Cashing in on Co-rendered Ad Revenue
Posted by goodmind on May 29th, 2008
Traditional print newspapers are basically a form of ad-supported content, suitable for lining birdcages. While many titles have tried to transition to the Web using this same model, they have done so unsuccessfully – the consensus apparently being that online advertisements aren’t worth the investment, because ads just aren’t as effective online. Whether this conclusion is valid or not, is beyond the scope of this post.
On the other hand, Knewsroom may be onto something here, by making online advertisements more valuable to the online audience. Maybe people will put up with ads if they get a cut of the revenue.
Like Digg, Knewsroom is a “community directed news publication,” only
“20% of every dollar we generate in advertising gets split with the people who make the Knews happen: writers, readers, evangelists…anyone looking to turn extra brainwidth into extra cash.”
Issues contain reader suggested topics, as well as both original and syndicated content. A sophisticated matrix algorithm is used to determine the top 5 topics and stories for each issue, based on how readers “invest” (vote) on what they think is the top story of the day.
Knewsroom is run on a currency of “watts,” which are earned by becoming an active member in the community, and can be invested in potentially Knews-worthy items of interest. If say, you were to invest heavily in Entertainment stories, and one of your investments made the top 5, you would get a cut of the ad revenue generated that day, credited to your Knewsroom MasterCard.
Plus, aside from the Superbowl, Knewsroom may be the only context where advertisements are welcome and appreciated by the audience.
(via Springwise)
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