How can the Digital Advertising's industrywide struggle to create new values be solved?
08 Nov 2018
From September 12 until September 14th, JoorsChain attended the Mobile World Congress Americas 2018. It was the second annual edition of the event, with almost 22.000 attendees and nearly 1.000 companies participating. Throughout the various interesting meetings we had, we also had the chance to join several conferences. During one of these, the status of the Digital Advertising industry and the need for change with regards to monetization came to light.
During the conference, we heard key players from the media world, speak about the potential values that the industry is currently failing to create. A proper understanding of the backgrounds of these key players, is crucial to determining how new value can be created and how current value streams can be maximized.
First there are the content creators and their customers. Media creators, who often own huge shares of the market, have to deal with a shift of behavior from their customers. Their customers largely view their content on mobile devices nowadays, and though this has been well accommodated over the years, the business model behind it has not been powerful or flexible enough to engage mobile customers in the same way as in-home viewers. In parallel, the consumption of their content by the mobile viewer is highly dependent on their internet consumption capacity, as viewing content online consumes a lot of data. Without viewers having abundant access to the internet, media creators cannot sell their content.
Conversely, the high consumption of data is of course interesting for Mobile Network Operators (MNO’s). Their struggle is similar, in the sense that to reach price conscious potential customers, MNO’s must make a good offer to their customers or they will simply wait until they have WiFi access (or use a more affordable network) in order to access the content they seek. Thus, media company’s struggles and success, is now closer than ever linked to the struggles and success of MNOs across the globe.
The last two players in the industry are the advertisers, who want to reach the viewer with their advertisements, and the publishers, a key player that will receive a larger portion of the revenue. Now, how can all these parties be brought together in an active ecosystem that brings higher rewards to every party?
To begin the monetization of their content, media creators started acting as publishers, by presenting advertisements to the viewers. JoorsChain introduces a platform that can tremendously multiply the value of these advertisements, while simultaneously offering rewards to the viewer and opportunities to MNO’s. It does so by using a decentralized blockchain solution.
Publishers, as one of the parties which add most value to the ecosystem by providing the critical mass to sustain the business, will get more benefit from it. More than 50% of the advertising fees that currently goes to intermediaries, will be best distributed among the key players mentioned above.
It starts with the viewer, who is now invited to fill in information in a survey or to watch an ad, in return for JoorsCoin. JoorsCoin serves as the currency in the ecosystem created by JoorsChain. With more information gathered about the viewer, the value of the ad is worth 20 to 40 times more than in the current situation (CPM). This value is shared in a fair way between the publisher and the advertiser, as smart contracts pay out JoorsCoin as rewards. The viewer can use the JoorsCoin for example for e-commerce purposes, so the viewer is incentivized for participating in the system. MNO’s can use the same principle as a value proposition to their customers, so that when their customers use their solution with JoorsCoin rewards, the MNO has a unique value proposition in respect to its competitors.