Social media platforms have become honeypots for advertisers around the world as more and more people use social media these days. Advertisements are projected on users’ faces while various social media platforms are accused of using sensitive user data. Facebook has been one of the main suspects in this regard. But despite accusations and outrage from various entities regarding data manipulation and leaks, the current digital advertising framework is not being replaced by any of the major social media platforms as more and more money is pouring in through these. advertising. Various social media platforms generate significant revenue from these ads and just around the corner is the quarterly earnings report of one of the biggest social media platforms, Twitter.
Stable income expectations
Speculation is circulating as to whether Twitter will be able to show an increase in its overall revenue, as the platform uses the digital advertising framework at its core. Twitter has not been as important as Facebook in digital advertising, but it has been quite resilient in its overall performance in the past, as the company’s bottom line has remained positive for four consecutive quarters.
Since Facebook uses more data information about user activity on the Internet, it is better able to optimize itself for digital advertising. This does not appear to be the case for Twitter. It remains to be seen whether Twitter CEO Jack Dorsey is able to take the company from where it is now to something more profitable than all of its competition. One thing Twitter probably needs to consider in order to make itself more profitable is “tokenization”. This claim also doesn’t sound too ambitious as just recently Jack Dorsey revealed his pro-bitcoin stance to the world. In a tweet, Jack said:
I only have bitcoins https://t.co/C24xNJxuFB
– jack (@jack) February 5, 2019
The blockchain world is growing at a very fast pace by reorganizing various frameworks across the world. We are seeing various projects using the symbolic economy to build an economic model freed from the need for the secular digital advertising framework. One of the best examples in this regard is the blockchain-based ad-free browser, Brave. It uses the Basic Attention Token (BAT) to maintain its business model. Its model allows advertisers, publishers and users to work in a smartly designed business model without the middleman ad exchanges where even users get rewards for their participation. Now, if Twitter decides to use tokenization anytime soon, here’s how it can change the platform.
Twitter can look at the model developed by Brave and incorporate something like this into its own framework so that users of the platforms can get rewards for their participation. This can actually help Twitter to get more and more participation for new users, as the rewards can be a very powerful incentive for users to become more involved in the network. More participation, more attention and therefore more growth. The value of the ‘Twitter Token’ then depends on its usefulness. Network token holders can use it to promote their own tweet or profile. On the other hand, if users wish to cash their tokens, advertisers can buy from them in order to promote their ads on the platform. A decentralized network will be set up allowing all network participants to use the “Twitter Token” for their own benefit.
Twitter’s quarterly results could prove to be very rewarding for the company, but it will be based on the traditional advertising framework. If the company is to grow and outperform its competitors in the game, the tokenization test could prove to be very valuable and even more profitable than the current framework. Thanks to the blockchain, the issue of data confidentiality can also be mastered.
It all seems to depend on whether Twitter chooses tokenization to make a net profit and if it can develop a token business model that makes it more profitable than it currently is. A model where advertisers, publishers and users all work together to achieve the best results for themselves. But more importantly, should Twitter choose to tokenize its platform? There are already projects like Peepeth that introduce the world to advanced social media platforms based on decentralization and the symbolic economy. But so far, none of them have really succeeded. Should Twitter choose to go tokenization because it already has a fairly stable user base? We are crossing here “the gray zone”. It may even be a “make or break” situation. Let’s see where the platform’s pro-bitcoin CEO takes the boat from here on out.
SEE ALSO: Basic Attention Token – A Blockchain-Based Digital Advertising Solution