ONO White Paper: Chapter 5 Advertising System

Chapter Five

ONO Advertising System

Preface

At the heart of social media, where traffic is king the creator of the quality content works hard to expand their reach, while the central platform swallows a huge amount of income, which mainly comes from advertising.

Here is the principle of the ONO advertising system

We mentioned in the preface that one of the ways to achieve attention is also the most commercialized source of income, advertising.

It is worth mentioning that advertising is not a commercialized means of ONO.

Advertising is the most direct “attention economy” embodiment for the ONO social media network. If content and intellectual property rights are the intrinsic assets and value targets of ONOT, advertising is the external application and consumption scenario of ONOT.

What’s worth noting is that there is a huge difference between consumption scenarios and circulation scenarios.

Therefore, in order to explain this difference, we are independent of the application ecosystem, and have set up a separate chapter for the ONO advertising system.

5.1 ONO advertising model

In the ONO social media network, users can use ONOT to place ads for themselves or others, to transfer ONOT to others to save, use, or to hold ONOT for a long time and to enjoy the other members’ rights given by members of the social media network.

It should be noted that the advertisements here are different from the traditional centralized platform advertisements. In order to balance the freedom and decentralization of the content creator’s profit methods, advertising complaints, and user experience, we designed a balanced third-party advertising strategy, and we promise that we will never place any ads from ONO on it.

We can see the centralized platform in the mature market, usually using CPD, GD, CPM/CPC/CPA and other advertising types (first screen advertising, information flow advertising and detailed page advertising). With the development of the internet, various sales methods, such as CPS and CPV, have evolved.

ONO will continue to use the forms that have been proven feasible in history, and combine the innovation of free and decentralized innovation to create a unique ONO advertising model.

Among them, content creators will be free to open any ad sites belonging to any page and get ONOT rewards for doing so. Most of the ONOT obtained from the advertising will flow into the destruction pool, that is, creators will also increase the value of ONOT in a disguised form when they advertise.

In addition, ONO’s open source advertising algorithm will perform well in CPM and other forms that may exist in the future.

Another problem for content creators is market standardization which will also be solved by the ONO advertising model. For creators that are good at writing soft implantation content, we have created a completely free trading second-level market soft implantation ad transactions, openly and transparently matching advertisers and content creators, avoiding the mistakes of the story of the exploitive ginger market.

5.1.1 ONO’s unique advertising model — the advertiser

There are differences between the business form and the final appeal of advertising for all kinds of advertisers on the market.

ONO’s original advertising plan will solve the disputes, precise reach, and highly free definition produced by advertisers on the market.

1) Advertising positioning- efficient algorithm matching

ONO has a set of efficient, evolving and open source matching algorithms to meet the various needs of advertisers, CPM/CPC and so on. (see the advertising algorithm)

With a simple operation, advertisers just need to prepare a certain amount of ONOT and choose advertising preferences. The algorithm will automatically configure the ONOT according to the advertiser’s needs to achieve best results.

Of course, advertisers also have the right to freely configure advertisements. When we choose hot content creators, we need to set an appointment.

2) Soft implant advertising market — fully free placement

ONO’s original soft implant advertising second-level market will make the market price completely transparent and effectively match the advertising bilateral relations.

The advertising mode of plan 1 will lead to lack of flexibility due to standardization. When advertisers urgently want a specific hot content creator to advertise for it, they can choose to bid in the trading market.

5.1.2 ONO’s unique advertising model — content creators

The pain point of the content creator:

1)Not receiving any benefits
Centralized platforms will not give money to content creators when running all kinds of advertisements.

2) The interests are squeezed by centralization.

Content creators usually do not have the ability to contact advertisers and have no bargaining power. When they choose to sign with intermediaries, they are greatly taken advantage of.

3) Price can not be standardized, so it can not be open and transparent.

The “long tail effect” appears on all centralized platforms. Most of the middle and long tail creators will not be able to profit, but in fact, they create content value. Data shows that a considerable part of the minority content has strong fan engagement, which proves that everyone’s heart may have minority preferences.

These content creators often run into difficulties trying to earn and the market price is very low.

(see the story of the 1.1.1 Ginger Village)
 The original ONO method solves these problems well.

Every user has the ONO social media network. Content creators own their ONO social networking pages and own all their own resources.

Every content creator, if he or she is willing to accept advertisements, will be able to open advertisements on his/her own page and anywhere else he or she controls. Content creators are free to set up and choose advertisements that they approve, and have the right to refuse advertisements that are not accepted on their own pages.

Content creators will therefore get ONOT as visible interest, and in the long run, will also achieve long-term gains of ONOT value through destruction.

Each content creator can also trade his or her soft implanted ads in the free soft implanted advertising market, so as to ensure that the price is open, transparent and decentralized.

5.1.3 ONO’s unique advertising model — users

For users, most of the time watching advertisements is a very painful and difficult matter.

In fact, users are disgusted with advertisements advertised by centralized platforms. Users not only dislike, but have support for their favorite UP owner, the content creator, subjective advertising, or the need to rely on the benefits of advertising [2.4].

Case: We see in many minority WeChat public numbers, such as in professor A Yin’s content reviews, “A Yin, you finally picked up ads.” “I’m relieved to see you in the advertisements.” And so on.

ONO’s advertising model meets this requirement, thus ensuring user experience.

5.2 Achieving and continuously operating of the advertising system 5.2.1

The income distribution of the advertising system

80% of the ONOT used for advertising will flow into the OAA destruction pool, 10% for the users who reward the open advertising column, and 10% for the team that rewards and audits the advertising.

(Note: this decision is initially decided by economists, which needs to be dealt with through voting to make the adjustments.)

1)Additional awards for open advertising.

Advertising location is one of the sources of advertising revenue. Content creators can independently decide whether to open the advertising field and what advertisements or contents are put into it.

2.4 “Song Zhongji, if you do not do ads you will not make it.” http://www.adquan.com/post-2-34120.html

We encourage users to open advertising tabs, so users who open advertisements will get additional rewards from advertisers’ ONOT.

2) Continuous operation and maintenance

The ONO social media network has the right to audit the content of the advertisement in order to maintain the free rights and interests of the user and the security of the property. The unlawful, unconventional, and program advertisements that go against the common creed of the community will not be entered into the advertising space.

The advertising distribution system needs continuous maintenance by a technology team, and also needs an O&M team to audit and run advertising content. Both teams need sustained financial support.

Therefore, 10% of ONO advertising revenue will be used to motivate this team to maintain basic operation.

3) The special first five years

In the first 5 years, the ONOT from advertising revenue will not trigger destruction. It will be allocated to users and content creators reasonably under the premise of deducting R&D costs.

Why is this done? An advertising system needs a lot of R&D and maintenance work to ensure its stable and efficient operation. A high quality advertising distribution system is good for the ONO social media network: the value of ONOT will rise rapidly.

At the same time, this will ensure that the total amount of ONOT circulating in the market will be:

200+350+200+50*5=100 billion

5.2.2 Formula

In the early stage of the ONO social media network, a simplified and CPM advertising model will be applied, and it will be iterated and modified according to future voting results.

The simplified, initial CPM advertising model is as follows: First of all, we need to predict the number of advertisements.

The number of advertisements will be taken as the pricing basis of ONOT (ONOTs Cost Per Thousand Impressions, OCPM).

Secondly, we need to split and allocate the ONOT used in advertising. (see 5.2.1 for detailed distribution rules)

13698630/0.8=17123288

Therefore, under ideal circumstances, the number of ONOT paid by advertisers every day is:

13698630/0.8=17123288

The OCPM can be calculated after the number of ONOT payments and the number of advertisements are predicted.

OCPM=17123288/(predicted views of ADs/1000) OCPM=17123288/(predicted views of ADs/1000)

However, the number of advertisements and the number of advertisements will be biased. Therefore, AAF (Actual Advertising Fees) is used to represent the real income of the day.

ACTUAL ADS FEES = OCPM*(REAL VIEWS/1000)

ACTUAL ADS FEES = OCPM*(REAL VIEWS/1000)

After deducting the 13698630 ONOT destroyed every day, the remaining ONOT will be distributed equally to the advertising system maintenance team and open advertising column users of the open advertising column.

When AAF>13698630,

The advertising system operation and maintenance team: get (AAF — 13698630) *50%

The open advertising column content creator and user: get (AAF -13698630) *50%

Summary

In the future, the advertising mechanism of ONO may become more complicated. But its core, that is, the number that is destroyed per day, the advertising system maintenance, and the open advertising content, combined with the ONOT mechanism, will not change unless it is required to be modified through voting.

5.3 ONOT value added support based on the advertisement system

According to the above formula, you may find that with the increase of daily traffic, the average advertising consumption of ONOT will decrease.

OCPM = 17123288/(50000000/1000)= 342.5 OCPM=17123288/(50000000/1000)=171.25

Suppose that the ONO social media network advertisements is browsed 50 million times in a day.

OCPM = 17123288/ (50000000/1000) = 342.5

Assume that the ONO social media network advertising is browsed 100 million times in a day.

OCPM=17123288/ (50000000/1000) =171.25
 Value of ONOT = CPM/OCPM
 With the fall of OCPM, the theoretical value of ONOT will go up. Value of ONOT = CPM/OCPM

OCPM=17123288/(600,000,000/1000)=28.5
 Referring to the data, the content website knows the daily browsing volume is

600 million, assuming that every page pushes one advertisement on average. OCPM=17123288/ (600000000/1000) =28.5

According to the market CPM price of 30 yuan, it can be understood that the theoretical value of a single ONOT is 30/28.5=1.05 yuan.

This value can be used as a market reference for advertisers. When the price of ONOT is too low, the advertising chamber buys a lot of ONOT to raise the price, which provides theoretical support for the increment of ONOT.

Read the ONO White Paper:

ONO White Paper CH. 2: ONO DApp
ONO White Paper CH. 3: Technical
ONO White Paper CH. 4: Economic System
ONO White Paper CH. 5: Advertising System
ONO White Paper CH. 6: Abuse Management
ONO White Paper CH. 7: ONO DAC
ONO White Paper CH. 8: Common Program
ONO White Paper CH. 9: Roadmap
ONO White Paper CH. 10: Challenges & Strategies
ONO White Paper CH. 11: ONO Core Team
ONO White Paper CH. 12: Investors
ONO White Paper CH. 13: Nome Foundation
ONO White Paper CH. 14: Disclaimer

ONO Official Links

Official website: https://www.ono.chat
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