In this guest post, Atomic212’s COO James Dixon (pictured below) argues that, as painful as it is to say, many people hate ads and if you want consumers to watch them you may well have to start paying them to do so…!
The world must be going crazy. Consumers have always wanted to get their content for free, but soon they may expect to be paid for the privilege. Are we moving towards an advertising model where brands will pay consumers directly to watch their ads?
To those entrenched in a traditional advertising mindset, this might sound like a ludicrous concept. But just this month the Newspaper Association of America has threatened legal action against a man who is trying to implement such a system. The battle lines are being drawn, and I have a strong hunch where consumers will throw their allegiance.
Getting ads in front of eyeballs is harder than ever before. The intense fragmentation of channels means mass audiences are increasingly rare. Consumers can skip YouTube pre-rolls, they can fast-forward through TV ad breaks, and most importantly, they can install an adblocker. Personally I love a good piece of advertising, but then again, this is my industry. The truth is that many people don’t like ads.
A couple of years ago, marketers saw adblocking technology as nothing more than a minor nuisance. But in the past year, there has been an unmistakable shift in attitude. As audiences are inundated with content, they are becoming increasingly discerning, and increasingly annoyed by advertising models which interrupt their content experience.
According to Adobe and PageFair, adblocking is big business, costing publishers $US22 billion a year, with 18 per cent penetration in Australia (and growing). Publishers and ad networks have started sitting up and taking notice – adblocking is increasingly viewed as a formidable threat to advertising revenue.
But what if consumers could earn micropayments every time they viewed an ad? Surely the old misgivings would fall to the wayside.
This is exactly what Mozilla Founder Brendan Eich has done. Eich has this year launched a new project called Brave – it’s a browser that blocks third party ads, tracking and cookies. Meanwhile, Brave will then place its own ads instead, in place of the third party placements. Here’s the kicker – while the majority of the ad revenue is funnelled to the publishers, a small percentage (15 per cent) is given to the user who consumes the content.
Unsurprisingly, the publishers are in revolt, with the Newspaper Association of America calling the scheme “blatantly illegal” and threatening legal action. There has been some back and forth between the NAA and Eich, who claims he is trying to help the publishers, not hinder them.
There is certainly something to be said for rewarding consumers in such a way. I wonder whether this model could bolster revenue for publishers, who, let’s face it, have had a tough time of it lately. As Eich wrote on his company blog, “Brave is the solution, not the problem, for users and publishers.”
In a world where traditional advertising models are under incredible strain, innovative solutions such as this could ensure a beneficial interchange between publishers, advertisers and users. Everybody wins.
The publisher may have to sacrifice a 15 per cent commission to users, but at least it ensures brands will get access to consumers who don’t turn and run at the first sign of a marketing message.
Leading Australian market research data brand, RDA Research, provides actionable consumer intelligence to help businesses inform decision making and growth strategies. RDA Research wanted to make its unique consumer data available for addressable digital targeting and required a data onboarding partner to help activate their data in an online environment.
Storytelling agency Enthral has appointed Channel 7 reporter and sports presenter Sean Sowerby as its new senior PR and content manager in Melbourne. Sowerby (pictured) started his award-winning career at 3AW before spending more than 15 years in television. Enthral founder and manager director, Cameron Smith, spoke of the significance of Sowerby joining the agency. […]
This week Nova’s Fitzy & Wippa are celebrating 10 years of their iconic radio show and plenty of famous faces have weighed in on the feat! For Fitzy & Wippa’s 10-year anniversary show they were joined by a bunch of special friends who shared their messages and favourite memories over the last decade. The guys […]
Ever since Google first announced it would be getting rid of third-party cookies on Chrome, digital advertising businesses have been actively sharing their plans for life after cookies. And now programmatic advertising company Blis might have come up with the most creative way to get the message across, in a new video which sees company […]
Integrated Melbourne agency Icon has taken top honours in the 2021 SABRE Awards, winning the coveted Australasian Consultancy of the Year for 2021 along with a host of category and craft awards. Icon led a large field of Australian agencies with a total of three major and seven minor awards, including gold in the cause-related […]
Former agency executives Tim O’Neill and Tim Fouhy have launched the auto technology startup Summon. Australia’s first full e-commerce service for prestige cars. O’Neill and Fouhy both founded Reactive, a digital agency, which was bought by Accenture in 2016. Following the deal, O’Neill and Fouhy ended up leading the company’s digital marketing arm, Accenture Interactive before […]