Contracted Advertising – TAC Token
Amy and I (Bruce) went to Denver Startup Week last week to see who we could meet and share the advertising currency with. This is a week long event with over 300 sessions relating to starting up companies.
They had sessions on everything from using accelerators and incubators, to legal topics to marketing advice. There was something for everyone who is in the industry of startups.
Although a project like The Advertising Currency ICO is technically a startup, most rarely put it in that category. So I think I was the only person specifically in the industry of cryptocurrency at the entire event, though there was much about blockchain itself.
On the closing of the second day we attended an event called startup my startup. This was a fun little event. It was a panel of 4 venture capitalist judges who would listen to your pitch your idea, and then they wold give feedback – basically a mini version of sharktank.
The Advertising Currency ICO Pitch
I was the third person called up to pitch my project. The presenter, Anthony Franco, was clearly no fan of cryptocurrency.
As he calls me up he reads from his sheet “Bruce Bates with The Advertising Currency ICO.” At this point, he chimes in with a much expected “An ICO, you’re probably not going to get much suport from this panel.”
What surprised me was that another panelist, Natty Zola, instantly spoke up and said “I have no problem with it.” Please note these are all paraphrased not exact quotes.
So I went about explaining the TAC ICO project. Mostly I focused on the parts investors love about the TAC Token Project – that of the first and second phase of the project. This is where I explained how we fund our currency through a crowd fund sale.
Then I explained we are going to liquidate those funds and use them to purchase advertising contracts with mainstream advertising agencies. As this part of the plan has an almost guaranteed increase in investment, its the part that most interests investors.
I did briefly mention parts three and four of The Advertising Currency project but the main focus was on phase one and two – funding and advertising contracts.
Awards don’t make you smarter
So after I was done with my pitch, instead of critiquing my project, I go loads of questions. Part of this felt like I was being tested in my knowledge, and part of it seemed to be a genuine curiosity – nearly all of it was done by Anthony Franco.
Honestly I impressed him when all was said and done. But at one point he had asked me something about how advertising contracts work, and I started to explain when he cut me off.
He said I was “flat out wrong in saying contractual based advertising is not based on impressions“. He then went on to “explain” all advertising is done by impressions – even offline.
I didn’t argue with him as he was the panelist and presenter – but he was flat out wrong.
This is a guy who is boasting on his linkedin profile about all his companies awards – which are most impressive – but awards don’t make you smart in a topic, and this is clearly a topic he doesn’t actually understand.
Out Of Home Advertising: Impressions vs Allotment
Okay so now its time for some education. One of the key pieces of The Advertising Currency plans is to utilize 70% of our funds to enter into advertising contracts with well known Offline Advertising Agencies.
Contractual advertising is similar to bulk buying in that one will get a much larger retail value in products than they pay up front. However that’s pretty much where the similarities end.
When one bulk buys a product or when they personally purchase a product such as advertising, they are considered a mid sized marketer. They are not by any means a high profile marketer to a corporate advertising agency.
As such, one gets the pricing off a mid sized marketer. This means they are purchasing impressions. If dealing with billboards, it means they are getting OOH Impressions which are vastly different than other types of impressions.
However high profile advertisers do not buy impressions at all, they buy allotments.
An allotment is the number of advertising units required to achieve a desired Gross Rating Point (GPR) level in a market.
An allotment of advertising is a specific formula used to measure the impact of any given advertising space.
For example if one is trying to reach 30% of the market and it takes 10 ad exposures to achieve this, the GRP level is 300.
When you enter into an advertising contract, these are the formula’s that are used.
Advertising contracts have huge advantage to that of impressions because of this model. This means your ads will be displayed until an agreed GRP level is achieved. That is what the contracts are about – percentages, time, and GRP.
Billboards also do not use traditional impressions as most people think of them. Instead billboards use a formula called Out of Home (OOH) Impressions.
OOH Impressions are an extensive topic. Basically some genius adveritsing agency figured out there are way to predict if a person is really viewing an OOH advertisement.
Some basic things that are taken into account when determining OOH Impressions are Position of Sun to billboard visibility, and exact positioning of ad from viewer (left, right, overhead, far left, far right, etc.).
Another thing that is taken into account is the positioning of the ad to the viewer – for example if it is angled so only certain people coming from certain directions can see it.
Also taken into account is if the billboard is static or animated. Finally the specific target audience trying to be reached (for example breast cancer billboard are not intended to target men).
All of these things are taken into account with OOH Impressions. Its not as simple as if one passes an ad or not.
The Advertising Currency Contractual Plan
If you have not read The Advertising Currency whitepapers on this project, we very much recommend doing so.
One of the things you will read about is our plan for utilizing advertising contracts.
In a nutshell, we want to enter into dozens of multi-million dollar contracts for advertising space in the offline world. For every 1 million we spend on a contract, we believe we can negotiate a minimum of $1.5 million in retail ads.
From the investment standpoint this is something amazing. Its almost a guarantee on returns at a very nice premium. If we enter into $28 Million dollars worth of contracts, we should get well over $60 million dollars in retail advertising.
This of course will be sold back to the public utilizing the TAC currency.