Some estimates are as high as 50% of all venture capital goes directly into the tried and tested strategy of running Facebook and Google ads. Even unicorns like Clearbanc were formed to fund this specific use of capital.
But as capital flooded the social media marketing platforms to compete for eyeballs, the unit economics enjoyed by early adopters started to disintegrate. Teams are now looking for new ways to reach their target audience.
Solution:
An advertising model that is centered around user experience and feedback.
- Instead of targeting customers using internet activity, teams are able to utilize wallet-level activity to target advertisements and promotions even better.
- Users can choose to share their data in return for a cut of the advertising revenue they generate.
- Users can be made micropayments for their feedback on advertisements to act as a global focus group.
- Attribution can be improved by tracking digital identities as they move between applications and platforms.
If the preeminent business model that comes out of decades of internet innovation is selling people’s data to advertisers, then we should all feel disappointed. Blockchains can be used to not only create new business models that put users first but also improve the attribution and performance of advertising.