Tuesday, July 24, 2012

A new model for on-line advertising


Bit Torrent (which is not only a source of online piracy), is in the effort of expanding its revenue model, recently launching a new advertising model. The concept is pretty simple: artists are required to create a bundle of free content to spread over the bit torrent platform, and by doing that they will receive a part of the cash generated from the ads linked to these bundles.
In other words, whenever a user downloads such a bundle uploaded by the artist, the user will see an offer for free software from one of BitTorrent’s advertisers. If someone accepts the offer and downloads the software, BitTorrent will pass part of the revenue on to the artist.

For example, today the digital marketing company Fame House launched, along with DJ Shadow, a bundle of tunes from the early career of the artist (Hidden Transmissions From The MPC Era – 1992,1996).
Matt Mason, the company’s executive director of marketing, recently stated that “Because the offer will be in every torrent shared, we are leveraging the BitTorrent network in a new way. The more people that share this Bundle, the greater the chances the artist will make money, directly from the BitTorrent Bundle. That is new, and it is a model which we will going to keep developing here.”
Adding on this, BitTorrent’s CEO Eric Klinker has decribed this initiative as “the first of a number of new advertising experiments we will be testing in-client, on our websites and through other media properties in the next few months. But there is something promising here, what is exciting is the fact that it is a business model that actually benefits from file-sharing, rather than discouraging it”.
 

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