SPIN Protocol – a New Blockchain Solution for Fast Growing but Easy to Manipulate Influencer Marketing
Influencers are individuals or organizations with a significant number of audience on social media. Currently, influencer marketing has emerged to be one of the most powerful marketing tools in the global e-commerce market with its market size reaching 2 billion U.S. dollars as of 2017 with an estimated market size of 50~100 billion U.S. dollars by 2020 (source: Kotra, Korea Trade-Investment Promotion Agency, ). Realizing the value of social influencers as a new sales channel, supplier companies have been consistently increasing their budget for influencer marketing.
Influencer marketing is growing fast as a powerful marketing tool and yet holds several problems. Most of the powerful influencers belong to agencies and suppliers have a physical limit to finding and contacting right influencers. Thus suppliers normally hire third-party marketing agencies to connect the target influencers. This process, however, causes unnecessary intermediary fees for both suppliers and influencers.
Also, there is no systematic and transparent system for the influencer sales performance measurement as of now. Influencers prove their market influence only by the number of followers, likes and comments, which can be easily manipulated. Therefore it is possible that suppliers pay big money to influencers to promote their products but result in an ineffective marketing.
SPIN Protocol, an Blockchain Project by first video commerce service platform start-up in Korea known as “Womanstalk,” aims to solve current issues of influencer marketing. “We plan to solve problems of current influencer marketing using blockchain technology, to achieve decentralized commerce ecosystem by eliminating any intermediaries that hinder the transparent and fair market plays and by providing technical supports to operate commerce business easily for independent influencers. SPIN Protocol’s influencer commerce engine is not limited to promotion but further expands to the real sales activity through direct online commerce operation, accumulating sales records data.” said Jay Yoo, CEO of SPIN Protocol and Co-CEO of Womanstalk.
SPIN Protocol offers data-driven R/S(revenue sharing) consensus system, which suppliers and influencers can make a direct agreement on promotional product selection and revenue share ratio. Responsible influencers of the deals can then receive a fair share of revenue by smart contract with suppliers.
SPIN Protocol also provides an evaluation index called S-Fame, which evaluates influencers’ sales performance and the level of relevant activities with the transparent sales-based data. Currently the influencer’s performance can only be proven by the number of followers, likes, and comments. These are possibly but not necessarily relevant in sales performance, which also could be easily manipulated. S-Fame is evaluated based on the influencer activities and customer feedback based on “Proof of Fame” algorithm. Information such as influencer’s sales activities, sales performance and sales history is disclosed on the Dashboard, where suppliers and influencers can share critical information about products and sales specialties transparently.
SPIN Protocol, as a new commerce platform that eliminates unreasonable interventions, provides opportunities for suppliers to meet global influencers directly with no limitations on regional boundaries, products nor brands. They can reach global customers by direct connection with global influencers over the world on the network. Likewise, influencers can achieve fair and clear compensation solely upon their performance with an objective proof of their market influence.
SPIN Protocol aims to provide solutions for influencers to grow further with a concrete business model, and to create a decentralized, transparent and fair commerce era. Its private token sale has started from mid August, 2018 and is under negotiation with global top-tier crypto funds and institutions. More details can be found on SPIN Protocol website.
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