Blockchain Fuels Digital Ad Revolution with Revenue-Sharing Models

The advertising industry has been witnessing a surge in blockchain-based projects. Telegram recently announced that it will share 50% of its ad revenue with users who agree to join its ad network, with payments made in Telegram's utility token. This follows similar moves by X (Twitter), which, however, pays users in USD. The emergence of "watch-to-earn" platforms, where users are rewarded with tokens for interacting with ads, highlights the increasing integration of blockchain and social elements in advertising. However, concerns remain about the sustainability of these models, as they rely on maintaining the value of their reward tokens.

Blockchain Revolutionizes Digital Advertising Landscape with Innovative Revenue-Sharing Models

In the rapidly evolving landscape of digital advertising, blockchain technology is making waves with the introduction of innovative revenue-sharing models that empower users and transform the power dynamics of the industry. Telegram, the popular messaging platform, has recently announced a groundbreaking initiative to share 50% of its advertising revenue with users who participate in its advertising network. This move marks a significant departure from traditional advertising models, where the majority of profits are retained by platform owners.

Under Telegram's revenue-sharing model, users will receive payment in the form of Telegram's utility token. Businesses and brands seeking to advertise on Telegram will be required to purchase the platform's token, creating a closed ecosystem that fosters the growth of the Telegram community. This strategic move incentivizes users to actively engage with the platform, fostering a sense of ownership and community building.

Telegram's foray into revenue sharing comes on the heels of similar initiatives by other tech giants. Twitter, recently rebranded as X, has also implemented a revenue-sharing model, albeit with a key difference. X compensates its users in USD, a widely accepted currency, rather than platform-specific tokens.

Another emerging trend in digital advertising is the rise of "watch-to-earn" platforms. These platforms reward users with tokens for viewing, interacting, or playing games on the platform. This incentivized engagement model is gaining traction, attracting a growing user base eager to earn rewards for their time and attention.

While these blockchain-based advertising models show great promise in disrupting traditional advertising practices, their long-term sustainability remains a subject of debate. Critics question whether these platforms can maintain the value of their reward tokens over time, a key factor in their ability to attract and retain users.

Phan Duc Trung, Vice President of the Vietnam Blockchain Association, offers a nuanced perspective on the matter. He acknowledges the potential advantages Telegram may have in developing a token backed by a large user community. However, he emphasizes that the use of tokens in online advertising does not inherently provide any benefits and may carry potential risks.

Trung highlights the inherent volatility of token prices, which can introduce uncertainty into advertising payments. Additionally, he notes that many countries have not yet legally recognized cryptocurrencies, creating legal and regulatory hurdles for businesses operating in the space.

Regarding the use of tokens for rewarding users, Trung expresses skepticism from a personal standpoint, questioning the advantages of using tokens over traditional rewards systems. He argues that the advertising models described above could be implemented using fiat currencies without the need for blockchain technology. Embracing blockchain solely to follow trends may result in increased costs without delivering significant value.

According to Trung, blockchain's true potential lies in its ability to facilitate cross-border transactions. This advantage is particularly relevant for advertising networks, media companies, and publishers with international reach. However, he urges caution for domestic entities considering blockchain adoption in their advertising operations.

In conclusion, the convergence of blockchain technology and digital advertising is driving innovation and reshaping the industry's power dynamics. Revenue-sharing models and watch-to-earn platforms are attracting attention, but their long-term sustainability remains a question mark. As these models evolve, it is crucial for platform owners to carefully consider the underlying value of their reward tokens and the regulatory landscape in their target markets. By striking the right balance between innovation and sustainability, industry leaders can harness the full potential of blockchain to create a more equitable and engaging digital advertising landscape.