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Author Topic: Why the internet needs ZOHEM — A Decentralized User-Behavior Data Protocol  (Read 15 times)
zohem
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February 22, 2018, 11:07:03 AM
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Internet advertising is a 200Bn USD global industry, and 74% of that industry (and 99% of its annual growth) is eaten up by 2 companies, Google and Facebook.

Why so? — Because they govern the primary currency of the economy, which is user behaviour data.

A huge chunk of this data doesn’t belong to them, but to the publishers on whose site this data is generated. But Google and Facebook maintain access to this data by having their widgets or SDKs (like AdSense ads or Analytics) installed in one form or another on most of the websites on the internet.

Now, data can’t be monetised in silos, i.e. if I, as a publisher, have access to only the usage data for my website and I try to monetise it, it’ll fetch negligible money, because the data is insufficient to drive any marketing or advertising strategy. But if someone has access to all my activity data and that of everyone on the internet, then it is fruitful/possible to monetise it, and that is exactly what Google and Facebook do.

Now, because these two are the only ones who have access to that huge amount of data, they have been able to attract the largest set of advertisers in the world. And because they have access to the largest set of advertisers, they act monopolistically and charge an extremely high commission rate for advertising on publishers' sites, leaving a very small percentage of profits for the publishers.

This creates a market with negligible competition, where publishers get an unfair, small amount of what the advertisers pay, and the advertisers pay an amount much greater than what they could have paid in a competitive market.

3rd party platforms that facilitate buying and selling ad inventory at much lower (and transparent) commissions (known as Real Time bidding exchanges) have existed for over 6 years now, but haven't been able to challenge the duopoly of Google and Facebook.

These exchanges have attracted huge publisher interest, in hope of lower commission rates, but garnered little advertiser interest. That is because advertisers do not just need ad inventory to bid on, but user behaviour data as well to make confident ad buying decisions. And this quantum of data, is aggregated only by Google and Facebook — neither by 3rd party platforms nor the publishers themselves.

So, we at Zohem, are trying to create a community-owned database of user behaviour data, which once developed and implemented, will facilitate the buying and selling of ads on transparent exchanges. These exchanges charge much smaller commissions, saving billions of dollars for advertisers and increasing billions of dollars in revenue for publishers who do the bulk of the hard work (i.e. creating content and engaging users). Hence, Zohem.

Zohem is a decentralized data exchange protocol that will incentivize the sharing of user behavior data for publishers while providing advertisers with more control over their marketing campaigns.

Learn more about the platform at zohem.com. Read the whitepaper at zohem.com/whitepaper.html

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