SRAX Betting Consumers Tired of No Control Over Their Online Data
Back in 2012 when Facebook came public, the company faced plenty of analyst scrutiny for seeming ill-prepared to monetize mobile users. The social media giant certainly figured it out, using user’s data to calculate which advertisements each likely will respond to. Understand that Facebook doesn’t sell your data, but it does collect the data and sell access to you, a smart business model that makes that data very valuable to advertisers.
In a white paper on its Blockchain Identification Graph (BIG) Platform, Social Reality, Inc. (NASDAQ: SRAX) describes companies like Facebook and Google as acting as “gatekeepers, blocking information flows and diverting data collected from online communications into impenetrable private marketplaces that the digital product of human interactions — data — is bought and sold with little oversight or compensation to the true provider of the data — the user.”
That’s a polite way of saying that these types of companies are muddling up the internet and hoarding our data to generate billions of dollars in advertising sales and profits each year. Unfortunately, none of that is given back to the general public (unless you’re talking about specific examples for common shareholders in the companies).
With that in mind, the digital marketing and data management technology gurus at SRAX built the BIG platform, complete with BIGapp and BIGtoken, to remove the friction of information exchange with a transparent, consumer-focused platform. The first platform of its kind, the BIG platform will give users the opportunity to authenticate their information and data they generate online, ultimately deciding if their data can be used in the marketplace and when companies and third parties can purchase access to their data.
When users do share, they will be compensated for doing so.
While complex at the technical level, the concept is easy for users to comprehend: claiming control of your data. Essentially, a person will be reconnected with his/her digital identity, a relatively novel concept in today’s dog-eat-dog advertising world. For a change, consumers will be able to opt out of information that they don’t want put in front of them and get paid for sharing their information to let advertisers market to them.
Furthermore, the platform doesn’t store data, meaning that if a user deletes all his/her data, they are deleted from the system completely.
In October, SRAX launched the platform in Beta phase. Up to 10,000 Beta users began by downloading and using the BIGtoken app. During the Beta phase, SRAX is not monetizing the platform, rather incentivizing users to complete actions to earn points. At the end of the Beta testing, scheduled for January 31, 2019, the top three users will receive Bitcoin (5 for 1st, 2 for 2nd and 1 for 3rd).
When enough advertisers are on board, SRAX will then take monetization live. A digital token, BIGtoken, will be an incentive for consumers to verify and share their data. Options can be as specific as not wanting to see a specific brand or choosing not to share something personal, like a birthday.
SRAX pays for data upfront, with the token system representing rights to revenue generated from the BIG platform. Half of the revenue goes into a trust that is built by the amount of tokens issued by SRAX. As participants share data, they can eventually exchange their tokens for fiat currency.
In today’s world of big data – and against the backdrop of an incessant string of high-profile data breaches or accusations of data mismanagement – consumer’s concerns are growing about data sovereignty. SRAX’s next-generation technology is a solution to revolutionize the consumer/advertiser dynamic and it certainly is backstopped by the company’s experience and strong track record in brand advertising and consumer marketing. After all, SRAX currently has a product lineup for advertisers and the company analyzes or serves 12 billion ads per month.
The question now and over the next year is: Are consumers are indeed fed up? If so, like it appears to be true, a platform where consumers are finally given control, much less rewarded, would certainly seem to be an effective answer and likely in high demand.
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