Hi guys, want to get your feedback on the idea in addition to what we’ve discussed already with Qiao. This pretty much will define our plan for the next 2 mo.
To recall, we all believe in web3 ad network, and it definitely will take its place in the future. Our initial plan however was to start by getting user data through allow lists and use it to find web3 users in web2, while the ad network was expected to come in later when we have the tech and demand side established. As I understand, you see the potential in doing and presenting the ad network directly. In such a case I start seeing major concerns about doing it right now:
1. Supply. Who will want to place banners in their app today? token pump seems to be the lucrative goal for many, and no one seems to worry about how sustainable it is. In addition, mid-market dapps have 1-10k unique wallets per day, how much can they really earn on ads with it?
2. Our edge is in analytics and ML algos, and we initially wanted to bring value in deep wallet analysis for accurate profiling for targeting. However, today the market is not as diverse, and realistically advertisers are totally happy with the “web3 users” audience, and “web3 users who play games” is the peak of their desires. So there is no value in analytics and the business narrows down to making partnerships and arbitraging traffic.
3. Paying tokens to users for their data. Big question is—is there even such a problem for users? Do they really want these few cents to even bother or do they just want the good content? (For ref, Brave pays ~$0.01 per ad and you only get max of 5 in an hour). It’s a neat idea and so on, but is there a business case there? It’s not medical data, where it costs a lot and you sell it once directly to the buyer. The views cost next to nothing. (Especially if advertisers are happy with just “all users of this app” where we don’t use data). And if we give a share to users, it means that publishers will get even less, and I feel it’s much more important to incentivize publishers, and leave it to them to bring the users. But in that case we become villains in web3 ecosystem and have to fight the headwind.
To recall, we all believe in web3 ad network, and it definitely will take its place in the future. Our initial plan however was to start by getting user data through allow lists and use it to find web3 users in web2, while the ad network was expected to come in later when we have the tech and demand side established. As I understand, you see the potential in doing and presenting the ad network directly. In such a case I start seeing major concerns about doing it right now:
1. Supply. Who will want to place banners in their app today? token pump seems to be the lucrative goal for many, and no one seems to worry about how sustainable it is. In addition, mid-market dapps have 1-10k unique wallets per day, how much can they really earn on ads with it?
2. Our edge is in analytics and ML algos, and we initially wanted to bring value in deep wallet analysis for accurate profiling for targeting. However, today the market is not as diverse, and realistically advertisers are totally happy with the “web3 users” audience, and “web3 users who play games” is the peak of their desires. So there is no value in analytics and the business narrows down to making partnerships and arbitraging traffic.
3. Paying tokens to users for their data. Big question is—is there even such a problem for users? Do they really want these few cents to even bother or do they just want the good content? (For ref, Brave pays ~$0.01 per ad and you only get max of 5 in an hour). It’s a neat idea and so on, but is there a business case there? It’s not medical data, where it costs a lot and you sell it once directly to the buyer. The views cost next to nothing. (Especially if advertisers are happy with just “all users of this app” where we don’t use data). And if we give a share to users, it means that publishers will get even less, and I feel it’s much more important to incentivize publishers, and leave it to them to bring the users. But in that case we become villains in web3 ecosystem and have to fight the headwind.