Liberdy, a blockchain-based company building a platform that works like a data exchange, wants to turn the advertising model on its head . It wants to make consumers more responsible for data advertisers use to target them. But it's also willing to pay them for the use of that data.
In August, Liberdy will release a platform — app, desktop extension or web portal — that gives individuals control and access to the data being shared. The data will integrate with numerous data management platforms (DMPs), making the consumer information available to advertisers.
This “permission-based” advertising model, based on the GDPR principle that individuals owns their personal data, pays consumers in tokens for the use of their personal information, explains Snir Hassin, cofounder-chairman of Israel-based Liberdy.
Whether Liberdy or another company takes the lead, Hassin believes consumers will change the advertising model to permission-based marketing. He said it’s about making individuals who own the data an active participant in the exchange of data for goods and services such as a subscription to a online publication like the Wall Street Journal.
Advertisers use tokens to buy audiences. Consumers earn tokens for the sale of their data, which they can use to buy products and services. The data is managed through a mobile app.
Still, Hassin realizes the biggest obstacle remains getting individual to willingly share and give permission to use their data.
The idea is to give consumers, estimated to be between 2 million and 3 million, access to their data on platforms like LinkedIn or Facebook through the app. It would enable them to export their data files and upload the information to Liberdy.
The data runs through a blockchain that will verify the information being used. The platform allows users to share their personal information anonymously and give advertisers access to accurate, verified and first-hand information.
About 85% of the advertiser’s budget will go to the individual consumer in exchange for using their data. Once the consumer is placed in an audience segmentation and has a profile on the platform, they are eligible to receive payments.
What’s not clear is how this advertising model and apps will teach individuals, who are not tech-savvy, how to protect their data. Hassin said the company will need to teach consumers “awareness.”