Product

When people say they are building a web3 product to let people "monetize their data" 🚩🚩🚩🚩🚩🚩

When people say they are building a web3 product to let people "monetize their data" 🚩🚩🚩🚩🚩🚩

https://twitter.com/nikitabier/status/1729895393712832826

This is super insightful.

How is a user's attention market value determined, and should they be paid when choosing to direct it at something?

Measuring things at @spindl.

My FID is lower than all but 52 of you.

Time spent x likelihood of spending money (if I had to guess) cc @antonio

The basic 'price per square foot' of media is CPM (cost per mille), which is the cost per thousand ad impressions. Whether or not the media is sold that way, the effective CPM (eCPM) is (roughly):

eCPM = clickthrough rate * conversion rate * lifetime_value (or value of action generated)

Nikita's point is that essentially no consumer app of any real scale has turned into a 'data play' where raw selling of user data is the business model. One either charges for content, or uses ads, which monetize via a combination of the app's data and the advertiser's data (the latter being often overlooked).

One possible disclaimer: Web 3 might be different, in that the user data record can be much more complete and owned by the actual user. Also, LTVs in crypto seem much higher than in Web 2 (a whale will be worth thousands or more to a protocol). Both of those might change some of these dynamics.

The problem with 'let users monetize their data' is that data isn't this disembodied fungible commodity (like oil) that has a clear third-party market value. Also, even if you did package that data for sale, it likely wouldn't fetch a very high price outside of its original context (i.e. the app that generated it).