700 sats \ 1 reply \ @TheBTCManual 21 Oct 2023 \ on: Can Value4Value replace Ads? bitcoin
No, and I doubt it ever will, I think v4v has its place but it will remain a fringe way of monetisation
- Fiat versions already exist like Pateon and Substack right now which work for most people who want to sell content directly to users
- Internet users are used to not paying for content
- There is always someone willing to pay for traffic, so if you don't have display or text ads you will just get more sponsored content - disclosed or undisclosed $601.84 billion worth of ad spent annually has to go somewhere
- If you paywall v4v you create friction and push users away - higher bounce rate
- If you don't pay wall, very few people feel like they need to pay, thinking someone else will
- Ads be it direct deals or network deals can be a stable/predictable source of income so creators can set a runway and commit capital to improving production quality
- Ads are a subsidy for reach - the advertiser pays hoping they reach an LSM that generates an ROI while the rest who aren't in that LSM get to enjoy the content without charge
- Ads also create audiences and data sets that are valuable to businesses for profiling, v4 doesn't
- People still feel like they're "supporting" creators by watching ads
- Your content doesn't have to be good to get ad monetisation, it just needs to get views so you see low-effort content spammed out, ai videos, reaction content, rage bait, clickbait etc
- The audience you target might not be a niche with a lot of disposable income so your v4v conversion rate is low for the effort and time you put in
Great points!
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