PressCoin is different. In order to get your hands around the size of this business opportunity, one has to take a step back.
The value of PressCoin isn’t a single platform or revenue stream. PressCoin is a protocol, shared infrastructure and services, reference implementations, and an open developer ecosystem coupled with a startup accelerator program.
– from What is PressCoin, Really?
In this article, we’ll discuss the Digital Advertising revenue stream in front of PressCoin.
Now, before continuing – let’s lay down some of the current data points.
The Current Trajectory
Since the advertising model has been the lifeblood of the industry, we will use the current ARPU model as a way to project into the future. First, some basics:
A. The number of Internet users will be 5B by the end of 2022
B. We expect the global ad industry to hit $600B by 2022
C. We expect the digital ad industry to be 50% of this, at $300B
D. We expect Facebook/Google to own 60% of digital ad spend
E. We expect Facebook to have 3B users by 2022
F. We model Facebook ARPU to be $20 in 2022
G. We therefore expect Facebook to make $60B in revenue in 2022
The PressCoin Trajectory
In many ways, the PressCoin story is a story of a decentralized, blockchain-driven multi-headed beast.
Even though PressCoin actually appears as multiple platforms and companies, it is in fact, among other things, a federated aggregated audience.
In other words, PressCoin is a virtual platform, a super-aggregator of not just “page views” or “uniques”, but actual people, deeply embedded into the various platforms, but powered and reachable via a common technology infrastructure.
One Platform to Rule them All
So in a sense, this meta platform, invisible as such, is a collection of the parts, whose value is greater than the sum of it’s parts.
Now, some projections:
A. PressCoin platforms are moderated, and each for a specific purpose (example NextElection)
B. PressCoin foresees 1 in 20 people connected to the Internet seek alternate NEWS platforms
C. PressCoin therefore aims at 250M users through 2022
D. PressCoin ARPU modeled at 3X for “Digital Ad” space (data-driven engagement units)
E. This 3X ARPU difference, when compared with Facebook, is a conservative reflection of long-tail vs specialized audience.
F. This represents PressCoin revenue line of $15B, and represents 60% of all possible value
G. This represents value of 60B when using a 4X multiple on this revenue
H. The remaining 40% of PressCoin’s revenue line comes from entirely non-advertising sources. This includes voting systems, SaaS fees for various platforms, and so on, as well as the value unlocked by the PressCoin venture arm. It also includes the PR marketplace opportunity, as well as a decentralized brand studio.
I. Together, all these constitute a $100B opportunity.
These numbers, while they seem somewhat arbitrary, are based on the fact that there are some blatantly missing platforms on the Internet. For instance, in the age of platforms such as Facebook and Twitter, what is the platform for Elections? What is the platform to Understand News? These (and other erstwhile missing) platforms create “moderated, high quality islands of sanity”, and together aggregate a unique and large audience network.
Facebook, being a common-denominator platform, serving 2B+ users, can by definition, not be particularly niche or deep on any specific topic/functional area.
PressCoin platforms, on the other hand, are uniquely suited for individual use-cases. Therefore each community is custom-built, features are custom-built, the value created is purpose-built for that specific community, and that specific set of use-cases. This makes each platform less of a traditional “news medium”, but really a deep collaboration space or a product/platform for specific community of users and roles.
PressCoin represents a unique opportunity – both historically speaking, as well as from the vantage point it can afford.
The PressCoin ICO values the company at $250M at listing time, and if hit our numbers anywhere close to the numbers talked about a little earlier, this represents a straightforward opportunity for the discerning global investor.