was arrested in France. This event has raised concerns about the future of Telegram, especially its ad network and overall operations. Durov's arrest could lead to uncertainties in how the platform is managed and how smoothly its new ad features will roll out. If the leadership faces instability, it could impact the confidence of advertisers and creators alike, potentially slowing down the adoption of the new system.