It’s not as complicated as you would think. Publishers still will get, and will always get the lion’s share.
Let’s look at the full marketplace for an “ad buy”
Brand employs the agency
Agency creates content, performs media buy (so agency gets a cut of ad buy too)
Agency pays the third party, the third party sells the publisher
Third party pays publisher but keeps the data premium (the third party takes a higher cut, the publisher gets lower cut, based on their remnant prices bought in bulk.)
That entire transaction is covered in a series of “insertion orders”.
Now let’s remove the third party from the equation.
Agency/brand works directly to the publisher (in either direction, publishers can approach brands)
Publisher’s loyal audience becomes the decentralized server for the publisher.
Agency gets more premium than for less, the publisher makes more, and third-party fees are distributed to the users.
The complications arise from remittance, how does all of that money get distributed seamlessly?
The solution for that problem is called a “Smart Insertion Order” or P2P insertion order, where all fees (agent who sells, audience who verifies, views and distributes, and publisher who attracts an audience) is accounted for down to each individual, instead of two or three parties. That insertion order literally becomes the digital asset, because the brand is purchasing five seconds of pure unfiltered attention, and that digital asset is literally storing the USD value of attention, broken down to each individual.
Consider, a $10CPM equals .01 for every visit to your site. Third party takes 50%, you get .005 for every visit.
If every visit to your site insured five seconds of exchange between users and your site, that means that brand is paying .01 for five seconds of attention.
Since you as the publisher are selling the attention of your audience, and you as a humane tech publisher understand that the audience owns the value of their attention in that exchange, and as a responsible internet user, I will trade you a lion share of my value to use your site for free.
The smart insertion order initiates and closes the entire transaction down to the user level.
Agree, but baby steps. It would work with virtually all advertising eventually that is the ultimate goal, but we wouldn’t be able to start with search, because then we have to either convince Google to adopt our technology or build a search engine to compete with Google.
We’re starting with mobile direct to web pubs and apps because that marketplace is ripe for quick adoption, its something we’ve done before, and alone is so huge and the adoption potential so high, that once we set that standard where users are the distributing third party and receive a revenue share, we have a huge ecosystem and working model, and then we would seek to influence the other networks to adopt the model (by using our system for storing the digital asset, but not our system as a content management and distribution system).
Exactly, that is what the average CPC is from Google if you are an advertiser paying for it. If your site is running things like Outbrain, I know in some cases they split the CPC with the pub, but I think it still backs into a $5 or $6CPM after the conversion.
So let’s say your site has historical content for a certain topic, say I dunno marathon running. And your article peaks on Google search for terms around marathon running. That audience coming in from search to your site has the same value as it does to Google, there just are not any tools for you to monetize that way, but within this solution, you could, and using this strategy, you could sell the visit for far less, make far more, and piggyback off of Google search and only show Google search audiences the specific content. This is audience segmentation, and I’m not aware of any ad network that gives any publisher those tools.
It depends, but yes all models back into some sort of CPM measurement when the transaction is going in the way of the publisher, but for the advertiser, many do purchase on ONLY if there is a click, or a video view, not just the impression for it (that’s part of the way the third party devalued attention). So for example on YouTube, the advertiser only pays for :30 views, not all of the impressions it took to find it. Basically, they are purchasing on a CPV (cost per view) of (average .06 per view) which is equal to a $60CPM, but since CPM refers to impressions and not conversion, it can complicate things.
Now, Imagine if the publisher had the tools to deliver that sort of engagement and make a $60CPM instead of a $5CPM?
Now imagine that $60CPM, the publisher keeps 60%, the audience keeps 30%, an agent who sold it keeps 10%.
The system can still reach the same amount of eyeballs of the rich, and if the rich don’t want to accept or take the money, fine it goes back to the network of users.
But what if affluent people could pool and collect the money into crowdfunding or direct action? Consider, this solution distributes wealth for literally doing no extra work at all. Another element of it is the social side, creating “groups” to crowdfund direct action or projects. So I think we will see some adoption from the affluent, but we don’t need them to adopt for any of this to work.
Ahh, one of my backgrounds is in media sales. As long as you have publisher supply (quality pubs too, no crap) and a premium product that guarantees them viewability, etc it’s just media sales. Honestly, as long as you have a budget to hire a media sales team, I guarantee you that you will have advertisers, even if you are selling a crappy media product.
You also have to know which different types of markets are buying which types of media. Its’ rich, and this is usually what the third-party ad networks do for the pubs, their media sales.
If by big sites you mean NY Times, Wired, etc they all have media sales teams and sale their own media, in addition to selling out their unsold inventory to ad networks for lower cost.
For the big sites like that, the darling product is “sponsored content”, a native advertisement created by the publisher for the brand direct.
- Premium engagement
- Guaranteed viewability
- Channel control (they want to know where their ad is actually showing
- protection from bots
If you can offer that plus audience, you can easily find an advertiser. Display ads no one likes or wants, so you have to be able to offer a product that media buyers are looking for.