Growth Idea - How to Add Extra Utlity to SMTs

in #growth-ideas7 years ago (edited)

eureka.png

EUREKA!

I think I've found a way to add utility to tokens and demands for them. By adding a way for the token to be spent, we can create additional demands on any given token.

Community Advertising Bidding System

As it is right now, people can promote their post in the "promoted" tab. The choice was made probably because all we have is one community right now..People may have reacted negatively to putting the highest bidding post on the main trending page of steemit.com.

The promoted tab is far from the best situation since what advertisers wants is eyeballs...not a segregated space.

But when the community feature will be launch, many communities will grow...some with tokens attached and some not. All those communities will represent niches...and advertisers LOVES niches since it makes their job much easier.

An Ad Community Feature

So let's keep the main trending/hot section of the website ad free. But what could be done is adding an advertising option in the creation settings of a community. So advertising would be a choice of the community owner. Some communities will be ad free and some won't. Once activated, the community owner or admin could set which token would have to be spent in order to be at the top of their hot/trending section.

The price would be set based on supply and demand CPM (cost per thousand impression)

One Central Ad Hub

Let's not make it too complicated for advertisers. They shouldn't be in the business of buying and selling tokens in order to advertise. This is why we have a DEX right? It would be easy to make it all the token buying automated.

Example

So let's say I want to advertise to programmers. @webdev community has 100,000 users and @javascript has 55,000 users. For my ad they are the communities that I want to target. Each have their own token DEV and JAVA and have the advertising features on.

The advertising hub would make me a price in STEEM or SBD per CPM but then it would make the conversion by itself to DEV and JAVA to be spent on the advertising...creating a automatic demand for that particular token. Since all ad spent end up in the @null account to be burned, hypothetically, DEV and JAVA would be taken out of circulation.

screenshot-www.reddit.com-2017-10-05-08-08-01-237.png

Conclusion

I think making it so that if you want to advertise in a community, you have to spend the token that is tied to that community. If there is no token associated with it, STEEM would be the default one to be spent. This would create a huge demand for STEEM as advertisers will now have a way to NICHE DOWN and have way better targeting they could ever have.

All that contributing to increase the price of STEEM and successful SMTs.

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This is a very powerful idea which i, for sure, hadn't thought of but I think will be a good idea. Not only will ad revenue for communities be key to adding value to that communities SMTs but any ad revenue not dedicated directly to a community would increase the market cap of Steem and thus make each users Steem increase in value. Unless I am interpreting the idea or the workings of Steemit incorrectly, and if I am please correct me. Thanks for the suggestion to the platform, I'll be checking to see the progress as more people weigh in with opinion 's and ideas. Full Steem ahead!

nope, you've got it man. :-)

@sixersfeds,
"I'll be checking to see the progress as more people weigh in with opinion 's and ideas."
You got a point! a platform to shoot our ideas! It might be a worthy project on STEEM block chain! Like this idea brought by @cryptoctopus, those are absolutely brilliant ideas! But we need a platform to weigh those ideas and it will lead STEEM to the moon!

Cheers~

This is really weird, I commented some minutes ago and the comments just disappeared, first time happened to me.
Well I said that it is really a great idea having both options open for ads. Everyone has the right to choose what they wish.
I also added that since reading your post everyday on SMTs, i am more and more certain that SMTs will just be great for Steemit and mainly to the rise in price of Steem.

very nice observations my friend, it's extremely helpful for me because i am still learning about SMT and your analysis and thoughts helps me alot for understand the concept of SMT's use, it's also great to hear that SMT indirectly helps steem token so it's also real benefit for steemians who are holding the steem token, stay blessed my friend and thanks for sharing

Idea is good, but it makes irritating when you have lots of advertisement on your feed.

On reddit, there is only 1 spot that people compete for by CPM. It doesn't have to take your whole feed. Just the top spot.

Then it will be fine.

And there is always such a thing as adblock.

I think you lost me on this one. Won’t that bring more scammers posing as advertisers of something of value. I mean even if they have to pay something they still do it. Would it also mean that if we wanted to visit that specific community we would have to pay? Sorry just a little lost on this one.

How is that different from any blogpost already on steemit? If someone has enough SP, they can self promote their post at the top of any trending/hot page. Also, how is it different from reddit, facebook, pinterest or any other social media? Anybody can be scammer, advertising doesn't create an incentive for scamming other.

Sorry I think I mis-communicated my questions. I get the advertisers paying to advertise part and I know there will be scammers as with anything. I was just trying to see if there was a way to discourage them even if they had to pay to advertise. Also second question that I should have separated was, are we as regular users going to have to pay to view those communities? Sorry it makes more sense in my head than when I am asking. Let’s see if I can make an example make sense. Let’s say there was a community of musicians and I wanted to go check out their work, would that require a payment of some kind to enter that community with or without the advertisers. I hope that makes sense.

Don't worry. The best parallel I can draw to understand communities would be sub-reddits. Some you may have the request permission to post on some while other are completely open. I wouldn't be surprise to have private communities popping up too. But by default, I believe people will have their communities open as it is the best way to get engagement.

The advertising would work exactly like in the screenshot I took of the webdev subreddit.

I personally don't see the causal link between scammers and advertising opportunities, so I can't really comment on how to discourage those behavior.

Ok thank you for explaining further. That makes sense.

Please don’t get me wrong. I think it is a great idea for adding utilities for the growth of it. Just trying to understand the bottom line. Still new here and I won’t know if I don’t ask. Thanks for taking the time to explain.

Sounds like a good idea, it will increase both the value of Steem and SMT's in a positive way. We could use more of such features where Steem is spend for a particular service that consumes the token itself.

I think making it so that if you want to advertise in a community, you have to spend the token that is tied to that community. If there is no token associated with it, STEEM would be the default one to be spent.

It still isn't clear to me what you proposed. Here's how I understand it:

For example, if medium blog adds SMT's to its website, it can than sell those SMTs to advertisers who will use it to advertise their content on the site. If the ad is high quality, it will get a lot of upvotes, thereby leading to more users voting on it and getting some in return.

Wouldn't that give some money back to advertisers? I think if ads were banned from getting payouts and only authors and users were allowed to earn tokens, only then it would positively increase the demand. What do you think?

I'm strictly talking about steemit.com with it's communities (like sub-reddits). Being able to advertise on other websites would be much more tricky.

Declined payout could be an option. But there could be a virtuous cycle in letting payout happen since the advertiser may double down on ad spent if he is able to sell the product he's looking for sell.

That is a great idea. But I don't think Steemit will ever follow a reddit like model. It will most likely follow a Quora like model without any specific community. If it intended to be like Reddit or stack exchange, (where there is separate communities) it would have started adding features like that. It's over a year since steem launched.

Steemit doesn't allow non sourced and copy pasted content even if that contents original owner permits it. I think it is not practical to compare it to reddit where people post whatever they wish. It is not like Steemit doesn't want to allow it, they can't allow it.

If they allowed copy pasted content, the copyright police would put them in great legal trouble. They aren't coming because steemit isn't popular now. Only 30000 people use it every day. Copyrighters go after only the big ones. You will see Hollywood go after YouTube but not Vimeo (which is a spec compared to YouTube).

There is an opportunity to use upvotes and downvotes to moderate ads. Upvotes could decrease CPM or CPC, while downvotes could increase CPM or CPC.

I like this beacuse it incentives advertizers to create ads the community wants to see. If the amount of the network's SMT you had was preportional to your vote, your vote would align with your interest in keeping the network value to your community in terms of user experience and market cap.

@cryptoctopus - When I joined Steemit, I thought they earn by advertising. (After few weeks from the beginning I understood Steemit is not an advertising based social media platform) But your idea can influence more advertisers and publishers to join with SMT token Sir. Moreover, it can help to bring more audience as well. So, today you brought a wonderful idea to all SMT token holders in future Sir.
I'm really glad to say my decision of following you is very worth Sir <3 Every day I'm learning something new from you Sir <3

+W+ [ReSteemed & UpVoted]

gold. love it. yep, i can see this stuff taking off really fast once we can start to create our SMT's - you gonna build this out then?

I wish I was a dev but no...I'm just an humble schemer.

humble is good. scheming better. gotta have the convo to make the things happen! always share. these things become reality.

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