In what may be a first-of-its-kind move, consumers who see ads targeted to them via programmatic media buys on the open web will get a piece of the action. You read that right: consumers will get a share of the revenue generated by the ads served to them.
While you get your mind around that concept, I'll go into some of the background -- including the who, what, when, where and whys -- of what led up to it.
Paying people to look at ads is not an entirely new model, even if it seems like an antithetical one.
I mean, when you think about it, most forms of advertising pay consumers indirectly -- usually be defraying the cost of accessing content, or a service like search, navigation, etc. But in recent years, a burgeoning marketplace has emerged of models that reward consumers explicitly for agreeing to be exposed to ads.
Most notably, this has emerged on gaming platforms that enable consumers to unlock premium upgrades by agreeing to view and ad exposure.
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Industry bodies have even come up with a term for this model, albeit a clunky one: rewarded opt-in advertising (or ROIA, which is kind of the inverse of ROAI, which stands for return-on-advertising-investment).
But most of those models still are indirect forms of payment -- you know, rewards like upgraded, premiums, points, etc. -- not cold cash, although there are some of those too.
I even tried launching a venture to do that some years ago as a side hustle while editing MediaPost. It was called Bid/r and it failed for a number of reasons, mainly because we ran out of funding, but also because we were too early in the game and most people -- consumers and marketers alike -- looked at me like I had two heads when I explained the model to them.
I'll spare you all the gory details, but a decade or so later, some people have credited me with being a pioneer of Web3 advertising models that cut the consumer in. Bid/r's model was actually very different than that. Our thesis was that consumers were the end-market for advertising, and therefore had the right to sell their own attention directly to brands that wanted to acquire it, and we were simply a platform for facilitating that.
During Bid/r's early startup years, I bumped into a number of people who had similar ideas, but with slightly different angles. One of them was Sue Fennessy, founder of Standard Media Index, which she sold and is now part of Guideline.
Fennessy went on to found social media app WeAre8, which also utilized a model that cut its users in on a share of its advertising revenue, as well as donating a percentage to charities.
She also recently announced she has changed her own personal brand, changing her name to Zoe Kalar. You can read more about that here.
I've written about WeAre8 previously, and it's still pretty early stage, but it is gaining mass, and this week it announced a deal that will extend its advertising inventory off its own platform and take it across the open Web via a deal with contextual targeting platform Public Good, which helps marketers target "values and purpose" based ads to consumers via an ad network or prominent editorial brands including HuffPost, Guardian, Hearst Magazines, Discovery Network.
WeAre8 calls the ads on its own platform, as well as the ones that will be distributed across Public Good's network, "Golden 8 ad units," which I think is an allusion to the "Golden Rule" (you know, do unto others...).
"The deal takes the ad unit that pays people and charity for every ad view (currently only available on the weare8 app) and distributes it across major publishers via Public Goods programatic network," WeAre8 CMO Luke Robinson explained to me this morning as part of a series of emails we exchanged.
He shared the image above, which shows the unit's call-to-action in an ad served on Food Network, which is part of Warner Bros. Discovery.
The ad says the user will receive four cents directly from WBD, while one cent will be donated to the Movember charity. That makes the net user/charity portion of a Golden 8 a unit buy a $50 CPM.
I asked Robinson what the total ad revenue split was for the programmatic ads served on the publishers' sites, and he described it this way:
"The payment split is consistent across web and in-app: 60% of every dollar invested goes back to people, planet and charity (55% to people, 5% to charity [of which 1% to planet through our carbon project partner, Ecologie, who carbon neutralizes all campaigns]).
I asked him of that was gross or net, but I haven't heard back from him yet. (Stand by for an update.)
Assuming we're talking gross, that means the total cost of the Golden 8 unit is about 8.3 cents per user, or about an $83 CPM.
I also asked Robinson what the revenue share between WeAre8 and Public Good is, and I'm waiting to hear back on that as well.
But I think the deal is kind of brilliant, because it helps solve an immediate audience reach need for both the WeAre8 app, as well as the advertisers who want to use it.
By expanding its audience to the open web, WeAre8 can scale its audience reach quickly, while also recruiting perspective users to install.
The screenshot below shows what happens when consumer not registered for WeAre8 receives one of the Golden 8 ad units offering to pay them for being exposed to the ad.
Personally, I'm rooting for WeAre8, because I think it's an honest and transparent model that recognizes consumers are now an active part of the advertising equation, and acknowledges it.
I still think there are flaws in its model, but at least WeAre8 is heading in the right direction and I can't wait to see what they do next.