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Social media influencer marketing has become one of the most powerful marketing tools in the global e-commerce market, reaching $2 billion in 2017 with an estimated market size of $50 billion to $100 billion by 2020, according to the Korea Trade-Investment Promotion Agency. Realizing the value of social influencers, supplier companies have been increasing their budgets for influencer marketing.
However, this powerful new marketing method faces several challenges. Most of the big influencers belong to agencies that limit suppliers to find the best influencers. As a result, suppliers often hire third-party marketing agencies to connect the target influencers, a process that brings hefty intermediary fees for both suppliers and influencers.
In addition, there is no systematic and transparent way to measure the accurate sales performance of each influencer. Influencers can only cite the number of followers, likes, and comments, which can be easily manipulated. Therefore, suppliers ending paying influencers for ineffective marketing.
SPIN Protocol as a Solution to Best-Perform the Influencer Marketing
SPIN Protocol aims to solve current issues of influencer marketing and to nurture influencers to grow further with a concrete business model, and to open a decentralized, transparent and fair commerce era.
“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 Scott Lee, CEO of SPIN Protocol.
SPIN Protocol offers a data-driven sales revenue sharing system, which enables a smart-contract governing promotional product selection and revenue sharing for suppliers and influencers. Such an agreement allows responsible influencers to receive a fair share of their sales performance from suppliers.
SPIN Protocol also provides an evaluation index called S-Fame, which evaluates influencers’ sales performance and the level of relevant activities using transparent sales-based data. The S-Fame index is calculated using a “Proof of Fame” algorithm and is based on the weighted average index of all elements, including the number of sales, sales revenue, user inflow, number of followers, conversion rate, and the number of agreed deals with suppliers, allowing to precisely estimate each influencer’s performance. The index is disclosed on a dashboard where suppliers and influencers can share information about products and sales specialties.
As a new e-commerce engine that eliminates unnecessary interventions, SPIN Protocol provides opportunities for suppliers to meet global influencers directly with no limitations on regional boundaries, products or brands. They can reach global customers connected by the influencers over the world on SPIN Protocol’s network. Likewise, influencers can achieve fair and clear compensation based on their performance with an objective proof of their market influence.
When an influencer starts sales activities, customers’ activity data such as number of impressions, clicks, shopping carts and purchases per activity period, as well as sales performance and conversion rate, can be trackable in the system. In addition, since it is possible to confirm the purchasing tendency of the customers who have effects on the influencer’s sales activity performance index, it is possible to predict the target customer group and the best-matching product category with high purchase conversion rate for each influencer.
In other words, suppliers can utilize limited marketing budgets and time periods based on accurate sales performance data by influencers. This is one significant difference from the other influencer marketing platforms. In addition to sales turnaround, it is possible to expand the pool of potential customers through each influencer.
To support this global d-commerce model, SPIN Protocol issues SPIN token as a utility to pay and to incentivize each participants. Suppliers will use the SPIN token to register their products. Influencers will receive their revenue share in SPIN Token. Customers will be able to buy products with SPIN token, which will provide them a discount compared to paying in fiat currency.
Powerful Use Case
Womanstalk, a mobile commerce service with 1.5 million users in Korea, has joined as the first strategic partner and the first commerce service partner of SPIN Protocol. In order to accelerate the process, global suppliers of various categories ranging from beauty, fashion, food and health & diet supplements are joining the engine in cooperation with Womanstalk. When suppliers register their products on the Womanstalk platform, the products will be automatically registered on the protocol’s ecosystem. Additionally, current users of Womanstalk will actively engage in the influencer deals powered by SPIN Protocol to create the massive use cases of the blockchain technology.
SPIN Protocol, in addition to assisting the influencers-suppliers connection, provides support services for operating shops, such as customer relations, payments, and logistics. Therefore, influencers can become independent sellers and run their own personal shops within the SPIN ecosystem.
Until now, influencer marketing has been applied in limited areas of marketing and promotion. However, it is expected that it will expand to an influencer commerce market with a proper evaluation system, transparent contract management, and global infrastructure support. As the traditional online distribution platforms that have simply scaled up from offline shopping to online now seek new innovations, it is a time to expect this innovative d-commerce model that incorporates evolving customer groups on social media.
SPIN Protocol’s private token sale is currently undergoing with global top-tier crypto funds and institutions. More details can be found on SPIN Protocol’s official website.