Digital advertising is broken, despite what some pundits and bloggers tell us. Consumers are tired of being used, and the game is uneven now. Advertisers are still getting paid and businesses are still getting views and some ROI, but consumers now only have their preferred content interrupted with no noticeable benefits.
BUT! The game is changing. Advertisers and businesses are looking to incentivize consumers for their attention because consumers are ignoring and blocking ads in ever increasing numbers. Banner ads, for instance, are almost obsolete, barely receiving a .12% click-through rate in the United States in 2017. Video ads are becoming increasingly ignored as well. Recently, Facebook implemented an “in-video” strategy to circumvent the avoidance, but viewers are still leaving their preferred content when interrupted by an ad. Many are dropping out solely on principle!
So what's the solution?
We must start focusing on the consumer, while giving businesses a definable and visible ROI. Facebook is a multibillion-dollar advertising platform that dabbles in social media; as are Snapchat, YouTube, Instagram, et al. None of these behemoths, however, can give a standard, definable ROI to the advertisers and businesses who utilize their massive reach and data sets. As such advertising on these platforms is tantamount to dropping money at the roulette tables in Vegas. Maybe they break-even, maybe they win, but most of the time the house is the only winner.
It is no secret digital advertising is in its infancy, and many of those pundits and bloggers we talked about will tell you as digital advertising matures and becomes more "sophisticated, relevant, interactive, and genuinely enjoyable," consumers will be more likely to pay attention. That is simply not the case. Consumers want a piece of the proverbial pie and we at Magnus Rewards see that. Our goal is to include the consumer in the revenue profile of digital advertising.
Magnus Rewards members will earn money for watching ads, participating in surveys and releasing their demographic data to advertisers and businesses. Members will then be able to spend those rewards with participating businesses, thus creating a perpetual loop of advertising revenue in the community.
Members earn money to spend in the community, businesses get their marketing dollars returned to them (or an organization of their choice for those who are not offering specific products and services to members) and everyone has a piece of the pie. The good news for businesses is that rarely do people just spend their rewards…who goes to a restaurant with a $15-off coupon and only spends $15? Exactly. If a businesses purchases a 25,000 view package with Magnus Rewards, that business only needs to see between 250 and 300 customers to break even. In an area like Louisville, Kentucky, where there are more than 400,000 potential customers between 16 and 65, you can see the endless potential.
Magnus Rewards is coming. Hop on board!