The Earned Economy

The Earned Economy

Advertising Industry

Consumers all around the world will switch on to the power of their attention. The Earned economy empowers consumers to monetise their attention. This is a new model for advertising that uses a highly targeted, authentic, and engaging approach to get more people to pay attention not just for a few seconds, but for as long as the viewer is engaged and benefits. It’s a way for brands to create positive interactions with their potential customers, taking their product or services from awareness through to sale in a uniquely win-win relationship.

In the past decade, we have witnessed a shift in consumer behaviour, accelerated by Web 3.0, decentralisation and DeFi. Consumers are waking up to their freedom of choice and their innate consumer power. Today, consumers are looking for brands that can help them make sense of the information overload they face on a daily basis. The solution to this problem lies in creating a new kind of engagement that allows consumers to be in control of their attention and be fairly compensated, instead of being bombarded with traditional marketing communications.

In 2022, consumers will be more willing than ever to trade their attention for value in the form of money, rewards, or free products. Consumers around the world will switch on to the power of their attention, which is shifting from one-way communication from brands, to a two-way engagement with “compensation payments”.

The Earned Economy empowers consumers to monetise their attention. A powerful tool that brands can use as an alternative to traditional marketing communications such as advertising; direct mail; and email marketing – all of which are being ignored by overstuffed mailboxes, ad blindness, and email overload respectively. While these channels have lost their effectiveness, earned media will develop as the consumer takes back control.

Attention is the most valuable currency in the world. But consumers and the industry alike have been slow to recognise where the power really sits, largely because it still operates on an unearned revenue model. In a world where advertisers pay for access to eyeballs, the power of attention has been left in the hands of media companies rather than individual content consumers.

Now, advances in technology, new thinking stimulated by Web 3.0 has opened the door to a new kind of revenue model based on the “Earned Economy”. This new model will empower consumers and ensure that value exchange is at the heart of every business transaction involving consumers’ attention.

Ad History Timeline

Ad History Timeline

Ad tech pivots in 5 year intervals

1. Launch 1994 – A lot has changed since the world’s first banner Ad launched on HotWired for AT&T. It soon caught on quickly with Yahoo announcing an advertising deal for their own primitive banner ads.

The Click Through Rate, CTR back then was around 44% reported for Yahoo, and due to the nature of advertising interrupting what the user is actually trying to do, the effectiveness and all KPI’s have been decreasing year on year ever since!

2. 4 years later – It was only in 1998 that Google Search Engine came on the scene and advertisers turned to PPC with, due to the ever decreasing CTR’s of display ads. But it didn’t take long for Google to swiftly follow in the footsteps for DoubleClick with the birth of Google Adwords in 2000.

Facebook was launched in 2004 which was the year that AOL also acquired

3. 8 years later social media advertising was born – YouTube launched their video platform in 2005 and shortly after in 2006 launched their video Ads. Google purchased YouTube in 2006 and also in 2007 Google acquired DoubleClick, whilst Facebook offered targeted Ads on their own network. It was a few years later in 2009 that Google launched their DoubleClick Ad Exchange.

2010 saw the birth of Instagram whilst Twitter introduced promoted tweets.

4. Another 4 years – In 2012 Native Advertising rebooted the system and increased the declining CTR’s

5. 5 years later – 2017 saw Ads.txt introduced by the IAB to improve transparency and reduce the enormous and mounting Ad Fraud. CTR’s continued to decrease along with other key performance metrics year on year.

In 2019 increasing data protection concerns prompted the ICO to clamp down on the AdTech sector.

In 2020 CMA identified issues with the imbalance of competition in online platforms and digital advertising and suggested a new pro-competition approach should be taken to regulating platforms.

In March 2021, the UK government announced it was accepting all of the Furman Review’s strategic recommendations for unlocking competition in digital markets.

6. Another 5 years on and the market is ripe for disruption in 2022 – Earneco launches a new ad serving platform which puts the user truly at the centre, both in control and benefitting financially.