Social media makes money mostly by selling your data and advertising. These companies need ongoing revenue to stay alive and can only keep afloat for so long without these revenues.
The advertising model has gotten much more complex and in some ways more intelligent, but they are still using the same old model that has been around since the beginning. That is to show you an advertisement based off of what they think you want.
So lets flip this around a bit shall we...
To explain my method of presenting the consumer with smart advertising I am going to make up a fictional family and friend chat program called "CrewChat".
Mom, Dad, and the two teenage Son and Daughter are all members of CrewChat and have invited some other family and a few friends into their group as well. CrewChat is using a new way to bring in revenue from its users. They have a choice for each member to pay an annual subscription of $20 for no advertisements OR a brand new method called "AdPick".
- You choose from a list of advertisers that you like and are familiar with. You MUST do this otherwise you would have to pay the annual subscription.
- Those advertisers will then show you ads for their products and services as well as specials that you would not be able to get anywhere else.
- Some of the advertisements you see will be from competing products and services that are related to the the products and services you choose.
- The longer you keep a particular product or service in your AdPicks the better discounts, specials, and coupons you will get.
- There are a limited amount of slots so brand loyalty gets tested...
Here is how AdPick would work.
You choose Levi's, Verizon, Apple, and Starbucks as your preferred AdPicks. Now you will start seeing clothing advertisements, the latest in Smart Phones, Apple products, and all things coffee related. These are brands you already know about and like. Basically you are telling them you like their products/services and you want to spend money with them. Give me something special to keep me as a customer coming back again and again.
So you are chatting with your mom and see a 50% off coupon for any Grande drink at Starbucks that is good for the next 12 hours. Now you can share that with anyone inside the AdPicks program so other CrewChat users in this example.
Then later after you are hanging out at the Starbucks you are chatting with your best friend and up pops an ad for a new pair of designer jeans from May Company made by Tommy Hilfiger, now 40% off for the next 3 days. You love your Levi's and not really wanting to try something new. But you go ahead and share that special with your friend.
Benefits
- Ads that are relevant to your likes.
- Does not waste as much of your time.
- By these advertisers providing specials that are only available through the AdPick program it encourages more use of the CrewChat app as well as any other app that users the AdPick program.
- Allows consumers to see new products and services that they are very likely to learn more about or try a competing product/service.
- Can earn rewards by sharing ads with others as the original ad is targeted to you. So anyone that uses your code is essentially giving you credit. A company may then give you extra discounts on other items.
Bottom line is making advertising interactive and giving consumers a choice will be beneficial to everyone. Those that don't want to be bothered can just pay a subscription. Everyone is a winner!
