> For the complete documentation index, see [llms.txt](https://adro.gitbook.io/doc/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://adro.gitbook.io/doc/adro-protocol/core-solution/market-analysis.md).

# Market Analysis

### Market Analysis

The Broken Link : Advertising, Attention, and Rewards

> The global advertising market surpassed $1 trillion (1.08T) for the first time in 2025 and is expected to grow to approximately $1.1 trillion to $1.3 trillion by 2028. \[Source] [Dentsu / WARC (Global Ad Spend Outlook 2026) ↗](https://www.dentsu.com)

The current digital advertising ecosystem is in an unbalanced structure where advertisers, media, and users are all dissatisfied. ADRO PROTOCOL aims to technically solve this "Broken Link" through Internet of Things (IoT) and Augmented Reality (AR) technologies.

#### ⚠️ 3 Core Problems of the Ad Market

**1. Advertisers : Skyrocketing Costs and Opaque Efficiency (Low ROI)**

While digital advertising budgets increase every year, the actual purchase conversion rate felt by advertisers is declining.

* Overflow of Invalid Data due to lack of IoT technology : Ad Fraud damages caused by the absence of physical location verification technology are projected to exceed $100 billion (approx. 135 trillion KRW) by 2026. \[Source] [Juniper Research / Statista (2026 Ad Fraud Report) ↗](https://www.juniperresearch.com)
* Oversized Intermediaries : Complex intermediate stages between advertisers and users take a significant portion of the total budget as fees, hindering transparency.

**2. Users : Labor without Rewards and Ad Fatigue**

Users provide their time and attention, but the rewards for doing so are minimal or non-existent.

* Low Perceived Rewards : Most reward apps provide very low points compared to viewing time, and even these are difficult to actualize or use as cash.
* Absence of AR-based Interaction : One-way and forced ad exposure harms the user experience, and there is a lack of sophisticated AR interaction models to draw voluntary participation from users.

**3. Ecosystem : Disconnection between Rewards and Real Economy (The Gap)**

The most serious problem is that 'points' received as rewards do not lead to actual 'purchasing power.'

* Closed Usage Areas : Points that can only be used within a specific app have no value as assets.
* Absence of IoT Payment Infrastructure : There is no integrated IoT payment network that immediately connects the value of user activities to on-offline real-life payment methods.

#### 📉 Market Pain Points

<table data-header-hidden><thead><tr><th width="125.4444580078125"></th><th width="311"></th><th></th></tr></thead><tbody><tr><td>Category</td><td>Current Status &#x26; Problems</td><td>ADRO's Perspective (IoT &#x26; AR Solution)</td></tr><tr><td>Advertisers</td><td>Unnecessary marketing obsessed only with click counts</td><td>High-efficiency marketing based on IoT physical verification</td></tr><tr><td>Users</td><td>Reward experience perceived as a waste of time</td><td>Asset formation experience through AR interaction</td></tr><tr><td>Platforms</td><td>Point systems that are difficult to cash out</td><td>IoT hybrid immediate payment network</td></tr></tbody></table>

#### 💡 ADRO's Core Hypothesis

"The ecosystem is innovated when user Attention becomes immediate Purchasing Power (Payment) through IoT and AR."We believe that the act of users watching advertisements should be recognized as an economic activity, not just simple consumption. ADRO PROTOCOL begins a technological challenge to unify ad viewing and payment infrastructure to solve this problem.

> Solving a problem begins with looking at the essence. ADRO will eliminate opacity in the advertising market through IoT and AR, returning users' time as true value.